View Policies Current Attempt in Progress A company requires $2700000 in sales to meet its net income target. Its contribution margin is 20%, and fixed costs are $300000. What is the target net income? O $700000 O $540000 $240000 O $360000 Current Attempt in Progress Foxx Company incurs $370000 overhead costs each year in its three main departments, setup (525000), machining ($245000), and packing ($100000). The setup department performs 40 setups per year, the machining department works 5000 hours per year, and the packing department packs 500 orders per year. Information about Foxx's two products is as follows: Product A1 Product B1 20 20 1000 4000 Number of setups Machining hours Orders packed Number of products manufactured 150 350 D 600 400 If machining hours are used as a base under traditional casting, how much overhead is assigned to Product A1 cach year? O $185000 O $74000 O $122500 O $111000 One of Matheny Company's activity cost pools is inspecting with estimated overhead of $150000. Matheny produces throw rugs (700 inspections) and area rugs (1300 inspections). How much of the inspecting cost pool should be assigned to throw rugs? $80769. O $150000. O $52500 $75000 Current Attempt in Progress Hartley Company produces two products, Flower and Planter Flower is a high-volume item totaling 20000 units annually. Planter is a low-volume item totaling only 6000 units per year. Flower requires 1 hour of direct labor for completion while each unit of Planter requires 2 hours. Therefore, total annual direct labor hours are 32000 (20000 + 12000). Expected annual manufacturing overhead costs are $680000. Hartley uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of Planter would be assigned overhead of O $42.50. O $26.15 O $21.25 O need more information to compute. Thomsen Computer Company produces three products: Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups. Thomsen has identified an activity cost pool with allocated overhead of $900000 for which the cost driver is machine setups. How much overhead is assigned to each product? Earth Wind Fire $168750 $300000 $431250 $225000 $168750 $506250 $187500 $140625 $421875 $300000 $300000 $300000 Windsor Co. incurs $969375 of overhead costs each year in its three main departments, machining ($550000). inspections ($275000) and packing ($144375). The machining department works 4000 hours per year, there are 600 inspections per year, and the packing department packs 1000 orders per year. Information about Windsor's two products is as follows: Product Product Y 1000 3000 100 500 Machining hours Inspections Orders packed Direct labor hours 350 650 1700 1800 If traditional costing based on direct labor hours is used, how much overhead is assigned to Product X this year? O $470839 O $233865 O $335553 O $484688 Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of machining. $3200000; and assembling. $1600000. Information on the two products is: Direct labor hours Machine hours Number of parts Regular Supreme 10000 15000 10000 30000 90000 160000 N Overhead applied to Supreme using activity based costing is O $2880000 O $3424000 O $1376000. $1920000. Zimmerman Company manufactures two products, Board 12 and Case 165. Zimmerman's overhead costs consist of setting up machines, $2800000; machining. $5300000; and inspecting. $2100000. Information on the two products is: Board 12 15000 Case 165 25000 600 400 Direct labor hours Machine setups Machine hours Inspections 24000 26000 800 700 Overhead applied to Board 12 using activity-based costing is O $3825000 O $5344000 O $6120000 O $4856000
