Potthast company uses a two-stage system to allocate its overhead to products. the company uses machine hours in the fabrication department and direct labor hours in the assembly department to allocate overhead costs to work-in-process. during the current year, the company incurred $50,000 of overhead costs in the fabrication department and $75,000 of overhead costs in the assembly department. the company also reported the following results in the production of its standard and deluxe bicycles. standard deluxemachine hours (fabrication) 1,000 4,000direct labor hours (assembly) 4,000 6,000using a two-stage cost allocation, how much overhead should be allocated to the production of deluxe bicycles in the current year? a) $50,000b) $40,000c) none of these. d) $85,000e) $75,000

The following information is for alex corp: product x: revenue $12.00 variable cost $4.50 product y: revenue $44.50 variable cost $9.50 total fixed costs $75,000 what is the breakeven point assuming the sales mix consists of two units of product x and one unit of product y?

Profits from using currency options and futures.on july 2, the two-month futures rate of the mexican peso contained a 2 percent discount (unannualized). there was a call option on pesos with an exercise price that was equal to the spot rate. there was also a put option on pesos with an exercise price equal to the spot rate. the premium on each of these options was 3 percent of the spot rate at that time. on september 2, the option expired. go to the oanda.com website (or any site that has foreign exchange rate quotations) and determine the direct quote of the mexican peso. you exercised the option on this date if it was feasible to do so. a. what was your net profit per unit if you had purchased the call option? b. what was your net profit per unit if you had purchased the put option? c. what was your net profit per unit if you had purchased a futures contract on july 2 that had a settlement date of september 2? d. what was your net profit per unit if you sold a futures contract on july 2 that had a settlement date of september 2

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of