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Selling Price per unit Direct Material Cost per kg Direct Labour Cost per unit Variable Overhead cost per unit Material required per unit Other variable expenses per unit Annual Fixed Costs: Advertising Fixed Manufacturing Other Fixed Expenses $45.00 $2.00 $1.20 $0.80 2 KGS $0.60 $15,000 $60,000 $8,000 Required: 1. What is the Breakeven Point in both units and sales dollars? For this you will need to calculate both the Contribution Margin and the Contribution Margin Ratio - be sure to show all your work for full points. 2. Assume the company has a target profit of $400,000, what is the breakeven point in both units and sales dollars? Show all your work. 3. If ABC company chose to discontinue advertising and instead pay $3 per unit as a commission, what would the breakeven point be in both units and sales dollars? Direct Labour Hours Machine Hours Direct Materials Costs Direct Labour Cost Manufacturing Overhead Cost Moulding 12,000 70,000 $510,000 $130,000 $602,000 Painting 60,000 8,000 $650,000 $420,000 $735,000 Job 305 was started on August 1st and completed on August 10th. The company's cost records show the following information concerning the job: Departments Moulding Painting Direct Labour Hours 40 75 Machine Hours 90 25 Materials placed into production $480 $340 Direct Labour Cost $280 $660 Required: a. Compute the POHR used during the year in the Moulding Department. Also, compute the rate used in the Painting Department. b. Compute the total overhead cost applied to Job 205. c. What would be the total cost recorded for Job 205? If the job contained 50 units, what would the cost be per unit? d. At the end of the year, the records of High Desert Potteryworks revealed the following actual cost and operating data for all jobs worked on during the year: Departments Direct Labour Hours Machine Hours Direct Materials Costs Direct Labour Cost Manufacturing Overhead Cost Moulding 11,000 68,000 $430,000 $108,000 $620,000 Painting 61,000 8,800 $680,000 $436,000 $705,000 What was the amount of under or over applied overhead for each department at the end of the year

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