A company requires $1700000 in sales to meet its net income target. Its contribution margin is...

     

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A company requires $1700000 in sales to meet its net income target. Its contribution margin is 50% and fixed costs are $300000. What is the company's target net income? $850000 $450000 $1100000 $550000 Current Attempt in Progress Sunland reported the following results from the sale of 5000 units in May: sales $200000, variable costs $110000, fixed costs $60000, and net income $30000. Assume that Sunland increases its selling price by 5% on June 1. How many units will have to be sold in June to maintain the same level of net income? 4500. 4725. 4750. 5000. Crane Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. The following information is available regarding activity cost pools, cost drivers, total estimated overhead costs, and estimated use of activities per product: Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection Cost Driver Orders Setups Machine hours Parts Inspections Est. Overhead $0.85 per direct labor hour. $170 per order. $0.09 per part. O $6658 per order. $ 85000 346500 1517500 1130000 250000 Cost Driver Activity 500 orders 450 setups 125000 MH 1000000 parts 500 inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is Oriole Co. estimates that it will incur $1015000 of overhead costs each year in its three main departments, machining ($580000), inspections ($290000) and packing ($145000). 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 Oriole's two products and their estimated use of cost drivers is as follows: Machining hours Inspections Orders packed Direct labor hours Product X $244083 $351346 $493000 O $507500 1000 100 350 1700 Product Y 3000 500 650 1800 If traditional costing based on direct labor hours is used, how much overhead will be assigned to Product X? Current Attempt in Progress Crane Toys & Games, Inc. manufactures specialty toys. Crane uses a traditional product costing system to assign overhead costs uniformly to all products. To meet industry safety standards and to assure its customers of safe and durable toys, Crane assigns its quality-control overhead costs to all products at a rate of 22% of direct labor costs. Its direct labor cost for the month of August for its toddler line of toys is $302,000. In response to repeated requests from its financial vice president, Crane's management agrees to adopt activity-based costing. Data relating to the toddler line of toys for the month of August are as follows: Activity Cost Pools Materials Inspection Assembly Line Inspection National Toy Association Certification (a) Traditional costing Activity-based costing $ Cost Drivers Compute the quality-control overhead cost to be assigned to the toddler toy line for the month of August (1) using the traditional product costing system (direct labor is the cost driver), and (2) using activity-based costing. Quality-Control Overhead Cost tA Number of pounds Number of finished toys Retail orders $ Overhead Rate $0.70 per pound $0.16 per toy $2.00 per order Number of Cost Drivers Used per Activity 40,000 pounds 204,000 toys 1,100 orders Current Attempt in Progress Bramble, Inc. produces two types of gas grills: a family model and a deluxe model. Bramble's controller has decided to use a plantwide overhead rate based on direct labor costs. The president of the company recently heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations: Direct labor costs Machine hours Setup hours (a) Family Model $77,700 Overhead rate 2,000 200 $ Deluxe Model $155,400 Total estimated overhead costs are $466,200. Overhead cost allocated to the machining activity cost pool is $279,720 and $186,480 is allocated to the machine setup activity cost pool. 2,000 800 Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e.g. 15.25.) A company requires $1700000 in sales to meet its net income target. Its contribution margin is 50% and fixed costs are $300000. What is the company's target net income? $850000 $450000 $1100000 $550000 Current Attempt in Progress Sunland reported the following results from the sale of 5000 units in May: sales $200000, variable costs $110000, fixed costs $60000, and net income $30000. Assume that Sunland increases its selling price by 5% on June 1. How many units will have to be sold in June to maintain the same level of net income? 4500. 4725. 4750. 5000. Crane Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. The following information is available regarding activity cost pools, cost drivers, total estimated overhead costs, and estimated use of activities per product: Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection Cost Driver Orders Setups Machine hours Parts Inspections Est. Overhead $0.85 per direct labor hour. $170 per order. $0.09 per part. O $6658 per order. $ 85000 346500 1517500 1130000 250000 Cost Driver Activity 500 orders 450 setups 125000 MH 1000000 parts 500 inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is Oriole Co. estimates that it will incur $1015000 of overhead costs each year in its three main departments, machining ($580000), inspections ($290000) and packing ($145000). 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 Oriole's two products and their estimated use of cost drivers is as follows: Machining hours Inspections Orders packed Direct labor hours Product X $244083 $351346 $493000 O $507500 1000 100 350 1700 Product Y 3000 500 650 1800 If traditional costing based on direct labor hours is used, how much overhead will be assigned to Product X? Current Attempt in Progress Crane Toys & Games, Inc. manufactures specialty toys. Crane uses a traditional product costing system to assign overhead costs uniformly to all products. To meet industry safety standards and to assure its customers of safe and durable toys, Crane assigns its quality-control overhead costs to all products at a rate of 22% of direct labor costs. Its direct labor cost for the month of August for its toddler line of toys is $302,000. In response to repeated requests from its financial vice president, Crane's management agrees to adopt activity-based costing. Data relating to the toddler line of toys for the month of August are as follows: Activity Cost Pools Materials Inspection Assembly Line Inspection National Toy Association Certification (a) Traditional costing Activity-based costing $ Cost Drivers Compute the quality-control overhead cost to be assigned to the toddler toy line for the month of August (1) using the traditional product costing system (direct labor is the cost driver), and (2) using activity-based costing. Quality-Control Overhead Cost tA Number of pounds Number of finished toys Retail orders $ Overhead Rate $0.70 per pound $0.16 per toy $2.00 per order Number of Cost Drivers Used per Activity 40,000 pounds 204,000 toys 1,100 orders Current Attempt in Progress Bramble, Inc. produces two types of gas grills: a family model and a deluxe model. Bramble's controller has decided to use a plantwide overhead rate based on direct labor costs. The president of the company recently heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations: Direct labor costs Machine hours Setup hours (a) Family Model $77,700 Overhead rate 2,000 200 $ Deluxe Model $155,400 Total estimated overhead costs are $466,200. Overhead cost allocated to the machining activity cost pool is $279,720 and $186,480 is allocated to the machine setup activity cost pool. 2,000 800 Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e.g. 15.25.)

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