Single Plantwide Rate TenAlpina Guided Calculation Sheet: Required: Using standard direct labor time as the overhead allocation base, compute the gross margin for each product in order to verify...

a. Using Exhibits 1 and 2 in the given case study, calculate each product line's contribution margin per unit. If you would like to check your work, take this one step further and calculate your contribution margin ratio; as a check figure allcontribution margin ratios should be between 70% - 85%.

Single Plantwide Rate TenAlpina Guided Calculation Sheet: Required: Using standard direct labor time as the overhead allocation base, compute the gross margin for each product in order to verify Guilia's belief about current gross margins. (note: Guilia is allocating all conversion costs to her products this includes the labor and overhead (thus we are not treating labor as a direct cost). Basic Allocation Rate Formula:Total Costs to Be Allocated (typically just manufacturing overhead, but in this case its labor plus manufacturing overhead) Total Estimated Driver Activity (standard direct labor hours in this problem) Step 1: Calculate the numerator of our formula (Total Costs to be Allocated) MonthyAnnually Manufacturing Overhead: Direct Labor Total Costs To be Allocated:$ - 0$ - 0 Step 2: Calculate the denominator of our formula (Total Estimated Driver Activity) std DL minutes per unitmonthly volumeTotal SDLM per monthTotal SDLM per year Pitons Hammers Rock nut sets - 0- 0 Step 3: Drop numbers into Basic Allocation formula (in this case we are calculating the allocation rate to which conversion costs are allocated to products per standard DL minute) Basic Allocation Formula: (based on monthly data)Total Costs to Be Allocated=ERROR:#DIV/0!per standard DL Minute Total Estimated Driver ActivitySame answer either method, just showing both calcs. I will only do the monthly calculations when we calculate with multiple drivers. Basic Allocation Formula: (based on yearly data)Total Costs to Be Allocated=ERROR:#DIV/0!per standard DL Minute Total Estimated Driver Activity Step 4: Calculate Gross Margins (Sales - COGS = Gross margin). COGS = all product costs both direct and indirect. Per Unit: price per unitdirect material per unitindirect allocated costs per unitgross margin per unitGM % Pitons Hammers Rock nut setsSame answer either method, just showing both calcs. I will only do the monthly calculations when we calculate with multiple drivers. Per Month: Monthly Rev.direct materialindirect allocated costsgross marginGM % Pitons Hammers Rock nut sets Multiple Allocation Rates TenAlpina Guided Calculation Sheet: Required: Compute the gross margin for each product line using the combination of direct labor hours and mancine hours to allocate overhead. Do the results make sense? Basic Allocation Formula:Total Costs to Be Allocated (typically just manufacturing overhead, but in this case its labor plus manufacturing overhead) Total Estimated Driver Activity In this question we will calculate two allocation rates: one for Machine driven costs (depreciation, variable power, and supplies) and another for Direct Labor driven costs (labor, supervision, lighting, and occupancy). Step 1: Calculate the numerator for each of our formulas (Total Costs to be Allocated). One will be total Machine driven costs to be allocated, the other will be total Labor driven costs to be allocated. Total Monthy OverheadNow split the overhead into the two categories in which we will allocate costs:Machine RelatedLabor RelatedGuidance to help calculate the Labor Related Overhead Costs: Manufacturing Overhead:**Light, Heat & Power Direct LaborSubtract the variable power that is machine related (from Exhibit 6) Total Costs To be Allocated:$ - 0$ - 0$ - 0Supervision Occupancy Note: Sum of the two categories should still add up to total monthly overhead of $60,580.42Labor Related Manufacturing OH$ - 09,270 is your check figure Step 2: Calculate the denominator of each of our formulas (Total Estimated Driver Activity). One will be the Machine driven costs' driver of total estimated standard machine minutes. The other will be the Labor driven costs' driver of total estimated standard direct labor minutes. Machine Minutes Total Estimated Activity std Machine minutes per unitmonthly volumeTotal SDLM per month Pitons Hammers Rock nut sets - 0Total Est. Std Machine Hours Direct Labor Minutes Total Estimated Activity std DL minutes per unitmonthly volumeTotal SDLM per month Pitons Hammers Rock nut sets - 0Total Est. Std Labor Hours Step 3: Drop numbers into Basic Allocation formula (in this case we are calculating the allocation rate to which conversion costs are allocated to products per standard DL minute and per standard Machine minutes.) Machine Minutes Basic Allocation Formula: (based on monthly data)Total Costs to Be Allocated=ERROR:#DIV/0!per standard Machine Minute Total Estimated Driver Activity Direct Labor Allocation Formula: (based on montly data)Total Costs to Be Allocated=ERROR:#DIV/0!per standard DL Minute Total Estimated Driver Activity Step 4: Calculate Gross Margins (Sales - COGS = Gross margin). COGS = all product costs both direct and indirect. Per Unit:Indirect Allocations price per unitdirect material per unitMachine Related Indirect Allocation:Direct Labor Related Indirect Allocations:gross margin per unitGM % Pitons Hammers Rock nut sets