Question 2: Jake Co. makes dog collars Jake Co believes they will sell 12.500 dog collars this year and have revenue on $56,250, total variable costs of $15,625 and total fixed costs of $32,825. With this information please find: a. Jake Co.'s target operating income: b. Jake Co.'s break even units: C. Jake Co.'s margin of safety: Question 3: Bubblegum Inc. makes candy. On average, Bubblegum Inc. sells each piece of candy for $.90 and has variable costs per unit of $.10. Currently, Bubblegum Inc. plans to sell 1,500,000 pieces of candy this year. The tax rate for the area is 25% and Bubblegum Inc. plans to make $480,000 in Net Income. Bonnibel, one of the managers at Bubblegum Inc., has come up with a plan to increase sales for the year by 600,000 pieces of candy. In order to do this, Bubblegum Inc. would drop the sales price to $.80 and increase variable costs for each piece of candy to $.20. With this information please solve for: a. The fixed costs for Bubblegum Inc: b. Whether Bubblegum Inc. should implement Bonnibel's plan: C. Explain your answer to b: question 4: Marceline Co. makes made to order guitars. One of the jobs Marceline Co. worked on during the month was ob Vamp, which used $1,200 in direct materials, 5210 in direct labor costs(paid at $15 an hour) and 125 machine hours. They use normal costing to help track costs for the guitar orders they fill and use machine hours as their allocation base. At the beginning of the month, Marceline Co. believes they will use 1,500 direct labor hours, 7,500 machine hours and have $ 17,700 in manufacturing overhead costs. At the end of the month, Marceline Co. finds they used 1,450 direct labor hours, 7,550 machine hours and had $17.610 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 Vamp: c. Whether the manufacturing overhead was over- or under-applied for the month: d. How much was the manufacturing overhead over/under-applied by estion 8: Tree Trunks Co. makes two different types of pastries: "Pies" and "Cakes". Tree Trunks Co. currently uses normal costing to find the costs of their pastries. They have been allocating costs based off a plant-wide allocation rate and used direct labor 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 Estimated MOH for each Activity $ 84,000 Ples Cakes Direct Materials $960,000 Activity $600,000 Activity Measure Direct Labor $270,000 $120,000 General Factory Direct Labor Hours Direct Labor Hours 30,000 DLH 12,000 DLH Machine Use Machine Hours Machine Hours 200,000 100,000 Machine Set Up Machine Set Ups Machine Set Ups 100 Set Ups 300 Set Ups Distribution Units Produced Units Produced 500,000 Pies 300,000 Cakes Using the given information please: a. Find the cost per unit of Ple using a plant-wide rate: b. Find the cost per unit of Cake using a plant-wide rate: c. Find the cost per unit of Ple using activity based costing: d. Find the cost per unit of Cake using activity based costing: $90,000 $ 100,000 $ 104,000 $ 378,000