Just need Req 4 (the ones marked wrong)!

expenses 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 common fixed expenses. Using your activity-based cost assignments from requirement 3, prepare a contribution format segmented Income statement that is adapted from Exhibit 7-8. (HINTS: (0Organize all of the company's costs into three categories: variable expenses, traceable fixed expenses, and common fixed expenses. (1) Recall that total selling and administrative expenses include both variable and fixed costs. Those that are not clearly variable should be treated as fixed, which are either traceable to a product line or common fixed costs. (iii) Note that for the segmented income statements, you should treat the product costs (OM, DL and OH) associated with a product as directly traceable to the segment.) 5. Using your contribution format segmented income statement from requirement 4 calculate the break-even point in dollar sales for the Advanced model. (HINT: the Breakeven point for a given segment will be calculated as: Segment Traceable fixed expenses divided by Segment Contribution Margin Ratio since the traceable (ie, direct) fixed costs can be identified in this problem.) Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1B Reg 28 Reg 3 Reg 1A Req 2A Req 2c Reg 4 Reg 3B Reg 5 Calculate the total manufacturing overhead cost allocated to the Basic model and the Advanced model using the activity based approach. (Round your intermediate calculations to 2 decimal places.) Basic 227.760 Advanced $ 189,800 Machining Activity Cost Pool Machining Assemble and pack Order processing Setups Activity Measure Machine-hours in Molding Direct Labor-Hours in Assemble and Pack Number of customer orders Setup hours Manufacturing Overhead $ 417,500 282,500 310,000 340,000 $1,350,000 She also determined that 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. 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 4. The company pays a sales commissions of 5% for the Basic model and 10% for the Advanced model. Its traceable fixed advertising expenses 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 common fixed expenses. Using your activity based cost assignments from requirement 3. prepare a contribution format segmented income statement that is adapted from Exhibit 7-8. (HINTS: (1) Organize all of the company's costs into three categories: variable expenses, traceable fixed expenses, and common fixed expenses. (10) Recall that total selling and administrative expenses include both variable and fixed costs. Those that are not clearly variable should be treated as fixed, which are either traceable to a product line or common fixed costs. (1) Note that for the segmented income statements, you should treat the product costs (DM, DL and OH) associated with a product as directly traceable to the segment.) $ 787,500 $ 562,500 $1,350,000 10,000 5,000 20,000 10,000 Manufacturing overhead costs Direct labor-hours Basie Advanced Machine-hours: Basic Advanced 30,000 15,000 12,000 10,000 12,000 10.000 Required: 1. Using the plantwide approach a. Calculate the plantwide overhead rate. b. Calculate the amount of overhead that would be assigned to each product. 2. Using a departmental approach: a. Calculate the departmental overhead rates, b. Calculate the total amount of overhead that would be 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. Allen Enterprises' production manager has 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 four activity cost pools as follows: Activity Cost Pool Machining Assemble and pack Motivity Mensure Machine-hours in Molding Direct Labor-Hours in Assemble and Pack whern Mar der Manufacturing Overhead $ 417,500 282,500 110.000 Allen Enterprises 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 it uses plantwide manufacturing overhead cost allocation based on direct lobor-hours. The company's controller prepared the segmented income statement that is shown below for the most recent year (he allocated selling and administrative expenses to products based on sales dollars): Basic 20.000 Advanced 10,000 Total 30,000 Number of units produced and sold Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income (loss) $3,000,000 2,300,000 700,000 720,000 $ (20,000) $2,000,000 1,350,000 650,000 480,000 $ 170,000 $5,000,000 3,650,000 1,350,000 1,200.000 $ 150,000 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. Management 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: Molding $ 787,500 Annemble and Pack $ 562,500 Total $1,350,000 Manufacturing overhead coats Direct labor-hours Basic 10,000 An 20,000 10.000 30,000 15.000 Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Reg 2B Req 2A Reg 2C Reg 4 Reg 5 ktq 38 Req 3A Calculate the total manufacturing overhead cost allocated to the Basic model and the Advanced model using the activity- based approach. (Round your intermediate calculations to 2 decimal places.) Basic Advanced Machining $ 227,760 $ 189,800 Assemble and pack 188,400 94,200 Order processing 62,000 248,000 Setups 26,154 313,848 Total overhead cost assigned $ 504,314 $ 845,848 Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Reg 28 Reg 2C Reg Req 3B Reg 4 Req 5 Calculate an activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate Machining $ 18.98 per MH Assemble and pack S 9.42 per DLH Order processing $ 1,240 per order 523.08 per hour Setups 62 2,350,000 1,450,UUU YUUUUU 2 contribution margin Traceable fixed expenses Advertising Other > 350,000 1,350,162 150,000 504,314 200,000 845,848 X X 1,700,162 654,314 649,838 $ 795,686 1,045,848 $ (145,848) Total traceable fixed expenses Segment margin Common fixed expenses Other Selling and administrative (80,000) 500,000 Total common fixed expenses Not operating income 420,000 $ 229,838 Reg 1A Reg 1B Reg 2A Reg 28 Reg 20 Reg 3A Reg 3B Reg 4 Reg 5 Using your activity-based cost assignments from requirement 3, prepare a contribution format segmented income statement. (Round your intermediate calculations to 2 decimal places.) Koontz Company Income statement Total Basic Advanced Sales 5,000,000 $3,000,000 $ 2,000,000 Variable expenses Direct materials 1,400,000 800,000 600,000 Direct labor 900,000 600,000 300,000 Sales commissions 350.000 150,000 200,000 los lolo 2,650,000 1,550,000 2,350,000 1,450,000 1,100,000 900,000 Total variable expenses Contribution margin Traceable fixed expenses: Advertising Other 350,000 1,350,162 150,000 504,314 200,000 845,848 X expenses 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 common fixed expenses. Using your activity-based cost assignments from requirement 3, prepare a contribution format segmented Income statement that is adapted from Exhibit 7-8. (HINTS: (0Organize all of the company's costs into three categories: variable expenses, traceable fixed expenses, and common fixed expenses. (1) Recall that total selling and administrative expenses include both variable and fixed costs. Those that are not clearly variable should be treated as fixed, which are either traceable to a product line or common fixed costs. (iii) Note that for the segmented income statements, you should treat the product costs (OM, DL and OH) associated with a product as directly traceable to the segment.) 5. Using your contribution format segmented income statement from requirement 4 calculate the break-even point in dollar sales for the Advanced model. (HINT: the Breakeven point for a given segment will be calculated as: Segment Traceable fixed expenses divided by Segment Contribution Margin Ratio since the traceable (ie, direct) fixed costs can be identified in this problem.) Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1B Reg 28 Reg 3 Reg 1A Req 2A Req 2c Reg 4 Reg 3B Reg 5 Calculate the total manufacturing overhead cost allocated to the Basic model and the Advanced model using the activity based approach. (Round your intermediate calculations to 2 decimal places.) Basic 227.760 Advanced $ 189,800 Machining Activity Cost Pool Machining Assemble and pack Order processing Setups Activity Measure Machine-hours in Molding Direct Labor-Hours in Assemble and Pack Number of customer orders Setup hours Manufacturing Overhead $ 417,500 282,500 310,000 340,000 $1,350,000 She also determined that 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. 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 4. The company pays a sales commissions of 5% for the Basic model and 10% for the Advanced model. Its traceable fixed advertising expenses 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 common fixed expenses. Using your activity based cost assignments from requirement 3. prepare a contribution format segmented income statement that is adapted from Exhibit 7-8. (HINTS: (1) Organize all of the company's costs into three categories: variable expenses, traceable fixed expenses, and common fixed expenses. (10) Recall that total selling and administrative expenses include both variable and fixed costs. Those that are not clearly variable should be treated as fixed, which are either traceable to a product line or common fixed costs. (1) Note that for the segmented income statements, you should treat the product costs (DM, DL and OH) associated with a product as directly traceable to the segment.) $ 787,500 $ 562,500 $1,350,000 10,000 5,000 20,000 10,000 Manufacturing overhead costs Direct labor-hours Basie Advanced Machine-hours: Basic Advanced 30,000 15,000 12,000 10,000 12,000 10.000 Required: 1. Using the plantwide approach a. Calculate the plantwide overhead rate. b. Calculate the amount of overhead that would be assigned to each product. 2. Using a departmental approach: a. Calculate the departmental overhead rates, b. Calculate the total amount of overhead that would be 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. Allen Enterprises' production manager has 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 four activity cost pools as follows: Activity Cost Pool Machining Assemble and pack Motivity Mensure Machine-hours in Molding Direct Labor-Hours in Assemble and Pack whern Mar der Manufacturing Overhead $ 417,500 282,500 110.000 Allen Enterprises 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 it uses plantwide manufacturing overhead cost allocation based on direct lobor-hours. The company's controller prepared the segmented income statement that is shown below for the most recent year (he allocated selling and administrative expenses to products based on sales dollars): Basic 20.000 Advanced 10,000 Total 30,000 Number of units produced and sold Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income (loss) $3,000,000 2,300,000 700,000 720,000 $ (20,000) $2,000,000 1,350,000 650,000 480,000 $ 170,000 $5,000,000 3,650,000 1,350,000 1,200.000 $ 150,000 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. Management 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: Molding $ 787,500 Annemble and Pack $ 562,500 Total $1,350,000 Manufacturing overhead coats Direct labor-hours Basic 10,000 An 20,000 10.000 30,000 15.000 Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Reg 2B Req 2A Reg 2C Reg 4 Reg 5 ktq 38 Req 3A Calculate the total manufacturing overhead cost allocated to the Basic model and the Advanced model using the activity- based approach. (Round your intermediate calculations to 2 decimal places.) Basic Advanced Machining $ 227,760 $ 189,800 Assemble and pack 188,400 94,200 Order processing 62,000 248,000 Setups 26,154 313,848 Total overhead cost assigned $ 504,314 $ 845,848 Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Reg 28 Reg 2C Reg Req 3B Reg 4 Req 5 Calculate an activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate Machining $ 18.98 per MH Assemble and pack S 9.42 per DLH Order processing $ 1,240 per order 523.08 per hour Setups 62 2,350,000 1,450,UUU YUUUUU 2 contribution margin Traceable fixed expenses Advertising Other > 350,000 1,350,162 150,000 504,314 200,000 845,848 X X 1,700,162 654,314 649,838 $ 795,686 1,045,848 $ (145,848) Total traceable fixed expenses Segment margin Common fixed expenses Other Selling and administrative (80,000) 500,000 Total common fixed expenses Not operating income 420,000 $ 229,838 Reg 1A Reg 1B Reg 2A Reg 28 Reg 20 Reg 3A Reg 3B Reg 4 Reg 5 Using your activity-based cost assignments from requirement 3, prepare a contribution format segmented income statement. (Round your intermediate calculations to 2 decimal places.) Koontz Company Income statement Total Basic Advanced Sales 5,000,000 $3,000,000 $ 2,000,000 Variable expenses Direct materials 1,400,000 800,000 600,000 Direct labor 900,000 600,000 300,000 Sales commissions 350.000 150,000 200,000 los lolo 2,650,000 1,550,000 2,350,000 1,450,000 1,100,000 900,000 Total variable expenses Contribution margin Traceable fixed expenses: Advertising Other 350,000 1,350,162 150,000 504,314 200,000 845,848 X