08 Jun Question Question 1: Big Man Company gives you information
Question
Question 1:
Big Man Company gives you information from the records for the year ended December 31, 2015. (Variable costs are designated V and fixed costs are F).
Big Man has a 30% marginal Tax rate.
Sales (25,000 units @ $15) $375,000
Costs:
Direct Materials 60,000 (100% V)
Direct Labor 90,000 (100% V)
Factory Overhead 120,000 (80% F and 20% V)
Marketing Expenses 40,000 (50% F and 50% V)
Administrative Expenses 30,000 (80% F and 20% V)
Total Costs $340,000
Operating Income 35,000
Show all computations:
1) Compute the breakeven point in number of units and sales dollars.
2) Assuming Big Man has a marginal tax rate of 30%, compute the number of units required to generate an after tax profit of $35,000.
3) Compute number of units required to generate a net before tax profit of 10 percent of sales revenue.
Question 2:
Job Order Costing (one job two departments)
Lyons Inc. employs a normal costing system and has identified the following overhead costs and activity drivers for the next year.
Marketing Department (overhead allocated with direct manufacturing labor hours)
Manufacturing Overhead Costs (Budgeted) $147,000
Direct manufacturing labor hours (Budgeted) 4,200 Hours
Machine Hours (Budgeted) 9,800 Hours
Manufacturing Overhead Costs (Actual) $146,500
Direct Manufacturing Labor Hours (Actual) 4,250 Hours
Machine hours (Actual) 9,900
Finishing Department (overhead allocated with direct machine hours)
Manufacturing Overhead Costs (Budgeted) $90,000
Direct manufacturing labor hours (Budgeted) 3,000 Hours
Machine Hours (Budgeted) 5,000 Hours
Manufacturing Overhead Costs (Actual) $86,500
Direct Manufacturing Labor Hours (Actual) 3,150 Hours
Machine hours (Actual) 4,900
The following info is related to Job XX which consists of 300 units and was completed and sold during the year.
Job XX
Molding Department
Direct Materials $2,250
Direct Labor $3,000
Direct Labor Hours 90
Machine Hours 180
Finishing Department
Direct Materials $2,500
Direct Labor $1,875
Direct Labor Hours 110
Machine Hours 150
Required:
1) Determine the overhead application rates for both departments
2) Determine the unit cost for Job XX
3) Calculate the amount under or over allocated overhead for each department and for Lyons as a wh
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.