Reference no: EM132441164

Question - Please explain the following practice:

Part A) During FY 2019, Dorchester Company plans to sell Widgets for $13 a unit. Current variable costs are $4 a unit and fixed costs are expected to total of $194,000. Use this information to determine the dollar value of sales for Dorchester to breakeven. (Round to the nearest whole dollar)

Part B) During March 2019, Annapolis Corporation recorded $41,800 of costs related to factory overhead. Alpha's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $40,100 would be incurred, and 5,500 direct labor hours would be worked. During March, 6,250 hours were actually worked. Use this information to determine the amount of factory overhead that was (over) or under applied. (Round answers to the nearest whole dollar. Enter as a positive number if under applied. Enter as a negative number if over applied.)

Part C) Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments (Assembly Department & Packaging Department.) Frederick uses a step allocation method where Cafeteria Services is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Cafeteria Services has costs of $215,000 and Maintenance has costs of $230,000 before any allocations. What amount of Maintenance total cost is allocated to the Packaging Department? (round to closest whole dollar) Employees are:

Cafeteria Services 5

Maintenance 3

Assembly Department 7

Packaging Department 10

Part D) On January 2, 2018, Baltimore Company purchased 5,000 shares of the stock of Towson Company at $11 per share. Baltimore did NOT obtain significant influence as the purchase represents a 15% ownership stake in Towson Company. On August 1, 2018, Towson Company paid cash dividends of $27,000. Baltimore Company intended this investment to a long-term investment. On December 31, 2018, Towson Company reported $55,000 of net income for FY 2018. Additionally, the current market price for Towson Company's stock increased to $23 per share at the end of the year. Use this information to determine, how much Baltimore Company should report for its investment in Towson Company on December 31, 2018. (Round to the nearest dollar.)