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The estimated cost and operating data for two companies for the upcoming year is as follows: 5 5 Formula: POHR: Company X Company Y 75,000

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The estimated cost and operating data for two companies for the upcoming year is as follows: 5 5 Formula: POHR: Company X Company Y 75,000 45,000 30,000 115,000 $ 400,000 $ 290,000 $ 536,000 $ 520,000 Direct Labour Hours Machine Hours . Direct Materials Cost Manufacturing Overhead Cost Total Estimated MOH Costs Total Estimated Allocation Base Predetermined overhead rates are computed using the following bases in the two companies: Company X Y Overhead Rate Based On: Direct Labour Hours Machine Hours Required: a. Compute the predetermined overhead rate to be used in Company X b. Compute the predetermined overhead rate to be used in Company Y. c. Assume that Company X works on 3 iobs during the upcoming vear. . 25 23 Direct labour hours are recorded as follows for the jobs: 24 Job 418 16,000 hours Job 419 27,000 hours 26 Job 420 36,000 hours 27 How much overhead cost will the company apply to work in process 28 for the year? If the actual overhead costs total $530,000 for the year, will 29 the overhead be under or over applied? By how much? 3 Precko produces salt water fish tanks selling each unit for $700. Current annual production and sales 4 volume is 2500 fish tanks. This is the activity level used by the company to determine its fixed manufacturing 5 overhead rate. Other cost information is as follows: Formula: Breakeven 6 FC CM per unit 7 Direct Material Cost per Unit $150 8 Direct Labour Cost per Unit $80 9 Variable Manufacturing Overhead per Unit 545 10 Sales Commission per Unit $5 11 Total Fied Manufacturing Overhead $580,000 12 13 Required: 14 1. Compute the contribution margin for the company. 15 2. Compute the contribution margin ratio for the company, 16 3. Compete the Breakeven point in Units for company. 17 4. Compute the Breakeven point in dollars (55) for the company. 18 S. How many units must be sold to earn a target operating income of $596,000? 19 20

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