Post ACC211 Unit 1 Chapter 1 Assignment

1.

Required:

1.

For financial accounting purposes, what is the total amount of product costs incurred to make 12,600 units?

2.

2.

For financial accounting purposes, what is the total amount of period costs incurred to sell 12,600 units?

3.

3.

If 10,600 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.)

4.

4.

If 15,100 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.)

5.

5.

If 10,600 units are sold, what is the total amount of variable costs related to the units sold?

6.

6.

If 15,100 units are sold, what is the total amount of variable costs related to the units sold?

7.

7.

If 10,600 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.)

8.

8.

If 15,100 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.)

9.

9.

If 10,600 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

10.

10.

If 15,100 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

11.

11-a.

If 10,600 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?

11-b.

If 10,600 units are produced, what is the total amount of manufacturing overhead cost expressed on a per unit basis? (Round your answer to 2 decimal places.)

12.

12-a.

If 15,100 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?

12-b.

If 15,100 units are produced, what is the total amount of manufacturing overhead cost expressed on a per unit basis? (Round your answer to 2 decimal places.)

13.

13.

If the selling price is $21.90 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.)

14.

Required:

14-a.

If 10,600 units are produced, what are the total amount of direct manufacturing costs incurred to support this level of production?

14-b.

If 10,600 units are produced, what are the total amount of indirect manufacturing costs incurred to support this level of production?

15.

15.

What total incremental cost will Martinez incur if it increases production from 12,600 to 12,601 units? (Round your answer to 2 decimal places.)







Post ACC211 Unit 2 Chapter 3 Assignment

Greenwood Company manufactures two products—14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:

Activity Cost Pool

Activity Measure

Estimated Overhead Cost

Expected Activity

Machining

Machine-hours

$

203,000

10,000

MHs

Machine setups

Number of setups

$

121,900

230

setups

Production design

Number of products

$

87,000

2

products

General factory

Direct labor-hours

$

379,500

15,000

DLHs


Activity Measure

Product Y

Product Z

Machining

7,300

2,700

Number of setups

50

180

Number of products

1

1

Direct labor-hours

9,500

5,500


1.

What is the company’s plantwide overhead rate? (Round your answer to 2 decimal places.)

2.

Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)

3.

What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.)

4.

What is the activity rate for the Machine Setups activity cost pool? (Round your answer to 2 decimal places.)

5.

What is the activity rate for the Product Design activity cost pool? (Round your answer to 2 decimal places.)

6.

What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.)

7.

Which of the four activities is a batch-level activity?

Machine setups activity

8.

Which of the four activities is a product-level activity?

9.

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.)

10.

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.)

11.

Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your answers to 2 decimal places.)

12.

Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)

13.

Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)

14.

Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)

15.

Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)







Post ACC211 Unit 3 Chapter 5 Assignment

[The following information applies to the questions displayed below.]

Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units):

Sales

$

21,200

Variable expenses

12,400



Contribution margin

8,800

Fixed expenses

6,952



Net operating income

$

1,848






1.

What is the contribution margin per unit? (Round your answer to 2 decimal places.)

2.

What is the contribution margin ratio? Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).

3.

What is the variable expense ratio? Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).

4.

If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.)

5.

If sales decline to 900 units, what would be the net operating income? (Do not round intermediate calculations.)

6.

If the selling price increases by $2.40 per unit and the sales volume decreases by 100 units, what would be the net operating income? (Do not round intermediate calculations.)

7.

If the variable cost per unit increases by $1.40, spending on advertising increases by $1,900, and unit sales increase by 250 units, what would be the net operating income? (Do not round intermediate calculations.)

8.

What is the break-even point in unit sales? (Do not round intermediate calculations.)

9.

What is the break-even point in dollar sales? (Round intermediate calculations to 4 decimal places. Round your final answer to the nearest dollar amount.)

10.

How many units must be sold to achieve a target profit of $5,324? (Do not round intermediate calculations.)

11-a.

What is the margin of safety in dollars? (Do not round intermediate calculations.)

11-b.

What is the margin of safety percentage? (Round your final answers to the nearest whole percentage (i.e, .12 should be entered as 12).)

12.

What is the degree of operating leverage? (Round your answer to 2 decimal places.)

13.

Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 4% increase in sales? Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).

14.

Assume that the amounts of the company’s total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $6,952 and the total fixed expenses are $12,400. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.)

15.

Assume that the amounts of the company’s total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $6,952 and the total fixed expenses are $12,400. Given this scenario, and assuming that total sales remain the same, calculate the degree of operating leverage. Using the calculated degree of operating leverage, what is the estimated percent increase in net operating income of a 4% increase in sales? Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).







Post ACC211 Unit 4 Chapter 6 Assignment

[The following information applies to the questions displayed below.]

Diego Company manufactures one product that is sold for $76 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 58,000 units and sold 54,000 units.

Variable costs per unit:

Manufacturing:

Direct materials

$

23

Direct labor

$

15

Variable manufacturing overhead

$

3

Variable selling and administrative

$

3

Fixed costs per year:

Fixed manufacturing overhead

$

1,160,000

Fixed selling and administrative expenses

$

640,000


The company sold 40,000 units in the East region and 14,000 units in the West region. It determined that $320,000 of its fixed selling and administrative expenses is traceable to the West region, $270,000 is traceable to the East region, and the remaining $50,000 is a common fixed cost. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.

Required:

1.

What is the unit product cost under variable costing?

2.

What is the unit product cost under absorption costing?

3.

What is the company’s total contribution margin under variable costing?

4.

What is the company’s net operating income (loss) under variable costing?

5.

What is the company’s total gross margin under absorption costing?

6.

What is the company’s net operating income (loss) under absorption costing?

7.

What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)?

8.

1.

What is the company’s break-even point in unit sales?

2.

Is it above or below the actual sales volume?

9.

If the sales volumes in the East and West regions had been reversed, what would be the company’s overall break-even point in unit sales?

10.

What would have been the company’s variable costing net operating income (loss) if it had produced and sold 54,000 units?

11.

What would have been the company’s absorption costing net operating income (loss) if it had produced and sold 54,000 units?

12.

If the company produces 4,000 fewer units than it sells in its second year of operations, will absorption costing net operating income be higher or lower than variable costing net operating income in Year 2?

13.

Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions.

14.

Diego is considering eliminating the West region because an internally generated report suggests the region’s total gross margin in the first year of operations was $110,000 less than its traceable fixed selling and administrative expenses. Diego believes that if it drops the West region, the East region’s sales will grow by 4% in Year 2. Using the contribution approach for analyzing segment profitability and assuming all else remains constant in Year 2, what would be the profit impact of dropping the West region in Year 2?

15.

Assume the West region invests $48,000 in a new advertising campaign in Year 2 that increases its unit sales by 20%. If all else remains constant, what would be the profit impact of pursuing the advertising campaign?







Post ACC211 Unit 5 Chapter 7 Assignment

[The following information applies to the questions displayed below.]

Morganton Company makes one product and it provided the following information to help prepare the master budget for its first four months of operations:

a.

The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 9,500, 26,000, 28,000, and 29,000 units, respectively. All sales are on credit.

b.

Forty percent of credit sales are collected in the month of the sale and 60% in the following month.

c.

The ending finished goods inventory equals 25% of the following month’s unit sales.

d.

The ending raw materials inventory equals 15% of the following month’s raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.40 per pound.

e.

Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month.

f.

The direct labor wage rate is $12 per hour. Each unit of finished goods requires two direct labor-hours.

g.

The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per month is $65,000.

Required:

1.

What are the budgeted sales for July?

2.

What are the expected cash collections for July?

3.

What is the accounts receivable balance at the end of July?

4.

According to the production budget, how many units should be produced in July?

5.

If 113,000 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?

6.

What is the estimated cost of raw materials purchases for July?

7.

If the cost of raw material purchases in June is $149,340, what are the estimated cash disbursements for raw materials purchases in July?

8.

What is the estimated accounts payable balance at the end of July?

9.

What is the estimated raw materials inventory balance (in dollars) at the end of July?

10.

What is the total estimated direct labor cost for July assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced?

11.

If the company always uses an estimated predetermined plantwide overhead rate of $8 per direct labor-hour, what is the estimated unit product cost? (Round your answer to 2 decimal places.)

12.

What is the estimated finished goods inventory balance at the end of July, if the company always uses an estimated predetermined plantwide overhead rate of $8 per direct labor-hour?

13.

What is the estimated cost of goods sold and gross margin for July, if the company always uses an estimated predetermined plantwide overhead rate of $8 per direct labor-hour?

14.

What is the estimated total selling and administrative expense for July?

15.

What is the estimated net operating income for July, if the company always uses an estimated predetermined plantwide overhead rate of $8 per direct labor-hour?





Post ACC211 Unit 6 Chapter 8 Assignment

[The following information applies to the questions displayed below.]

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:

Direct material: 4 pounds at $10.00 per pound

$

40.00

Direct labor: 2 hours at $14.00 per hour

28.00

Variable overhead: 2 hours at $6.00 per hour

12.00



Total standard variable cost per unit

$

80.00






The company also established the following cost formulas for its selling expenses:

Fixed Cost per Month

Variable Cost
per Unit Sold

Advertising

$

270,000

Sales salaries and commissions

$

100,000

$

12.00

Shipping expenses

$

3.00


The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,500 units and incurred the following costs:

a.

Purchased 150,000 pounds of raw materials at a cost of $9.20 per pound. All of this material was used in production.

b.

Direct-laborers worked 62,000 hours at a rate of $15.00 per hour.

c.

Total variable manufacturing overhead for the month was $390,600.

d.

Total advertising, sales salaries and commissions, and shipping expenses were $279,000, $390,600, and $122,000, respectively.

Required:

1.

What raw materials cost would be included in the company’s flexible budget for March?

2.

What is the materials quantity variance for March? (Input the amount as a positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance.).)

3.

What is the materials price variance for March? (Input the amount as a positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance.).)

4.

If Preble had purchased 177,000 pounds of materials at $9 per pound and used 150,000 pounds in production, what would be the materials quantity variance for March? (Input the amount as a positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance.).)

5.

If Preble had purchased 177,000 pounds of materials at $9.20 per pound and used 150,000 pounds in production, what would be the materials price variance for March? (Input the amount as a positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance.).)

6.

What direct labor cost would be included in the company’s flexible budget for March?

7.

What is the direct labor efficiency variance for March? (Input the amount as a positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance.).)

8.

What is the direct labor rate variance for March? (Input the amount as a positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance.).)

9.

What variable manufacturing overhead cost would be included in the company’s flexible budget for March?

10.

What is the variable overhead efficiency variance for March? (Input the amount as a positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance.).)

11.

What is the variable overhead rate variance for March? (Do not round intermediate calculations. Input the amount as a positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance.).)

12.

What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company’s flexible budget for March?

13.

What is the spending variance related to advertising? (Input the amount as a positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance.).)

14.

What is the spending variance related to sales salaries and commissions? (Input the amounts as positive values. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance.).)

15.

What is the spending variance related to shipping expenses? (Input the amount as a positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance.).)






Post ACC211 Unit 7 Chapter 9 Assignment


[The following information applies to the questions displayed below.]

Westerville Company reported the following results from last year’s operations:

Sales

$

1,500,000

Variable expenses

730,000



Contribution margin

770,000

Fixed expenses

470,000



Net operating income

$

300,000





Average operating assets

$

937,500






This year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics:

Sales

$

580,000

Contribution margin ratio

70

% of sales

Fixed expenses

$

319,000


The company’s minimum required rate of return is 10%.

Required:

1.

What is last year’s margin?

2.

What is last year’s turnover? (Round your answer to 1 decimal place.)

3.

What is last year’s return on investment (ROI)?

4.

What is the margin related to this year’s investment opportunity?

5.

What is the turnover related to this year’s investment opportunity? (Round your answer to 1 decimal place.)

6.

What is the ROI related to this year’s investment opportunity?

7.

If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year? (Round your percentage answer to 1 decimal place (i.e .1234 should be entered as 12.3))

8.

If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year? (Round your answer to 2 decimal places.)

9.

If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (Round your percentage answer to 1 decimal place (i.e .1234 should be entered as 12.3))

10-a.

If Westerville’s chief executive officer will earn a bonus only if her ROI from this year exceeds her ROI from last year, would she pursue the investment opportunity?

10-b.

Would the owners of the company want her to pursue the investment opportunity?

11.

What is last year’s residual income?

12.

What is the residual income of this year’s investment opportunity?

13.

If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year?

14.

If Westerville’s chief executive officer will earn a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the investment opportunity?

15-a.

Assume that the contribution margin ratio of the investment opportunity was 60% instead of 70%. If Westerville’s Chief Executive Officer will earn a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the investment opportunity?

15-b.

Would the owners of the company want her to pursue the investment opportunity?






Post ACC211 Unit 7 Chapter 10 Assignment

[The following information applies to the questions displayed below.]

Cane Company manufactures two products called Alpha and Beta that sell for $240 and $162, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 131,000 units of each product. Its unit costs for each product at this level of activity are given below:

Alpha

Beta

Direct materials

$

35

$

15

Direct labor

48

23

Variable manufacturing overhead

27

25

Traceable fixed manufacturing overhead

35

38

Variable selling expenses

32

28

Common fixed expenses

35

30









Total cost per unit

$

212

$

159


















The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars.

Required:

1.

What is the total amount of traceable fixed manufacturing overhead for the Alpha product line and for the Beta product line?

2.

What is the company’s total amount of common fixed expenses?

3.

Assume that Cane expects to produce and sell 100,000 Alphas during the current year. One of Cane’s sales representatives has found a new customer that is willing to buy 30,000 additional Alphas for a price of $160 per unit. If Cane accepts the customer’s offer, how much will its profits increase or decrease?

4.

Assume that Cane expects to produce and sell 110,000 Betas during the current year. One of Cane’s sales representatives has found a new customer that is willing to buy 2,000 additional Betas for a price of $83 per unit. If Cane accepts the customer’s offer, how much will its profits increase or decrease?

5.

Assume that Cane expects to produce and sell 115,000 Alphas during the current year. One of Cane’s sales representatives has found a new customer that is willing to buy 30,000 additional Alphas for a price of $160 per unit. If Cane accepts the customer’s offer, it will decrease Alpha sales to regular customers by 14,000 units.

a.

Calculate the incremental net operating income if the order is accepted? (Loss amount should be indicated with a minus sign.)

b.

Based on your calculations above should the special order be accepted?

6.

Assume that Cane normally produces and sells 110,000 Betas per year. If Cane discontinues the Beta product line, how much will profits increase or decrease?

7.

Assume that Cane normally produces and sells 60,000 Betas per year. If Cane discontinues the Beta product line, how much will profits increase or decrease?

8.

Assume that Cane normally produces and sells 80,000 Betas and 100,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 13,000 units. If Cane discontinues the Beta product line, how much would profits increase or decrease?

9.

Assume that Cane expects to produce and sell 100,000 Alphas during the current year. A supplier has offered to manufacture and deliver 100,000 Alphas to Cane for a price of $160 per unit. If Cane buys 100,000 units from the supplier instead of making those units, how much will profits increase or decrease?

10.

Assume that Cane expects to produce and sell 75,000 Alphas during the current year. A supplier has offered to manufacture and deliver 75,000 Alphas to Cane for a price of $160 per unit. If Cane buys 75,000 units from the supplier instead of making those units, how much will profits increase or decrease?




Post ACC211 Unit 8 Chapter 11 Assignment

The management of Kunkel Company is considering the purchase of a $20,000 machine that would reduce operating costs by $5,000 per year. At the end of the machine’s five-year useful life, it will have zero scrap value. The company’s required rate of return is 13%.

Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables.

Required:

1.

Determine the net present value of the investment in the machine.

2.

What is the difference between the total, undiscounted cash inflows and cash outflows over the entire life of the machine? (Any cash outflows should be indicated by a minus sign.)