Chapter 6 Homework Questions
Post your answers in Canvas
Use the following to answer questions 1 6
AR, Inc., manufactures and sells a single product. The following costs were incurred during the companys
first year of operations:
Sales price per unit
$100
Exam 3 Study Questions (Chapters 10, 12, 13)
Multiple choice questions are provided on the text website at: www.mhhe.com/garrison14e
Chapter 10
1.
What is a quantity standard? What is a price standard?
2.
Distinguish between ideal and practical standards.
Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $286,000, total variable
expenses were $214,500, and fixed expenses were $36,600.
Required:
1. What is the companys contribution margin (CM) ratio?
2. Estimate the change in the
Chapter 1 Homework Questions
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For questions 1 13 use the term that best answers the question. The terms are used only once.
IMPORTANT: In Canvas, input the letter as your answer, not the word. For example, if the answer was
Budg
Chapter 8 Homework Questions
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Use the following to answer questions 1 3
Budgeted sales are provided below. From past experience, the company has learned that 30% of a months
sales are collected in the month of sale, and 70% are
Chapter 12 Homework Questions
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Use the following to answer questions 1 5
Climate-Control, Inc. manufactures a variety of heating and air-conditioning units. The company is
currently manufacturing all of its own component parts.
Chapter 5 Homework Questions
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Use the following to answer questions 1 6
Last month when B Corp sold 9,500 units, total sales were $475,000, total variable expenses were
$332,500, and total fixed expenses were $135,000.
1. $_
Wha
Chapter 7 Homework Questions
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Use the following to answer questions 1 4
The following activities occur at Z, Inc., a company that manufactures a variety of products. Classify each
of the activities as either a unit-level, batch-
Chapter 13 Homework Questions
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Use the present value tables in your packet or end of the chapter (pp. 677-678) or your financial
calculator.
Use the following to answer questions 1 3
Management is considering the purchase of a $
Intro to Managerial Accounting
ACG 2071
Spring 2014
Instructor Information
Instructor 3:
Jacqueline R. Conrecode, MBA, MS, CPA
Department:
Accounting/Lutgert College of Business
Office:
Lutgert Hall 3333
Office Hours:
Mondays & Wednesdays: 9:30 10:55 AM;
Chapter 8 Lecture Notes
Profit Planning
BUDGET
- detailed plan for acquiring and using resources over a specific time period
- represents a plan for the future expressed in formal quantitative terms
Differences between Planning and Controlling
Planning in
Chapter 4 Lecture Notes
Systems Design: Process Costing
COMPARISON OF JOB-ORDER COSTING AND PROCESS COSTING
Exhibit 4-1 page 143
Similarities between Job-Order and Process Costing
-product costs (DM, DL, MOH)
-determine unit costs
-flow of costs
Differenc
Chapter 3 Lecture Notes
Systems Design: Job-Order Costing
Absorption Costing
- the product absorbs all manufacturing costs (DM, DL, MOH)
JOB-ORDER COSTINGAn Overview
Job order costing is used in situations where many different products are produced each
p
HW 5
N
-2-2
orthwood Company manufactures basketballs. The company has a ball
http:/ /ezto.mhedu
that sells for $32. At present, the ball is manufactured in a small plant that relies heavily on direct labor
workers. Thus, variable expenses are high, total
Outback Outfitters sells recreational equipment. One of the companys products, a small camp stove,
sells for $130 per unit. Variable expenses are $91 per stove, and fixed expenses associated with the
stove total $159,900 per month.
Required:
1. Compute th
Due to erratic sales of its sole producta high-capacity battery for laptop computersPEM, Inc., has been
experiencing difficulty for some time. The companys contribution format income statement for the most recent
month is given below:
Sales (12,600
units
Chapter 7 Lecture Notes
Activity-Based Costing: A Tool to Aid Decision Making
Objective of ABC
-understand overhead
-understand the profitability of products and customers
Cost Treatment under ABC
-Non-manufacturing Costs
-Manufacturing Costs
Plant-wide O
Chapter 10 Lecture Notes
Standard Costs and Operational Performance Measures
A Word on Flexible Budgets (from chapter 9: pages 384 - 388)
Planning Budgetprepared before the period begins (Chapter 8)
Flexible Budgettakes into account how changes in activit
Chapter 10 Homework Questions
Post your answers in Canvas
Use the following to answer questions 1 6
A company manufactures sporting equipment; one of its products requires special plastic. During the quarter
ended November 30, the company manufactured 10,
Chapter 12 Lecture Notes
Differential Analysis: The Key to Decision Making
Relevant Costs or Benefits:
Differential cost or benefit
Incremental/Decremental Costs or Benefit and/or
Avoidable cost
Opportunity Costs:
Sunk Costs:
Practice
Case 1: Buy a new ma
Chapter 5 Lecture Notes
Cost-Volume-Profit Relationships
THE BASICS OF COST-VOLUME-PROFIT (CVP) ANALYSIS
Relationship between these five elements:
-prices of products (i.e., sales),
-volume or level of activity (i.e., number of units sold),
-per unit vari
Chapter 13 Lecture Notes
Capital Budgeting Decisions
CAPITAL BUDGETINGPLANNING INVESTMENTS
Screening decisions
-Project must meet a minimum requirement to be acceptable
-Required rate of return is the minimum rate of return (hurdle rate, cut-off rate, or
Chapter 8 Practice
Use the following to answer questions 1 3
Budgeted sales are provided below. From past experience, the company has learned that 70% of a months sales are
collected in the month of sale, and 30% are collected in the month following sale.
Answers to Study Questions for Chapter 10
1. A quantity standard indicates how much of an input should be used to make a unit of output. A price
standard indicates how much the input should cost.
2. Ideal standards assume perfection and do not allow for a
Answers to Study Questions for Chapter 5
1.
The contribution margin (CM) ratio is the ratio of the contribution margin to sales revenue. It can be
used in a variety of ways. For example, the change in total contribution margin from a given change in
total
Answers to Study Questions for Chapter 4
1
.
A process costing system should be used in situations where a homogeneous product is produced on a
continuous basis.
2
.
1. Job-order costing and process costing have the same basic purposesto assign materials,
Answers to Study Questions for Chapter 3
1.
By definition, manufacturing overhead consists of costs that cannot be practically traced to jobs.
Therefore, if these costs are to be assigned to jobs, they must be allocated rather than traced.
2.
The job cost
