Required information [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Department Service 1 (S1) Service 2 (52) Production 1 (P1) Production 2 (P2) Provided to Cost $ 50,000 S1 S2 P1 P2 0% 20% 40% 40% 40,000 20 0 20 60 300,000 350,000 What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $300,000 to $320,000? P1 P2 Total Cost Allocated Horton Manufacturing Incorporated produces blinds and other window treatments for residential homes and offices. The owner is concerned about the maintenance costs for the production machinery because maintenance costs for the previous fiscal year were higher than he expected. The owner has asked you to assist in estimating future maintenance costs to better predict the firm's profitability. Together, you have determined that the best cost driver for maintenance costs is machine hours. The data from the previous fiscal year for maintenance costs and machine hours follow: Month 11 12345608G2 Maintenance Costs $ 2,700 2,745 Machine Hours 1,629 1,740 2,795 1,755 2,895 1,805 2,930 1,800 3,030 1,895 7 2,940 1,820 2,980 1,855 9 2,855 1,845 2,645 1,485 2,665 2,965 1,700 1,500 Required: 1. Use the high-low method to estimate the fixed and variable portions for maintenance costs. (In your calculations, round "slope (unit variable cost)" to 4 decimal places. Enter the "slope (unit variable cost)" rounded to 4 decimal places and all other calculations, to nearest whole dollar.) Maintenance cost X Hat Tricks Company (HTC) is a Buffalo, New York, manufacturer of hats and gloves. Recently, the company purchased a new machine to aid in producing the hat product lines. Production efficiency on the new machine increases with the workforce experience. It has been shown that as cumulative output on the new machine increases, average labor time per unit decreases up to the production of at least 3,200 units. As HTC's cumulative output doubles from a base of 100 units produced, the cumulative average labor time per unit declines by a learning rate of 90%. HTC has developed a new style of men's hat to be produced on the new machine. One hundred of these hats can be produced in a total of 10 labor hours. All other direct costs to produce each hat are $29 per hat, excluding direct labor cost. Direct labor cost per hour is $87. Fixed costs are $8,000 per month, and HTC has the capacity to produce 3,200 hats per month. Required: HTC plans to set the selling price for the new men's hat at 200% of direct production cost. If the company is planning to sell 100 hats, what is the selling price? If the plan is to sell 800 hats, what should be the selling price? (Do not round intermediate calculations. Round your answers to 2 decimal places.) For 100 hats For 800 hats Selling Price