Cost Accounting
ACCT 362
Jingjing Zhang
Copyright Jingjing Zhang. All rights reserved.
Contact
Email: [email protected]
To get quick response
Office: Bronfman 470
Office Hours
Thursday 13:00 14:00
By appointment
More office hours before exams
Co
Budget and Variance Analysis
Copyright Jingjing Zhang. All rights reserved.
Review
VMOH variance analysis
Spending variance
Efficiency variance
Volume variance
(AP SP) AI AU
SP (AI SI) AU
SP SI (AU SU)
FMOH variance analysis
Spending variance
Incurred c
Problem IV
Tastee Freez, Inc., produces two specialty cream mix flavors for soft
serve ice cream machines. The two flavors, Extreme Chocolate and
Very Strawberry, both start with a vanilla base. The vanilla base can be
sold for $2 per gallon. The company
14-28 Manes Company
The Manes Company has two products. Product 1 is manufactured entirely in Division
X. Product 2 is manufactured entirely in Division Y. To produce these two products, the
Manes Company has two support divisions: A (a materials-handling
343 (25 min.) CVP analysis, decision making.
1. Unit selling price $148
Variable manufacturing costs per unit 63
Variable marketing and distribution costs per unit 15
Contribution margin per unit $ 70
Fixed manufacturing costs $ 1,012,000
Fixed marketing
349 (2025 min.) Specialorder decision.
1. Time spent on manufacturing bottles = 750,000 bottles 100 bottles per hour =
7,500 hours
So 10,000 7,500 = 2,500 hours available for toys.
Moulded plastic toy requires: 100,000 units 40 units per hour = 2,500 hour
344 (2025 min.) Revenue mix, two products.
1. Sales of standard and deluxe carriers are in the ratio of 150,000:50,000. So for every 1 unit of deluxe, 3
(150,000 50,000) units of standard are sold.
Contribution margin of the bundle = 3 x $6 + 1 x $12 = $1
353 (2030 min.) CVP under uncertainty.
1. (a) At a selling price of $120, the unit contributon margin is ($120 $60) = $60, and it will
require the sale of ($240,000 $60) = 4,000 units to break even.
The sales in dollars are $480,000 and there is a 2/3 pro
8-25
Cedar Inc. specializes in the production of futons. It uses standard costing and
flexible budgets to account for the production of a new line of futons. For
2015, budgeted variable overhead at a level of 3,200 standard monthly direct
labour-hours was
8-25
Cedar Inc. specializes in the production of futons. It uses standard costing and
flexible budgets to account for the production of a new line of futons. For
2015, budgeted variable overhead at a level of 3,200 standard monthly direct
labour-hours was
340 (20 min.) CVP, shoe stores.
1. UCM (SP UVC = $30 $21) $9.00
a. Breakeven units (FC /UCM = $360,000 / $9 per unit) 40,000
b. Breakeven revenue (Breakeven units xSP = 40,000 units x $30 per unit) $1,200,000
2. Pairs sold 35,000
Revenue, 35,000 x $30
Tot
338 (20 Min.) CVP and income taxes.
1. Revenue Variable costs Fixed costs = Operatng income
20,000($30.00) 20,000($16.50) $162,000 = $108,000
Net Income = $108,000 ($108,000 x 0.40)
Net Income = $64,800
2. Let Q = Number of unit to break even
$30.00Q $16.
CHAPTER 2- SHORTANSWER QUESTIONS Cost Accounting, 6Ce
21 A cost object is anything for which a separate measurement of costs is desired.
Examples include a product, a service, a project, a customer, a brand category, an activity,
a department, and a progr
Chapter 3
332 (2030 min.) Effects on operating income, pricing decision.
1. Analysis of special order:
Sales, 5,000 units x $98
$490,000
Variable costs:
Direct materials, 5,000 units x $48
$240,000
Direct manufacturing labour, 5,000 units x $16
80,000
Var
CHAPTER 3
COSTVOLUMEPROFIT ANALYSIS
SHORTANSWER QUESTIONS
31 The assumptions underlying CVP analysis are:
1. The sales volume and production volume are identical. The ending balances of all inventories
are zero.
2. All costs are classified as fixed or var
CHAPTER 3
COSTVOLUMEPROFIT ANALYSIS
318 (20 min.) Athletic scholarships, CVP analysis.
1. Full course load = 30 credits
Tuition fees for full course load = 30 credits x $400 = $12,000
Let the number of scholarships be denoted by Q.
Then, $600,000 + $12,00
323 (25 min.) Operating leverage.
1. Let Q denote the quantity of bracelets sold
a. Breakeven point under Option 1
$125Q $80Q = ($435 / 3)
$45Q = $1,305
Q = 29 bracelets
b. Breakeven point under Option 2
$125Q $80Q (0.12 / $125Q) = 0
$30Q = 0
Q=0
All cost
339 (2025 min.) CVP, income taxes, manufacturing decisions.
1. Total Per Unit
Sales $1,350,000 $54.00
Variable Costs $742,500 $29.70
CM $607,500 $24.30
Fixed Costs $375,000
Operating Income $232,500
Income Taxes (40%) $93,000
Net Income $139,500
Breakeven