Company X produces a part that is used in the manufacture of one of its

products. The costs associated with the production of 15073 units of this

part are as follows:

The following information is available for Company X:

• Units sold: 35000
• Contribution margin: $350000
• Income tax rate: 25%

How many units does Company X need to sell in order to increase the net income after taxes by $52500

For 2020, Company X uses machine-hours as the only overhead cost-allocation base. The

direct cost rate is $3 per unit. The selling price of the product is $18. The

estimated manufacturing overhead costs are $240000 and estimated 42500 machine

hours. The actual manufacturing overhead costs are $274156 and actual

machine hours are 50000.

Company X is a nonprofit

organization that supplies electric fans during summer for individuals in need.

Fixed costs are $225000. The fans cost $28 each. The organization has a

budgeted appropriation of $745061. How many people can receive a fan during

summer? (Round the

final answer to the nearest unit)

Company X's president has heard that there are multiple

breakeven points for every product. He does not believe this and has asked you

to provide the evidence of such a possibility. Some information about the

company for 2020 is as follows:

What are breakeven sales in units

using variable costing? (Round to the nearest unit)

Company X ends the month with two jobs still in progress. Job 5 has $10000 of materials,

$2000 of direct labor and $8814 of manufacturing overhead allocated. Job 6

was $30000 of materials, $2000 of direct labor and $10000 of manufacturing

overhead allocated. The cost of goods sold for the month was $40000 and of that

30% was overhead. There were no finished goods in stock as the month ends. If

the manufacturing overhead is underallocated by $10000, which of the following

choices would be the correct way to prorate it, assuming the proration is based

on the allocated overhead in the ending balances of work-in-process, finished

goods, and cost of goods sold?

John's

8-year-old Car requires repairs estimated at $11000 to make

it road worthy again. His wife suggested that he should buy a

5-year-old used Jeep instead for $11000 cash. Estimated costs for the two cars are the following:

What should John do? What are his

savings in the first year?

Company X sells only two products, Product A and Product B.

Company X sells two units of Product

A for each unit it sells of Product B. Company X faces a tax rate of 30% and desires a net after-tax income of $63000. The number of units that Company X must

sell to achieve its net income objective would be (round to the nearest unit):

Company X's managers have decided to revise their current assignment of overhead

costs to reflect the following ABC cost information:

Activities Demanded

Under the revised ABC system,

overhead costs per unit for the Sweatshirts will be: (Round the final answer to the nearest cent)

Company X incurred total production costs of $1,000,000 in May. From total product costs, Company X attributed $58196 to normal spoilage and $25691 to abnormal spoilage. The company only started selling its products in June. Company X should account for the May spoilage as follows: