Exercise 8-1A
Item to Classify
Labor cost
Labor usage
Fixed cost spending
Fixed cost per unit (volume)
Sales volume
Sales price
Materials cost
Materials usage
d.
Standard
$10.00 per hour
61,000 hours
$400,000
$3.20 per unit
40,000 units
$3.60 per unit
$2.
Chapter 7 - Problem 7-22 Solution
Problem 7-22A
(Note: All computations are rounded to the nearest whole dollar.)
a. & b.
Sales Budget
Pro Forma
Oct.
Cash sales
Sales on account
Total budgeted sales
Schedule of Cash Receipts
Current cash sales
Plus collec
Final Exam Review
Break Even in Units & Dollars
Contribution Margin (total/per unit)
Contribution Margin Ratio
Determining Sales Volume for targeted profit
Fixed /Variable Cost Structure
Margin of Safety
Activity Based Costing
Special Decisions
Outsourcin
Chapter 8 Demo Problem Solutions
Problems
Demonstration Problem 8-1 Character of Variances
Required
Compute variances for the items shown in the following list and indicate whether each variance is favorable (F)
or unfavorable (UF).
Item
Selling and Admin
Demonstration Problem 10-1 Solution
a. Present value of cash flow savings
Present Value
Annual Savings
x
Table Factor
$12,500
x
3.7907871
1
Table 2, n=5, r=10%
=
=
Present
Value
$47,385
b.
Net present value of modernization project
Present value of cash f
1.
5. What caused the loss of Danshui Plant No. 2? What are some
strategies or decisions thatWentao Chen should consider in trying to solve
the problems with the Apple iPhone 4 contract in the next nine months?
The Danshui Plant is now facing a loss even