II. Wongtien Electronics Corp. in Hong Kong, SAR, China, manufactures tablets, laptops and desktop PCs. Wongtien currently operates a standard absorption costing system. Budgeted information for next year is given below (currency in one thousand Hong Kong Dollars, HK$000): Desktop PCs 9,880 2,200 800 Total 26,000 5,800 2,300 Products Sales revenue Tablets 3,640 Laptops 12,480 2,800 Direct material 800 wwm Direct labor 300 Fixed production 1,456 1,084 992 3.488 overheads 3,952 2,928 10,400 7,500 Gross profit Fixed production overheads are currently absorbed based on a percentage of sales revenue. Wongtien is considering changing to an activity-based costing system. The main activities and their associated cost drivers and overhead cost have been identified as follows: Cost driver Production overhead cost Activity Manufacturing scheduling wNumber of orders Parts handling Assembly Software installation and testing Packaging 162 Number of parts Assembly time Number of software applications Number of units 2,464 4,472 2,000 1,302 10,400 Further details have also been ascertained as follows: Desktop PCs 6,000 Tablets Laptops 12,000 Budgeted production for next year (units). 10,000 Average number of units per order Number of parts per unit Assembly time per unit (minutes). Number of software applications per unit. 10 6 4 20 35 25 20 40 30 3 4

Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income White 48% $ 374,400 112,320 $ 262,080 Fragrant 20% 100% $ 156,000 30% 124,800 70% $ 31,200 Product 100% 80% 20% Loonzain 32% $ 249,600 137, 280 $ 112,320 100% 55% 45% Total 100% $ 780,000 374,400 405, 600 228,800 $ 176,800 Dollar sales to break-even = Fixed expenses ÷ CM ratio = $228,800 ÷ 0.52 = $440,000 As shown by these data, net operating income is budgeted at $176,800 for the month and the estimated break-even sales is $440,000. Assume actual sales for the month total $780,000 as planned; however, actual sales by product are White, $249,600; Fragrant, $312,000; and Loonzain, $218,400. Required: 1. Prepare a contribution format income statement for the month…

Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Product Percentage of total sales White 48% Fragrant 20% Loonzain 32% Total 100% Sales Variable expenses $ 369,600 110,880 100% 30% $ 154,000 123,200 100% 80% Contribution margin Fixed expenses Net operating income $ 258,720 70% $ 30,800 20% $ 246,400 135,520 $ 110,880 100% 55% 45% $ 770,000 369,600 100% 48% 400,400 52% 226,720 $ 173,680 Dollar sales to break-even - Fixed expenses / CM ratio = $226,720/0.52 = $436,000 As shown by these data, net operating income is budgeted at $173,680 for the month and the estimated break-even sales is $436,000. Assume that actual sales for the month total $770,000 as planned; however, actual sales by product are: White, $246,400; Fragrant, $308,000; and Loonzain, $215,600. Required: 1. Prepare a contribution format income statement…

Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income White 20% $ 150,000 108,000 $ 42,000 Fragrant 52% 100% $ 390,000 72% 28% $ 312,000 78,000 Required 1 Required 2 Product Loonzain 28% Complete this question by entering your answers in the tabs below. 100% $ 210,000 20% 84,000 80% $ 126,000 Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data. 100% 40% 60% Tota 100% Dollar sales to break-even = Fixed expenses / CM ratio = $449,280 / 0.64 = $702,000 As shown by these data, net operating income is budgeted at $30,720 for the month and the estimated break-even sales is $702,000.…

Jackson Company manufactures computer keyboards. The budgeted sales price is $60 per keyboard, the variable costs are $28 per keyboard, and budgeted fixed costs are $13,000. What is the budgeted operating income for 2,000 keyboards? OA. $58,000 OB. $51,000 OC. $67,000 OD. $64,000

Wongtien Electronics Corp. in Hong Kong, SAR, China, manufactures tablets, laptops and desktop PCs. Wongtien currently operates a standard absorption costing system. Budgeted information for next year is given below (currency in one thousand Hong Kong Dollars, HK$000):   Products              Tablets                        Laptops                       Desktop PCs              Total Sales revenue      3,640              12,480               9,880                  26,000 Direct material        800                 2,800                2,200                        5,800 Direct labor             300     1,200                  800                         2,300 Fixed production overheads          1,456   4,992                3,952                       10,400 Gross profit           1,084   3,488                2,928                        7,500   Fixed production overheads are currently absorbed based on a percentage of sales revenue. Wongtien is considering changing to an activity-based…

Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice—White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below:       Product     White Fragrant Loonzain Total Percentage of total sales   48 %       20 %       32 %       100 %     Sales $ 374,400   100 % $ 156,000   100 % $ 249,600   100 % $ 780,000   100 % Variable expenses   112,320   30 %   124,800   80 %   137,280   55 %   374,400   48 % Contribution margin $ 262,080   70 % $ 31,200   20 % $ 112,320   45 %   405,600   52 % Fixed expenses                                 234,000       Net operating income                               $ 171,600           Dollar sales to break-even = Fixed expenses = $234,000 = $450,000 CM ratio 0.52   As shown by these data, net operating income is budgeted at $171,600 for the month and the estimated break-even sales is $450,000.   Assume that actual sales for the…

Wongtien Electronics Corp. in Hong Kong, SAR, China, manufactures tablets, laptops and desktop PCs. Wongtien currently operates a standard absorption costing system. Budgeted information for next year is given below (currency in one thousand Hong Kong Dollars, HK$000):   Products                  Tablets           Laptops          Desktop PCs             Total Sales revenue           3,640             12,480                9,880                  26,000 Direct material           800               2,800                 2,200                  5,800 Direct labor                300               1,200                  800                    2,300 Fixed production-   overheads              1,456              4,992                 3,952                  10,400 Gross profit              1,084              3,488                 2,928                   7,500   Fixed production overheads are currently absorbed based on a percentage of sales revenue. Wongtien is considering changing to an…