Based on this information, how much of the rental cost should beallocated to the products made in January and to those made inFebruary? MONTH ALLOCATED COST JANUARY _________________ FEBRUARY _________________ 10 Pooling overhead cost LO12-2 Eaton Manufacturing Company produced 2,900 units of inventory inJanuary 2014. It expects to produce an additional 9,900 unitsduring the remaining 11 months of the year. In other words, totalproduction for 2014 is estimated to be 12,800 units. Directmaterials and direct labor costs are $73 and $54 per unit,respectively. Eaton Company expects to incur the followingmanufacturing overhead costs during the 2014 accounting period. | | Productionsupplies | $ | 6,000 | | Supervisorsalary | | 180,000 | | Depreciation onequipment | | 129,000 | | Utilities | | 24,000 | | Rental fee onmanufacturing facilities | | 333,000 | | | a. | Combine the individual overhead costs into a cost pool andcalculate a predetermined overhead rate assuming the cost driver isnumber of units. (Round your answer to 2 decimalplaces.) PREDETERMINED OVERHEAD RATE ( ) PER UNIT 9 Allocating costs between divisions LO 12-2 Kaplan Services Company (KSC) has 62 employees, 23 of whom areassigned to Division A and 39 to Division B. KSC incurred $373,860of fringe benefits cost during 2014. | | Determine the amount of the fringe benefits cost to be allocatedto Division A and to Division B. DIVISION ALLOCATED COST A __________________ B __________________ Desired profit LO 11-5 Lindo Company incurs annual fixed costs of $80,000. Variablecosts for Lindoâs product are $40 per unit, and the sales price is$64 per unit. Lindo desires to earn an annual profit of$40,000. | | Required | Determine the sales volume in dollars and units required to earnthe desired profit. (Do not round intermediatecalculations.) SALES IN DOLLARS ( ) SALES IN UNITS ( ) 4 Fixed versus variable cost behavior LO 11-1, 11-2 Moore Entertainment sells souvenir T-shirts at each rock concertthat it sponsors. The shirts cost $8 each. Any excess shirts can bereturned to the manufacturer for a full refund of the purchaseprice. The sales price is $20 per shirt. | | a. | What are the total cost of shirts and cost per shirt if salesamount to 7,000, 7,500, 8,000, 8,500, or 9,000? | | NUMBER OF T-SHIRTS SOLD 7,000 7,500 8,000 8,500 9,000 TOTAL COST OF SHIRTS _______ ________ ___________ _______________________ COSTS PER SHIRT _______ ________ ___________ ________________________ b. | Is the cost of T-shirts a fixed or a variable cost? FIXED COST () OR VARIABLE COST ( ) 3 Fixed versus variable cost behavior LO 11-1, 11-2 Moore Entertainment sponsors rock concerts. The company isconsidering a contract to hire a band at a cost of $90,000 perconcert. | | a. | What are the total band cost and the cost per person if concertattendance is 8,000, 8,500, 9,000, 9,500, or 10,000? (RoundâCost per personâ answers to 2 decimal places.) | CONCERT ATTENDANCE 8,000 8,500 9,000 9,500 10,000 | |