The selling price of the Thomas Corporation's product is $40.00 each, while the variable cost per...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The selling price of the Thomas Corporation's product is $40.00 each, while the variable cost per unit is $15.00. Fixed costs total $270,000. Required: 1. 2. Assume that Thomas Corporation has a targeted operating income of $500,000 for the upcoming year, what is the sales in units to achieve the target profit? If all else equal, the fixed expense increases, how will the break- even point be affected? (No explanation needed. Answer "Increase" or "Decrease" only.) 3. Use the shortcut unit contribution margin approach to compute monthly break-even sales in units. 4. If all else equal, the variable cost per unit increases, how will the break-even point be affected? (No explanation needed. Answer "Increase" or "Decrease" only.) 2. Sticklers Manufacturing uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on direct labour costs. The hourly wage of one employee is $30/hour. At the beginning of the year, the company expected to incur the following: Depreciation on manufacturing plant $245,300 Property taxes on plant. $9.200 Insurance on headquarter building $11,000 Utilities on headquarter building $12,000 Marketing expense $8,000 Plant janitors wages $5,500 Direct labour hours 40,000 hours Job#471 uses the following items: Direct materials $11,000 Direct labour hours 100 hours Required: 1. Compute Sticklers' predetermined overhead rate. 2. How much manufacturing overhead is allocated to job # 471. 3. What's the total cost of job #471? The selling price of the Thomas Corporation's product is $40.00 each, while the variable cost per unit is $15.00. Fixed costs total $270,000. Required: 1. 2. Assume that Thomas Corporation has a targeted operating income of $500,000 for the upcoming year, what is the sales in units to achieve the target profit? If all else equal, the fixed expense increases, how will the break- even point be affected? (No explanation needed. Answer "Increase" or "Decrease" only.) 3. Use the shortcut unit contribution margin approach to compute monthly break-even sales in units. 4. If all else equal, the variable cost per unit increases, how will the break-even point be affected? (No explanation needed. Answer "Increase" or "Decrease" only.) 2. Sticklers Manufacturing uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on direct labour costs. The hourly wage of one employee is $30/hour. At the beginning of the year, the company expected to incur the following: Depreciation on manufacturing plant $245,300 Property taxes on plant. $9.200 Insurance on headquarter building $11,000 Utilities on headquarter building $12,000 Marketing expense $8,000 Plant janitors wages $5,500 Direct labour hours 40,000 hours Job#471 uses the following items: Direct materials $11,000 Direct labour hours 100 hours Required: 1. Compute Sticklers' predetermined overhead rate. 2. How much manufacturing overhead is allocated to job # 471. 3. What's the total cost of job #471?
Expert Answer:
Answer rating: 100% (QA)
To compute the monthly breakeven sales in units using the shortcut unit contribution margin approach ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
A company has a fiscal year-end of December 31: (1) on October 1, $21,000 was paid for a one-year fire insurance policy; (2) on June 30 the company loaned its chief financial officer $19,000;...
-
Why is an objects internal data usually hidden from outside code?
-
Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows: a. Retirement of bonds payable b. Purchase of inventory for...
-
Simplify. [(-3/7) 5 ] 3
-
Five test scores are shown below. The first 4 test scores are 15% of the final grade, and the last test score is 40% of the final grade. Find the weighted mean of the test scores. 85 92 84 89 91
-
Hart Computer Company has been purchasing carrying cases for its portable computers at a delivered cost of $69 per unit. The company, which it currently operating below full capacity charges factory...
-
A scout troop is practicing its orienteering skills with map and compass. First they walk due east for 1.20 km. Next, they walk 45.0 west of north for 2.70 km. In what direction must they walk to go...
-
A gear with a radius of 9.0 inches makes 15 revolutions every four seconds. Find the linear and angular velocities of a point on the outer edge of the gear. Give your answers in both exact and...
-
You are reviewing a personal services agreement between a company and a referring physician. The contract states that the physician will be paid $600 per each wRVU (worked relative value unit)...
-
Why were so many people quitting their jobs? What occupations were losing the most workers? Why? Would there have been as many job quits if the unemployment rate were higher? Does the analysis in...
-
1. Explain the meaning and what things need to be considered in "Acquiring IS & Application" 2. Give examples of cases of implementation in industry in Indonesia and their linkages with existing...
-
Romeo Corporation is producing goods mostly by manual labour and considering replacing it by a machine. There are two alternative models for the machine: Machine Alpha and Machine Beta. Information...
-
The text offers five ways to build "Affective Commitment" in our organizations. Thinking about an organization you are familiar with, give three examples of how that organization makes an effective...
-
Read This article below https://www.vice.com/en/article/3d9p5y/how-indomie-became-insanely-popular-in-nigeria When Indomie arrived in Nigeria, no one had yet played in the instant noodle market. And...
-
The maximum pressure that can be developed for a certain fluid power cylinder is 15.0 MPa. Compute the required diameter for the piston if the cylinder must exert a force of 30 kN.
-
How do you calculate the sales required to break even or achieve a target operating income in a multiproduct setting?
-
Which financial statement is prepared last? Why is that the case?
-
What is the cost of goods manufactured? How does it differ from total manufacturing cost?
-
This exercise considers data from the Medical Expenditure Panel Survey (MEPS) described in Exercise 1.1 and Section 11.4. Our dependent variable consists of the number of outpatient (COUNTOP) visits....
-
This exercise considers the data described in the Section 13.2.2 ratemaking classification example using data in Table 13.3 Table 13.3 . a. Fit a gamma regression model using a log-link function with...
-
Verify that the Tweedie distribution is a member of the linear exponential family of distributions by checking equation (13.9). In particular, provide an expression for \(S(y, \phi)\) (note that...
Study smarter with the SolutionInn App