Question 1: Hey Diddle Diddle Inc. makes fiddles. They estimate that they will sell 7,250 fiddles next year and get $688,750 in revenue. They estimate they will have variable costs per fiddle of $53 and total fixed costs of $210,000. The tax rate is 30%. One worker, Mr. Cat, has a plan to increase sales. He believes that if they drop the price of each fiddle by $10 and spend an additional $30,000 on advertising, a fixed expense, they will be able to sell 10,250 fiddles. With this information please solve for: a. The Net income under the original plan: b. The break even units under the original plan: - C. The Revenue under Mr.Cat's Plan: d. Whether Hey Diddle Diddle Inc. should implement Mr.Cat's Plan(yes or no): e. Explain your answer to d: Question 2: Hickery Dickery Co. makes made to order clocks. One of the jobs Hickery Dickery Co. worked on during the month was Job Mouse, which used $70 in direct materials, $60 in direct labor costs (paid at $15 an hour) and 10 machine hours. They use normal costing to help track costs for the clock orders they fill and use direct labor hours as their allocation base. At the beginning of the month, Hickery Dickery Co. believes they will use 2,500 direct labor hours, 5,000 machine hours and have $ 28,750 in manufacturing overhead costs. At the end of the month, Hickery Dickery Co. finds they used 2,400 direct labor hours, 5,050 machine hours and had $28,125 in manufacturing overhead costs for all their jobs. With this information, please solve for the following: a. The budgeted manufacturing overhead allocation rate: b. Total cost applied to Job Mouse: c. Whether the manufacturing overhead was over or under applied for the month: d. How much was the manufacturing overhead over/under-applied by Question 3: Georgie Porgie Co. makes two types of desserts, "Puddings" and "Pies". Georgie Porgie Co. currently uses normal costing to find the costs of their desserts. They have been allocating costs based off a plant-wide allocation rate and used machine hours as their allocation base. Recently, they have decided to switch to activity based costing. Here is some of the information given regarding the two products and their production: Pudding Pies Activity Activity Measure Direct Materials $154,000 $281,000 Estimated MOH for each Activity $324,000 General Factory Direct Labor Hours $ 60,000 Direct Labor Direct Labor Hours Machine Hours $273,000 30,000 DLH 220,000 MH Machine Use Machine Hours 45,000 DLH 110,000 MH $ 132,000 $ 48,000 Machine Set Up Machine Set Ups Distribution Units Produced Machine Set Ups 200 Set Ups 400 Set Ups $ 24,000 $ 264,000 Units Produced 200,000 Puddings 200,000 Pies Using the given information please: a. Find the cost per unit of Pudding using activity-based costing: b. Find the cost per unit of Pie using activity-based costing: - Question 5: Little Boy Blue Inc. uses process costing in costing out their WIP inventory. Here is some information about their WIP account for the month of June: WIP Inventory, June 1: 5,000 units (100% DM, 80% Conversion) WIP Inventory, June 30: 8,000 units (100% DM, 50% Conversion) Materials Costs for WIP June 1: $ 20,450 Conversion Costs for WIP June 1: $ 26,160 Units Started in June: 30,000 units Units completed and trans. Out: 24,000 units Materials Costs added: $ 99,600 Conversion Costs added: $ 210,060 Normal Spoilage is 10% of good units and Normal and Abnormal spoilage have 100% of DM and Conversion. There are 3,000 spoiled units. With this information, please find: a. The cost per equivalent unit for direct materials using the weighted average method: b. The cost per equivalent unit for conversion costs using the weighted average method: 6. Find the Total Cost of Goods manufactured using the weighted average method d. Find the Total Cost of Ending Inventory using the weighted average method e. The cost per equivalent unit for direct materials using the FIFO method_ 1. The cost per equivalent unit for conversion costs using the FIFO method: & Find the Total Cost of Goods manufactured using the weighted FIFO method: h. Find the Total Cost for Ending Inventory using the FIFO method: 5 6 9