[Fact pattern]

Company X incurred fixed manufacturing

costs of $15876 during 2020. Other information for 2020 includes:

Under absorption costing, total manufacturing

costs expensed on the income statement (excluding adjustments for variances)

total: (Present all the necessary auxiliary calculations)

[DEPOIS DE PASSAR PARA WORD, CONVERTER EM PERGUNTA ABERTA]

[Refers to Fact Pattern]

Give an example of how, under absorption costing, operating income could fall even though the

unit sales level rises.

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):

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 $274384 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 $600058. How many people can receive a fan during

summer? (Round the

final answer 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 $5154 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?

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

products. The costs associated with the production of 15400 units of this

part are as follows:

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)