Accounting Assignment | Custom Assignment Help

Koontz Company manufactures two models of industrial components—a Basic model and an Advanced Model. The company considers all of its manufacturing overhead costs to be fixed and it uses plantwide manufacturing overhead cost allocation based on direct labor-hours. Koontz’s controller prepared the segmented income statement that is shown below for the most recent year (he allocated selling and administrative expenses to products based on sales dollars):

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

Basic Advanced total number of units produced and sold 20,000  10,000 30,000        Sales$3,000,000 $2,000,000$5,000,000Cost of goods sold 2,300,000  1,350,000 3,650,000Gross margin 700,000  650,000 1,350,000Selling and administrative expenses 720,000  480,000 1,200,000Net operating income (loss)$(20,000)$170,000$150,000

Direct laborers are paid $20 per hour. Direct materials cost $40 per unit for the Basic model and $60 per unit for the Advanced model. Koontz is considering a change from plantwide overhead allocation to a departmental approach. The overhead costs in the company’s Molding Department would be allocated based on machine-hours and the overhead costs in its Assemble and Pack Department would be allocated based on direct labor-hours. To enable further analysis, the controller gathered the following information:

Basic Advanced total number of units produced and sold 20,000  10,000 30,000        Sales$3,000,000 $2,000,000$5,000,000Cost of goods sold 2,300,000  1,350,000 3,650,000Gross margin 700,000  650,000 1,350,000Selling and administrative expenses 720,000  480,000 1,200,000Net operating income (loss)$(20,000)$170,000$150,000

Direct laborers are paid $20 per hour. Direct materials cost $40 per unit for the Basic model and $60 per unit for the Advanced model. Koontz is considering a change from plantwide overhead allocation to a departmental approach. The overhead costs in the company’s Molding Department would be allocated based on machine-hours and the overhead costs in its Assemble and Pack Department would be allocated based on direct labor-hours. To enable further analysis, the controller gathered the following information:

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

Molding Assemble and Pack TotalManufacturing overhead costs$787,500 $562,500$1,350,000Direct labor-hours:       Basic 10,000  20,000 30,000Advanced 5,000  10,000 15,000Machine-hours:       Basic 12,000  – 12,000Advanced 10,000  – 10,000

Koontz’s production manager has suggested using activity-based costing instead of either the plantwide or departmental approaches. To facilitate the necessary calculations, she assigned the company’s total manufacturing overhead cost to four activity cost pools as follows:

Activity Cost PoolActivity MeasureManufacturing OverheadMachiningMachine-hours in Molding$417,500Assemble and packDirect Labor-Hours in Assemble and Pack 282,500Order processing number of customer orders 310,000SetupsSetup hours 340,000  $1,350,000

She also determined that the average order size for the Basic and Advanced models is 400 units and 50 units, respectively. The molding machines require setup for each order. One setup hour is required for each customer order of the Basic model and three hours are required to set up for an order of the Advanced model.

Using the additional information provided by the production manager, calculate:

The company pays a sales commissions of 5% for the Basic model and 10% for the Advanced model. Its traceable fixed advertising expenses include $150,000 for the Basic model and $200,000 for the Advanced model. The remainder of the company’s selling and administrative costs are common fixed expenses.

QUESTION 1: Using your activity-based cost assignments from requirement 3, make a contribution format segmented income statement. (Hint: Organize all of the company’s costs into three categories: variable expenses, traceable fixed expenses, and common fixed expenses.)

QUESTION 2: Using your contribution format segmented income statement from requirement 4, calculate the break-even point in dollar sales for the Advanced model.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works

Here is how simple it is to make use of our essay writing services

step 1

Submit a "write my essay for me" request

Fill out a quick order form and provide detailed requirements as to the paper, its format, etc. You can even attach screenshots or add additional instructions later. If something has to be clarified or added, the writer will contact you directly.
Pro service tips
How to get the most out of your experience with Homework Writing Services
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
SEO
A job well done
Customer 463679, May 13th, 2023
English 101
Thank you!
Customer 454425, June 21st, 2020
community health
Thank you!!!
Customer 463301, September 1st, 2022
IT
A few mistakes but overall an excellent paper
Customer 453915, September 13th, 2022
SEO
good
Customer 463813, March 8th, 2023
Health Care
Thank you so much!
Customer 454001, March 8th, 2020
CRITICAL WRITING AND READING
Always use Grammarly before submitting your papers.
Customer 460653, March 26th, 2022
Public Administration
Be keen on plagiarism.
Customer 462779, March 31st, 2022
Nursing
Thank you so much for the great paper!
Customer 454007, May 31st, 2020
Psychology
Good job.
Customer 453707, May 8th, 2022
Marketing
I'm beyond grateful for this paper to be completed on time. I recently had a major surgery on my chest and sternum and was in so much pain and didn't want to fail from one paper. The work is awesome!!!! Very knowledgeable and informative, just excellent.
Customer 454165, March 17th, 2020
lesson plan
great work
Customer 454025, April 10th, 2020
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat