Company X employs 4 designers and 6 accounts managers. Direct and indirect costs are applied on a professional labor-hour basis that includes both designers and account managers. Company X presented the following information:

• Indirect costs: $300000
• Annual salary of each designer: $90000
• Annual salary of each account manager: $60000
• Total professional hours: 15000

The following information is available for Company X, with fixed costs at $640000:

Product A:

• Units sold: 20000
• Selling price: $100 /unit
• Variable costs: $40 /unit

Product B:

• Units sold: 5000
• Selling price: $200 /unit
• Variable costs: $120 /unit

Company X presents the following information:

• Cost of goods sold: $21000
• Finished goods inventory, January 1st: $10500
• Finished goods inventory, January 31st: $4200
• Work in progress inventory, January 1st: $6300
• Work in progress inventory, January 31st: $3150

Based on this information, determine the total amount of manufacturing costs for the period.

The following information is available for Company X:

• Units sold: 50000
• Contribution margin: $500000
• Income tax rate: 25%

How many units does Company X need to sell in order to increase the net income after taxes by $75000

• Budgeted level of production: 3200
• Units produced in January: 2560
• Units sold in January: 1920
• Inventory, January 1st: 0 units

Which of the following is the most important reason to classify costs into a four-level hierarchy?

For a company with diverse products, under costing overhead of a product will lead to product-cross -subsidization which means that:

Company X applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $15 per direct labor-hour. Company X presented the following information in May:

• Direct materials = $100000

• Direct labor (6000 hours at $12/hour) = $72000

• Indirect labor = $25000

• Plant facility rent = $36000

• Sales commission = $20000

For May, manufacturing overhead is:

Company X employs 4 designers and 6 accounts managers. Direct and indirect costs are applied on a professional labor-hour basis that includes both designers and account managers. Company X presented the following information:

• Indirect costs: $300000
• Annual salary of each designer: $90000
• Annual salary of each account manager: $60000
• Total professional hours: 15000