Requirements 13, 14, 15, 16 & 17
2 Using Excel 3 Boyd Corporation is a manufacturer that uses job-order costing. On January 1, 4 2024, the company's inventory balances were as follows: S 16 Raw Materials Inventory $60,000 7 Work-in-Process Inventory $38,000 18 Finished Goods Inventory $55,000 9 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, 2024, the company's predetermined overhead rate per direct labor-hour was based on a cost formula that estimated $812,500 of total 10 manufacturing overhead for an estimated activity level of 65,000 direct labor-hours. 11 12 Requirements: Use the contribution margin approach to compute the change in net 13 operating income if sales fall by 90 units. Use the contribution margin approach to compute the change in net operating income if the selling price per unit increases by $20 per unit and the sales volume 14 decreases by 50 units. Use the contribution margin approach to compute the change in net operating income if the sales increase by 5% and advertising spending is increased by 15 $5,000. Use the contribution margin approach to calculate margin of safety in 16 dollars, as a percent and in units. Use the contribution margin approach to calculate operating leverage. What is the estimated percent increase in net income if sales increase 17 10%? New Operating Income? Requirement 13 Use the contribution margin approach to compute the change in net operating income if sales fall by 90 units. Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data Use the Excel ROUNDUP function to obtain whole units or dollars New Operating Income change in Operating Income Requirement 14 Use the contribution margin approach to compute the change in net operating income if the selling price per unit increases by $20 per unit and the sales volume decreases by 50 units Reference the DATA cells) in your formula below. Format as number Use the Excel ROUNDUP function to obtain whole units or dollars New Operating Income change in Operating Income Requirement 15 Use the contribution margin approach to compute the change in net operating income if the sales increase by 5% Reference the DATA cel(s) in your formula below. Format as a number. Always refer to the original data Use the Excel ROUNDUP function to obtain whole units or dollars New Operating Income change in Operating Income Requirement 16 Use the contribution margin approach to calculate margin of safety in dollars, as a percent and in Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the orginal data Use the Excel ROUNDUP function to obtain whole units or dollars Margin Safety $ Margin Safety % Margin Safety units Requirement 17 Use the contribution margin approach to calculate operating leverage. What is the estimated percent increase in net income if sales increase 10%? New Operating Income? Reference the DATA cel(s) in your formula below. Format as a number. Always refer to the original data Operating Leverage Change in Operating Income % New Operating Income $ 3 Accounts Receivable 4 Raw Materials Inventory 5 Work-in-Process Inventory 6 Finished Goods Inventory 7 Accounts Payable 8 Wages Payable 9 Sales Revenue 10 Manufacturing Overhead 11 Cost of Goods Sold 12 Selling & Administrative Expense 13 14 15 16 17 18 1 2 The following transactions were recorded for the year: 3 4 a Raw materials were purchased on account, $560,000 Raw materials used in production, $530,000. All of the raw materials were used as direct 5 b materials. The following costs were accrued for employee services direct labor, $650,000; indirect labor, 6 C $200,000, selling and administrative salaries, $290,000 Incurred various selling and administrative expenses (eg, advertising, sales travel costs, and 7 d finished goods warehousing), $417,000 8 e Incurred various manufacturing overhead costs (eg, rent, insurance, and utilities), $550,000. Manufacturing overhead cost was applied to production. The company actually worked 46,000 9 f direct labor-hours on all jobs during the year Jobs costing $1,730,000 to manufacture according to their job cost sheets were completed 10 g during the year. Jobs were sold on account to customers during the year for a total of $2,850,000. The jobs cost 11 h $1,740,000 to manufacture according to their job cost sheets. 12 2 Using Excel 3 Boyd Corporation is a manufacturer that uses job-order costing. On January 1, 4 2024, the company's inventory balances were as follows: S 16 Raw Materials Inventory $60,000 7 Work-in-Process Inventory $38,000 18 Finished Goods Inventory $55,000 9 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, 2024, the company's predetermined overhead rate per direct labor-hour was based on a cost formula that estimated $812,500 of total 10 manufacturing overhead for an estimated activity level of 65,000 direct labor-hours. 11 12 Requirements: Use the contribution margin approach to compute the change in net 13 operating income if sales fall by 90 units. Use the contribution margin approach to compute the change in net operating income if the selling price per unit increases by $20 per unit and the sales volume 14 decreases by 50 units. Use the contribution margin approach to compute the change in net operating income if the sales increase by 5% and advertising spending is increased by 15 $5,000. Use the contribution margin approach to calculate margin of safety in 16 dollars, as a percent and in units. Use the contribution margin approach to calculate operating leverage. What is the estimated percent increase in net income if sales increase 17 10%? New Operating Income? Requirement 13 Use the contribution margin approach to compute the change in net operating income if sales fall by 90 units. Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data Use the Excel ROUNDUP function to obtain whole units or dollars New Operating Income change in Operating Income Requirement 14 Use the contribution margin approach to compute the change in net operating income if the selling price per unit increases by $20 per unit and the sales volume decreases by 50 units Reference the DATA cells) in your formula below. Format as number Use the Excel ROUNDUP function to obtain whole units or dollars New Operating Income change in Operating Income Requirement 15 Use the contribution margin approach to compute the change in net operating income if the sales increase by 5% Reference the DATA cel(s) in your formula below. Format as a number. Always refer to the original data Use the Excel ROUNDUP function to obtain whole units or dollars New Operating Income change in Operating Income Requirement 16 Use the contribution margin approach to calculate margin of safety in dollars, as a percent and in Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the orginal data Use the Excel ROUNDUP function to obtain whole units or dollars Margin Safety $ Margin Safety % Margin Safety units Requirement 17 Use the contribution margin approach to calculate operating leverage. What is the estimated percent increase in net income if sales increase 10%? New Operating Income? Reference the DATA cel(s) in your formula below. Format as a number. Always refer to the original data Operating Leverage Change in Operating Income % New Operating Income $ 3 Accounts Receivable 4 Raw Materials Inventory 5 Work-in-Process Inventory 6 Finished Goods Inventory 7 Accounts Payable 8 Wages Payable 9 Sales Revenue 10 Manufacturing Overhead 11 Cost of Goods Sold 12 Selling & Administrative Expense 13 14 15 16 17 18 1 2 The following transactions were recorded for the year: 3 4 a Raw materials were purchased on account, $560,000 Raw materials used in production, $530,000. All of the raw materials were used as direct 5 b materials. The following costs were accrued for employee services direct labor, $650,000; indirect labor, 6 C $200,000, selling and administrative salaries, $290,000 Incurred various selling and administrative expenses (eg, advertising, sales travel costs, and 7 d finished goods warehousing), $417,000 8 e Incurred various manufacturing overhead costs (eg, rent, insurance, and utilities), $550,000. Manufacturing overhead cost was applied to production. The company actually worked 46,000 9 f direct labor-hours on all jobs during the year Jobs costing $1,730,000 to manufacture according to their job cost sheets were completed 10 g during the year. Jobs were sold on account to customers during the year for a total of $2,850,000. The jobs cost 11 h $1,740,000 to manufacture according to their job cost sheets. 12
