PLEASE Answer all questions, I will vote down for incompetion, and I do thumbs up for right answers.

1b.

Just b on this one.

2.

a.

b.

McNulty, Inc., produces desks and chairs. A new CFO has just been hired and announces a new policy that if a product cannot earn a margin of at least 35 percent, it will be dropped. The margin is computed as product gross profit divided by reported product cost. Manufacturing overhead for year 1 totaled $945,000. Overhead is allocated to products based on direct labor cost. Data for year 1 show the following Sales revenue Direct materials Direct labor Chairs $1,302,600 602,000 160,880 Desks $3,817,600 980,000 470,000 Required: a 1. Based on the CFO's new policy, calculate the profit margin for both chairs and desks. 6-2. Which of the two products should be dropped? b. Regardless of your answer in requirement(o), the CFO decides at the beginning of year 2 to drop the chair product. The company cost analyst estimates that overhead without the chair line will be $830,000. The revenue and costs for desks are expected to be the same as last year. What is the estimated margin for desks in year 2? Req A1 Reg A2 Req B Regardless of your answer in requirement (a), the CFO decides at the beginning of year 2 to drop the chair product. The company cost analyst estimates that overhead without the chair line will be $830,000. The revenue and costs for desks are expected to be the same as last year. What is the estimated margin for desks in year 2? (Enter your answer as a percentage rounded to 1 decimal place (.e., 32.1).) Show less Estimated margin for desks - Year 2 30.1% Required: a. Complete the income statement using activity based costing and WCC's three cost drivers b. Recompute the income statement using direct labor hours as the only allocation base (200 hours for teen counseling: 510 hours for executive coaching) Complete this question by entering your answers in the tabs below. Required A Required B Complete the income statement using activity-based costing and WCC's three cost drivers. (Do not round intermediate calculations.) Teen Executive Account Total Counseling Coaching Revenue $ 72,000 $ 141,000 $ 213,000 Expenses Administrative support 45,600 Transportation, etc 39.960 20,400 Equipment $ 107,040 Profil Required B > Required: a. Complete the income statement using activity-based costing and WCC's three cost drivers. b. Recompute the income statement using direct labor hours as the only allocation base (200 hours for teen counseling: 510 hours for executive coaching) Complete this question by entering your answers in the tabs below. Required A Required B Recompute the income statement using direct labor-hours as the only allocation base (200 hours for teen counseling: 510 hours for executive coaching). (Do not round intermediate calculations and round your final answers to the nearest whole dollar.) Account Total Teen Executive Counseling Coaching $ 72,000 $ 141,000 $ Revenue Expenses Profit 213,000 105 900 107040 S