Meale company makes a household appliance with model number x500. the goal for 2012 is to reduce direct materials usage per unit. no defective units are currently produced. manufacturing conversion costs depend on production capacity defined in terms of x500 units that can be produced. the industry market size for appliances increased 10% from 2011 to 2012. the following additional data are available for 2011 and 2012: 2011 2012 units of x500 produced and sold 10,000 11,000 selling price $100 $95 direct materials (square feet) 30,000 29,000 direct material costs per square foot $10 $11 manufacturing capacity for x500 (units) 12,500 12,000 total conversion costs $250,000 $240,000 conversion costs per unit of capacity $20 $20 overall, was meale's strategy successful in 2012? 1) what is operating income for 2012?
a)$486,000
b) $1,045,000
c) $726,000
d) $476,000

crow design, inc. is a web site design and consulting firm. the firm uses a job order costing system in which each client is a different job. crow design assigns direct labor, licensing costs, and travel costs directly to each job. it allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. direct labor hours (professional) 6,250 hours direct labor costs ($1,800,000 support staff salaries ,000 computer ,000 office ,000 office ,000 in november 2012, crow design served several clients. records for two clients appear here: delicious treats mesilla chocolates direct labor 700 hours 100 hours software licensing $ 4,000 $400 travel costs 8,000 1. compute crow design’s direct labor rate and its predetermined indirect cost allocation rate for 2012. 2. compute the total cost of each job. 3. if simone wants to earn profits equal to 50% of service revenue, how much (what fee) should she charge each of these two clients? 4. why does crow design assign costs to jobs?