OMGT 4323 4 Apr Assignment

OMGT 4323 4 Apr Assignment - Assignment 2 Problems-4A-1...

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Assignment 2 Problems----- 4A-1 5A-2 5-32 Due April 4, 2011 11:59:00 PM CDT - Please complete the assigned problems and submit to the assignments area. 4A-1, P170 Direct, Indirect, and Unallocated Cost, Process Map Answers highlighted ($) for operating income (loss) of each of the three Henry Picture Frame Company product lines. Total Custom Large Small Sales (in $) 152,000 32,000 40,000 80,000 Cost of goods sold Direct Material 40,000 5,000 15,000 20,000 Direct, direct trace Indirect Manufacturing 41,000 81,000 28,000 5,000 8,000 Indirect, Allocation based Gross Profit 71,000 on (2,050 hrs) machine hrs Selling and administrative expenses Commissions 15,000 1,500 3,500 10,000 Direct, direct trace Distribution to warehouses 10,400 25,400 1,000 3,000 6,400 Indirect, Allocation based Operating income 45,600 (3,500) 13,500 35,600 on weight (260,000KG) Unallocated expenses Administrative salaries 8,000 Other administrative expenses 4,000 12,000 Operating income before taxes 33,600 5A-2, P230 Choice of products Based on the information provided, 1. Compute contribution margins and contribution-margin ratios for plain and professional saws. Sales-variable expenses = contribution margin
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OMGT 4323 4 Apr Assignment - Assignment 2 Problems-4A-1...

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