Questions 01: The budgeted unit sales of Hirst Company for the upcoming fiscal year are provided below: First Quarter Second Quarter Third Quarter Fourth Ovarter The company's variable selling and administrative expenses per unit are $2.25. Fixed selling and administrative expenses include advertising expenses of $10,000 per quarter, executive salaries of $30,000 per quarter, and depreciation of $12,000 per quarter. Prepare the company's selling and administrative expense budget for the upcoming fiscal year. Also include the cash disbursements for selling and administrative expenses. 15.5 10 Marks Question 2: PWC Systems Inc. makes personal watercraft for sale through specialty sporting Goods Stores The company has a standard model but also makes custom-designed models. Management has designed an ABC system with the following activity cost pools and activity rates: Activity Cost Pool Sporting and hou Activity Rates de Order God 30 per Distomer Service Management would like an analysis of the profitability of a particular customer, WaveRider, which has ordered the following products over the last 12 months: Standard Model Custom Design Number of warcraft......... Number of orders.... Number of customers.... Direct our hours per watercraft........ Selling priceper wa t .............. Directi on powercraft..... $920 The company's direct labor rate is $28 per hour. Using the company's ABC system, compute the customer margin of WaveRider. [10 Marks] Questions 01: The budgeted unit sales of Hirst Company for the upcoming fiscal year are provided below: First Quarter Second Quarter Third Quarter Fourth Ovarter The company's variable selling and administrative expenses per unit are $2.25. Fixed selling and administrative expenses include advertising expenses of $10,000 per quarter, executive salaries of $30,000 per quarter, and depreciation of $12,000 per quarter. Prepare the company's selling and administrative expense budget for the upcoming fiscal year. Also include the cash disbursements for selling and administrative expenses. 15.5 10 Marks Question 2: PWC Systems Inc. makes personal watercraft for sale through specialty sporting Goods Stores The company has a standard model but also makes custom-designed models. Management has designed an ABC system with the following activity cost pools and activity rates: Activity Cost Pool Sporting and hou Activity Rates de Order God 30 per Distomer Service Management would like an analysis of the profitability of a particular customer, WaveRider, which has ordered the following products over the last 12 months: Standard Model Custom Design Number of warcraft......... Number of orders.... Number of customers.... Direct our hours per watercraft........ Selling priceper wa t .............. Directi on powercraft..... $920 The company's direct labor rate is $28 per hour. Using the company's ABC system, compute the customer margin of WaveRider. [10 Marks]
