TranscribedText: 11:32PM Sat Jan 27 Y2 @ ezto.mheducation.com < uestion 1 - Chapter 5 homework - Connect N Paraphrasing Tool - QuillB Chapter 5 homework @ Saved Help Save & Exit Submit 1 points eBook b Print D References Check my work Supermart Food Stores (SFS) has experienced net operating losses in its frozen food products line in the last few periods. Management believes that the store can improve its profitability if SFS discontinues frozen foods. The operating results from the most recent period are: Frozen Foods Baked Goods Fresh Produce Sales $ 120,000 $ 91,000 $ 158,175 Cost of goods sold 105,000 67,000 110,000 SFS estimates that store support expenses, in total, are approximately 20% of revenues. The controller says that not every sales dollar requires or uses the same amount of store support activities. A preliminary analysis reveals store support activities for these three product lines are: Frozen Baked Fresh Activity (cost driver) Foods Goods Produce Order processing (number of purchase orders) 10 45 100 Receiving (number of deliveries) 12 55 120 Shelf-stocking (number of hours per delivery) 2 0.5 4 Customer support (total units sold) 30,000 40,000 86,000 The controller estimates activity-cost rates for each activity as follows: Order processing $ 80 per purchase order Receiving 110 per delivery Shelf-stocking 15.25 per hour Customer support 0.21 per item Required: 1. Prepare a product-line profitability report for SFS under the current costing system. 2. Prepare a product-line profitability report for SFS using the ABC information the controller provides. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a product-line profitability report for SFS using the ABC information the controller provides. (Loss amounts should be indicated by a minus sign. Round operating margin (loss) to 2 decimal places (i.e. .2134 should be entered as 21.34%). 11:32 PM Sat Jan 27 . . . 32% AA ezto.mheducation.com C + X M Question 1 - Chapter 5 homework - Connect Paraphrasing Tool - QuillBot Al Chapter 5 homework i Saved Help Save & Exit Submit Check my work order processing $ 80 per purchase order Receiving 110 per delivery Shelf-stocking 15 . 25 per hour Customer support 0. 21 per item 1 Required: points 1. Prepare a product-line profitability report for SFS under the current costing system. 2. Prepare a product-line profitability report for SFS using the ABC information the controller provides. Book Complete this question by entering your answers in the tabs below. Print Required 1 Required 2 In Prepare a product-line profitability report for SFS using the ABC information the controller provides. (Loss amounts should be indicated by a minus sign. Round operating margin (loss) to 2 decimal places (i.e. .2134 should be entered as 21.34%). References Round your other answers to nearest whole dollar.) Frozen Food Baked Goods Fresh Produce Sales $ 120,000 $ 91,000 $ 158, 175 Cost of goods sold 105,000 67,000 10,000 $ 15,000 $ 24,000 $ 48, 175 Store support Order processing 800 $ 3,600 $ 8,000 Receiving ,320 5,050 3,200 Shelf-stocking 366 7,320 Customer support 5,300 ,400 8,060 Total store support cost 3,786 8,050 46,580 Operating income (loss) $ ,214 $ 1,595 Operating margin (loss) 5.18 % % .01 % Required 1 Required 2 Mc Gra 11:32PM Sat Jan 27 Y2 @ ezto.mheducation.com < uestion 2 - Chapter 5 homework - Connect N Paraphrasing Tool - QuillB Chapter 5 homework @ Saved Help Save & Exit Submit 1 points eBook b Print D References Check my work EyeGuard Equipment Incorporated (EEl) manufactures protective eyewear for use in commercial and home applications. The product is also used by hunters, home woodworking hobbyists, and in other applications. The firm has two main product linesthe highest- quality product is called Safe-T, and a low-cost, value version is called Safe-V. Information on the factory conversion costs for EEl is as follows: Factory Costs Salaries $ 850,000 Supplies 150,000 Factory expense 550,000 Total $ 1,550,000 EEl uses ABC to determine the unit costs of its products. The firm uses resource consumption cost drivers based on rough estimates of the amount that each activity consumes, as shown below. EEI has four activities: job setup, assembly, inspecting and finishing, and packaging. Inspecting and Setup Assembly Finishing Packaging Total Salaries 15% 55% 20% 10% 100% Supplies 20 60 20 100 Factory expense 80 20 100 The activity cost drivers for the two products are summarized below. Activities Activity Driver Setup Batch Assembly Units Inspect and finishing Finishing hours Packaging Packing hours Safe-V Safe-T Batches 250 600 Units 60,000 72,000 Finishing hours, per unit 0.2 0.3 Packaging hours, per unit 0.1 0.15 Materials per unit $ 3.50 $ 6.00 Required: 1. Determine the amount of the cost pool for each of the four activities. 2. Determine the activity-driver rates for assigning factory costs to the two products. 3. Determine the activity-based unit cost for each of the products. < Prev 2 of 5 11:33 PM Sat Jan 27 . . . 32% AA ezto.mheducation.com C + X M Question 2 - Chapter 5 homework - Connect Paraphrasing Tool - QuillBot Al Chapter 5 homework i Saved Help Save & Exit Submit Check my work 2 UI LIE allIVUIL WIIAL CALII ALLIVILy LUIISUITES, as SI TUVVII WEIUVV. LLIIIas IVUI atLIVILES. JUN setup, abseilINly, IIIspecully allu IIIISIly, and packaging. Inspecting and 1 Setup Assembly Finishing Packaging Total Salaries 15% 55% 20% 10% points 100% Supplies 20 60 20 100 Factory expense 80 20 100 The activity cost drivers for the two products are summarized below. Book Activities Activity Driver Setup Batch Print Assembly Units Inspect and finishing Finishing hours Packaging Packing hours References Safe-V Safe-T Batches 250 600 Units 60, 000 72, 000 Finishing hours, per unit 0.2 0.3 Packaging hours, per unit 0.1 0. 15 Materials per unit $ 3.50 $ 6.00 Required: 1. Determine the amount of the cost pool for each of the four activities. 2. Determine the activity-driver rates for assigning factory costs to the two products. 3. Determine the activity-based unit cost for each of the products. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the activity-based unit cost for each of the products. (Round your intermediate calculations and final answers to 2 decimal places. Safe-V Safe-T Activity-based cost per unit Mc Graw < Prev 2 of 5 Next >

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Supermart Food Stores (SFS) has experienced net operating losses in its frozen food products line in the last few periods. Management believes that the store can improve its profitability if SFS discontinues frozen foods. The operating results from the most recent period are: Frozen Foods Sales Cost of goods sold $ 120,000 105,000 Baked Goods Fresh Produce $ 91,000 67,000 $ 158,175 110,000 SFS estimates that store support expenses, in total, are approximately 20% of revenues. The controller says that not every sales dollar requires or uses the same amount of store support activities. A preliminary analysis reveals store support activities for these three product lines are: Frozen Baked Freshi Activity (cost driver) Foods Goods Produce Order processing (number of purchase orders) Receiving (number of deliveries) 10 45 100 12 55 120 Shelf-stocking (number of hours per delivery) 2 0.5 4 Customer support (total units sold) The controller estimates activity-cost rates for each activity as follows: 30,000 40,000 86,000 Order processing $ 80 per purchase order Receiving 110 per delivery Shelf-stocking 15.25 per hour Customer support 0.21 per item Required: 1. Prepare a product-line profitability report for SFS under the current costing system. 2. Prepare a product-line profitability report for SFS using the ABC information the controller provides. Supermart Food Stores (SFS) has experienced net operating losses in its frozen food products line in the last few periods. Management believes that the store can improve its profitability if SFS discontinues frozen foods. The operating results from the most recent period are: Frozen Foods Sales Cost of goods sold $ 120,000 105,000 Baked Goods Fresh Produce $ 91,000 67,000 $ 158,175 110,000 SFS estimates that store support expenses, in total, are approximately 20% of revenues. The controller says that not every sales dollar requires or uses the same amount of store support activities. A preliminary analysis reveals store support activities for these three product lines are: Frozen Baked Freshi Activity (cost driver) Foods Goods Produce Order processing (number of purchase orders) Receiving (number of deliveries) 10 45 100 12 55 120 Shelf-stocking (number of hours per delivery) 2 0.5 4 Customer support (total units sold) The controller estimates activity-cost rates for each activity as follows: 30,000 40,000 86,000 Order processing $ 80 per purchase order Receiving 110 per delivery Shelf-stocking 15.25 per hour Customer support 0.21 per item Required: 1. Prepare a product-line profitability report for SFS under the current costing system. 2. Prepare a product-line profitability report for SFS using the ABC information the controller provides.