did the homework but i think im wrongits due at 12pm
Problem 1 Solution QUESTION 17 marks Azrieli Architecture Inc. produces architectural sculptures to its high end clients. The company uses a job order costing system for all of its sculpture projects. Below outlines the projects related to the month of May. There were no projects in progress at the end of April, and all projects had been delivered to the clients at the end of April. JobDirect MaterialsDirect Labour A100$ 50,105$ 20,500 A101$ 45,195$ 22,589 A102$ 39,517$ 18,805 A103$ 25,189$ 17,487 Additional Information 1. Budgeted Manufacturing Overhead for the year was $1,110,000 and budgeted direct labour costs were estimated to be $1,450,000. Overhead is allocated on the basis of direct labour costs. 2. Azrieli completed projects A101, A102, A103 in May. 3. The following project was sold to the final customer in May: A102 Required Calculate the finished goods inventory at the end of the month of May. manufacturing overhead1110000 budgeted direct labour costs1450000 product costs for A100$ 70,605 product costs for A101$ 67,784 product costs for A102$ 58,322 product costs for A103$ 42,676 Problem 2 Solution QUESTION 212 Marks Adrianna's Cake Shop creates custom cakes to the residents of Ottawa, Canada. Adrianna, the owner of the business, wants to better understand some of the costs of her business, and has provided the below income statement for the year: Sales (1000 cakes) $ 75,000 Variable costs to produce 55,000 Contribution Margin 20,000 Rent and Utilities for the shop10,000 Operating Income10,000 Income Tax Expense (10%)1000 Net Income9,000 Required Adrianna wants to know the following about her business: A) What is her break-even point in cakes (units) sold? B) What is the Cake Shop's Margin of Safey in dollars? C) Adrianna wants to run a special promotion to sell a new specialty red velvet cake she plans to sell. She wants to discount all cakes sold by 5%. Variable costs would increase by $2.5 per unit, but sales would increase by 30%. The advertising for this would cost $5000. Should Adrianna run this promotion? Use incremental analysis to determine the incremental income/loss. Problem 3 Solution QUESTION 311 marks Arthritis Company manufactures a state of the art device to monitor arthritis. The company received a special order request for a modified device for a different industry where the technology could be useful. The customer has offered to purchase 25,000 units if the order can be completed within a month of the order. Cost information related to the current scanner is below: Direct Materials 25.14 Direct Labour (.75 hours at $25 per hour)18.75 Variable overhead (.25 machine hours at $17 per hour) 4.25 Fixed overhead (.25 machine hours at $40 per hour)10 58.14 Additional information 1. The current selling price per unit is $75. The customer is offering to buy the device for $68 due to the large quanity they wish to purchase. 2. The current capacity is 30,000 machine hours. Arthritis currently operates at 85% capacity. Required a) Calculate the number of regular units sold that would be lost by accepting this special order. b) Calculate the contribution margin per unit on this special order. C) Calculate the incremental income/loss from accepting the order. D) Would you recommend accepting the order? Explain why briefly with both qualitative and quantitative factors.