Question 3 Musich Corporation has an activity-based costing system with three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, have been allocated to the cost pools already and are provided in the table below. Activity Cost Pools Machining $ Setting Up $ Other $ Total $ Equipment depreciation Indirect labor Total $ $ $ $ Costs in the Machining cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Data concerning the two products and the company's costs appear below: MHS Batches Product Z3 Product T1 Total Product Z3 Product T1 Sales (total) Direct materials (total) Direct labor (total) Required: Calculate the following: Machining Activity Rate: $ Setting up Activity Rate: $ Amount of OH applied to product 23 (round to the nearest dollar): $ Amount of OH applied to product T1 (round to the nearest dollar): $ Product Margin - Z3 (round to the nearest dollar): $ Product Margin - T1 (round to the nearest dollar): $ Question 4 Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per Unit $ Selling price Variable expenses Contribution margin Percent of Sales % % % $ Fixed expenses are $ per month. The company is currently selling units per month. Required: Calculate the following: Contribution Margin Ratio: % Break Even point in Sales Dollars (rounded to the whole dollar): $ Margin of Safety in Units (nearest whole units): Units Question 3 Musich Corporation has an activity-based costing system with three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, have been allocated to the cost pools already and are provided in the table below. Activity Cost Pools Machining $ Setting Up $ Other $ Total $ Equipment depreciation Indirect labor Total $ $ $ $ Costs in the Machining cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Data concerning the two products and the company's costs appear below: MHS Batches Product Z3 Product T1 Total Product Z3 Product T1 Sales (total) Direct materials (total) Direct labor (total) Required: Calculate the following: Machining Activity Rate: $ Setting up Activity Rate: $ Amount of OH applied to product 23 (round to the nearest dollar): $ Amount of OH applied to product T1 (round to the nearest dollar): $ Product Margin - Z3 (round to the nearest dollar): $ Product Margin - T1 (round to the nearest dollar): $ Question 4 Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per Unit $ Selling price Variable expenses Contribution margin Percent of Sales % % % $ Fixed expenses are $ per month. The company is currently selling units per month. Required: Calculate the following: Contribution Margin Ratio: % Break Even point in Sales Dollars (rounded to the whole dollar): $ Margin of Safety in Units (nearest whole units): Units
