Midterm W2013 Sol key

0062501010 c

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

Ask a homework question - tutors are online