The Skagit Company manufactures Hooks and Nooks. The followi…

The Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information:   Setups Inspections Assembly (DLH) Hooks – 4,000 units 1 4 1 Nooks – 8,000 units 2 1 3   Activity Pool Activity Base Budgeted Activity Cost Setups 20,000 $60,000 Inspections 24,000 $120,000 Assembly (DLH) 28,000 $420,000 What is the total factory overhead to be charged to each unit of Hooks?

Widgeon Co. manufactures three products: Bales, Tales, and W…

Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, $78, and $32, respectively. The variable costs for each product are $20, $50, and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 5 hours to process; Tales, 7 hours; and Wales 1 hour. What is the contribution margin per machine hour for Bales?

Starling Co. is considering disposing of a machine with a bo…

Starling Co. is considering disposing of a machine with a book value of $23,800 and estimated remaining life of five years. The old machine can be sold for $6,000. A new high-speed machine can be purchased at a cost of 69,900. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $23,500 to $19,700 if the new machine is purchased. What is the differential effect on income for the new machine for the entire five years?