Half Moon, Inc. is a yoga mat manufacturer located in Portland, Oregon. The company has two product lines: Restorative and Power. The following information relates to its first year of operations: TE Restorative Power Unit Sales Price $180 $95 Variable Cost Percentage 70% 65% Traceable Fixed Costs $260,000 $118,000 During the year, 12,000 units of Restorative and 10,500 units of Power were sold. Total common fixed costs of $90,000 were allocated to the product lines based on their respective percentage of total unit sales. Based on the above data, on which amounts should the performance of the two product lines be judged? O A. Restorative $1,252,000; Power $530,375 O B. Restorative $340,000; Power $169,125 OC. Restorative $1,852,000; Power $817,500 O D. Restorative $388,000; Power $231,125 O E. Restorative $680,000; Power $494,500

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter13: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 14E
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Half Moon, Inc. is a yoga mat manufacturer located in Portland, Oregon. The company has two product lines: Restorative and Power. The following information relates to its first year of operations:
Restorative
Power
Unit Sales Price
$180
$95
Variable Cost Percentage
70%
65%
Traceable Fixed Costs
$260,000
$118,000
During the year, 12,000 units of Restorative and 10,500 units of Power were sold. Total common fixed costs of $90,000 were allocated to the product lines based on their respective percentage of total unit sales.
Based on the above data, on which amounts should the performance of the two product lines be judged?
O A. Restorative $1,252,000; Power $530,375
B. Restorative $340,000; Power $169,125
C. Restorative $1,852,000; Power $817,500
D. Restorative $388,000; Power $231,125
E. Restorative $680,000; Power $494,500
Transcribed Image Text:Half Moon, Inc. is a yoga mat manufacturer located in Portland, Oregon. The company has two product lines: Restorative and Power. The following information relates to its first year of operations: Restorative Power Unit Sales Price $180 $95 Variable Cost Percentage 70% 65% Traceable Fixed Costs $260,000 $118,000 During the year, 12,000 units of Restorative and 10,500 units of Power were sold. Total common fixed costs of $90,000 were allocated to the product lines based on their respective percentage of total unit sales. Based on the above data, on which amounts should the performance of the two product lines be judged? O A. Restorative $1,252,000; Power $530,375 B. Restorative $340,000; Power $169,125 C. Restorative $1,852,000; Power $817,500 D. Restorative $388,000; Power $231,125 E. Restorative $680,000; Power $494,500
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