ACC 560 Week 1 Homework Chapter 1 (E1-5, E1-9, E1-10
and E1-2A)
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ACC 560 Week 1 Homework Chapter 1 (E1-5, E1-9, E1-10 and E12A)
E1-5
E1-5 Gala Company is a manufacturer of laptop computers. Various
costs and expenses associated with its operations are as follows.
1. Property taxes on the factory building.
2. Production superintendents‟ salaries.
3. Memory boards and chips used in assembling computers.
4. Depreciation on the factory equipment.
5. Salaries for assembly-line quality control inspectors.
6. Sales commissions paid to sell laptop computers.
7. Electrical components used in assembling computers.
8. Wages of workers assembling laptop computers.
9. Soldering materials used on factory assembly lines.
10. Salaries for the night security guards for the factory building.
The company intends to classify these costs and expenses into the
following categories:
(a) Direct materials,
(b) Direct labor,
(c) Manufacturing overhead,
(d) Period costs.
List the items (1) through (10). For each item, indicate the cost
category to which it belongs.
E1-9
E1-9 An incomplete cost of goods manufactured schedule is presented
below.
Complete the cost of goods manufactured schedule for Hobbit
Company.
E1-10
E1-10 Manufacturing cost data for Copa Company arc presented
below.
Case A
Case B
Case C
Direct materials used
$ (a)
$68,400
Direct labor
57,000 86,000
Manufacturing overhead
46,500 81,600
Total manufacturing costs
195,650 (d)
$130,000
(g)
102,000
253,700
Work in process 1/1/17
(b)
16,500
(h)
Total cost of work in proems 221,500 (c)
337,000
Work in process 12/31/17
(c)
70,000
Cost of goods manufactured
185,275 (f)
11,000
(i)
Instructions
Indicate the missing amount for each letter (a) through (i).
E1-2A
E1, 2A Bell Company, a manufacturer of audio systems, started its
production in October, 2017. For the preceding 3 years, Bell had been
a retailer of audio systems. After a thorough survey of audio system
markets, Bell decided to turn its retail store into an audio equipment
factory.
Raw materials cast for an audio system will total $74 per unit.
Workers on the production lines are on average paid $12 per hour. An
audio system usually takes 5 hours to complete. In addition, the rent
on the equipment used to assemble audio systems amount to $4,900
per month. Indirect materials cost $5 per system. A supervisor was
hired to oversee production; her monthly salary is $3,000.
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ACC 560 Week 1-11 All Homework, Quizzes, Assignments
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Please check the details below (details of each Assignment could be
checked under each product on our category page)
ACC 560 Week 1 Homework Chapter 1 (E1-5, E1-9, E1-10 and E12A)
ACC 560 Week 2 Homework Chapter 2 and Chapter 3 (E2-5, E2-7,
E2-13, P2-4A, E3-3, E3-7, E3-8, E3-2A)
ACC 560 Week 3 Homework Chapter 4 (BE 4-7, BE 4-12, E4-1, E4-6,
E4-14)
ACC 560 Week 4 Homework Chapter 5 and Chapter 6 (E5-6, E5-9,
E5-13, E6-2, E6-7, E6-12)
ACC 560 Week 5 Homework Chapter 7 and chapter 8 (E7-3, E7-7, E711, P7-3A, E8-2, E8-6, E8-9, P8-5A)
ACC 560 Week 6 Homework Chapter 9 and Chapter 10 (E9-3, E9-8,
E9-15, P9-5A, E10-3, E10-5, E10-17, P10-5A)
ACC 560 Week 7 Homework Chapter 11 (E11-3, E11-6, E11-12, P112A)
ACC 560 Week 8 Homework Chapter 12 (E12-3, E12-5, E12-8)
ACC 560 Week 9 Homework Chapter 13 (E13-4, E13-6, E13-7 and
P13-1A)
ACC 560 Week 10 Homework Chapter 14 (E14-4, E14-7, E14-11)
ACC 560 Week 2 Quiz 1 (Chapter 1)
ACC 560 Week 4 Quiz 2 (Chapter 4)
ACC 560 Week 5 Quiz 3 (Chapters 5 and 6)
ACC 560 Week 6 Quiz 4 (Chapters 7 and 8)
ACC 560 Week 7 Quiz 5 (Chapter 9 and Chapter 10)
ACC 560 Week 8 Quiz 6 (Chapter 11)
ACC 560 Week 10 Quiz (Chapter 13)
ACC 560 Week 11 Quiz 8 (Chapter 14)
ACC 560 Week 3 Assignment 1 Activity-based Costing (ABC) in
Service Industries (2 Papers)
ACC 560 Week 9 Assignment 2 Johnson Controls Capital Investments
(2 Papers)
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ACC 560 Week 2 Homework Chapter 2 and Chapter 3 (E25, E2-7, E2-13, P2-4A, E3-3, E3-7, E3-8, E3-2A)
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ACC 560 Week 2 Homework Chapter 2 and Chapter 3 (E2-5, E2-7,
E2-13, P2-4A, E3-3, E3-7, E3-8, E3-2A)
Chapter 2: Job Order Costing and Chapter 3: Process Costing
E2-5
Ikerd Company applies manufacturing overhead to jobs on the basis of
machine hours used. Overhead costs are expected to total $300,000 for
the year, and machine usage is estimated at 125,000 hours. For the
year, $322,000 of overhead costs are incurred and 130,000 hours are
used. Instructions
(a) Compute the manufacturing overhead rate for the year
(b) What is the amount of under- or over applied overhead at
December 31?
(c) Prepare the adjusting entry to assign the under- or over applied
overhead for the year to cost of goods sold.
E2-7
Crawford Corporation incurred the following transactions.
1. purchased raw materials on account $46,300.
2. Raw materials of $36.000 were requisitioned to the factory. An
analysis of the materials
3. Factory labor costs incurred were $59,900, of which $51,000
pertained to factory wages payable and $8,900 pertained to employer
payroll taxes payable.
4. Time tickets indicated that $54,000 was direct labor and $5,900 was
indirect labor.
5. Manufacturing overhead costs incurred on account were $80,500.
6. Depreciation on the company's office building was $8,100.
7. Manufacturing overhead was applied at the rate of 150% of direct
labor cost.
8. Goods costing $88,000 were completed and transferred to finished
goods.
9. Finished goods costing $75,000 to manufacture were sold on
account for $103,000.
Instructions
Journalize the transactions.
E2-13
Tombert Decorating uses a job order cost system to collect the costs of
its interior decorating business. Each client's consultation is treated as
a separate job. Overhead is applied to each job based on the number of
decorator hours incurred. Listed below are data for the current year.
Estimated overhead $960,000 Actual overhead $982,800 Estimated
decorator hours 40,000 Actual decorator hours 40,500
The company uses Operating Overhead in place of Manufacturing
Overhead.
Instructions
(a) Compute the predetermined overhead rate.
(b) Prepare the entry to apply the overhead for the year.
(c) Determine whether the overhead was under- or over applied and
by how much.
P2-4A
Agassi Company uses a job order cost system in each of its three
manufacturing departments. Manufacturing overhead is applied to
jobs on the basis of direct lab(); cost in Department D, direct labor
hours in Department E, and machine hours in Department K. In
establishing the predetermined overhead rates for 2017, the following
estimates were made for the year.
During January, the job cost sheets showed the following costs and
production data.
Instructions
(a) Compute the predetermined overhead rate for each department.
(b) Compute the total manufacturing costs assigned to jobs in January
in each department.
(c) Compute the under- or over applied overhead for each department
at January 31.
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ACC 560 Week 2 Quiz 1 (Chapter 1)
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ACC 560 Week 2 Quiz 1 (Chapter 1)
Question 1
A manufacturing company calculates cost of goods sold as follows:
Question 2
Dolan Company's accounting records reflect the following
inventories:
Dec. 31, 2017 Dec. 31, 2016
Raw materials inventory $310,000 $260,000
Work in process inventory 300,000 160,000
Finished goods inventory 190,000 150,000
During 2017, $800,000 of raw materials were purchased, direct labor
costs amounted to $670,000, and manufacturing overhead incurred
was $640,000.
The total raw materials available for use during 2017 for Dolan
Company is
Question 3
Product costs are also called
Question 4
As current technology changes manufacturing processes, it is likely
that direct
Question 5
Sales commissions are classified as
Question 6
Dolan Company's accounting records reflect the following
inventories:
Dec. 31, 2017 Dec. 31, 2016
Raw materials inventory $310,000 $260,000
Work in process inventory 300,000 160,000
Finished goods inventory 190,000 150,000
During 2017, $800,000 of raw materials were purchased, direct labor
costs amounted to $670,000, and manufacturing overhead incurred
was $640,000.
If Dolan Company's cost of goods manufactured for 2017 amounted to
$1,890,000, its cost of goods sold for the year is
Question 7
Property taxes on a manufacturing plant are an element of a
Product Cost Period Cost
Question 8
Benson Inc.'s accounting records reflect the following inventories:
Dec. 31, 2016Dec. 31, 2017
Raw materials inventory $ 80,000 $ 64,000
Work in process inventory 104,000 116,000
Finished goods inventory 100,000 92,000
During 2017, Benson purchased $1,450,000 of raw materials, incurred
direct labor costs of $250,000, and incurred manufacturing overhead
totaling $160,000.
Assume Benson‟s cost of goods manufactured for 2017 amounted to
$1,660,000. How much would it report as cost of goods sold for the
year?
Question 9
On the costs of goods manufactured schedule, the item raw materials
inventory (ending) appears as a(n)
Question 10
For a manufacturing firm, cost of goods available for sale is computed
by adding the beginning finished goods inventory to
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ACC 560 Week 3 Assignment 1 Activity-based Costing
(ABC) in Service Industries (2 Papers)
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This Tutorial contains 2 Different Papers
ACC 560 Week 3 Assignment 1 Activity-based Costing (ABC) in
Service Industries
Research a U.S. company in the service industry with e-commerce
activities.
Write a five to six (5-6) page paper in which you:
1. Describe the company you researched in one to two (1-2)
paragraphs.
2. Discuss how a time driven ABC cost system can be implemented in
the company you researched and the benefits that the use will yield to
the business performance.
3. Assess how using an ABC system can provide a competitive
advantage to the company in the market space it operates and the
resulting impact to the business performance.
4. Examine the potential impact of time-driven ABC costing on
services provided online with those provided through traditional
channels, considering how this knowledge will impact decisions made
by management about these services.
5. Use at least three (3) quality academic resources in this assignment.
Note: Wikipedia and other Websites do not quality as academic
resources.
Your assignment must follow these formatting requirements:
Be typed, double spaced, using Times New Roman font (size 12), with
one-inch margins on all sides; citations and references must follow
APA or school-specific format. Check with your professor for any
additional instructions.·
Include a cover page containing the title of the assignment, the
student‟s name, the professor‟s name, the course title, and the date.
The cover page and the reference page are not included in the
required assignment page length.·
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ACC 560 Week 3 Homework Chapter 4 (BE 4-7, BE 4-12,
E4-1, E4-6, E4-14)
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ACC 560 Week 3 Homework Chapter 4 (BE 4-7, BE 4-12, E4-1, E4-6,
E4-14)
Chapter 4: Activity-Based Costing
ACC 560 WEEK 3 Chapter 4 Brief Exercises 7 and 12; Exercises 1, 6,
and 14
BE4-7
Spud, Inc. a manufacturer of gourmet potato chips, employs activitybased costing. The budgeted data for each of the activity cost pools is
provided below for the year 2017.
Activity Cost Pools
Estimated Overhead
Expected Use of Cost Drivers per Activity
Ordering and receiving
12,000 orders
$84,000
Food processing
60,000 machine hours
480,000
Packaging
440,000 labor hours
1,760,000
For 2017, the company had 11,000 orders and used 50,000 machine
hours, and labor hours totaled 500,000. What is the total overhead
applied?
BE4-12
Spin Cycle Architecture uses three activity pools to apply overhead to
its projects. Each activity has a cost driver used to allocate the
overhead costs to the projects. The activities and related overhead costs
are as follows: initial concept formation $40,000, design $300,000, and
construction oversight $100,000. The cost drivers and expected use are
as follows.
Activities
Cost Drivers
Use of Cost Drivers per Activity
Expected
Initial concept formation
20
Number of project changes
Design
150,000
Square feet
Construction oversight
100
Number of months
(a) Compute the predetermined overhead rate for each activity.
(b) Classify each of these activities as unit-level, batch-level, productlevel, or facility-level.
E4-1
Saddle Inc. has two types of handbags: standard and custom. The
controller has decided to use a plant wide overhead rate based on
direct labor costs. The president has heard of activity-based costing
and wants to see how the results would differ if this system were used.
Two activity cost pools were developed: machining and machine setup.
Presented below is information related to the company's operations.
Direct labor costs
Standard
Custom
$50,000
$100,000
Machine hours
Setup hours
1,000
100
1,000
400
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ACC 560 Week 4 Homework Chapter 5 and Chapter 6 (E56, E5-9, E5-13, E6-2, E6-7, E6-12)
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ACC 560 Week 4 Homework Chapter 5 and Chapter 6 (E5-6, E5-9,
E5-13, E6-2, E6-7, E6-12)
Chapter 5: Cost-Volume-Profit and Chapter 6: CVP Analysis
Additional Issues
ACC 560 Week 4 Chapter 5: Exercises 6, 9, and 13; Problem 2;
Chapter 6: Exercises 2, 7, and 12
E5-6
PCB Corporation manufactures a single product. Monthly production
costs incurred in the manufacturing process are shown below for the
production of 3,000 units. The utilities and maintenance costs are
mixed costs. The fixed portions of these costs are $300 and $200,
respectively.
Instructions
A. Identify the above costs as variable, fixed, or mixed.
B. Calculate the expected costs when production is 5,000 units.
E5-9
The Palmer Acres Inn is trying to determine its break-even point
during its off-peak season. The inn has 50 rooms that it rents at $60 a
night. Operating costs are as follows.
Salaries
$5,900 per month
FIXED COST
Utilities
$1,100 per month
FIXED COST
Depreciation $1,000 per month
FIXED COST
Maintenance
$100 per month
FIXED COST
Maid service
$14 per room
VARIABLE
Other costs
$28 per room
VARIABLE
Instructions: Determine the inn's break-even point in
(a) number of rented rooms per month and
(b) dollars.
E5-13
Billings Company has the following information available for
September 2017.
Unit selling price of video game consoles
$ 400
Unit variable costs
$ 280
Total fixed costs
$54,000
Units sold
600
Instructions
A. Compute the unit contribution margin.
B. Prepare a CVP income statement that shows both total and per
unit amounts.
C. Compute Billings' break-even point in units.
D. Prepare a CVP income statement for the break-even point that
shows both total and per unit amounts.
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ACC 560 Week 4 Quiz 2 (Chapter 4)
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ACC 560 Week 4 Quiz 2 (Chapter 4)
Question 1
Reynoso Corporation manufactures titanium and aluminum tennis
racquets. Reynoso‟s total overhead costs consist of assembly costs and
inspection costs. The following information is available:
Cost Titanium Aluminum Total Cost
Assembly 500 mach. hours 500 mach. hours $60,000
Inspections 350 150 $100,000
2,100 labor hours 1,900 labor hours
Reynoso is considering switching from one overhead rate based on
labor hours to activity-based costing.
Using activity-based costing, how much assembly cost is assigned to
titanium racquets
Question 2
Boswell Company manufactures two products, Regular and Supreme.
Boswell‟s overhead costs consist of machining, $3,000,000; and
assembling, $1,500,000. Information on the two products is:
Regular Supreme
Direct labor hours 10,000 15,000
Machine hours 10,000 30,000
Number of parts 90,000 160,000
Overhead applied to Regular using activity-based costing is
Question 3
Which best describes the flow of overhead costs in an activity-based
costing system?
Question 4
An activity-based overhead rate is computed as follows:
Question 5
Estimated costs for activity cost pools and other item(s) are as follows:
Machining $500,000
Assembling 200,000
Advertising 450,000
Inspecting and testing 175,000
Total estimated overhead is
Question 6
The presence of any of the following factors would suggest a switch to
ABC except when
Question 7
Use of activity-based costing will result in the development of
Question 8
An example of an activity cost pool is
Question 9
Direct labor is sometimes the appropriate basis for assigning overhead
cost to products. It is appropriate to use direct labor when which of the
following is true?
(1) Direct labor constitutes a significant part of total product cost.
(2) A high correlation exists between direct labor and changes in the
amount of overhead costs.
Question 10
An activity that has a direct cause-effect relationship with the
resources consumed is a(n)
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ACC 560 Week 5 Homework Chapter 7 and chapter 8 (E7-3,
E7-7, E7-11, P7-3A, E8-2, E8-6, E8-9, P8-5A)
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ACC 560 Week 5 Homework Chapter 7 and chapter 8 (E7-3, E7-7, E711, P7-3A, E8-2, E8-6, E8-9, P8-5A)
Chapter 7: Incremental Analysis and Chapter 8: Pricing
Chapter 7: Exercises 3, 7, and 11, P7-3A
Chapter 8: Exercises 2, 6, and 9, P8-3A
E7-3
Moonbeam Company manufactures toasters. For the first 8 months of
2017, the company reported the following operating results while
operating at 75% of plant capacity:
Sales (350,000 units)
$4,375,000
Cost of goods sold
2,600,000
Gross profit
1,775,000
Operating expenses
840,000
Net income
$ 935,000
Cost of goods sold was 70% variable and 30% fixed; operating
expenses were 80% variable and 20% fixed.
In September, Moonbeam receives a special order for 15,000 toasters
at $7.60 each from Luna Company of Ciudad Juarez. Acceptance of
the order would result in an additional $3,000 of shipping costs but no
increase in fixed costs.
Instructions
a.
Prepare an incremental analysis for the special order.
b.
Should Moonbeam accept the special order? Why or why not?
E7-7
Riggs Company purchases sails and produces sailboats. It currently
produces 1,200 sailboats per year, operating at normal capacity, which
is about 80% of full capacity. Riggs purchases sails at $250 each, but
the company is considering using the excess capacity to manufacture
the sails instead. The manufacturing cost per sail would be $100 for
direct materials, $80 for direct labor, and $90 for overhead. The $90
overhead is based on $78,000 of annual fixed overhead that is
allocated using normal capacity.
The president of Riggs has come to you for advice. “It would cost me
$270 to make the sails,” she says, “but only $250 to buy them. Should
I continue buying them, or have I missed something?”
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ACC 560 Week 5 Quiz 3 (Chapters 5 and 6)
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ACC 560 Week 5 Quiz 3 (Chapters 5 and 6)
Question 1
A company with a higher contribution margin ratio is
Question 2
The contribution margin ratio is
Question 3
In 2016, Teller Company sold 3,000 units at $600 each. Variable
expenses were $420 per unit, and fixed expenses were $270,000. The
same selling price, variable expenses, and fixed expenses are expected
for 2017. What is Teller‟s break-even point in sales dollars for 2017?
Question 4
Sales mix is
Question 5
The margin of safety ratio
Question 6
To which function of management is CVP analysis most applicable?
Question 7
Frazier Manufacturing Company collected the following production
data for the past month:
Units Produced Total Cost
1,600 $66,000
1,300 57,000
1,500 67,500
1,100 49,500
If the high-low method is used, what is the monthly total cost
equation?
Question 8
Weatherspoon Company has a product with a selling price per unit of
$200, the unit variable cost is $110, and the total monthly fixed costs
are $300,000. How much is Weatherspoon‟s contribution margin
ratio?
Question 9
Two costs at Bradshaw Company appear below for specific months of
operation.
Month Amount Units Produced
Delivery costs September $ 40,000 40,000
October 55,000 60,000
Utilities September $ 84,000 40,000
October 126,000 60,000
Which type of costs are these?
Question 10
The equation which reflects a CVP income statement is
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ACC 560 Week 6 Homework Chapter 9 and Chapter 10 (E93, E9-8, E9-15, P9-5A, E10-3, E10-5, E10-17, P10-5A)
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ACC 560 Week 6 Homework Chapter 9 and Chapter 10 (E9-3, E9-8,
E9-15, P9-5A, E10-3, E10-5, E10-17, P10-5A)
Chapter 9: Budgetary Planning and Chapter 10: Budgetary Control
and Responsibility Accounting
E9-3
Thome and Crede, CPAs, are preparing their service revenue (sales)
budget for the coming year (2017). The practice is divided into three
departments: auditing, tax, and consulting. Billable hours for each
department, by quarter, are provided below.
Department
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Auditing
2,300
1,600
2,000
2,400
Tax
3,000
2,200
2,000
2,500
Consulting
1,500
1,500
1,500
1,500
Average hourly billing rates are auditing $80, tax $90, and consulting
$110.
Instructions
Prepare the service revenue (sales) budget for 2017 by listing the
departments and showing for each quarter and the year in total,
billable hours, billable rate, and total revenue.
Prepare quarterly production budgets.
E9-8
Fuqua Company's sales budget projects unit sales of part 198Z of
10,000 units in January, 12,000 units in February, and 13,000 units in
March. Each unit of part 198Z requires 4 pounds of materials, which
cost $2 per pound. Fuqua Company desires its ending raw materials
inventory to equal 40% of the next month's production requirements,
and its ending finished goods inventory to equal 20% of the next
month's expected unit sales. These goals were met at December 31,
2016.
Instructions
1.
2017.
Prepare a production budget for January and February
2.
Prepare a direct materials budget for January 2017.
Prepare a direct labor budget.
E9-15
Deitz Corporation is projecting a cash balance of $30,000 in its
December 31, 2016, balance sheet. Deitz's schedule of expected
collections from customers for the first quarter of 2017 shows total
collections of $185,000. The schedule of expected payments for direct
materials for the first quarter of 2017 shows total payments of $43,000.
Other information gathered for the first quarter of 2017 is sale of
equipment $3,000, direct labor $70,000, manufacturing overhead
$35,000, selling and administrative expenses $45,000, and purchase of
securities $14,000. Deitz wants to maintain a balance of at least
$25,000 cash at the end of each quarter.
Instructions
Prepare a cash budget for the first quarter.
Prepare cash budget for a month.
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ACC 560 Week 6 Quiz 4 (Chapters 7 and 8)
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ACC 560 Week 6 Quiz 4 (Chapters 7 and 8)
Question 1
In March 2016, Wheels „N Spokes repairs a bicycle that takes two
hours to repair and uses parts of $240. The bill for this repair would
be
Question 2
In cost-plus pricing, the target selling price is computed as
Question 3
The labor charge per hour in time-and-material pricing includes all of
the following
Question 4
A company that is a price taker would most likely use which of the
following methods?
Question 5
The desired ROI per unit is calculated by
Question 6
A company is contemplating the acceptance of a special order. The
order would not affect regular sales and could be filled without
exceeding plant capacity. However, a new stamping machine would
have to be purchased in order to stamp the customer‟s name on the
product. Which of the following is likely?
Question 7
Which statement is true concerning the decision rule on whether to
make or buy?
Question 8
The opportunity cost of an alternate course of action that is relevant to
a make-or-buy decision is
Question 9
Martin Company incurred the following costs for 70,000 units:
Variable costs $420,000
Fixed costs 392,000
Martin has received a special order from a foreign company for 3,000
units. There is sufficient capacity to fill the order without jeopardizing
regular sales. Filling the order will require spending an additional
$6,300 for shipping.
If Martin wants to earn $6,000 on the order, what should the unit
price be?
Question 10
Incremental analysis is most useful
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ACC 560 Week 7 Homework Chapter 11 (E11-3, E11-6,
E11-12, P11-2A)
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ACC 560 Week 7 Homework Chapter 11 (E11-3, E11-6, E11-12, P112A)
Chapter 11: Standard Costs and Balanced Scorecard
E11-3
Stefani Company has gathered the following information about its
product. Direct materials. Each unit of product contains 4.5 pounds of
materials. The average waste and spoilage per unit produced under
normal conditions is 0.5 pounds. Materials cost $5 per pound, but
Stefani always takes the 2% cash discount all of its suppliers offer.
Freight costs average $0.25 per pound. Direct labor. Each unit
requires 2 hours of labor. Setup, cleanup, and downtime average 0.4
hours per unit. The average hourly pay rate of Stefani's employees is
$12. Payroll taxes and fringe benefits are an additional $3 per hour.
Manufacturing overhead. Overhead is applied at a rate of $7 per direct
labor hour.
Instructions
a. Compute Stefani's total standard cost per unit.
E11-6
Lewis Company's standard labor cost of producing one unit of Product
DD is 4 hours at the rate of $12.00 per hour. During August, 40,600
hours of labor are incurred at a cost of $12.15 per hour to produce
10,000 units of Product DD.
Instructions
a. Compute the total labor variance.
b. Compute the labor price and quantity variances.
c. Repeat (b), assuming the standard is 4.1 hours of direct labor at
$12.25 per hour.
E11-12
Byrd Company produces one product, a putter called GO-Putter. Byrd
uses a standard cost system and determines that it should take one
hour of direct labor to produce one GO-Putter. The normal production
capacity for this putter is 100,000 units per year. The total budgeted
overhead at normal capacity is $850,000 comprised of $250,000 of
variable costs and $600,000 of fixed costs. Byrd applies overhead on
the basis of direct labor hours.
During the current year, Byrd produced 95,000 putters, worked 94,000
direct labor hours, and incurred variable overhead costs of $256,000
and fixed overhead costs of $600,000.
Instructions
a. Compute the predetermined variable overhead rate and the
predetermined fixed overhead rate.
b. Compute the applied overhead for Byrd for the year.
c. Compute the total overhead variance.
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ACC 560 Week 7 Quiz 5 (Chapter 9 and Chapter 10)
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ACC 560 Week 7 Quiz 5 (Chapter 9 and Chapter 10)
Question 1
The production budget shows expected unit sales are 100,000. The
required production units are 104,000. What are the beginning and
desired ending finished goods units, respectively?
Question 2
Which of the following is not a proper match-up?
Question 3
If a company has adopted continuous budgeting, the budget will show
plans for
Question 4
Which of the following is not an operating budget?
Question 5
A master budget consists of
Question 6
A static budget
Question 7
In developing a flexible budget within a relevant range of activity,
Question 8
A major element in budgetary control is
Question 9
Shane Industries prepared a fixed budget of 60,000 direct labor hours,
with estimated overhead costs of $300,000 for variable overhead and
$90,000 for fixed overhead. Shane then prepared a flexible budget at
57,000 labor hours. How much is total overhead costs at this level of
activity?
Question 10
A cost center
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ACC 560 Week 8 Homework Chapter 12 (E12-3, E12-5,
E12-8)
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ACC 560 Week 8 Homework Chapter 12 (E12-3, E12-5, E12-8)
Chapter 12: Planning for Capital Investments
E12-3
Hillsong Inc. manufactures snowsuits. Hillsong is considering
purchasing a new sewing machine at a cost of $2.45 million. Its
existing machine was purchased five years ago at a price of $1.8
million; six months ago, Hillsong spent $55,000 to keep it operational.
The existing sewing machine can be sold today for $250,000. The new
sewing machine would require a one-time, $85,000 training cost.
Operating costs would decrease by the following amounts for years 1
to 7:
Year 1
$390,000
2
400,000
3
411,000
4
426,000
5
434,000
6
435,000
7
436,000
The new sewing machine would be depreciated according to the
declining-balance method at a rate of 20%. The salvage value is
expected to be $400,000. This new equipment would require
maintenance costs of $100,000 at the end of the fifth year. The cost of
capital is 9%.
Instructions
Use the net present value method to determine whether Hillsong
should purchase the new machine to replace the existing machine, and
state the reason for your conclusion.
E12-5
Bruno Corporation is involved in the business of injection molding of
plastics. It is considering the purchase of a new computer-aided design
and manufacturing machine for $430,000. The company believes that
with this new machine it will improve productivity and increase
quality, resulting in an increase in net annual cash flows of $101,000
for the next 6 years. Management requires a 10% rate of return on all
new investments.
Instructions
Calculate the internal rate of return on this new machine. Should the
investment be accepted?
E12-8
Pierre's Hair Salon is considering opening a new location in French
Lick, California. The cost of building a new salon is $300,000. A new
salon will normally generate annual revenues of $70,000, with annual
expenses (including depreciation) of $41,500. At the end of 15 years
the salon will have a salvage value of $80,000.
Instructions
Calculate the annual rate of return on the project.
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ACC 560 Week 8 Quiz 6 (Chapter 11)
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ACC 560 Week 8 Quiz 6 (Chapter 11)
Question 1
If actual direct materials costs are greater than standard direct
materials costs, it means that
Question 2
The standard direct materials quantity does not include allowances for
Question 3
Marburg Co. expects direct materials cost of $6 per unit for 100,000
units (a total of $600,000 of direct materials costs). Marburg‟s
standard direct materials cost and budgeted direct materials cost is
Question 4
If the labor quantity variance is unfavorable and the cause is
inefficient use of direct labor, the responsibility rests with the
Question 5
A managerial accountant
1. does not participate in the standard setting process.
2. provides knowledge of cost behaviors in the standard setting
process.
3. provides input of historical costs to the standard setting process.
Question 6
Using standard costs
Question 7
An unfavorable materials quantity variance would occur if
Question 8
Hofburg‟s standard quantities for 1 unit of product include 2 pounds
of materials and 1.5 labor hours. The standard rates are $2 per pound
and $7 per hour. The standard overhead rate is $8 per direct labor
hour. The total standard cost of Hofburg‟s product is
Question 9
Scorpion Production Company planned to use 1 yard of plastic per
unit budgeted at $81 a yard. However, the plastic actually cost $80 per
yard. The company actually made 3,900 units, although it had planned
to make only 3,300 units. Total yards used for production were 3,960.
How much is the total materials variance?
Question 10
Unfavorable materials price and quantity variances are generally the
responsibility of the
Price Quantity.
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ACC 560 Week 9 Assignment 2 Johnson Controls Capital
Investments (2 Papers)
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This Tutorial contains 2 Different Papers
Visit the Website of Johnson Controls Inc., located at
http://www.johnsoncontrols.com, and review its 2012 financial
forecasts. According to the forecasts, Johnson Controls will increase
capital investments to approximately $1.7 billion. More than 70% of
the company's capital expenditures in 2012 are associated with growth
and margin expansion opportunities.
Write a five to six (5-6) page paper in which you:
1.Suggest a methodology to supplement the traditional methods for
evaluating the capital investments of Johnson Controls in the
emerging markets to reduce risk providing a rationale of how risk will
be reduced.
2.Assess the potential impact of inflation on planned capital
investments in China and examine approaches for an accurate
evaluation of the investments. Suggest how this knowledge may impact
management‟s decisions.
•Contrast the modifications you would make in evaluating the projects
to increase internal capacity in North America to evaluating
expansion projects in the global market and how this information will
impact the decisions made related to expansion.
4.Examine the benefits of using sensitivity analysis in evaluating the
projects for Johnson Controls and how this approach can provide a
competitive advantage for the company.
5.Use at least three (3) quality academic resources in this assignment.
Note: Wikipedia and other Websites do not quality as academic
resources.
Your assignment must follow these formatting requirements:
•Be typed, double spaced, using Times New Roman font (size 12), with
one-inch margins on all sides; citations and references must follow
APA or school-specific format. Check with your professor for any
additional instructions.
•Include a cover page containing the title of the assignment, the
student‟s name, the professor‟s name, the course title, and the date.
The cover page and the reference page are not included in the
required assignment page length.
The specific course learning outcomes associated with this assignment
are:
•Plan and evaluate capital investments.
•Use technology and information resources to research issues in
managerial accounting.
•Write clearly and concisely about managerial accounting using
proper writing mechanics.
Click here to view the grading rubric.
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ACC 560 Week 9 Homework Chapter 13 (E13-4, E13-6,
E13-7 and P13-1A)
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ACC 560 Week 9 Homework Chapter 13 (E13-4, E13-6, E13-7 and
P13-1A)
Chapter 13: Statement of Cash Flows
ACC 560 Week 9 Chapter 13 Exercises 4, 6, and 7; Problem 1
E13-4
Gutierrez Company reported net income of $225,000 for 2017.
Gutierrez also reported depreciation expense of $45,000 and a loss of
$5,000 on the disposal of equipment. The comparative balance sheet
shows a decrease in accounts receivable of $15,000 for the year, a
$17,000 increase in accounts payable, and a $4,000 decrease in
prepaid expenses.
Instructions
Prepare the operating activities section of the statement of cash flows
for 2017. Use the indirect method.
E13-6
the three accounts shown below appear in the general ledger of
Herrick Corp. during 2017.
Equipment
Date
Credit
Debit
Balance
Jan. 1
160,000
Balance
July 31
230,000
Purchase of equipment
70,000
Sept. 2
283,000
Cost of equipment constructed
Nov. 10
49,000
Cost of equipment sold
234,000
53,000
Accumulated Depreciation—Equipment
Date
Credit
Jan. 1
71,000
Debit
Balance
Balance
Nov. 10
30,000
Accumulated depreciation on equipment sold
41,000
Dec. 31
28,000
Depreciation for year
69,000
Retained Earnings
Date
Credit
Debit
Balance
Jan. 1
105,000
Balance
Aug. 23
91,000
Dividends (cash)
Dec. 31
77,000
Net income
168,000
14,000
Instructions
From the postings in the accounts, indicate how the information is
reported on a statement of cash flows using the indirect method. The
loss on disposal of equipment was $7,000. (Hint: Cost of equipment
constructed is reported in the investing activities section as a decrease
in cash of $53,000.
E13-7
Rojas Corporation's comparative balance sheets are presented below.
ROJAS CORPORATION
Comparative Balance Sheets
December 31
2017
2016
Cash
$14,300
$10,700
Accounts receivable
21,200
23,400
Land
20,000
26,000
Buildings
70,000
70,000
Accumulated depreciation—buildings
(15,000)
(10,000)
________
_________
Total
$110,500
$120,100
Accounts payable
$12,370
$31,100
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ACC 560 Week 10 Homework Chapter 14 (E14-4, E14-7,
E14-11)
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ACC 560 Week 10 Homework Chapter 14 (E14-4, E14-7, E14-11)
Chapter 14: Financial Statement Analysis
ACC 560 Week 10 Chapter 14 Exercises 4, 7, and 11
E14-4
The comparative condensed income statements of Emley Corporation
are shown below.
EMLEY CORPORATION
Comparative Condensed Income Statements
For the Years Ended December 31
2017
2016
Net sales
$600,000
Cost of goods sold
420,000
$660,000
483,000
Gross profit
180,000
177,000
Operating expenses
120,000
125,000
Net income
$ 60,000
$ 52,000
Instructions
a.
Prepare a horizontal analysis of the income statement data for
Emley Corporation using 2016 as a base. (Show the amounts of
increase or decrease.
b. Prepare a vertical analysis of the income statement data for
Emley Corporation in columnar form for both years.
E14-7
Frizell Company has the following comparative balance sheet data.
FRIZELL COMPANY
Balance Sheets
December 31
Cash
30,000
2017
2016
$ 15,000
$
Accounts receivable (net)
60,000
70,000
Inventory
50,000
60,000
Plant assets (net)
180,000
200,000
$345,000
$320,000
Accounts payable
60,000
$ 50,000
Mortgage payable (6%)
100,000
100,000
Common stock, $10 par
120,000
140,000
Retained earnings
40,000
55,000
$345,000
$320,000
Instructions
Compute the following ratios at December 31, 2017.
a. Current ratio.
b. Acid-test ratio.
$
c. Accounts receivable turnover.
d. Inventory turnover.
E14-11
Wiemers Corporation's comparative balance sheets are presented on
the next page.
WIEMERS CORPORATION
Balance Sheets
December 31
Cash
3,700
2017
2016
$
$
4,300
Accounts receivable (net)
23,400
21,200
Inventory
7,000
10,000
Land
26,000
20,000
Buildings
70,000
70,000
Accumulated depreciation—buildings
(10,000)
(15,000)
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ACC 560 Week 10 Quiz (Chapter 13)
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ACC 560 Week 10 Quiz (Chapter 13)
Question 1
Indicate where the event purchase of land and a building with a
mortgage would appear, if at all, on the indirect statement of cash
flows.
Question 2
Generally, the most important category on the statement of cash flows
is cash flows from
Question 3
Each of the following is an example of a significant noncash activity
except
Question 4
If a gain of $12,000 is incurred in selling (for cash) office equipment
having a book value of $110,000, the total amount reported in the cash
flows from investing activities section of the statement of cash flows is
Question 5
Which of the following would not be an adjustment to net income
using the indirect method?
Question 6
Jean‟s Vegetable Market had the following transactions during 2017:
1. Issued $50,000 of par value common stock for cash.
2. Repaid a 6 year note payable in the amount of $22,000.
3. Acquired land by issuing common stock of par value $50,000.
4. Declared and paid a cash dividend of $7,000.
5. Sold a long-term investment (cost $3,000) for cash of $6,000.
6. Acquired an investment in IBM stock for cash of $10,000.
What is the net cash provided by financing activities?
Question 7
The statement of cash flows should help investors and creditors assess
each of the following except the
Question 8
Significant noncash transactions would not include
Question 9
In calculating net cash provided by operating activities using the
indirect method, an increase in prepaid expenses during a period is
Question 10
Lending money and collecting the loans are
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ACC 560 Week 11 Quiz 8 (Chapter 14)
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ACC 560 Week 11 Quiz 8 (Chapter 14)
Question 1
Horizontal analysis evaluates a series of financial statement data over
a period of time
Question 2
Ale Corporation had net income of $240,000 and paid dividends to
common stockholders of $40,000 in 2017. The weighted average
number of shares outstanding in 2017 was 60,000 shares. Ale
Corporation's common stock is selling for $76 per share on the New
York Stock Exchange. Ale Corporation's price-earnings ratio is
Question 3
Blaney Clothing Store had a balance in the Accounts Receivable
account of $437,500 at the beginning of the year and a balance of
$500,000 at the end of the year. Net credit sales during the year
amounted to $3,000,000. The average collection period of the
receivables in terms of days was
Question 4
In analyzing the financial statements of a company, a single item on
the financial statements
Question 5
Comparisons of financial data made within a company are called
Question 6
Assume the following sales data for a company:
2017 $945,000
2016 877,500
2015 675,000
If 2015 is the base year, what is the percentage increase in sales from
2015 to 2016?
Question 7
The current ratio is
Question 8
Horizontal analysis is also called
Question 9
Each of the following is a liquidity ratio except the
Question 10
A technique for evaluating financial statements that expresses the
relationship among selected items of financial statement data is
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