{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Solutions -- Week 6

# Solutions -- Week 6 - WEEK CLS DATES[M-W 6 DATES[T-Th GNB...

This preview shows pages 1–5. Sign up to view the full content.

GNB Problem Solutions – Week-by-Week page 1 of 24 WEEK 6 GNB ASSIGNED PROBLEM SOLUTIONS BUAD 250B – FALL 2009 CLS DATES [M-W] DATES [T-Th] TOPICS READINGS ASSIGNMENTS [TO BE COMPLETED BY DATE ASSIGNED] 10 Sep 28 Sep 29 Cost-Volume-Profit Relationships Ch. 6 BE: 6-2, 4, 5, 6, 7, 8, 9 PR: 5-16; 6-20 In-class: 6-22 Optional: 5A-5 (Excel based) 11 Sep 30 Oct 1 Cost-Volume-Profit Relationships Ch. 6 PR: 6-24, 29 In-class: 6-29, 32 Intro: Ch. 7 Problem 5-16 1. March—Low June—High 6,000 Units 9,000 Units Direct materials cost @ \$6 per unit ......................... \$ 36,000 \$ 54,000 Direct labor cost @ \$10 per unit ............................. 60,000 90,000 Manufacturing overhead cost* ................................ 78,000 102,000 Total manufacturing costs ....................................... 174,000 246,000 Add: Work in process, beginning ............................ 9,000 32,000 183,000 278,000 Deduct: Work in process, ending ............................ 15,000 21,000 Cost of goods manufactured ................................... \$168,000 \$257,000 *Computed by working upwards through the statements. 2. Units Produced Cost Observed June—High level of activity ................................. 9,000 \$102,000 March—Low level of activity ................................ 6,000 78,000 Change ................................................................ 3,000 \$ 24,000 Change in cost \$24,000 = = \$8.00 per unit Change in activity 3,000 units Total cost at the high level of activity ............................................. \$102,000 Less variable cost element (\$8.00 per unit × 9,000 units) .................................................... 72,000 Fixed cost element ........................................................................ \$ 30,000

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document