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 it uses plantwide manufacturing overhead cost allocation based on direct labor-hours, Koontz'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): 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 informution 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 lotal amount of overhead that would be assigned to each product c. Using your departmental overhead cost allocations, redo the controller's segmented incorie statement (continue to allocate seling and administrative expenses based on sales dollars) 3. Koontz's 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 five activity cost pools as follows She also determined that the average order size for the Basic and Advanced models is 400 unas 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 ant order of the Advanced model. The company pays a sales commissions of 5% for the Basic model and 10% for the Advanced model. Its fraceable foved advertising costs include $150,000 for the Basic model and $200,000 for the Advanced model The remainder of the compariby's selling and administrative costs are orgenization-5ustaining in noture Using the additional information provided by the production manager. calculate a. M ocivity rate for each activity cost pool b. The total manufacturing ovechead cost aliocated to the Basic model and the Advanced modef using the activily-based approach C. The lotal selfing and administrative cost traced to the Basic model and the Advanced model using the activity based aperoact a. Calculate the departmental oveihead 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 se and administrative expenses based on sales dollars). 3. Koontz's production manager has suggested using activity-based costing instead of elther the plantwide or departmental approaches. To faciltate the necessary calculations, she assigned the company's total manufacturing overhead cost to five activity cost pools as follows Sne aIso 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 orden 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 triodel, Its traceable fixed advertising costs include $150,000 for the Basic model and $200,000 for the Advanced model. The remairider of the company's selling and administrative costs are organization-sustaining in nature Using the additional information provided by the production manager, caiculate 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 actimiy-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 that is adapted from Exhibit 6-8. (Hint Organize all of the company's costs into three categories variable expenses, traceable fored expenses 5. Using your contribution format segmented income statement from requirement 4 , calculate the break-even point in doilar sales for the Advanced model. Complete this question by entering your answers in the tabs below. Calculate an activity rate for each activity cost pool. (flound your answers to 2 decimal places. Calculate the departmental overhead rates b. Colculate the total amount of overhead that would be assigned to eoch product. c Using your departmental overhead cost allocations, redo the controlier's segmented income statement (continue to allocate selling and administrative expenses based on sales doliars). 3. Koontz's production manager has suggested using activity-based costing instead of echer the plantwide or departmental approaches. To facilitate the necessary calculations, she assigned the compary's total manufacturing overhead cost to five activity cost pools as follows 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 tor each customer order of the Basic model and three hours are required to setup for an order of the Advanced model: The compary pays a sales commissions of 5% for the Basic model and 10 s tor the Advanced model. its traceable fored advertising costs include $150,000 for the Basic model and $2,00,000 for the Advanced modet. The iemainder of the company's selling and administrative costs are organizationisustaining in nature Using the additional information provided by the production managet caiculate 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 lotal selling and administrative cost traced to the Basic model and the Advanced model using the activitybased approach. 4. Using your activity based cost assignments from requirement 3, prepare a contribubon format segmented income statement that is adapted from Exh bit 6.8. (Hint, Organize all of the company's costs into three categonies variable expenses, traceable fixed expenses. and common fixed expenses) 5. Using your cantribution format segmented income statement from requirement 4. calculate the breaki-even point in dollar sales for the Advanced model. Complete this question by entering your answers in the tabs below. Cakulate the total manufacturing overhesd cost allocated to the Baric model and the Adranced model using the acivity based approadh. (Hound your intermediate calculations to 2 decimsl places.) Lakculate the amount of overnead that wousd be assigned to eacn product. 2. Using a departmental approach Calculate the departmental overhead rates Calculate the total amount of overhead that would be assigned to each product Using your departmental overhead cost allocations, redo the controlier's segmented income statement (continue to allocate seling and administrative expenses based on sales dollars). Koontz's production manager has suggested using activity-based costing instead of either the plantwide or departmental approaches, To faciltate the necessary calculations, she assigned the company's total manufacturing overhead cost to five activity cost pools as follows. 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. The company pays a sales commissions of 5% for the Basic model and 10% for the Advanced model. its traceable fixed advertising costs indude $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 that is adapted from Exhibe 6-8 (Hint: Organize all of the company's costs into three cutegories: 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. Calculate the fotal selling and administrative cost traced to the Basic model and the Advanced model using the actrity based The total manufacturing overhead cost allocated to the Basio model and the Advanced model using the activity-based approach. 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 fequitement 3. prepare a contribution format segmented income statement that is 4dapted from Extibin 6 8. (Hint Organize all of the company's costs into three categories variable expenses, traceable fored expenses, and common fixed expenses) 5. Using your contribution format segmented income statement from requiremert 4 , calculate the break-even point in dollar sales for the Advanced model. Complete this question by entering your answers in the tatrs below. Using your activity based cost assignments from requirement 3, pregare a contrivition format sogmented incorke statement, that is adapted from Exhibit 6-8. (Hint: Organize all of the company's costs into three categonies variable expenses, traceable fixed expenses, and common fixed exponsess) (Round your intermediate calculations to 2 decimal phaces.) b. Calculate the amount of overhead that would be assigned to each product 2 Using a departmentaf approach: a. Caiculate the deparmental 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 (coritinue to allocate sel and administrative expenses based on sales dollars) 3. Koontz's 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 totai manufacturing overhead cost to five activity cost pools as follows: 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 modet 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 contrbution format segmented income statement that is adapted from Exhibit 6.8. (Hint Organize all of the company's costs into three categories: variable expenses, traceable fixed expense and common fixed expenses.] 5. Using your contribution format segriented 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. Using your contribution format segmented income statoment from requirement 4, calculate the break-even point in dollar sales for the Advanced model. (Round your intermedlate calculations to 2 decimal places. Round your final answer to the nearest whiolo dollar.)