Principal of Managerial Accounting, please find the attached file.

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Course: Principal of Managerial Accounting Course Code: ACCT 201 Assignment one This assignment will carry 10% from your total mark Q1: Medusa Products uses a Job-order costing system. Overhead costs applied to jobs on the basis of machine hours, at the beginning of the year, management estimated that 85,000 machine-hours would be required for the period's estimated level of production. The company also estimated $106,250 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $0.75 per machine hour. Required: 1. Compute the company's predermined overhead rate. 2. Assume that during the year the company actually works only 80,000 machinehours and incurs the following costs in the manufacturing overhead and work in process accounts: (Utitlites) Manufactiring Overhead 14,000 ? (Direct material) Work in Process 530,000 (Insurance) 9,000 (Direct labor) 85,000 33,000 (Overhead) ? (Indirect materials) 7,000 (Maintainance) (Indirect labor) 65,000 (Depreciation) 40,000 Copy the data in the T-accounts above onto your answer and coumpute the amount of the overhead cost that would be applied to Work in Process for the year, and make the entry in your T-accounts. 3. Compute the amount of underapplied or overapplied overhead for the year, and show the balance in your Manufacturing overhead T-account. Prepeare a journal entry to close out the balance in this account to cost of goods sold. 4. Explain why the manufacturing overhead was underapplied or overapplied for the year. Q2: Rocky Mountain Corporation makes two types of hiking boots - Xactive and the Pathbreaker. Data concering these two product lines appear below: XACTIVE $ 127.00 $64.80 $ 18.20 1.4 DLHs 25,000 units SELLING PRICE PER UNIT DIRECT MATERIALS PER UNIT DIRECT LABOR PER UNIT DIRECT LABOR-HOURS PER UNIT ESTIMATED ANNUAL PRODUCTION AND SALES PATHBREAKER $ $ 51.00 $ 13.00 1.0 DLHs 75,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead Estimated total direct labor-hours $ 2,200,000 110,000 DLHs Required: 1. Compute the product margin for the Xactive and the Pathbreaker products under the company's traditional costing system. 2. The company is considering replacing its traditional costing system with an activity based costing system that would assign its manufacturing overhead to the following four activity cost pools ( the other cost pool includes organizationsustaining cost and idle capacity costs): Activities and Activity Measures Supporting direct labor(direct laborhour) setups (setup) Batch Product sustaining (number of products) Other Total manufacturing overhead cost Expected Activity Xactive Pathbreaker Estimated Overhead Cost $ 797,500 Total 35,000 75,000 110,000 680,000 650,000 250 1 150 1 400 2 72,000 $ 2,200,000 N A NA NA Compute the product margin for the Xactive and the Pathbreaker products under the activity based costing system. 3. Prepare a quantitative comparison of the traditional and activity based cost assignments. Explain why the traditional and activity based cost assignments differ. Q3: Super Sales Company is the exclusive distributor for a revolutionary bookbag. The product sells for $60 per unit and has a CM ratio of 40%. The company's fixed expenses are $360,000 per year. The company plans to sell 17,000 bookbags this year. Required: 1. What are the variable expenses per unit? 2. Using the equation method: a. What is the break-even point in the units and in sales dollars? b. What sales level in units and in sales dollars in required to earn an annual profit of $90,000? c. Assume that through negotiation with the manufacturer the Super Sales Company is able to reduce its variable expenses be $3 per unit. What is the company's new break- even point in units and in sales dollar? 3. Repeat (2) above using the formula method