We the following Willount = $20,000 TILP 500 Variable cost per unit = $300 Total fixed cost = $10,000 ired revenue to achieve the target operating income and compute.com Compute the required reve come statement to prove the totals. bution income si nt Exercise 18-3: Target Operating Income Lssignment Exercise 1 Medical Supply Company desires a target operating income amount of $100,000, vid sumption inputs as follows: Desired (target) operating income amount - $100,000 Unit price for sales = $80 Variable cost per unit = $60 Total fixed cost = $60,000 ompute the required revenue to achieve the target operating income and compute.com mibution income statement to prove CHAPTER 19 Assignment Exercise 19-1 Xercise 19-1: Estimate of Loss 000. It is ager for a four-physician office. You are on Monday morning to find verhead sprinklers that malfunctioned over the weekend uters are fried and the content of all the records were stored, has the worse ND SOLUTIONS 564 EXAMPLES AND EXERCISES, SUPPLEMENTAL MATERIALS, AND SO Assignment Exercise 18-1: Variance Analysis Greenview Hospital operated at 120% of normal capacity in two of its departments year. It operated 120% times 20,000 normal capacity direct labor nursing hours in vices and it operated 120% times 20,000 normal capacity equipment hours in the la The lab allocates overhead by measuring minutes and hours the equipment is used; thi ment hours. uments during the us in routine ser- in the laboratory sused; thus equip Assumptions For Routine Services Nursing: 20,000 hours X 120% = 24,000 direct labor nursing hours. Budgeted Overhead at 24,000 hours = $42,000 fixed plus $6,000 variable = $48,000 total Actual Overhead at 24,000 hours = $42,000 fixed plus $7,000 variable = $49,000 total. Applied Overhead for 24,000 hours at $2.35 = $56,400. For Laboratory: 20,000 hours X 120% = 24,000 equipment hours. Budgeted Overhead at 24,000 hours = $59,600 fixed plus $11,400 variable = $71,000 total. Actual Overhead at 24,000 hours $59,600 fixed plus $11,600 variable = $71,200 total. Applied Overhead for 24,000 hours at $3.455 = $82,920. Required 1. Set up a worksheet for applied overhead costs and volume variance with a column Routine Services Nursing and a second column for Laboratory. 2. Set up a worksheet for actual overhead costs and budget variance with a column tine Services Nursing and a second column for Laboratory. 3. Set up a worksheet for volume variance and budget variance totaling net varande column for Routine Services Nursing and a second column for Laboratory. 4. Insert input data from the Assumptions. 5. Complete computations for all three worksheets. ample 18B Few the "Sensitivity Analysis yeni
