Information is given in the table Product A Product B Total 150 420 $9,000 $10,500 sales...
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Information is given in the table Product A Product B Total 150 420 $9,000 $10,500 sales volume (units) 270 Revenue Variable costs: direct materials direct labor Profit $1,500 $300 $600 Contribution margin $600 Fixed costs $600 $900 $1,500 $6,900 $2,100 $7,500 $6,300 $1,200 a) Allocate the fixed costs between products A and B. Use direct labor dollars as the cost driver. allocation rate=$ per DL$ allocated costs for A=$| allocated costs for B=$ b) Compute the profit margins for products A and B: profit margin for A=$ profit margin for B=$[ Enter negative numbers with a minus sign, i.e., a loss of $1,000 should be entered as -1000, not as (1000) or ($1000). e) Allocate the fixed costs between products A and B, using the number of units as the cost driver. allocation rate=$ per unit allocated costs for A=$ allocated costs for B=$ Information is given in the table Product A Product B Total 150 420 $9,000 $10,500 sales volume (units) 270 Revenue Variable costs: direct materials direct labor Profit $1,500 $300 $600 Contribution margin $600 Fixed costs $600 $900 $1,500 $6,900 $2,100 $7,500 $6,300 $1,200 a) Allocate the fixed costs between products A and B. Use direct labor dollars as the cost driver. allocation rate=$ per DL$ allocated costs for A=$| allocated costs for B=$ b) Compute the profit margins for products A and B: profit margin for A=$ profit margin for B=$[ Enter negative numbers with a minus sign, i.e., a loss of $1,000 should be entered as -1000, not as (1000) or ($1000). e) Allocate the fixed costs between products A and B, using the number of units as the cost driver. allocation rate=$ per unit allocated costs for A=$ allocated costs for B=$
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To answer the questions provided in the two parts well work through each one step by step a Allocate the fixed costs between products A and B We use d... View the full answer
Related Book For
Spreadsheet Modeling & Decision Analysis A Practical Introduction to Management Science
ISBN: 978-0324656633
5th edition
Authors: Cliff T. Ragsdale
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