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Please make sure you read the academic honesty policy, since I want to make sure everyone realizes that they should not be discussing this exam...

I have attached an Excel Spreadsheet. Need answers to the questions. Must use cell referencing for answers. thanks

Please make sure you read the academic honesty policy, since I want to make sure everyone realizes that they should not be discussing this exam outside the discussion board. This is an individual assignment and should be completed by each student on their own. I realize some of you maybe best friends or relatives, but this is an individual assignment and you should not be working as a team. Academic Honesty Policy: Each student is assumed to be a mature and responsible adult with high academic and moral standards. There is no place in the business profession or the classroom for dishonesty. Therefore, any student found cheating or presenting material in a dishonest fashion would be dismissed from the course and given a course grade of “F.” You should not exchange files or discuss turn in problems or take home exams outside the discussion board . It is unfair to your classmates to discuss turn-in problems and take home exams via e-mail or to send files with the solution to any member of the class. I always have a discussion thread set up for students to ask questions, so this is the place you should ask questions on these assignments and exams. Remember, it does not matter what type of assignment it is, if you are found cheating you will receive an F for the course and the College of Business will be informed of your actions for further proceedings.
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Type in your name here: Worth 10 pts. Grading Rubric: Requirement Points Covers material in chapters 7 and 8. 1 0.5 2 1 DATA 3 1 ABC, Inc. is a newly organized manufacturing business this year. 4 1 The following company's costs and expenses are: 5 1 6 1 Sales price per unit $50 7 0.5 Manufacturing costs: Fixed Costs Variable Costs 8 1 Direct materials $9 9 0.5 Direct labor 6 10 0.5 Variable Manufacturing overhead 3 11 1 Fixed Manufacturing overhead $25,000 12 1 Period expenses: 10 Variable Selling and administrative expenses 4 Fixed Selling and Administrative expenses 31,000 Totals $56,000 $22 Units produced 5,000 units Units sold 4,800 units Required: Use the information in the DATA field above using cell referencing to answer the following requirements. 1. Calculate the unit cost for variable costing. Review Exhibit 8-2 on page 328. 2. Calculate the unit cost for absorption costing. Review Exhibit 8-2 on page 328. 3. Prepare an absorption-costing income statement. Review Exhibit 8-3 on page 329. 4. Prepare a variable-costing income statement. Review Exhibit 8-3 on page 329. 5. Reconcile the differences in income that you calculated in #3 and #4 using exhibit 8-4 on page 330 as your guide or use the shortcut reconciliation on page 330-331. 6. Calculate the breakeven point in units. Reference page 279. 7. Calculate the breakeven point in sales dollars. 8. Calculate the safety margin in Dollars. Explain what the margin of safety means in your own words using this project? Reference page 285. 9. Calculate the operating leverage. Reference page 296 10. What if sales volume increases by 4% how much will income increase in percentage terms? Make sure you have read over the DOL discussion and understand the multiplier impact of changes in sales volume that occurs based on DOL. You should only have to change the direct labor in the data area and actually all your answers should be updated. Please put the direct material cost back to the original number once you have answered the question? You should only have to change the fixed MOH in the data area and actually all your answers should be updated. Please put the fixed MOH cost back to the original number once you have answered the question? Solution: 1. 2. Variable costing Absorption Costing Direct materials Direct labor Variable overhead Fixed overhead Total per unit cost 3. ABC Company Inc. Absorption Costing Income statement Sales revenue Less: Cost of goods sold Gross Margin Less: Selling and administrative expenses Variable Fixed Net income 4. ABC Company Inc. Variable Costing Income statement Sales Revenue Less: Variable Expenses: Variable manufacturing costs Variable Selling and administrative costs Contribution margin Less: Fixed Expenses: Fixed manufacturing overhead Fixed selling and Administrative expenses Net income 5. I am using a modification of the short cut method on page 331 as my model. Change in inventory: Units produced Units sold Increase in inventory Fixed overhead rate Difference in fixed overhead expensed Net income: Absorption costing Variable costing Difference 6. Break even in units Units 7. Break even in sales $ 8. Safety Margin in Dollars On page 297 I realize the author uses budgeted sales revenue in the margin of safety calculation, but if you are given the actual sales revenue you can replace budgeted sales with actual sales, which you should do for #8. 9. What does the margin of safety mean? Be very explicit in your answer, so I know you understand this concept and the importance of it to managers. 10. Calculate the operating leverage . Reference page 296 11. What if sales volume increases by 4% how much will income increase in percentage terms? Make sure you have read over the Operating leverage discussion and understand the multiplier impact of changes in sales volume that occurs based on operating leverage. You should only have to change the direct labor in the data area and actually all your answers should be updated. Please put the direct material cost back to the original number once you have answered the question? You should only have to change the fixed MOH in the data area and actually all your answers should be updated. Please put the fixed MOH cost back to the original number once you have answered the question? Project 3 is due by Tuesday, October 15th. Send via the assignment area and make sure you save your file with first initial of first name and last name. You will be graded on the accuracy of your answer and usage of cell referencing in the DATA area. Total pts. Possible 11. What if the direct material cost per unit increases from $9 a unit to $10, what will be the new breakeven in units? Explain why it changed. 12. What if the manufacturing overhead cost decreases from 25,000 to 20,000, what will be the new breakeven in units? Explain why it changed. 12. What if the direct material cost per unit increases from $9 a unit to $10, what will be the new breakeven in units? Explain why it changed. 13. What if the manufacturing overhead cost decreases from 25,000 to 20,000, what will be the new breakeven in units? Explain why it changed. Guidance: This difference should  equal the difference in net  income below.
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Solutions to assignment of beardsk (Oct 11).xls

Please make sure you read the academic honesty policy, since I want to make sure everyone realizes that they should not be discussing
this exam outside the discussion board. This is an individual...

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