Reference no: EM132963153

Questions -

Q1) Ocean City Kite Company manufactures & sells kites for $8,50 each. The variable cost per kite is $4,00 and the breakeven point is 75 000 kites. Use this information to determine the dollar amount of Ocean City Kite Company's fixed costs.

Q2) Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a step allocation method where the Computer Operations Department is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Computer Operations has costs of $200 000 and Maintenance Services has costs of $100 000 before any allocations. What amount of Maintenance Services total cost is allocated to the Mixing Department?

Computer Operations 4

Maintenance Services 4

Mixing Department 5

Packaging Department 8

Q3) Towson Company manufactures book cases, and each requires 14 board feet of lumber. Towson expects that 1 500 and 1 850 book cases will be built in June and July, respectively. Towson keeps lumber on hand at 30% of the next month's production needs. Use this information to determine number board feet of lumber that Towson Company should buy in June.