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Midterm W2013 Sol key

# 0062501010 c

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Unformatted text preview: ach activity using the appropriate activity base. With just one product, all the costs would be assigned to it. e) \$19 200; \$396 000. Ending inventory = 100 000 × 0.80 × \$0.24 = \$19 200. Transferred out = \$35 200 + \$200 000 + \$20 000 + \$160 000 − \$19 200 = \$396 000. c) \$1 010. Variable cost of X24M = \$210 ÷ 1.5 = \$140.00. Variable cost of Z36R = \$100 ÷ 1.6 = \$62.50. 40% X24M + 60% Z36R = 1 20 × (40% X24M + 60% Z36R) = 20 × 1 8 X24M + 12 Z36R = 20. Weighted‐average contribution margin per boxed set = 8 × (\$210.00 − \$140.00) + 12 × (\$100.00 − \$62.50) = \$1 010. c) Increase in overall contribution margin by \$65 000. Revised weighted‐average contribution margin per boxed set = 10 × (\$210.00 − \$140.00) + 10 × (\$100.00 − \$62.50) = \$1 075. Increase in overall contribution margin = (\$1 075 − \$1 010) × 1 000 = \$65 000. e) \$910.00. \$910 000 is allocated over 140 000 hours (500 × 140 + 500 × 140). Overhead cost per hour = \$910 000 ÷ 140 000 = \$6.50. Per‐unit overhead cost of Side Mount = 1...
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