2. Electric Sound, Inc. manufactures two types of speakers: Deluxe and Extreme. During October, 42 Deluxe...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
2. Electric Sound, Inc. manufactures two types of speakers: Deluxe and Extreme. During October, 42 Deluxe speakers and 319 Extreme speakers were produced. An analysis of the estimated overhead costs reveals the following activities: Activities Cost Drivers Estimated Cost Materials handling Machine setups Quality inspections # of requisitions # of setups # of inspections $140,000 110,000 108,000 $358,000 The cost driver volume for each product was: Cost Driver # of requisitions # of setups # of inspections Deluxe 200 100 Extreme 300 150 500 100 a) Determine the activity rates for each activity. 140000 - 5290reenis it icns 119000 250 =4401setups 105,000 -180 b) How much overhead is assigned to Deluxe? 600 c) How much overhead is assigned to Extreme? d) What is the overhead cost per unit for Deluxe? e) What is the overhead cost per unit for Extreme? 3. Fixed costs = $90,000; Variable cost per unit = $1.20; Selling price per unit = $2 %3D !3! a) What is the break even point in units? 9000 1/2,500 units b) What is the break even point in sales dollars? go000$22s,000 2-1,20 40% c) What is the sales revenue needed to generate a target income of $18,000. (90000+18000)- 40%=270,000 d) What is the margin of safety percentage at the sales level needed to generate the target income of $18,000? 279000 - 22 5o00 16.67% 270,000 2. Electric Sound, Inc. manufactures two types of speakers: Deluxe and Extreme. During October, 42 Deluxe speakers and 319 Extreme speakers were produced. An analysis of the estimated overhead costs reveals the following activities: Activities Cost Drivers Estimated Cost Materials handling Machine setups Quality inspections # of requisitions # of setups # of inspections $140,000 110,000 108,000 $358,000 The cost driver volume for each product was: Cost Driver # of requisitions # of setups # of inspections Deluxe 200 100 Extreme 300 150 500 100 a) Determine the activity rates for each activity. 140000 - 5290reenis it icns 119000 250 =4401setups 105,000 -180 b) How much overhead is assigned to Deluxe? 600 c) How much overhead is assigned to Extreme? d) What is the overhead cost per unit for Deluxe? e) What is the overhead cost per unit for Extreme? 3. Fixed costs = $90,000; Variable cost per unit = $1.20; Selling price per unit = $2 %3D !3! a) What is the break even point in units? 9000 1/2,500 units b) What is the break even point in sales dollars? go000$22s,000 2-1,20 40% c) What is the sales revenue needed to generate a target income of $18,000. (90000+18000)- 40%=270,000 d) What is the margin of safety percentage at the sales level needed to generate the target income of $18,000? 279000 - 22 5o00 16.67% 270,000
Expert Answer:
Answer rating: 100% (QA)
a Activity rate Estimated manufacturing overhead costs estimated activity level Material handling 14... View the full answer
Related Book For
College Mathematics for Business Economics Life Sciences and Social Sciences
ISBN: 978-0321614001
12th edition
Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen
Posted Date:
Students also viewed these accounting questions
-
An electronics firm manufactures two types of personal computers-a standard model and a portable model. The production of a standard computer requires a capital expenditure of $400 and 40 hours of...
-
A company manufactures two types of electric hedge trimmers, one of which is cordless. The cord-type trimmer requires 2 hours to make, and the cordless model requires 4 hours. The company has only...
-
A company manufactures two types of electric hedge trimmers, one of which is cordless. The cord-type trimmer requires 2 hours to make, and the cordless model requires 4 hours. The company has only...
-
1. Using a diagram of utility maximization, show: a. The income effect of price change b. The substitution effect of price change
-
List and briefly discuss the five major reasons for borrowing money through a consumer loan.
-
A rectangle has a perimeter of 30 m. If its length is twice its breadth, find the length.
-
Two different fluids flow over two identical flat plates with the same laminar free-stream velocity. Both fluids have the same viscosity, but one is twice as dense as the other. What is the...
-
Party-Time T-Shirts sells T-shirts for parties at the local college. The company completed the first year of operations, and the shareholders are generally pleased with operating results as shown by...
-
Need help expanding the questions below. State of Ohio's position on the ban? What legislation if any supports or opposes the ban and or tries to protect smokers in the workplace? How smoking in...
-
An examination of the cash activities during the year shows the following. GREAT ADVENTURES Cash Account Records July 1, 2024, to December 31, 2024 Date 7/1 7/15 7/22 7/30 8/1 8/10 8/17 9/21 10/17...
-
A network with 3 routers connected as a triangle. Each router links with a number of hosts and forms a subnet. The subnets with hosts are A, B, and C. The subnets without hosts are D, E, and F. (a)...
-
East Boston Airplanes is anticipating earnings growth of 8 % this year. Their net income in 2 0 2 2 was $ 1 million. Their Retention Ratio is 4 0 % and they have 3 0 0 , 0 0 0 shares outstanding....
-
You enter into a mortgage agreement for $ 1 . 2 5 million at 3 . 8 7 5 % for 2 0 years. What will be your monthly payments?
-
A 15% increase in sales resulted in a 40% increase in net income for Company A and a 60% increase in net income for Company B. Based on this, which company has the greater operating leverage?
-
Assume a nominal interest rate on one-year U.S. Treasury Bills of 3.65% and a real rate of interest of 2.10%. Using the Fisher Effect Equation, what is the exact expected rate of inflation in the...
-
The price of a Starbucks tall vanilla latte in Zagreb is 25.83kn (kn or HRK). In New York City, the price of a tall vanilla latte is $2.69. The exchange rate between Croatian kunas (kn) and U.S....
-
What control specifications are needed for a suspension control system
-
Write a paper by answer the following question: Should Recycling Be Mandatory?
-
In Problems 23-34, find the indicated second-order partial derivative for each function f(x, y). 3 In x ,(x, y) if f(x, y) =shy
-
In Problem 17 to 32, find the absolute maximum and minimum, if either exists, for each function. 18. f(x) = x2 + 4x - 3 20. f(x) = -x2 + 2x + 4 22. f(x) = -x3 - 2x 24. f(x) = x4 - 4x3 26. f(x) = x +...
-
Use Theorem 1 to determine where each function in Problem is continuous. Express the answer in interval notation. 3 x 8
-
Dunkirk Consulting wishes to predict the amount of overhead expense that will be incurred by a consulting contract, to develop more accurate bids for future con- tracts. Dunkirk has the following...
-
Block Commodities has gathered the following information concerning rock salt deliveries to its clients, which it believes are highly seasonal: a. Suppose Block Commodities calculated a set of...
-
The service center at a large automobile dealership is trying to boost revenue by pro- viding no-appointment-necessary oil changes to any type of vehicle that stops by the service center. To quickly...
Study smarter with the SolutionInn App