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ACG 3341 Week 1 Individual Work

For more classes visit www.snaptutorial.com 1-18 Value chain and classification of costs, fast food restaurant. Burger King, a hamburger fast food restaurant, incurs the following costs. 1-20 Planning and control decisions. Conner Company makes and sells brooms and mops. It takes the following actions, not necessarily in the order given. For each action (a–e) state whether it is a planning decision or a control decision. 1-22 Five-step decision-making process, service firm. Brite Exteriors is a firm that provides house painting services. Robert Brite, the owner, is trying to find new ways to increase revenues. Mr. Brite performs the following actions, not in the order listed. 1-25 Strategic decisions and management accounting. A series of independent situations in which a firm is about to make a strategic decision follow. 1-27 Role of controller, role of chief financial officer. George Perez is the controller at Allied Electronics, a manufacturer of devices for the computer industry. He is being considered for a promotion to chief financial officer.


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ACG 3341 Week 2 Individual Work

For more classes visit www.snaptutorial.com E2-20 E2-21 E2-24 Problem 2-31 Problem 2-34

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ACG 3341 Week 3 Individual Work

For more classes visit


www.snaptutorial.com Chapter 3 Exercises 3-16, 3-24, and 3-31

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ACG 3341 Week 4 Individual Work

For more classes visit www.snaptutorial.com E4-19 (Budgeted Manufacturing Overhead Rate, Allocated Manufacturing Overhead, pages 127-128) (Horngren, Datar, & Rajan, 2012) Gammaro Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2011: Budgeted manufacturing overhead costs Budgeted machine-hours Actual manufacturing overhead costs Actual machine-hours


$4,200,000 175,000 $4,050,000 170,000 Required Calculate the budgeted manufacturing overhead rate. Calculate the manufacturing overhead allocated during 2011. Calculate the under- or overallocated manufacturing overhead.

E4-23 (Accounting for Manufacturing Overhead, page 129)Consider the following selected cost data for the Pittsburgh Forging Company for 2011. Budgeted manufacturing overhead costs Budgeted machine-hours Actual manufacturing overhead costs Actual machine-hours $7,500,000 250,000 $7,300,000 245,000 The company uses normal costing. Its job-costing system has a single manufacturing overhead cost pool. Costs are allocated to jobs using a


budgeted machine-hour rate. Any amount of under- or overallocation is written off to Cost of Goods Sold. Required Compute the budgeted manufacturing overhead rate. Prepare the journal entries to record the allocation of manufacturing overhead. Compute the amount of under- or overallocation of manufacturing overhead. Is the amount material? Prepare a journal entry to dispose of this amount.

E4-24 (Job Costing, Journal Entries, pages 129-130) The University of Chicago Press is wholly owned by the university. It performs the bulk of its work for other university departments, which pay as though the press were an outside business enterprise. The press also publishes and maintains a stock of books for general sale. The press uses normal costing to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs). The following data (in thousands) pertain to 2011: Direct materials and supplies purchased on credit Direct materials used Indirect materials issued to various production departments Direct manufacturing labor Indirect manufacturing labor incurred by various production departments


Depreciation on building and manufacturing equipment Miscellaneous manufacturing overhead incurred by various production departments (ordinarily would be detailed as repairs, photocopying, utilities, etc.) Manufacturing overhead allocated at 160% of direct manufacturing labor costs Cost of goods manufactured Revenues Cost of goods sold (before adjustment for under- or overallocated manufacturing overhead) Inventories, December 31, 2010 (not 2011): Materials Control Work-in-Process Control Finished Goods Control $800 710 100 1,300 900 400 550 ?


4,120 8,000 4,020 100 60 500 Required Prepare an overview diagram of the job-costing system at the University of Chicago Press. Prepare journal entries to summarize the 2011 transactions. As your final entry, dispose of the year-end under- or overallocated manufacturing overhead as a write-off to Cost of Goods Sold. Number your entries. Explanations for each entry may be omitted. Show posted T-accounts for all inventories, Cost of Goods Sold, Manufacturing Overhead Control, and Manufacturing Overhead Allocated. E4-29 (Job-order Costing: Actual, Normal, and Variation from Normal Costing, pages 131-132) Braden Brothers, Inc., is an architecture firm specializing in high-rise buildings. Its job-costing system has a single direct-cost category (architectural labor) and a single indirect-cost pool, which contains all costs of supporting the office. Support costs are allocated to individual jobs using architect labor-hours. Braden Brothers employs 15 architects. Budgeted and actual amounts for 2010 are as follows: Required


Compute the direct-cost rate and the indirect-cost rate per architectural labor-hour for 2010 under (a) actual costing, (b) normal costing, and (c) the variation from normal costing that uses budgeted rates for direct costs. Braden Brother’s architectural sketches for Champ Tower in Houston was budgeted to take 275 hours of architectural labor time. The actual architectural labor time spent on the job was 250 hours. Compute the cost of the Champ Tower sketches using (a) actual costing, (b) normal costing, and (c) the variation from normal costing that uses budgeted rates for direct costs.

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ACG 3341 Week 5 Individual Work

For more classes visit www.snaptutorial.com Section 5-19 Section 5-25

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ACG 3341 Week 6 Individual Work

For more classes visit www.snaptutorial.com Exercise 6-17: Sales and production budget Exercise 6-18: Direct materials budget Exercise 6-24: Activity-based budgeting

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ACG 3341 Week 7 Individual Work

For more classes visit www.snaptutorial.com


E7-16 (Flexible Budget) Brabham Enterprises manufactures tires for the Formula I motor racing circuit. For August 2014, it budgeted to manufacture and sell 3,000 tires at a variable cost of $74 per tire and total fixed costs of $54,000. The budgeted selling price was $110 per tire. Actual results in August 2014 were 2,800 tires manufactured and sold at a selling price of $112 per tire. The actual total variable costs were $229,600, and the actual total fixed costs were $50,000.

1) Prepare a performance report that uses a flexible budget and a static budget.

2) Comment on the results in requirement 1.

E7-20 (Flexible-Budget and Sales Volume Variances) Luster, Inc., produces the basic fillings used in many popular frozen desserts and treats - vanilla and chocolate ice creams, puddings, meringues, and fudge. Luster uses standard costing and carries over no inventory from one month to the next. The ice-cream product group's results for June 2014 were as follows:


Performance Report, June 2014

Actual Static

Results

Budget

Units (pounds) 350 000 335 000

Revenues $2 012 500 $1 976 500


Variable manufacturing costs 1 137 500 1 038 500

Contribution margin $875 000 $938 000

Sam Adler, the business manager for ice-cream products, is pleased that more pounds of ice cream were sold than budgeted and that revenues were up. Unfortunately, variable manufacturing costs went up, too. The bottom line is that contribution margin declined by $63,000, which is less than 3% of the budgeted revenues of $1,976,500. Overall, Adler feels that the business is running fine.

1) Calculate the static-budget variance in units, revenues, variable manufacturing costs, and conribution margin. What percentage is each static-budget variance relative to its static-budget amount?

2) Break down each static-budget variance into a flexible-budget variance and a sales-volume variance.


3) Calculate the selling-price variance.

4) Assume the role of management accountant at Luster. How would you present the results to Sam Adler? Should he be more concerned? If so, why?

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ACG 3341 Week 8 Individual Work

For more classes visit www.snaptutorial.com 7-22 Materials and manufacturing labor variances. Consider the following data collected for Great Homes, Inc. 7-23 Direct materials and direct manufacturing labor variances.GloriaDee, Inc. designs and manufactures T-shirts to brandname clothes retailers in lots of one dozen. GloriaDee’s May 2011 static budget and actual results for direct inputs are as follows:


7-16 Flexible budget. Brabham Enterprises manufactures tires for the Formula I motor racing circuit. For August 2012, it budgeted to manufacture and sell 3,000 tires at a variable cost of $74 per tire and total fixed costs of $54,000. The budgeted selling price was $110 per tire. Actual results in August 2012 were 2,800 tires manufactured and sold at a selling price of $112 per tire. The actual total variable costs were $229,600, and the actual total fixed costs were $50,000. 7-20 Flexible-budget and sales volume variances, market-share and market-size variances. Marron, Inc., produces the basic fillings used in many popular frozen desserts and treats—vanilla and chocolate ice creams, puddings, meringues, and fudge. Marron uses standard costing and carries over no inventory from one month to the next. The ice-cream product group’s results for June 2012 were as follows:

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ACG 3341 Week 9 Individual Work

For more classes visit www.snaptutorial.com Exercise 8-18, page 291: Variable manufacturing overhead variance analysis.


Exercise 8-20, page 291: Manufacturing overhead, variance analysis.

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ACG 3341 Week 10 Individual Work

For more classes visit www.snaptutorial.com E8-26 (Overhead variances, missing information; page 293) (Horngren, Datar, & Rajan, 2012) Dvent budgets 18,000 machine-hours for the production of computer chips in August 2011. The budget variable overhead rate is $6 per machine-hour. At the end of August, there is a $375 favorable spending variance for variable overhead and a $1,575 unfavorable spending variance for fixed overhead. For the computer chips produced, 14,850 machine-hours are budgeted and 15,000 machine-hours are actually used. Total actual overhead costs are $120,000. Required Compute efficiency and flexible-budget variances for Dvent’s variable overhead in August 2011. Will variable overhead be over- or underallocated? By how much?


Compute production-volume and flexible-budget variances for Dvent’s fixed overhead in August 2011. Will fixed overhead be over- or underallocated? By how much? E8-27 (Identifying favorable and unfavorable variances; page 293) Purdue, Inc. manufactures tires for large auto companies. It uses standard costing and allocates variable and fixed manufacturing overhead based on machine-hours. For each independent scenario given, indicate whether each of the manufacturing variances will be favorable or unfavorable or, in case of insufficient information, indicate “CBD” (cannot be determined).

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ACG 3341 Week 11 Individual Work

For more classes visit www.snaptutorial.com Exercise 9-21 Exercise 9-24

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ACG 3341 Week 12 Individual Work

For more classes visit www.snaptutorial.com Exercise 9-25 Exercise 9-27

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ACG 3341 Success Begins / snaptutorial.com  

1-18 Value chain and classification of costs, fast food restaurant. Burger King, a hamburger fast food restaurant, incurs the following cos...

ACG 3341 Success Begins / snaptutorial.com  

1-18 Value chain and classification of costs, fast food restaurant. Burger King, a hamburger fast food restaurant, incurs the following cos...

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