Question

11.

Dameron company has 2 branches--Flatiron and Waterside Plaza. Additional data from the most recent month are below:

	Flatiron	Waterside Plaza
Break-even sales	$50,000	$230,000
Actual sales	$650,000	$350,000
Traceable fixed costs	$40,000	$46,000

The company's net operating income for the month is $295,000.

(Q.) Assuming a constant sales mix, what is Dameron's companywide break-even sales? (Do not round the intermediate calculations. Round the final answer to the nearest dollars.)

(A.) $ ?

9.

Boyega company has a Maintenance Department that services the equipment in only three operating departments: Cutting, Forming, and Painting Departments. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Data relating to the Maintenance Department costs are below:

	Actual	Budgeted
Variable costs	$44,653	$54,000
Fixed costs	$30,200	$7,000

Data for the three operating departments follow:

	Forming	Cutting	Painting
Long-run average Machine-Hours	5,500	5,500	3,000
Budgeted Machine-Hours	4,200	8,300	5,500
Actual Machine-Hours	7,590	2,870	4,250

(Q.) How much, if any, of the actual Maintenance Department costs should NOT be charged to the three operating departments for evaluation purposes?

(A.) $ ?

Answer 1

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Answer 11
Dameron company	Flatiron	Waterside Plaza	Total	Note
Break-even sales	50,000.00	230,000.00	280,000.00	L
Actual sales	650,000.00	350,000.00	1,000,000.00	M
Traceable fixed costs	40,000.00	46,000.00	86,000.00	N
Net operating income			295,000.00	O
Total contribution			381,000.00	P=N+O
Contribution %			38.10%	Q=P/L
Companywide break-even sales			225,722	R=N/Q
Answer 9
Boyega company	Forming	Cutting	Painting	Total	Note
Budgeted Hours	4,200.00	8,300.00	5,500.00	18,000.00	A
Budgeted Variable cost				54,000.00	B
Budgeted Fixed cost				7,000.00	C
Total Budgeted cost				61,000.00	D=B+C
OH rate				3.39	E=D/A
Actual Hours	7,590.00	2,870.00	4,250.00	14,710.00	F
OH rate				3.39	See E
Overhead allocated				49,850.56	G=F*E
Actual Variable cost				44,653.00	H
Actual Fixed cost				30,200.00	I
Total Actual cost				74,853.00	J=H+I
Cost should not be charged				25,002.44	K=J-G