Question 4: Macaroon Corporation produces product ABC and has provided the data from its activity-based costing system for assembly processingedets and inspection of its product. They have estimated a total cost of at a total of 20.000 machine bout it Costed the company total of 5383.180 for the assembly of product ABC The company produced a total of 1.100 osat a total of $50,79 and 1.620 hours of inspection at a total of 106, 100 In the year 2018, the company produced and sold a total of 210 unit at a selling price per unit 124.60 The mual machine hour of production was a total of 320 and insestion hours 10 The anal orders came out to be a lotal of 80 cds where the direct matcrial.co.ptt. $22.0% and Direct labor cost per unit 45.ZZ Activity Pool Cost Total Cost Total Activity Assembly 383180 21000 Processing Onder 50 1100 Inspection 106100 1620 Selling Price Per Unit 124.6 Direct Material Cost per unit 2208 Direct Laber Cost Per unit 45.77 Annual Units Production & Sales Annual Machine Hours 320 Annual Orders Annual Inspection Hours 10 10 NO A Determine the suitable production margin for product ABC based on at assembly (2 marks) processing orders marks) and inspection cost pool2 marks) a Compute the appropriate activity cost rate for product. 3 Mark) C Compute the average cost of product ABC. Marks) College of Administrative and Financial Sciences 1. Tr, SY2021-22 Question 5: Iron Manufactures decorative iron railinps makes several assumptions when it comes to preparing for next year's operations. The management has developed a number of estimates which include sales price, fixed cost, and variable cost per unit. Running their analysis involves using several equations to figure out the best sales volume option for them. The assumptions the company made are Per Sales 20.000 units SO 5.50 Direct Mat S200 000 510 Direct Lahor variable) 550.000 5250 Manufacturing therheap Vanish $20.000 S350 Fixed S 80.000 54 Selling & Administrative Variable S 100 000 55 Fixed $ 30,000 $1.50 For the business to be profitabile, the contribution margimus exceed total fixed costs Determine whether the contribution margin of the company exceeds its total fixed cost 2 Marks. If yes, determine what is the appropriate becak even point in both dollars and units) for the company, (2 Marka Evaluate what will the revenue carned by the company be after they pay all their fixed and anable costs associated with the production (2 Marks). If the company is targeting a of operating income of S660.500, what will the best degree of net operating leverage be? (2 Marks)