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 late 1990s. Be
sure to label the axes and lines.
b. Wi
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:
Direct materials:
Lumber:
Regular
Deluxe
Assembly kits:
Re
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
Total
Variable Costs
(Unit x $0.40)
$ 40
Average
Unit
Cost
USING DATA FROM E2-19 TO DERIVE COST-ESTIMATING EQUATION AND SCATTERGRAM
Month
1
2
3
4
5
6
7
Orders
3,000
1,500
4,000
2,800
2,300
1,000
2,000
Costs
$32,000
$22,400
$52,000
$31,200
$25,600
$16,000
$24,000
Y = a + bX
where a = Y-intercept and b = slope of t
MA2-35
a. From regression output in Excel
Regression Statistics
Multiple R
0.826789
R Square
0.68358
Adjusted R
Square
0.663804
Standard Error
4049.279
Observations
18
Coefficients
Intercept
14,001.10
X Variable 1
158.3602
Std. Error
6268.23112
26.9354039
MA 2-35, part a
Skip part d, change high-low to regression in parts a and c
Period
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Total Manuf$ Total tables DR Tables Kit
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 future costs? Why?
The representative values identified wi
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 greater amount of
interdepartmental services than does
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 last month's credit sales
10% of two months' prior credit
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 employees to exceed expectations or
show consistent perfo
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 materials cost per pound)
$19.20/$3.20
=
6 pounds
b. Actual qua
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 Improvement
Number of complaints
Market share
Average c
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. margin
Unit break-even point
CapitalIntensive
LaborInte
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. Variable costs
are currently $1.45, which would be the l
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 divisions are evaluated based on their own division's
return o
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 income
Initial investment
Accounting rate of return
Propo
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 by
the affiliate in Ireland at a cost of $400, and sold
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 illustrates how the factory overhead costs are assigned.
P
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 ($0.75 300,000)
Specialty ($0.75 200,000)
Setup:
Product
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 equations
of the two alternatives are equal.
Current Pl
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 math to accounting terminology for the same line, you ha