Exercise 10.14
1.
The comparable uncontrolled price method should be used because a market
price exists.
Market price .
Plus: Shipping .
Less: Marketing costs .
Transfer price .
2.
$ 3.80
0.34
(0.05)
$ 4.09
The cost-plus method should be used because a ma
Problem 1028
1.
Sales.
Variable expenses .
Contribution margin .
Part 4CM
$ 64,500*
46,500
$ 18,000
Model 7AC
$ 580,000*
479,500
$ 100,500
Company
$644,500
526,000
$118,500
*While all 10,000 units could be sold externally, currently none are.
*Variable co
Problem 10.29
1.
Santigui should not reduce the price charged to Ashleigh if he can sell all he
produces at a price of $4.75 per pound. Ashleigh should buy externally,
saving the company $45,000 (100,000 $0.45). The $45,000 savings belongs
to the Donut Sh
Problem 10.31
1.
The segment information prepared for public reporting purposes may not be
appropriate for the evaluation of segment management performance
because:
An allocation of common costs incurred for the benefit of more than one
segment must be i
Exercise 11.16
Raw Materials and In Process Inventory .
Accounts Payable .
Conversion Cost Control .
Accounts Payable .
Wages Payable .
243,000
Cost of Goods Sold .
Raw Materials and In Process Inventory .
Conversion Cost Control .
506,250
Accounts Receiv
Problem 11.29
1.
Target cost = Target price Target profit
= $130 $15
= $115 per unit
The projected cost is $122 [$120 + ($100,000/50,000 units)], so the target is
not met. The projected total life-cycle profit is ($130 $122) 50,000 =
$400,000.
2.
a. New t
Exercise 13.10
1.
If the plant layout is improved, then wait time and move time will decrease; if
wait time and move time decrease, then MCE will increase; if MCE increases,
then conversion cost per unit will decrease.
2.
MCE of 75 percent implies the fol
Exercise 13.13
1.
If (a) employees are trained to improve their soldering capabilities, (b) the
manufacturing process is redesigned, and (c) the right suppliers are selected,
then the number of defective units produced will decrease; if the number of
defe
Problem 3.36
1.
Regression output from spreadsheet for X = number of orders:
SUMMARY OUTPUT
Regression Statistics
Adjusted R Square
0.997047
Standard Error
8195.827
Observations
20
ANOVA
Regression
Residual
Total
SS
4.31E+11
1.21E+09
4.32E+11
MS
4.31E+11
Problem 3.38
1.
Regression output from spreadsheet, application hours as X variable:
SUMMARY OUTPUT
Regression Statistics
Adjusted R Square
0.921679
Standard Error
285.6803
Observations
9
ANOVA
Regression
Residual
Total
df
1
7
8
SS
7765004
571292.5
833629
Problem 3.39
1.
Regression output from spreadsheet, inspection hours as X1 variable,
number of batches as X2 variable:
SUMMARY OUTPUT
Regression Statistics
Adjusted R Square
0.869143
Standard Error
3761.810
Observations
14
ANOVA
Regression
Residual
Total
Problem 3.41
1.
Cumulative
Number
of Units
(1)
Cumulative
Average Time
per Unit in Hours
(2)
1
2
4
8
16
32
2.
Direct materials
Conversion cost
Total variable cost
Units
Unit variable cost
39,172 $
33,438
Cumulative
Total Time:
Labor Hours
(3) = (1) (2)
1
Problem 3.42
1.
Cumulative
Number
of Units
(1)
1
2
4
8
16
32
2.
Cumulative
Average Time
per Unit in Hours
(2)
1,000
900 (0.9 1,000)
810 (0.9 900)
729 (0.9 810)
656.1 (0.9 729)
590.5 (0.9 656.1)
Cumulative
Total Time:
Labor Hours
(3) = (1) (2)
1,000
1,800
Problem 4.32
1.
Overhead rate = $6,990,000/272,500 = $25.65* per direct labor hour
Overhead assignment:
Part 127: $25.65 250,000/500,000 = $12.83* per unit
Part 234: $25.65 22,500/100,000 = $5.77* per unit
*Rounded to the nearest cent.
Unit gross margin:
Problem 6.36
1.
Molding Department
a. Physical flow schedule:
Units, beginning work in process .
Units started in February .
Total units to account for .
10,000
25,000
35,000
Units completed and transferred out:
Started and completed.
From beginning work
Problem 6.37
1.
Molding Department
a. Physical flow schedule:
Units, beginning work in process .
Units started in February .
Total units to account for .
Units completed and transferred out:
Started and completed.
From beginning work in process .
Units, e
Problem 6.41
1.
Unit cost computation:
Physical flow schedule:
Units, beginning work in process .
Units started .
Total units to account for .
0
2,800
2,800
Units completed and transferred out:
Started and completed.
From beginning work in process .
Units