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Quincy Ltd uses job order costing for its production system. The company uses machine hours to apply its overhead to work in process. On 1

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Quincy Ltd uses job order costing for its production system. The company uses machine hours to apply its overhead to work in process. On 1 September 2020, the management estimated that the company would incur $680,000 in manufacturing overhead costs and 64 000 machine hours for the coming year. Required: (a) Calculate the predetermined overhead rate. (b) Assume that Beautiful Bottles Pty Ltd used only 61 000 machine hours and incurred the following costs in 2021: 15 m Maintenance $ 64 000 Depreciation 210 000 Indirect materials 84 000 Utilities 172 000 Insurance 92 000 Calculate over/under applied overhead and prepare the journal entry to write 15 off any under-or over-applied overhead against cost of goods sold in 2021. $130 Question 2 = 70% Keira Ville childcare provides day-care service for children from 1 to under 5 years old during week days. Its monthly variable costs per child are: Lunch and snacks Educational supplies 75 Other supplies (paper products, toiletries etc) 35 Monthly fixed costs consist of: Rental of building $2100 Utilities 400 Insurance 250 Salaries 1400 Miscellaneous 650 Keira Ville charges each parent $640 per child. Required: 1. Calculate the break-even point 20 marks 2. Keira Ville's target profit is $10 800 per month. Calculate the 20 marks number of children who must be enrolled to achieve the target profit 3. Keira Ville lost its lease and had to move to another building. 30 marks Monthly rent for the new building is $3 500. At the suggestion of parents, Keira Ville plans to take children on field trips. Monthly costs of the field trips are $2 500. By how much should Keira Ville increase fees per child to meet the target profit of $10 800 per month, assuming the same number of children as in requirement 22

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