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# As s ignm ent: HW Set #3 - E16.21, E16.22, E4.10 1. eBook eBook eBook Exercise 4 .1 0 P re d e te rmin e d O ve rh e a d Ra te , Ap p lie d O ve rh e...

management accounting
Assignment: HW Set #3 - E16.21, E16.22, E4.10 1. Exercise 4.10 Predetermined Overhead Rate, Applied Overhead, Unit Cost Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? \$ _________________ per direct labor hour 2. What was the applied overhead for last year? \$ _________________ 3. Was overhead over- or underapplied, and by how much? _________________ = \$ _________________ 4. What was the total cost per unit produced (carry your answer to four significant digits)? \$ _________________ per unit 2. Exercise 16.21 Operating Leverage Income statements for two different companies in the same industry are as follows: eBook eBook eBook eBook eBook eBook
Required: 1. Compute the degree of operating leverage for each company. Trimax _________________ Quintex _________________ 2. Compute the break-even point for each company. Trimax, Inc. \$ _________________ Quintex, Inc. \$ _________________ Why is the break-even point for Quintex, Inc. higher? _________________ 3. Suppose that both companies experience a 50 percent increase in revenues. Compute the percentage change in profits for each company. Trimax _________________ % Quintex _________________ % 3. Exercise 16.22 CVP Analysis of Multiple Products Steinberg Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white. Another model, the deluxe model, is a color printer- scanner-copier. For the coming year, Steinberg expects to sell 90,000 regular models and 18,000 deluxe models. A segmented income statement for the two products is as follows: Required: eBook eBook eBook
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