2-30 2-24 2-36 2-43 2-45 2-46 3-30 3-44 3-46
Mgmt.201Spring2011 CHECKFIGURESFORRECITATIONPROBLEMS RecitationProblemsR(1):224,230,236 4. 7. 1. Delivery costs on customer shipments: Period cost, variable. Glass costs: Product cost, variable, direct material. Total costs at a volume of 800 replacements = $88,000. Total cost per muffler replacement at a volume of 700 replacements = $120/muffler. The marginal cost of a flight would include the aircraft fuel, wages of the flight crew and airport maintenance personnel, and the food and beverages consumed by the passengers and crew. RecitationProblemsR(2):243,245,246 1. 2. 3. Case A Case B Case C 1. 2. Cost of goods manufactured (COGM) = $305,000. Cost of goods sold (COGS) = $290,000. Net income = $65,000. Direct labor = $400,000; Cost of goods available for sale = $1,150,000. Sales = $1,500,000; Income before taxes = $285,000.
Direct materials used = $27,500.
Cost of December 31 finished-goods inventory = $1,040,000. Net income = $288,000. RecitationProblemsR(3):330,344,346
1. 2. 1. 2. 3. 1. 2c. 3.
3-47 5-55 5-63
Ending balance of WIP Inventory = $748,800. Ending balance of FG Inventory = $23,400. Gross margin = $81,900. Total manufacturing costs (of the period) = $525,300; COGM = $524,700. Adjusted COGS = $511,200. Net income = $21,300. Predetermined OH rate = $52.50/machine hours (MH). Debit WIP Inventory and credit Manufacturing overhead by $462,000. Total cost of jobs 103 and 104 = $528,100. RecitationProblemsR(4):347,555,563 Machining department overhead rate = $10/machine hour. Ending WIP is carried at a cost of $76,765. Overhead was over-applied by $64,500 in the Assembly Department. Overhead rate = $10/direct labor dollar. Selling price for 1 pound of Columbian = $10.79. Standard cost for one pound of Jamaican coffee = $11.06. Storage time: steps 1 and 11 Candidates for non-value added activities are: Step 5: Carrying board of dough into the bagel room. Step 11: Driving forklift to freezer. There are many more.
1. 2. 4. 1a. 1b. 2. 1. 2.
6-27 6-31 6-45 7-30
RecitationProblemsR(5):627,631,645 2. 1a. 2b. 2a. 2b. 3. Answers will differ; given line in answer key, fixed costs = $14,000. Average time for 4 satellites = 195 hours. Total time for 8 satellites = 1,200 hours. The variable cost per person is $23. The full absorption (variable plus fixed costs) cost per person is $29. Minimum bid for a 250-person party is $5,750. RecitationProblemsR(6):730,742,744 1. 3. 4. 5. 2. 3. 4. 5. 6. 1a. 2. Unit contribution margin for the Medium-quality bicycle = $300/unit. Weighted-average unit contribution margin = $330. Break-even point (in total units ) = 450 bicycles. Sales volume required to earn target net income of $99,000 = 750 bicycles, of which 525 are of medium quality. Break-even point = $8,000,000. Margin of safety = $8,000,000. Operating leverage factor (at budgeted sales) = 2. Dollar sales required to earn target net profit = $20,000,000. Net income = $6,000,000, or 37.5% of sales revenue. Break-even for labor-intensive production system = 175,000 units. Volume at which Zodiac is indifferent between two the methods = 311,111 units (rounded). RecitationProblemsR(7):827,829,830
7-42
7-44
8-27
1. 2. 3. 4. 1. 2a. 2b. 1. 2.
8-29 8-30 14-35 14-47 14-48
Total cost = $1,934,400. Cost per unit using absorption costing = $135; cost per unit using throughput costing = $36. Year-end inventory using variable costing = $27,600. Throughput costing costs = $1,920,000. Net income using throughput-costing = $153,600. Total variable cost per unit = $78. Net income (absorption costing) = $688,000. Net income (variable costing) = $640,000. Total throughput cost per unit = $40. Net income (throughput costing) = $526,000. RecitationProblemsR(8):1435,1447,1448
1. 3.
Answers will differ. Increase in unit cost if purchased = $14,400. Net cost of using limited capacity to produce part RM67 = $12,000. Total relevant cost = $108 per unit.
14-37 14-54
RecitationProblemsR(9):1437,1454,1463 1. 2. 3. 1. 2. Answers will vary. Net loss per unit if purchased = $9.00. Net benefit per machine hour of making component = $3.00 per MH. Quantity of component B81 to purchase = 4,000 units. Maximum price Penn Tech Corporation should pay for component B81 = $43.50. Contribution per hour for manufactured skateboards = $39.00. Improvement in contribution margin if manufacture optimal mix = $236,250. RecitationProblemsR(10):925,931,939 1. 2. 3. 1. 2. 3. 1. 2. 3. 4. 5. 6. 7. Expected collections in October = $39,000. Expected cash disbursements for November = $168,300. Expected cash balance on November 30 = $54,700. Total cash collections in March = $537,000. Total cash disbursements in February = $363,000. Cash balance at end of March = $150,900. Total sales on the budget for both boxes = $1,650,000. Production budget (in units) for Box C = 495,000 units. Total cost of raw-material purchases (corrugated medium) = $183,375. Total cost of raw material purchases (paperboard) = $145,500. Total direct-labor cost = $15,750. Total manufacturing overhead = $222,750. Total selling and administrative expenses = $315,000. Budgeted net income = $555,750. Predetermined overhead rate = $60 per hour. Manufacturing cost per unit for Box C = $.315. RecitationProblemsR(11):1046,1135,1139 DM price variance for Type I fertilizer = $150 U. DM quantity variance for Type II fertilizer = $420 F. DL efficiency variance = $495 F. Total actual cost = $6,978.50. Total material and labor variances = $902.50 F. Variable OH spending variance = $16,500 U. Fixed OH volume variance = $100,000 U. Budgeted fixed overhead = $240,000. Variable-overhead spending (price) variance = $6,930 F. Fixed-overhead volume variance = $175,800 U. Variable overhead-is under-applied by $126,195.
14-63 9-25 9-31 9-39
10-46
1. 2. 3. 4a.
11-35 11-39 1. 2. 3. 5.
9-27 10-49 11-49
RecitationProblemsR(12):927,1049,1149 1. 2. 3. 2. 1. Total cash collections in December = $416,000. Income before taxes = $20,000. The December 31 balance in accounts payable will be $306,000. DM price variance = $49,500 F. DL efficiency variance = $53,200 F. DM quantity variance = $1,000 U. VOH spending variance = $500 F. FOH volume variance = $1,625 U.