berg company incurs 240 000 overhead costs each year in its three main departments s 265658

Nate Bunyatipanon HW Practice Exercise 4 Acct 203 2. Berg Company incurs $240,000 overhead costs each year in its three main departments, setup ($15,000), machining ($165,000), and packing ($60,000). The setup department performs 40 setups per year, the machining department works 5,000 hours per year, and the packing department packs 500 orders per year. Information about Berg’s two products is as follows: Product A1 Product B1 Number of setups 20 20 Machining hours 1,000 4,000 Orders packed 150 350 Number of products manufactured 600 400 Using ABC, how much overhead is assigned to Product B1 each year? 3. Keene, Inc. produces flash drives for computers, which it sells for $20 each. Each flash drive costs $6 of variable costs to make. During March, 1,000 drives were sold. Fixed costs for March were $4.20 per unit for a total of $4,200 for the month. If variable costs decrease by 5%, what happens to the break even level of units per month for Keene? A: It decreases about 15 units. B: It depends on the number of units the company expects to produce and sell. C: It is 5% higher than the original break even point. D: It decreases about 6 units 5. How much sales are required to earn a target net income of $96,000 if total fixed costs are $120,000 and the contribution margin ratio is 40%? 6. In 2011, Hagar Corp. sold 3,000 units at $500 each. Variable expenses were $350 per unit, and fixed expenses were $390,000. The same variable expenses per unit and fixed expenses are expected for 2012. If Hagar cuts selling price by 4%, what is Hagar’s break even point in units for 2012? 7. In 2011, Carow sold 3,000 units at $500 each. Variable expenses were $250 per unit, and fixed expenses were $200,000. The same selling price is expected for 2012. Carow is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is Carow’s break even point in units for 2012? 8. In 2011,…