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Use below information for Questions 14 to 15: Company X produces dining chairs and tables. The following budget information is available: Item Tables Total Cost
Use below information for Questions 14 to 15: Company X produces dining chairs and tables. The following budget information is available: Item Tables Total Cost Machine Setups Inspections Labor Hours Dining Chairs 220 250 2,400 600 460 2,490 TL 48.400 TL 72.000 Q-14) Compute total machine setups and inspection costs assigned to Dining Chairs, using plantwide method if the allocation base is labor hours. Q-15) Compute total machine setups and inspection costs assigned to Tables, using ABC. Q-16) A company has a unit contribution margin of $122 and a contribution margin ratio of 49%. What is the unit selling price? Q-17) Jane Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $60,200 per year. Jane employs a maintenance person at an annual salary of $41,000 and a cleaning person at an annual salary of $24,000. Real estate taxes are $10,600 per year. The rooms rent at an average price of $129 per person per night including breakfast. Other costs are laundry and cleaning service at a cost of $10.60 per person per night and the cost of food which is $5.60 per person per night. Jane is considering changing the business strategy. She considers installing additional cleaning machines which will decrease laundry and cleaning service per person per night by $3.40. However, fixed depreciation cost will increase by $4,060. Determine the number of rentals at which Jane would be indifferent between the current and proposed business models
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