ACCT3032TuteSols62.pdf

ACCT3032TuteSols62.pdf - 260 Award 1.00 point Windom...

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Unformatted text preview: 260. Award: 1.00 point Windom Corporation manufactures small airplane propellers. Sales for April totaled $850,000. Information regarding resources for the month follows: Parts management Energy Quality inspections Long-term labor Temporary labor Setups Materials Depreciation Marketing Customer service Administrative Resources Used $ 30,000 50,000 45,000 25,000 20,000 70,000 150,000 60,000 70,000 10,000 50,000 Resources Supplied $ 35,000 50,000 50,000 35,000 24,000 100,000 150,000 100,000 75,000 20,000 70,000 In addition, Windom spent $25,000 on 50 engineering changes with a cost driver rate of $500 and $30,000 on eight outside contracts with a cost driver rate of $3,750. Required: a. Prepare a traditional income statement. b. Prepare an activity-based income statement. a. Sales Parts management Energy Quality inspections Long-term labor Temporary labor Setups Materials Depreciation Marketing Customer service Administrative Engineering changes Outside contracts Total costs Operating profits $ 35,000 50,000 50,000 35,000 24,000 100,000 150,000 100,000 75,000 20,000 70,000 25,000 30,000 $850,000 764,000 $ 86,000 Engineering changes: $25,000 = 50 × $500; Outside contracts $30,000 = 8 × $3,750 b. Sales Costs: Unit: Parts management Energy Materials Temporary labor Outside contracts Total unit Batch: Quality inspections Setups Total batch Product: Marketing Customer service Engineering change Total product Facility: Long-term labor Depreciation Administrative Total facility Total costs Operating profit Unused Resources Resource Resource Used Capacity Supplied $850,000 $ 30,000 $ 5,000 $ 35,000 50,000 0 50,000 150,000 0 150,000 20,000 4,000 24,000 30,000 0 30,000 280,000 9,000 289,000 45,000 5,000 50,000 70,000 30,000 100,000 115,000 35,000 150,000 70,000 5,000 75,000 10,000 10,000 20,000 25,000 0 25,000 105,000 15,000 120,000 25,000 10,000 35,000 60,000 40,000 100,000 50,000 20,000 70,000 135,000 70,000 205,000 635,000 129,000 764,000 764,000 $ 86,000 References Essay Difficulty: 3 Hard Learning Objective: 10-02 Use the hierarchy of costs to manage costs. 261. Award: 1.00 point Rock Island Manufacturing makes motor brackets. Information regarding resources for the month follows: Parts management Energy Quality inspections Long-term labor Temporary labor Setups Materials Depreciation Marketing Customer service Administrative Resources Used $ 60,000 100,000 90,000 50,000 40,000 140,000 300,000 120,000 140,000 20,000 100,000 Resources Supplied $ 70,000 100,000 100,000 70,000 48,000 200,000 300,000 200,000 150,000 40,000 140,000 In addition, Rock Island spent $25,000 on 40 engineering changes with a cost driver rate of $600. Required: a. Prepare an analysis of the unused resource capacity for the month. a. Costs: Unit: Parts management Energy Materials Temporary labor Total unit Batch: Quality inspections Setups Total batch Product: Marketing Customer service Engineering change Total product Facility: Long-term labor Depreciation Administrative Total facility Total costs Resources Used $ 60,000 100,000 300,000 40,000 500,000 90,000 140,000 230,000 140,000 20,000 24,000 184,000 50,000 120,000 100,000 270,000 $ 1,184,000 Unused Resource Capacity $ 10,000 0 0 8,000 18,000 10,000 60,000 70,000 10,000 20,000 1,000 31,000 20,000 80,000 40,000 140,000 $259,000 Resource Supplied $ 70,000 100,000 300,000 48,000 518,000 100,000 200,000 300,000 150,000 40,000 25,000 215,000 70,000 200,000 140,000 410,000 $ 1,443,000 Engineering changes: $24,000 = 40 × $600 References Essay Difficulty: 3 Hard Learning Objective: 10-02 Use the hierarchy of costs to manage costs. ...
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