Question 4 (2 points) Janitor Co. manufactures two different products: Prep Alpha and Prep Beta. Budgeted...

Transcribed Image Text:

Question 4 (2 points) Janitor Co. manufactures two different products: Prep Alpha and Prep Beta. Budgeted overhead costs fall under the following categories: setting up machines, $500,000; machining, $2,800,000; and inspecting, $800,000. Budgeted information on the two products for the year are as follows: Direct Labour Hours Machine Setups Machine Hours Inspections Prep A 990000 458 4532 1456 Prep B 101000 258 7951 2478 What is the applied overhead to Prep B using traditional costing with direct labour hours as the cost driver? 379560 4100000 3720440 4629 Question 5 (2 points) Cistern produces only one product that sells for $15 per unit. During its first year of operations, 150,000 units were produced, and 125,000 units were sold. Manufacturing costs and selling and administrative expenses for the year are below: Direct Materials Direct Labour Selling Costs Fixed Costs Manufacturing Overhead 125,000 14,500 Variable Costs 2.5 2.25 0.85 0.5 What was the operating income for the year if the company uses variable costing? 973000 1735500 2125000 1195500 Question 4 (2 points) Janitor Co. manufactures two different products: Prep Alpha and Prep Beta. Budgeted overhead costs fall under the following categories: setting up machines, $500,000; machining, $2,800,000; and inspecting, $800,000. Budgeted information on the two products for the year are as follows: Direct Labour Hours Machine Setups Machine Hours Inspections Prep A 990000 458 4532 1456 Prep B 101000 258 7951 2478 What is the applied overhead to Prep B using traditional costing with direct labour hours as the cost driver? 379560 4100000 3720440 4629 Question 5 (2 points) Cistern produces only one product that sells for $15 per unit. During its first year of operations, 150,000 units were produced, and 125,000 units were sold. Manufacturing costs and selling and administrative expenses for the year are below: Direct Materials Direct Labour Selling Costs Fixed Costs Manufacturing Overhead 125,000 14,500 Variable Costs 2.5 2.25 0.85 0.5 What was the operating income for the year if the company uses variable costing? 973000 1735500 2125000 1195500