ACC 121 Capstone Project Saved 3 Koontz Company manufactures two models of Industrial components-a Basic model and an Advanced model. The company considers all of its manufacturing overhead costs to be fixed and uses plantwide manufacturing overhead cost allocation based on 25 direct labor-hours. Koontz's controller prepared the segmented income statement shown below for the most recent year the allocated points selling and administrative expenses to products based on sales dollars): Skipped Basic Advanced Total Number of units produced and sold 20, 090 10, 086 30,080 Sales $ 3,060, 060 $ 2,080, 060 $ 5,080, 060 Cost of goods sold 2,306, 606 1, 350,608 3, 650, 609 Gross margin 706, 609 650,080 1, 350, 060 Book Selling and administrative expenses 720,060 180, 080 1, 280, 609 Net operating income (loss) $ (20,830) $ 170, 60 $ 150, 090 Print Direct laborers are paid $20 per hour. Direct materials cost $40 per unit for the Basic model and $60 per unit for the Advanced model. Koontz is considering a change from plantwide overhead allocation to a departmental approach. The overhead costs In the company's Molding Department would be allocated based on machine-hours and the overhead costs In its Assemble and Pack Department would be allocated based on direct labor-hours. To enable further analysis, the controller gathered the following Information: References Assemble and Molding Pack Total Manufacturing overhead costs $ 787,508 $ 562, 508 $ 1,350,890 Direct labor hours: Basic 10,808 20,800 30,800 Advanced 5.806 19, 906 15,800 Machine hours : Basic 12,890 12,890 Advanced 10, 090 10,890 Required: 1. Using the plantwide approach: a. Calculate the plantwide overhead rate. b. Calculate the amount of overhead assigned to each product. 2. Using a departmental approach: a. Calculate the departmental overhead rates. b. Calculate the total amount of overhead assigned to each product. c. Using your departmental overhead cost allocations, redo the controller's segmented Income statement (continue to allocate selling and administrative expenses based on sales dollars). 3. Koontz's production manager suggested using activity-based costing Instead of either the plantwide or departmental approaches. To facilitate the necessary calculations, she assigned the company's total manufacturing overhead cost to five activity cost pools as follows: Manufacturing Activity Cost Pool Activity Measure Overhead Machining Machine-hours in Holding $ 417,580 Assemble and pack Direct labor-hours in Assemble and Pack 282,580 Order processing Number of customer orders 230, 080 Setups Setup hours 340, 080 Other (unused capacity) 80, 680 $ 1, 350, 089follows: References Manufacturing Activity Cost Pool Activity Measure Overhead Machining Machine-hours in Molding $ 417,580 Assemble and pack Direct labor-hours in Assemble and Pack 282,580 Order processing Number of customer orders 230, 680 Setups Setup hours 340, 080 Other (unused capacity) 80, 680 $ 1, 350, 090 She also determined the average order size for the Basic and Advanced models is 400 units and 50 units, respectively. The molding machines require a setup for each order. One setup hour is required for each customer order of the Basic model and three hours are required to setup for an order of the Advanced model. The company pays a sales commissions of 5% for the Basic model and 10% for the Advanced model. Its traceable fixed advertising costs Include $150.000 for the Basic model and $200.000 for the Advanced model. The remainder of the company's selling and administrative costs are organization-sustaining In nature. Using the additional Information provided by the production manager, calculate: a. An activity rate for each activity cost pool. b. The total manufacturing overhead cost allocated to the Basic model and the Advanced model using the activity-based approach. C. The total selling and administrative cost traced to the Basic model and the Advanced model using the activity-based approach. 4. Using your activity-based cost assignments from requirement 3. prepare a contribution format segmented Income statement adapted from Exhibit 6-8. (Hint Organize all of the company's costs Into three categories: variable expenses, traceable fixed expenses, and common fixed expenses.) 5. Using your contribution format segmented income statement from requirement 4, calculate the break-even point In dollar sales for the Advanced model. Complete this question by entering your answers in the tabs below. Required 1A |Required 18 Required 2A Required 28| Required 2C Required 3A Required 38| Required 3C|Required 4 Required 5 Using the plantwide approach, calculate the plantwide overhead rate. Plantwide overhead rate per DLH She also determined the average order size for the Basic and Advanced models is 400 units and 50 units, respectively. The molding machines require a setup for each order. One setup hour is required for each customer order of the Basic model and three hours are required to setup for an order of the Advanced model. The company pays a sales commissions of 5% for the Basic model and 10% for the Advanced model. Its traceable fixed advertising costs Include $150.000 for the Basic model and $200.000 for the Advanced model. The remainder of the company's selling and administrative costs are organization-sustaining In nature. Using the additional Information provided by the production manager, calculate: a. An activity rate for each activity cost pool. b. The total manufacturing overhead cost allocated to the Basic model and the Advanced model using the activity-based approach. c. The total selling and administrative cost traced to the Basic model and the Advanced model using the activity-based approach. 4. Using your activity-based cost assignments from requirement 3. prepare a contribution format segmented Income statement adapted from Exhibit 6-8. (Hint. Organize all of the company's costs Into three categories: variable expenses, traceable fixed expenses, and common fixed expenses.) 5. Using your contribution format segmented income statement from requirement 4, calculate the break-even point In dollar sales for the Advanced model. Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A|Required 28|Required 2C Required 3A| Required 38|Required 3C|Required 4 Required 5 Using the plantwide approach, calculate the amount of overhead assigned to each product. Basic Advanced Amount of overhead She also determined the average order size for the Basic and Advanced models is 400 units and 50 units, respectively. The molding machines require a setup for each order. One setup hour is required for each customer order of the Basic model and three hours are required to setup for an order of the Advanced model. The company pays a sales commissions of 5% for the Basic model and 10% for the Advanced model. Its traceable fixed advertising costs Include $150.000 for the Basic model and $200.000 for the Advanced model. The remainder of the company's selling and administrative costs are organization-sustaining In nature. Using the additional Information provided by the production manager, calculate: a. An activity rate for each activity cost pool. b. The total manufacturing overhead cost allocated to the Basic model and the Advanced model using the activity-based approach. c. The total selling and administrative cost traced to the Basic model and the Advanced model using the activity-based approach. 4. Using your activity-based cost assignments from requirement 3. prepare a contribution format segmented Income statement adapted from Exhibit 6-8. (Hint Organize all of the company's costs Into three categories: variable expenses, traceable fixed expenses, and common fixed expenses.) 5. Using your contribution format segmented Income statement from requirement 4, calculate the break-even point In dollar sales for the Advanced model. Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 28|Required 2C Required 3A|Required 38|Required 3C|Required 4 Required 5 Using the departmental approach, calculate the departmental overhead rates. Note: Round your answers to 2 decimal places. Molding Assemble and Pack Department Department Manufacturing overhead rate per MH per DLH she also determined the average order size for the Basic and Advanced models is 400 units and 50 units, respectively. The molding machines require a setup for each order. One setup hour is required for each customer order of the Basic model and three hours are required to setup for an order of the Advanced model. The company pays a sales commissions of 5% for the Basic model and 10% for the Advanced model. Its traceable fixed advertising costs Include $150.000 for the Basic model and $200.000 for the Advanced model. The remainder of the company's selling and administrative costs are organization-sustaining In nature. Using the additional Information provided by the production manager, calculate: a. An activity rate for each activity cost pool. b. The total manufacturing overhead cost allocated to the Basic model and the Advanced model using the activity-based approach. c. The total selling and administrative cost traced to the Basic model and the Advanced model using the activity-based approach. 4. Using your activity-based cost assignments from requirement 3. prepare a contribution format segmented Income statement adapted from Exhibit 6-8. (Hint Organize all of the company's costs Into three categories: variable expenses, traceable fixed expenses, and common fixed expenses.) 5. Using your contribution format segmented Income statement from requirement 4, calculate the break-even point In dollar sales for the Advanced model. Complete this question by entering your answers in the tabs below. Required 1A Required 1B |Required 2A Required 28| Required 2C Required 3A| Required 38|Required 3C|Required 4 Required 5 Using the departmental approach, calculate the total amount of overhead assigned to each product. Note: Round your intermediate calculations to 2 decimal places. Basic Advanced Molding Department Assemble and Pack Department Total manufacturing overhead assigned She also determined the average order size for the Basic and Advanced models is 400 units and 50 units, respectively. The molding machines require a setup for each order. One setup hour is required for each customer order of the Basic model and three hours are required to setup for an order of the Advanced model. The company pays a sales commissions of 5% for the Basic model and 10% for the Advanced model. Its traceable fixed advertising costs Include $150.000 for the Basic model and $200.000 for the Advanced model. The remainder of the company's selling and administrative costs are organization-sustaining In nature. Using the additional Information provided by the production manager, calculate: a. An activity rate for each activity cost pool. b. The total manufacturing overhead cost allocated to the Basic model and the Advanced model using the activity-based approach. c. The total selling and administrative cost traced to the Basic model and the Advanced model using the activity-based approach. 4. Using your activity-based cost assignments from requirement 3. prepare a contribution format segmented Income statement adapted from Exhibit 6-8. (Hint Organize all of the company's costs Into three categories: variable expenses, traceable fixed expenses, and common fixed expenses.) 5. Using your contribution format segmented Income statement from requirement 4, calculate the break-even point In dollar sales for the Advanced model. Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 28 Required 2C Required 3A|Required 38| Required 3C|Required 4 Required 5 Using your departmental overhead cost allocations, redo the controller's segmented income statement (continue to allocate selling and administrative expenses based on sales dollars). Note: Round your intermediate calculations to 2 decimal places, Basic Advanced Sales Cost of goods sold Gross margin Seling and administrative expenses Net operating income She also determined the average order size for the Basic and Advanced models is 400 units and 50 units, respectively. The molding machines require a setup for each order. One setup hour is required for each customer order of the Basic model and three hours are required to setup for an order of the Advanced model. The company pays a sales commissions of 5% for the Basic model and 10% for the Advanced model. Its traceable fixed advertising costs Include $1501000 for the Basic model and $200.000 for the Advanced model. The remainder of the company's selling and administrative costs are organization-sustaining In nature. Using the additional Information provided by the production manager, calculate: a. An activity rate for each activity cost pool. b. The total manufacturing overhead cost allocated to the Basic model and the Advanced model using the activity-based approach. c. The total selling and administrative cost traced to the Basic model and the Advanced model using the activity-based approach. 4. Using your activity-based cost assignments from requirement 3. prepare a contribution format segmented Income statement adapted from Exhibit 6-8. (Hint Organize all of the company's costs Into three categories: variable expenses, traceable fixed expenses, and common fixed expenses.) 5. Using your contribution format segmented Income statement from requirement 4, calculate the break-even point In dollar sales for the Advanced model. Complete this question by entering your answers in the tabs below. Required 1A Required 1B |Required 2A Required 28|Required 2C Required 3A Required 38|Required 3C|Required 4 Required 5 Using activity-besed costing, calculate an activity rate for each activity cost pool. Note: Round your answers to 2 decimal places. Activity Cost Pool Activity Rate Machining per MH Assemble and pack per DLH Order processing per order Setups per hour She also determined the average order size for the Basic and Advanced models is 400 units and 50 units, respectively. The molding machines require a setup for each order. One setup hour is required for each customer order of the Basic model and three hours are required to setup for an order of the Advanced model. The company pays a sales commissions of 5% for the Basic model and 10% for the Advanced model. Its traceable fixed advertising costs Include $150.000 for the Basic model and $200.000 for the Advanced model. The remainder of the company's selling and administrative costs are organization-sustaining In nature. Using the additional Information provided by the production manager, calculate: a. An activity rate for each activity cost pool. b. The total manufacturing overhead cost allocated to the Basic model and the Advanced model using the activity-based approach. c. The total selling and administrative cost traced to the Basic model and the Advanced model using the activity-based approach. 4. Using your activity-based cost assignments from requirement 3. prepare a contribution format segmented Income statement adapted from Exhibit 6-8. (Hint. Organize all of the company's costs Into three categories: variable expenses, traceable fixed expenses, and common fixed expenses.) 5. Using your contribution format segmented income statement from requirement 4, calculate the break-even point In dollar sales for the Advanced model. Complete this question by entering your answers in the tabs below. Required 1A |Required 1B Required 2A|Required 28|Required 2C Required JA Required 38|Required 3C|Required 4 Required 5 Using activity-based costing, calculate the total manufacturing overhead cost allocated to the Basic model and the Advanced model using the activity-based approach. Note: Round your intermediate calculations to 2 decimal places. Basic Advanced Machining Assemble and pack Order processing Setups Total overhead cost assigned She also determined the average order size for the Basic and Advanced models is 400 units and 50 units, respectively. The molding machines require a setup for each order. One setup hour is required for each customer order of the Basic model and three hours are required to setup for an order of the Advanced model. The company pays a sales commissions of 5% for the Basic model and 10% for the Advanced model. Its traceable fixed advertising costs Include $150.000 for the Basic model and $200.000 for the Advanced model. The remainder of the company's selling and administrative costs are organization-sustaining In nature. Using the additional Information provided by the production manager, calculate: a. An activity rate for each activity cost pool. b. The total manufacturing overhead cost allocated to the Basic model and the Advanced model using the activity-based approach. c. The total selling and administrative cost traced to the Basic model and the Advanced model using the activity-based approach. 4. Using your activity-based cost assignments from requirement 3, prepare a contribution format segmented Income statement adapted from Exhibit 6-8. (Hint Organize all of the company's costs Into three categories: variable expenses, traceable fixed expenses, and common fixed expenses.) 5. Using your contribution format segmented Income statement from requirement 4, calculate the break-even point In dollar sales for the Advanced model. Complete this question by entering your answers in the tabs below. Required 1A Required 1B |Required 2A Required 28| Required 2C Required 3A Required 38|Required 3C|Required 4 Required 5 Calculate the total selling and administrative cost traced to the Basic model and the Advanced model using the activity-based approach. Basic Advanced Total traceable selling and administrative cost the Advanced model. :Book Complete this question by entering your answers in the tabs below. Print Required 1A Required 1B Required 2A Required 28|Required 2C Required 3A|Required 38| Required 3C|Required 4 Required 5 Using your activity-based cost assignments from requirement 3, prepare a contribution format segmented income statement References adapted from Exhibit 6-8. (Hint: Organize all of the company's costs into three categories: variable expenses, traceable fixed expenses, and common fixed expenses.) Note: Round your intermediate calculations to 2 decimal places. Show less A Koontz Company Income statement Total Basic Advanced Variable expenses: Total variable expenses Traceable fixed expenses Total traceable fixed expenses Segment margin Common fixed expenses Total common fixed expenses $ 1,350, 090 She also determined the average order size for the Basic and Advanced models is 400 units and 50 units, respectively. The molding machines require a setup for each order. One setup hour is required for each customer order of the Basic model and three hours are required to setup for an order of the Advanced model. The company pays a sales commissions of 5% for the Basic model and 10% for the Advanced model. Its traceable fixed advertising costs Include $150.000 for the Basic model and $2001000 for the Advanced model. The remainder of the company's selling and administrative costs are organization-sustaining In nature. Using the additional Information provided by the production manager, calculate: a. An activity rate for each activity cost pool. b. The total manufacturing overhead cost allocated to the Basic model and the Advanced model using the activity-based approach. C. The total selling and administrative cost traced to the Basic model and the Advanced model using the activity-based approach. 4. Using your activity-based cost assignments from requirement 3. prepare a contribution format segmented Income statement adapted from Exhibit 6-8. (Hint Organize all of the company's costs Into three categories: variable expenses, traceable fixed expenses, and common fixed expenses.) 5. Using your contribution format segmented Income statement from requirement 4, calculate the break-even point In dollar sales for the Advanced model. Complete this question by entering your answers in the tabs below. Required 1A Required 18 |Required 2A Required 28|Required 2C Required 3A Required 38| Required 3C|Required 4 Required 5 Using your contribution format segmented income statement from requirement 4, calculate the break-even point in dollar sales for the Advanced model. Note: Round your intermediate calculations to 2 decimal places. Round your final answer to the nearest whole dollar. Break-even point in dollar sales