Problem 1 (15 points) Kennedy Company reports the following costs and expenses in May $ 13,500 $79.100 48.400 Factory utilities Depreciation on factory equipment Depreciation on delivery trucks Indirect factory labor Indirect materials Direct materials used Factory manager's salary 12.650 3.800 48.900 70 BOO 157600 Direct labor Sales salaries Property taxes on factory building Repairs to office equipment Factory repairs Advertising Office supplies used 2.500 1.300 2000 23.000 2 540 8.000 Instructions From the information, determine the total amount of (a) Manufacturing overhead. (b) Product costs (c) Period costs Total Cost $12,500 $12.000 Problem 2 (10 points) 3 (High Low Method) Nease Company accumulates the following data concerning a mixed cost using miles as the activity level Miles Driven Total Cost Miles Driven January 10,000 $15.000 March 9,000 February 8,000 $14,500 April 7,500 Instructions Compute the variable and fixed cost elements using the high-low method Ace Company makes 2 products, footballs and baseballs. Additional information follow Units Sales Footballs 4.000 $60.000 36.000 9.000 $15.000 Variable costs Fixed costs Net income Baseballs 2.500 $25,000 7.000 9.000 $9.000 Profit per unit $3.75 $3.60 Instructions Ace has unlimited demand for both products. Therefore, which product should Ace tell his sales people to emphasize Show contribution margin calculation. Problem 4 (15 points) Break-even Point Dieker Goods Company has a unit selling price of $500, variable cost per unit $300, and fixed costs of $190,000 Instructions: Compute the break-even point in units and in sales dollars. Problem 5 (15 points) Target Net Income Marlene Company makes calculators that sell for $20 each. For the coming year management expects fixed cost to total $220,000 and variable costs to be $9 per unit. Instructions: Compute the sales required in units and in dollars to earn net income of $165,000