MA3-40
a. Using a unit-level analysis, develop a graph with two lines, (1)
representing Homestead Telephones cost structure in the 1940s and (2)
representing Homestead Telephones cost structure in the
P10-30.
Storage Products
Manufacturing Activities Performance Report
For the Month of July
Flexible
Budget
Formula
Volume:
Regular
5,000
Flexible
Budget
Variance
5,000
3,000
Deluxe
Variable costs:
Dir
E2-15
a. Total operating cost = $10,000 + $0.40 (X)
Fixed
VC per
cost
unit
where X = servings of chili
FC + VC =
Total
Monthly
Costs
$10,040
Monthly
Volume
(X units)
100
Total
Fixed
Costs
$10,000
Tota
E2-17 - page 51
CURRENT SCENARIO - manual processing
1,800,000
50%
$8
5,000
Photocopies per month
require collating
per hour pay rate
copies can be collated in one hour
PROPOSED SCENARIO - automatic p
Month
May
June
July
Aug
Sept
Oct
Units
shipped
3,000
5,000
4,000
7,000
6,000
4,500
Weight
Shipping
shipped Sales value expenses
(lbs)
($)
($)
6,200
100,000
5,500
8,000
110,000
7,600
8,100
80,000
6,500
MA2-35
a. From regression output in Excel
Regression Statistics
Multiple R
0.826789
R Square
0.68358
Adjusted R
Square
0.663804
Standard Error
4049.279
Observations
18
Coefficients
Intercept
14,001.10
MA 2-35, part a
Skip part d, change high-low to regression in parts a and c
Period
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-1
P2-25
a. Regression (see Excel file)
b. Plot of equations and observations:
A review of the scatter diagram indicates the April unit volume is not
representative.
c. Which is a better predictor of fut
P7-29.
a. Administration costs are allocated based on number of employees and
facilities costs are allocated based on space occupied. Administration costs
should be allocated first since it provides a
P9-36.
a.
Carolina Apple
Schedule of Cash Receipts
July, August, and September 2012
July
$ 5,400
2,520
7,840
1,050
$16,810
Cash sales (30% of total sales)
20% of current month's credit sales
70% of la
MA9-46
a.
1.
The reasons that Atkins and Granger use budgetary slack include:
These employees are hedging against the unexpected (reducing
uncertainty and risks).
The use of budgetary slack allows em
P10-34
a. Standard cost per unit
= (Standard cost allowed for units produced) / units
= $5,760/300
=
$19.20
Standard number of pounds per unit
=
(Standard materials cost per unit)
=
(Standard material
E11-31
a. Financial Success
Expense as a % of revenue
Expense variance %
New product ROI
Net profit
Net profit margin
Year over year revenue growth
New product revenue
Customer Satisfaction and Brand
E3-21
a.
Fixed costs:
Factory overhead
Selling
Total
Selling price
Variable costs:
Direct materials $5.00
Direct labor
5.00
Factory overhead 4.00
Selling
2.00
Unit cont. margin
Fixed costs
Unit cont.
P11-38.
a. The $1.90 price would be best because that is the current market price for large-volume purchases.
However, since the new division has excess capacity, it could lower the price even more. V
PROBLEM: Basic Transfer Pricing
In cases 1-3 below, assume that Division A has a product that can be sold either to Division B of the same
company or to outside customers. The managers of both divisio
Ch 11 IN-CLASS PROBLEM SOLUTION: Basic Transfer Pricing
1. From the standpoint of the selling division, Division A:
Totalcontributionmarginonlostsales
Transferprice Variablecost +
perunit
Numberofuni
P12-28
a. Proposal X
Payback period:
Accounting rate of return:
Total increase in income
before depreciation
Total depreciation
Total increase in income
Life in years
Average annual increase
in net in
Scenario A: The parent TNC in the example is domiciled in a high-tax (Japan @ 40 percent) country,
and it has an affiliate in a lower-tax (Ireland @ 10 percent) host country. A component is produced b
MA6-36
a. When product costs are calculated using ABC, the costs are first assigned to the activities
causing the costs and then to the products based on the activities they consume. The
following ill
P6-28.
a.
Purchasing and materials handling
Setup
Machine operations
First unit inspection
Packaging
Standard
Product A
Direct materials
Purchasing and handling:
Product A ($0.75 400,000)
Product B ($
P6-30
a. Activity cost per unit of activity
Taking applications: $300,000 12,000 hours = $25.00 per hour
Conducting credit investigations: $450,000 16,500 hours = $27.27 per hour
Underwriting: $525,00
Q1: Determining the
Compute the volume of sales, in units, for which Bill is indifferent
Ialternatives.
ndifference Point
between the two
The indifference point in units is the Q for which the profit
HOW TO DERIVE SCATTERGRAPH AND COST-ESTIMATING EQUATION USING
EITHER REGRESSION OR FUNCTIONS IN EXCEL
Y = a + bX
is the algebraic formula for a line where a = Y-Intercept and b = Slope
Changing from m