MANAGERIAL ACCOUNTING

1)           XYZ CORP HAS THE FOLLOWING DATA:

 

BUDGETED OVERHEAD                                               $156,000

BUDGETED MACHINE HOURS (DRIVER)                 40,000        PDOHR = 3.9

ACTUAL MACHINE HOURS:

JOB 17                                                    10,500   COGS

JOB 18                                                      6,300   FG

JOB 19                                                     16,800   FG

JOB 20                                                      8,400   WIP

42,000

 

JOBS 17, 18 & 19 WERE FINISHED.  JOB 17 WAS SOLD.  TOTAL ACTUAL OVERHEAD = $162,800. WHAT IS ACTUAL OVERHEAD IN FINISHED GOODS AFTER ADJUSTING FOR ANY OVER OR UNDER APPLIED OVERHEAD? (ASSUME OVERHEAD VARIANCE ALLOCATED AMONG WIP, FG AND COGS) (4 POINTS)

 

 

ACTUAL OVERHEAD FG   89,540              6,300 + 16,800

42,000            X    162,800

 

 

 

 

 

2)          SMITH CORP PURCHASED $63,000 OF RM DURING THE CURRENT

ACCOUNTING PERIOD.  SMITH INCURRED $90,000 OF DL AND $67,000 OF MFG

OVERHEAD. ASSUME COMBINED INVENTORY FOR RM, WIP AND FG INCREASED

BY $5,800. WHAT IS COGS? (4 POINTS)

 

COGS 214,200

 

63,000 + 90,000 + 67,000 – 5,800

 

3)         JOHNSON HAS THE FOLLOWING INFORMATION FOR THE LAST 4 MONTHS:

 

MONTH                                UNITS                                   TOTAL COSTS

 

MAY                                      7,870                                      $581,510

JUNE                                      7,850                                      $581,750   LOW UNITS

JULY                                      8,240                                      $606,940

AUG                                       8,320                                      $607,600   HIGH UNITS

 

USING THE HIGH/LOW METHOD, ESTIMATE TOTAL COSTS AT 9,500 UNITS. (4 POINTS)

 

ESTIMATED TOTAL COSTS 672,500

 

607,600 – 581,750

8,320 – 7,850            VC/ = 55

 

55 X 7,850 + 150,000 = 581,750 ALSO 55 X 8,320 + 150,000 = 607,600

 

55 X 9,500 + 150,000 = 672,500

 

 

 

 

4)         VAL CORP HAS TOTAL APPLIED OVERHEAD = $81,400. JOB 9 USED 7,700 MACHINE

HOURS. TOTAL MACHINE HOURS = 22,000. ASSUME JOB 9 IS THE ONLY JOB REMAINING IN WIP AT THE END OF THE ACCOUNTING PERIOD. WHAT IS APPLIED OVERHEAD IN WIP? (4 POINTS)

 

APPLIED OVERHEAD IN WIP 28,490

 

81,400/22,000 X 7,700 = 28,490

7,700/22,000 X 81,400 = 28,490

 

NOTE: PDOHR = 3.7

 

5)           SMITH ALLOCATED ADDITIONAL OVERHEAD TO PRODUCT X = $84,320 AFTER SWITCHING TO ABC.  PREVIOUSLY OVERHEAD WAS ALLOCATED USING ONLY DIRECT LABOR HOURS.  UNDER ABC OVERHEAD IS NOW ALLOCATED USING BOTH DIRECT LABOR HOURS AND MACHINE HOURS. PRODUCT X USES 76 PERCENT OF MACHINE TIME. $248,000 HAS BEEN ASSIGNED TO THE MACHINE POOL. WHAT IS PRODUCT X’S DIRECT LABOR PERCENTAGE? (4 POINTS)

 

DIRECT LABOR PERCENTAGE 42%

 

 

(.76 – .42) 248,000 = 84,320

 

 

6)          GRACE SAVED $73,200 WHEN OUTSOURCING 9,200 UNITS.  GRACE SAVED $49,200

WHEN SHE OUTSOURCED 11,200 UNITS. AT WHAT UNIT LEVEL WILL INSIDE AND OUTSIDE PRODUCTION COSTS BE THE SAME? (4 POINTS)

 

BREAK EVEN UNITS 15,300

 

UNITS          SAVINGS

9,200             73,200

11,200             49,200

2,000             24,000

 

24,000/2,000 = $12 (EXCESS OF OUTSIDE VC/ OVER INSIDE VC/)

 

 

9,200 + 73,200/12 = 15,300

11,200 + 49,200/12 = 15,300

 

 

 

 

 

 

 

 

7)    REX HAS THE FOLLOWING COST DATA:

 

UNITS = 18,000

VC/UNIT = $11

FC/UNIT = $25

 

FIXED COST INCREASE 30 PERCENT AT 19,000 UNITS. WHAT IS TOTAL COST/UNIT AT 25,000 UNITS? (DON’T ROUND) (4 POINTS)

 

 

TOTAL COST/UNIT 34.4

 

 

VC/UNIT      11

FC/UNIT     23.4     (25 X 18,000)1.3

34.4           25,000

 

 

NOTE: TOTAL FC ABOVE 19,000 UNITS = 585,000

 

 

8)    REFER TO QUESTION 7. WHAT ARE TOTAL COSTS AT 27,500 UNITS? (2 POINTS)

 

 

TOTAL COSTS 887,500

 

11 X 27,500 + 585,000 = 887,500

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Open chat
1
You can contact our live agent via WhatsApp! Via + 1 3234125597

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 25% with the discount code CLASS