管理会计双语课程习题chapter2
管理会计quiz 2--ch 4 5 8
QUIZ 2 CH 4/5/8（20 MARKS）1.Gold Nest Company of Guandong, China, is a family-owned enterprise that makes birdcages for the South China market. A popular pastime among older Chinese men is to take their pet birds on daily excursions to teahouses and public parks where they meet with other bird owners to talk and play mahjong. A great deal of attention is lavished on these birds, and the birdcages are often elaborately constructed from exotic woods and contain porcelain feeding bowls and silver roosts. Gold Nest Company makes a broad range of birdcages that it sells through an extensive network of street vendors who receive commissions on their sales. The Chinese currency is the renminbi, which is denoted by Rmb. All of the company’s transactions with customers, employees, and suppliers are conducted in cash; there is no credit.The company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. At the beginning of the year, it was estimated that the total direct labor cost for the year would be Rmb110,000 and the total manufacturing overhead cost would be Rmb275,000. At the beginning of the year, the inventory balances were as follows:Raw materials ...................Rmb13,000Work in process ................Rmb30,000Finished goods ..................Rmb65,000During the year, the following transactions were completed:a. Raw materials purchased for cash, Rmb150,000.b. Raw materials requisitioned for use in production, Rmb158,000. (Materials costing Rmb135,000were charged directly to jobs; the remaining materials were indirect.)c. Costs for employee services were incurred as follows:Direct labor ...................... Rmb100,000Indirect labor .................... Rmb40,000Sales commissions ........... Rmb22,000Administrative salaries .... Rmb35,000d. Rent for the year was Rmb36,000. (Rmb30,000 of this amount related to factory operations, andthe remainder related to selling and administrative activities.)e. Utility costs incurred in the factory, Rmb90,000.f. Advertising costs incurred, Rmb88,000.g. Depreciation recorded on equipment, Rmb80,000. (Rmb66,000 of this amount was on equipmentused in factory operations; the remaining Rmb14,000 was on equipment used in selling andadministrative activities.)h. Manufacturing overhead cost was applied to jobs, Rmb ? .i. Goods that cost Rmb490,000 to manufacture according to their job cost sheets were completedduring the year.j. Sales for the year totaled Rmb995,000. The total cost to manufacture these goods according to their job cost sheets was Rmb550,000.Required:1. Prepare journal entries to record the transactions for the year.2. Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Postrelevant data from your journal entries to these T-accounts. (Don’t forget to enter the beginning balances in your inventory accounts.) Compute an ending balance in each account.3. Is Manufacturing Overheadunderapplied or overapplied for the year? Prepare a journal entry toclose any balance in the Manufacturing Overhead account to Cost of Goods Sold.4. Prepare an income statement for the year. (Do not prepare a schedule of cost of goodsmanufactured; all of the information needed for the income statement is available in the journal entries and T-accounts you have prepared.)（20 MARKS）2.Harwood Company is a manufacturer that operates a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that the company would incur $380,000 in manufacturing overhead costs and work 47,500 machine-hours.Required:1. Compute the company’s predetermined overhead rate.2. Assume that during the year the company works only 45,000 machine-hours and incurs thefollowing costs in the Manufacturing Overhead and Work in Process accounts:Copy the data in the T-accounts above onto your answer sheet. Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your T-accounts.3. Compute the amount of underapplied or overapplied overhead for the year and show the balance inyour Manufacturing Overhead T-account. Prepare a journal entry to close out the balance in this account to Cost of Goods Sold.4. Explain why the manufacturing overhead was underapplied or overapplied for the year.（20 MARKS）3.Contrasting ABC and Conventional Product CostsSiegel Corporation manufactures a product that is available in both a deluxe and a regular model. The company has made the regular model for years; the deluxe model was introduced several years ago to tap a new segment of the market. Since introduction of the deluxe model, the company’s profits have steadily declined. Sales of the deluxe model have been increasing rapidly.Overhead is applied to products on the basis of direct labor-hours. At the beginning of the current year, management estimated that $3,080,000 in overhead costs would be incurred and the company would produce and sell 10,000 units of the deluxe model and 50,000 units of the regular model. The deluxe model requires 2.0 hours of direct labor time per unit, and the regular model requires 1.0 hours. Materials and labor costs per unit are given below:Deluxe RegularDirect materials cost per unit .... $50.00 $30.00Direct labor cost per unit ........... $30.00 $15.00Required1. Compute the predetermined overhead rate using direct labor-hours as the basis for allocatingoverhead costs to products. Compute the unit product cost for one unit of each model.2. An intern suggested that the company use activity-based costing to cost its products. A team wasformed to investigate this idea. . It came back with the recommendation that four activity costpools be used. These cost pools and their associated activities are listed below:EstimatedOverhead ActivityActivity Cost Pool and Activity Measure Cost Deluxe Regular TotalPurchase orders (number of orders) ............... $ 60,000 500 1,000 1,500Rework requests (number of requests) ........... 280,000 800 2,000 2,800Product testing (number of tests) ................... 240,000 7,000 3,000 10,000Machine-related (machine-hours) .................. 2,500,000 4,500 8,000 12,500$3,080,000Compute the activity rate (i.e., predetermined overhead rate) for each of the activity cost pools.3. Assume that actual activity is as expected for the year. Using activity-based costing, do thefollowing:a. Determine the total amount of overhead that would be applied to each model for the year.b. Compute the unit product cost for one unit of each model.4. Can you identify a possibl e explanation for the company’s declining profits? If so, what is it?（20 MARKS）4.Cost flows and Unit Product Costs in Activity-Based CostingHunter Corporation uses activity-based costing to determine product costs for external financial reports. At the beginning of the year, management made the following estimates of cost and activity in the company’s five activity cost pools:Activity Cost Pool Activity Measure EstimatedOverheadCost Expected ActivityLabor related ............. Direct labor-hours $200,000 20,000 DLHsProduction orders ...... Number of orders $110,000 5,000 ordersMaterial receipts........ Number of receipts $108,000 1,800 receiptsRelay assembly ......... Number of relays $960,000 12,000 relaysGeneral factory ......... Machine-hours $1,260,000 70,000 MHsRequired1. Compute the activity rate (i.e., predetermined overhead rate) for each of the activity cost pools.2. During the year, actual overhead cost and activity were recorded as follows:Activity Cost PoolActualOverheadCost Actual ActivityLabor related ................ $ 205,000 22,000 DLHsProduction orders ......... 107,000 4,500 ordersMaterial receipts........... 112,000 2,000 receiptsRelay assembly ............ 980,000 13,000 relaysGeneral factory ............ 1,300,000 73,000 MHsTotal overhead cost $2,704,000a. Prepare a journal entry to record the incurrence of actual manufacturing overhead cost for theyear (credit Accounts Payable). Post the entry to the company’s Manufacturing OverheadT-account.b. Determine the amount of overhead cost applied to production during the year.c. Prepare a journal entry to record the application of manufacturing overhead cost to Work inProcess for the year. Post the entry to the company’s Manufacturing Overhead T-account.d. Determine the amount of underapplied or overapplied manufacturing overhead for the year.3. The actual activity for the year was distributed among the company’s four products as follows:Actual ActivityActivity Cost Pool Product A Product B Product C Product DLabor related (DLHs) ............ 7,000 1,000 8,000 6,000Production orders (orders) .... 800 900 1,100 1,700Material receipts (receipts).... 400 800 300 500Relay assembly (relays) ........ 3,500 2,000 3,000 4,500General factory (MHs) .......... 16,000 26,000 17,000 14,000a. Determine the total amount of overhead cost applied to each product.b. Does the total amount of overhead cost applied to the products above tie in to the T-accountsin any way? Explain.（10 MARKS）5Equivalent Units; Cost Reconciliation—Weighted Average Method Martin Company manufactures a single product. The company uses the weighted-average method in its process costing system. Activity for June has just been completed. An incomplete production report for the first processing department follows:Required:1. Prepare a schedule showing how the equivalent units were computed for the first processingdepartment.2. Complete the “Cost Reconciliation” part of the production report for the first processingdepartment.（10 MARKS）6.Interpreting A Production Report—Weighted-Average Method Cooperative San José of southern Sonorastate in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is sold in small bottles and is prized as a flavoring for drinks and for use in desserts. The bottles are sold for $11.00 each. (The Mexican currency is the peso and is denoted by $.) The first stage in the production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in the proper proportions in large vats. The company uses the weighted-average method in its process costing system.A hastily prepared report for the Mixing Department for April appears below:Cooperative San José has just been acquired by another company, and the management of the acquiring company wants some additional information about its operations.Required:1. What were the equivalent units for the month?2. What were the costs per equivalent unit for the month? The beginning inventory consisted of thefollowing costs: materials, $19,450; and conversion cost, $3,360. The costs added during the month consisted of: materials, $375,000; and conversion cost, $224,000.3. How many of the units transferred to the next department were started and completed during themonth?4. The manager of the Mixing Department, anxious to make a good impression on the new owner,stated, “Materials prices jumped from about $1.80 per unit in October to $2.50 per unit in April, but due to good cost control I was able to hold our materials cost to less than $2.50 per unit for the month.” Should this manager b e rewarded for good cost control? Explain.。
管理会计英文版课后习题答案
第二章产品成本计算Exercises2–1（指教材上的第2章练习第1题，下同）1. Part #72A Part #172CSteel* $ 12.00 $ 18.00Setup cost** 6.00 6.00Total $ 18.00 $ 24.00*($1.00 ⨯ 12; $1.00 ⨯ 18)**($60,000/10,000)Steel cost is assigned by calculating a cost per ounce and then multiplying this by the ounces used by each part:Cost per ounce = $3,000,000/3,000,000 ounces= $1.00 per ounceSetup cost is assigned by calculating the cost per setup and then dividing this by the number of units in each batch (there are 20 setups per year):Cost per setup = $1,200,000/20= $60,0002. The cost of steel is assigned through the driver tracing using thenumber of ounces of steel, and the cost of the setups is assigned through driver tracing also using number of setups as the driver.3. The assumption underlying number of setups as the driver is thateach part uses an equal amount of setup time. Since Part #72A uses double the setup time of Part #172C, it makes sense to assign setup costs based on setup time instead of number of setups. This illustrates the importance of identifying drivers that reflect the true underlying consumption pattern. Using setup hours [(40 ⨯ 10) + (20 ⨯10)], we get the following rate per hour:Cost per setup hour = $1,200,000/600= $2,000 per hourThe cost per unit is obtained by dividing each part’s total setup costs by the number of units:Part #72A = ($2,000 ⨯ 400)/100,000 = $8.00Part #172C = ($2,000 ⨯ 200)/100,000 = $4.00Thus, Part #72A has its unit cost increased by $2.00, while Part #172C has its unit cost decreased by $2.00.problems2–51. Nursing hours required per year: 4 ⨯ 24 hours ⨯ 364 days* = 34,944*Note: 364 days = 7 days ⨯ 52 weeksNumber of nurses = 34,944 hrs./2,000 hrs. per nurse = 17.472Annual nursing cost = (17 ⨯ $45,000) + $22,500= $787,500Cost per patient day = $787,500/10,000 days= $78.75 per day (for either type of patient)2. Nursing hours act as the driver. If intensive care uses half of thehours and normal care the other half, then 50 percent of the cost is assigned to each patient category. Thus, the cost per patient day by patient category is as follows:Intensive care = $393,750*/2,000 days= $196.88 per dayNormal care = $393,750/8,000 days= $49.22 per day*$525,000/2 = $262,500The cost assignment reflects the actual usage of the nursing resource and, thus, should be more accurate. Patient days would be accurate only if intensive care patients used the same nursing hours per day as normal care patients.3. The salary of the nurse assigned only to intensive care is a directlytraceable cost. To assign the other nursing costs, the hours of additional usage would need to be measured. Thus, both direct tracing and driver tracing would be used to assign nursing costs for this new setting.2–61. Bella Obra CompanyStatement of Cost of Services SoldFor the Year Ended June 30, 2006 Direct materials:.............................................................................. Beginninginventory .............................................................. $ 300,000.............................................................................. Add: Purchases 600, .............................................................................. Materials available $ 900, .............................................................................. Less: Endinginventory .............................................................. 450,000*Direct materials used .......................................... $ 450,000 Direct labor .......................................................... 12,000,0 Overhead .............................................................. 1,500,00 Total service costs added .................................. $ 13,950,0 Add: Beginning work in process ....................... 900,000 Total production costs ........................................ $ 14,850,0 Less: Ending work in process ........................... 1,500,00 Cost of services sold .......................................... $ 13,350,0 *Materials available less materials used2. The dominant cost is direct labor (presumably the salaries of the 100professionals). Although labor is the major cost of providing manyservices, it is not always the case. For example, the dominant costfor some medical services may be overhead (e.g., CAT scans). Insome services, the dominant cost may be materials (e.g., funeralservices).3. Bella Obra CompanyIncome StatementFor the Year Ended June 30, 2006 Sales ..................................................................... $ 21,000,0 Cost of services sold .......................................... 13,350,0 Gross margin ....................................................... $ 7,650,00 Less operating expenses:.............................................................................. Selling expenses $ 900, .............................................................................. Administrativeexpenses ............................................................................................................................... 750,000.............................................................. 1,650,000Income before income taxes .............................. $ 6,000,00 4. Services have four attributes that are not possessed by tangibleproducts: (1) intangibility, (2) perishability, (3) inseparability, and (4)heterogeneity. Intangibility means that the buyers of services cannotsee, feel, hear, or taste a service before it is bought. Perishabilitymeans that services cannot be stored. This property affects thecomputation in Requirement 1. Inability to store services means thatthere will never be any finished goods inventories, thus making thecost of services produced equivalent to cost of services sold.Inseparability simply means that providers and buyers of servicesmust be in direct contact for an exchange to take place.Heterogeneity refers to the greater chance for variation in theperformance of services than in the production of tangible products.2–71. Direct materials:Magazine (5,000 ⨯ $0.40) $ 2,000Brochure (10,000 ⨯ $0.08) 800 $ 2,800 Direct labor:Magazine [(5,000/20) ⨯ $10] $ 2,500Brochure [(10,000/100) ⨯ $10] 1,000 3,500 Manufacturing overhead:Rent $ 1,400Depreciation [($40,000/20,000) ⨯ 350*] 700Setups 600Insurance 140Power 350 3,190 Cost of goods manufactured $ 9,490*Production is 20 units per printing hour for magazines and 100units per printing hour for brochures, yielding monthly machinehours of 350 [(5,000/20) + (10,000/100)]. This is also monthly laborhours, as machine labor only operates the presses.2. Direct materials $ 2,800Direct labor 3,500Total prime costs $ 6,300Magazine:Direct materials $ 2,000Direct labor 2,500Total prime costs $ 4,500Brochure:Direct materials $ 800Direct labor 1,000Total prime costs $ 1,800Direct tracing was used to assign prime costs to the two products.3. Total monthly conversion cost:Direct labor $ 3,500Overhead 3,190Total $ 6,690Magazine:Direct labor $ 2,500 Overhead:Power ($1 ⨯ 250) $ 250Depreciation ($2 ⨯ 250) 500Setups (2/3 ⨯ $600) 400Rent and insurance ($4.40 ⨯ 250 DLH)* 1,100 2,250 Total $ 4,750 Brochure:Direct labor $ 1,000 Overhead:Power ($1 ⨯ 100) $ 100Depreciation ($2 ⨯ 100) 200Setups (1/3 ⨯ $600) 200Rent and insurance ($4.40 ⨯ 100 DLH)* 440 940 Total $ 1,940 *Rent and insurance cannot be traced to each product so the costsare assigned using direct labor hours: $1,540/350 DLH = $4.40 perdirect labor hour. The other overhead costs are traced according totheir usage. Depreciation and power are assigned by using machine hours (250 for magazines and 100 for brochures): $350/350 = $1.00 per machine hour for power and $40,000/20,000 = $2.00 per machine hour for depreciation. Setups are assigned according to the time required. Since magazines use twice as much time, they receive twice the cost: Letting X = the proportion of setup time used for brochures, 2X + X = 1 implies a cost assignment ratio of 2/3 for magazines and 1/3 for brochures.Exercises3–11. Resource Total Cost Unit CostPlastic1$ 10,800 $0.027Direct labor andvariable overhead28,000 0.020Mold sets320,000 0.050Other facility costs410,000 0.025 Total $ 48,800 $0.12210.90 ⨯ $0.03 ⨯ 400,000 = $10,800; $10,800/400,000 = $0.0272$0.02 ⨯ 400,000 = $8,000; $8,000/400,000 = $0.023$5,000 ⨯ 4 quarters = $20,000; $20,000/400,000 = $0.054$10,000; $10,000/400,000 = $0.0252. Plastic, direct labor, and variable overhead are flexible resources;molds and other facility costs are committed resources. The cost of plastic, direct labor, and variable overhead are strictly variable. The cost of the molds is fixed for the particular action figure being produced; it is a step cost for the production of action figures in general. Other facility costs are strictly fixed.3–3High (1,400, $7,950); Low (700, $5,150)V = ($7,950 – $5,150)/(1,400 – 700)= $2,800/700 = $4 per oil changeF = $5,150 – $4(700)= $5,150 – $2,800 = $2,350Cost = $2,350 + $4 (oil changes)Predicted cost for January = $2,350 + $4(1,000) = $6,350problems3–61. High (1,700, $21,000); Low (700, $15,000)V = (Y2– Y1)/(X2– X1)= ($21,000 – $15,000)/(1,700 – 700) = $6 per receiving orderF = Y2– VX2= $21,000 – ($6)(1,700) = $10,800Y = $10,800 + $6X2. Output of spreadsheet regression routine with number of receivingorders as the independent variable:Constant 4512.98701298698 Std. Err. of Y Est. 3456.24317476605 R Squared 0.633710482694768 No. of10ObservationsDegrees of8 FreedomX Coefficient(s) 13.3766233766234Std. Err. of Coef. 3.59557461331427V = $13.38 per receiving order (rounded)F = $4,513 (rounded)Y = $4,513 + $13.38XR2 = 0.634, or 63.4%Receiving orders explain about 63.4 percent of the variability in receiving cost, providing evidence that Tracy’s choi ce of a cost driver is reasonable. However, other drivers may need to beconsidered because 63.4 percent may not be strong enough to justify the use of only receiving orders.3. Regression with pounds of material as the independent variable:Constant 5632.28109733183 Std. Err. of Y Est. 2390.10628259277 R Squared 0.824833789433823 No. of10ObservationsDegrees of8 FreedomX Coefficient(s) 0.0449642991356633Std. Err. of Coef. 0.0073259640055344V = $0.045 per pound of material delivered (rounded)F = $5,632 (rounded)Y = $5,632 + $0.045XR2 = 0.825, or 82.5%Pounds of material delivered explains about 82.5 percent of the variability in receiving cost. This is a better result than that of the receiving orders and should convince Tracy to try multiple regression.4. Regression routine with pounds of material and number of receiving orders as the independent variables:Constant 752.104072925631 Std. Err. of Y Est. 1350.46286973443 R Squared 0.951068418023306 No. of10ObservationsDegrees of7 FreedomX Coefficient(s) 0.0333883151096915 7.14702865269395 Std. Err. of Coef. 0.00495524841198368 1.68182916088492 V1= $0.033 per pound of material delivered (rounded)V2= $7.147 per receiving order (rounded)F = $752 (rounded)Y = $752 + $0.033a + $7.147bR2= 0.95, or 95%Multiple regression with both variables explains 95 percent of thevariability in receiving cost. This is the best result.5–21. Job #57 Job #58 Job #59Balance, 7/1 $ 22,450 $ 0 $ 0Direct materials 12,900 9,900 35,350Direct labor 20,000 6,500 13,000Applied overhead:Power 750 600 3,600Material handling 1,500 300 6,000Purchasing 250 1,000 250 Total cost $ 57,850 $ 18,300 $ 58,2002. Ending balance in Work in Process = Job #58 = $18,3003. Ending balance in Finished Goods = Job #59 = $58,2004. Cost of Goods Sold = Job #57 = $57,850problems5–31. Overhead rate = $180/$900 = 0.20 or 20% of direct labor dollars.(This rate was calculated using information from the Ladan job;however, the Myron and Coe jobs would give the same answer.)2. Ladan Myron Coe Walker WillisBeginning WIP $ 1,730 $1,180 $2,500 $ 0 $ 0 Direct materials 400 150 260 800 760 Direct labor 800 900 650 350 900 Applied overhead 160 180 130 70 180 Total $ 3,090 $2,410 $3,540 $ 1,220 $ 1,840 Note: This is just one way of setting up the job-order cost sheets.You might prefer to keep the detail on the materials, labor, andoverhead in beginning inventory costs.3. Since the Ladan and Myron jobs were completed, the others muststill be in process. Therefore, the ending balance in Work in Process is the sum of the costs of the Coe, Walker, and Willis jobs.Coe $3,540Walker 1,220Willis 1,840Ending Work in Process $6,600Cost of Goods Sold = Ladan job + Myron job = $3,090 + $2,410 = $5,5004. Naman CompanyIncome StatementFor the Month Ended June 30, 20XXSales (1.5 ⨯ $5,500) ................................................................... $8,250 Cost of goods sold ................................................................... 5,500 Gross margin ............................................................................ $2,750 Marketing and administrative expenses ................................ 1,200 Operating income ..................................................................... $1,550 5–201. Overhead rate = $470,000/50,000 = $9.40 per MHr2. Department A: $250,000/40,000 = $6.25 per MHrDepartment B: $220,000/10,000 = $22.00 per MHr3. Job #73 Job #74Plantwide:70 ⨯ $9.40 = $658 70 ⨯ $9.40 = $658Departmental:20 ⨯ $6.25 $ 125.00 50 ⨯ $6.25 $ 312.5050 ⨯ $22 1,100.00 20 ⨯ $22 440.00$ 1,225.00 $ 752.50Department B appears to be more overhead intensive, so jobs spending more time in Department B ought to receive more overhead. Thus, departmental rates provide more accuracy.4. Plantwide rate: $250,000/40,000 = $6.25Department B: $62,500/10,000 = $6.25Job #73 Job #74Plantwide:70 ⨯ $6.25 = $437.50 70 ⨯ $6.25 = $437.50Departmental:20 ⨯ $6.25 $ 125.00 50 ⨯ $6.25 $ 312.5050 ⨯ $6.25 312.50 20 ⨯ $6.25 125.00$ 437.50 $ 437.50 Assuming that machine hours is a good cost driver, the departmental rates reveal that overhead consumption is the same in each department. In this case, there is no need for departmental rates, anda plantwide rate is sufficient.5–41. Overhead rate = $470,000/50,000 = $9.40 per MHr2. Department A: $250,000/40,000 = $6.25 per MHrDepartment B: $220,000/10,000 = $22.00 per MHr3. Job #73 Job #74Plantwide:70 ⨯ $9.40 = $658 70 ⨯ $9.40 = $658Departmental:20 ⨯ $6.25 $ 125.00 50 ⨯ $6.25 $ 312.5050 ⨯ $22 1,100.00 20 ⨯ $22 440.00$ 1,225.00 $ 752.50 Department B appears to be more overhead intensive, so jobs spending more time in Department B ought to receive more overhead. Thus, departmental rates provide more accuracy.4. Plantwide rate: $250,000/40,000 = $6.25Department B: $62,500/10,000 = $6.25Job #73 Job #74Plantwide:70 ⨯ $6.25 = $437.50 70 ⨯ $6.25 = $437.50Departmental:20 ⨯ $6.25 $ 125.00 50 ⨯ $6.25 $ 312.5050 ⨯ $6.25 312.50 20 ⨯ $6.25 125.00$ 437.50 $ 437.50 Assuming that machine hours is a good cost driver, the departmental rates reveal that overhead consumption is the same in each department. In this case, there is no need for departmental rates, anda plantwide rate is sufficient.5–51. Last year’s unit-based overhead rate = $50,000/10,000 = $5This year’s unit-based overhead rate = $100,000/10,000 = $10Last Year This Year Bike cost:2 ⨯ $20 $ 40 $ 403 ⨯ $12 36 36Overhead:5 ⨯ $5 255 ⨯ $10 50Total $101 $126P rice last year = $101 ⨯ 1.40 = $141.40/dayPrice this year = $126 ⨯ 1.40 = $176.40/dayThis is a $35 increase over last year, nearly a 25 percent increase. No doubt the Carsons are not pleased and would consider looking around for other recreational possibilities.2. Purchasing rate = $30,000/10,000 = $3 per purchase orderPower rate = $20,000/50,000 = $0.40 per kilowatt hourMaintenance rate = $6,000/600 = $10 per maintenance hourOther rate = $44,000/22,000 = $2 per DLHBike Rental Picnic Catering Purchasing$3 ⨯ 7,000 $21,000$3 ⨯ 3,000 $ 9,000 Power$0.40 ⨯ 5,000 2,000$0.40 ⨯ 45,000 18,000 Maintenance$10 ⨯ 500 5,000$10 ⨯ 100 1,000 Other$2 ⨯ 11,000 22,000 22,000 Total overhead $50,000 $50,000 3. This year’s bike rental overhead rate = $50,000/10,000 = $5Carson rental cost = (2 ⨯ $20) + (3 ⨯ $12) + (5 ⨯ $5) = $101Price = 1.4 ⨯ $101 = $141.40/day4. Catering rate = $50,000/11,000 = $4.55* per DLHCost of Estes job:Bike rental rate (2 ⨯ $7.50) $15.00Bike conversion cost (2 ⨯ $5.00) 10.00Catering materials 12.00Catering conversion (1 ⨯ $4.55) 4.55Total cost $41.55*Rounded5. The use of ABC gives Mountain View Rentals a better idea of thetypes and costs of activities that are used in their business. Adding Level 4 bikes will increase the use of the most expensive activities, meaning that the rental rate will no longer be an average of $5 per rental day. Mountain View Rentals might need to set a Level 4 price based on the increased cost of both the bike and conversion cost.分步成本法6–11. C utting Sewing PackagingDepartment Department Department Direct materials $5,400 $ 900 $ 225 Direct labor 150 1,800 900 Applied overhead 750 3,600 900 Transferred-in cost:From cutting 6,300From sewing 12,600 Total manufacturing cost $6,300 $12,600 $14,625 2. a. Work in Process—Sewing ................. 6,300Work in Process—Cutting .......... 6,300b. Work in Process—Packaging ............ 12,600Work in Process—Sewing .......... 12,600c. Finished Goods ................................... 14,625Work in Process—Packaging ..... 14,6253. Unit cost = $14,625/600 = $24.38* per pair6–21. Units transferred out: 27,000 + 33,000 – 16,200 = 43,8002. Units started and completed: 43,800 – 27,000 = 16,8003. Physical flow schedule:Units in beginning work in process 27,000Units started during the period 33,000 Total units to account for 60,000 Units started and completed 16,800Units completed from beginning work in process 27,000Units in ending work in process 16,200 Total units accounted for 60,0004. Equivalent units of production:Materials Conversion Units completed 43,800 43,800 Add: Units in ending work in process:(16,200 ⨯ 100%) 16,200(16,200 ⨯ 25%) 4,050 Equivalent units of output 60,000 47,850 6–31. Physical flow schedule:Units to account for:Units in beginning work in process 80,000 Units started during the period 160,000 Total units to account for 240,000 Units accounted for:Units completed and transferred out:Started and completed 120,000From beginning work in process 80,000 200,000 Units in ending work in process 40,000 Total units accounted for 240,000 2. Units completed 200,000Add: Units in ending WIP ⨯ Fraction complete(40,000 ⨯ 20%) 8,000 Equivalent units of output 208,0003. Unit cost = ($374,400 + $1,258,400)/208,000 = $7.854. Cost transferred out = 200,000 ⨯ $7.85 = $1,570,000Cost of ending WIP = 8,000 ⨯ $7.85 = $62,8005. Costs to account for:Beginning work in process $ 374,400Incurred during June 1,258,400Total costs to account for $ 1,632,800Costs accounted for:Goods transferred out $ 1,570,000Goods in ending work in process 62,800 Total costs accounted for $ 1,632,8006–31、Units t0 account for:Units in beginning work in process(25% completed) 10000 Units started during the period 70000 Total units to account for 80000 Units accounted forUnits completed and transferred outStarted and completed 50000From beginning work in process 10000 60000 Units in ending work in process(60% completed) 20000 Total units accounted for 80000 2、60000+20000×60%=72000（units ） 3、Unit cost for materials:4900035100056000020000+=+（$/unit ）Unit cost for convension:2625787351.136000012000+=+（$/unit ）Total unit cost:5+1.13=6.13（$/unit ）4、The cost of units of transferred out:60000×6.13=367800($)The cost of units of ending work in process:20000×5+20000×20%×1.13=113560($)作业成本法4–21. Predetermined rates:Drilling Department: Rate = $600,000/280,000 = $2.14* per MHrAssembly Department: Rate = $392,000/200,000= $1.96 per DLH*Rounded2. Applied overhead:Drilling Department: $2.14 ⨯ 288,000 = $616,320Assembly Department: $1.96 ⨯ 196,000 = $384,160Overhead variances:Drilling Assembly Total Actual overhead $602,000 $ 412,000 $ 1,014,000 Applied overhead 616,320 384,160 1,000,480 Overhead variance $ (14,320) over $ 27,840 under $ 13,520 3. Unit overhead cost = [($2.14 ⨯ 4,000) + ($1.96 ⨯ 1,600)]/8,000= $11,696/8,000= $1.46**Rounded4–31. Yes. Since direct materials and direct labor are directly traceable toeach product, their cost assignment should be accurate.2. Elegant: (1.75 ⨯ $9,000)/3,000 = $5.25 per briefcaseFina: (1.75 ⨯ $3,000)/3,000 = $1.75 per briefcaseNote: Overhead rate = $21,000/$12,000 = $1.75 per direct labor dollar (or 175 percent of direct labor cost).There are more machine and setup costs assigned to Elegant thanFina. This is clearly a distortion because the production of Fina isautomated and uses the machine resources much more than thehandcrafted Elegant. In fact, the consumption ratio for machining is0.10 and 0.90 (using machine hours as the measure of usage). Thus,Fina uses nine times the machining resources as Elegant. Setupcosts are similarly distorted. The products use an equal number of setups hours. Yet, if direct labor dollars are used, then the Elegant briefcase receives three times more machining costs than the Finabriefcase.3. Overhead rate = $21,000/5,000= $4.20 per MHrElegant: ($4.20 ⨯ 500)/3,000 = $0.70 per briefcaseFina: ($4.20 ⨯ 4,500)/3,000 = $6.30 per briefcaseThis cost assignment appears more reasonable given the relativedemands each product places on machine resources. However, oncea firm moves to a multiproduct setting, using only one activity driverto assign costs will likely produce product cost distortions. Productstend to make different demands on overhead activities, and thisshould be reflected in overhead cost assignments. Usually, thismeans the use of both unit- and nonunit-level activity drivers. In thisexample, there is a unit-level activity (machining) and a nonunit-levelactivity (setting up equipment). The consumption ratios for each(using machine hours and setup hours as the activity drivers) are asfollows:Elegant FinaMachining 0.10 0.90 (500/5,000 and4,500/5,000)Setups 0.50 0.50 (100/200 and 100/200)Setup costs are not assigned accurately. Two activity rates areneeded—one based on machine hours and the other on setup hours:Machine rate: $18,000/5,000 = $3.60 per MHrSetup rate: $3,000/200 = $15 per setup hourCosts assigned to each product:Machining: Elegant Fina$3.60 ⨯ 500 $ 1,800$3.60 ⨯ 4,500 $ 16,200Setups:$15 ⨯ 100 1,500 1,500Total $ 3,300 $ 17,700Units ÷3,000 ÷3,000Unit overhead cost $ 1.10 $ 5.904：Elegant Unit overhead cost：[9000+3000+18000*500/5000+3000/2]/3000=$5.1 Fina Unit overhead cost：[3000+3000+18000*4500/5000+3000/2]/3000=$7.94–51. Deluxe Percent Regular PercentPrice $900 100% $750 100%Cost 576 64 600 80Unit gross profit $324 36% $150 20% Total gross profit:($324 ⨯ 100,000) $32,400,000($150 ⨯ 800,000) $120,000,000 2. Calculation of unit overhead costs:Deluxe gularUnit-level:Machining:$200 ⨯ 100,000 $20,000,000$200 ⨯ 300,000 $60,000,000 Batch-level:Setups:$3,000 ⨯ 300 900,000$3,000 ⨯ 200 600,000 Packing:$20 ⨯ 100,000 2,000,000$20 ⨯ 400,000 8,000,000 Product-level:Engineering:$40 ⨯ 50,000 2,000,000$40 ⨯ 100,000 4,000,000 Facility-level:Providing space:$1 ⨯ 200,000 200,000$1 ⨯ 800,000 800,000 Total overhead $25,100,000 $73,400,000 Units ÷100,000 ÷ 800,000 Overhead per unit $251 $91.75Deluxe Percent Regular Percent Price $900 100% $750.00 100% Cost 780* 87*** 574.50** 77*** Unit gross profit $120 13%*** $175.50 23%*** Total gross profit:($120 ⨯ 100,000) $12,000,000($175.50 ⨯ 800,000) $140,400,000*$529 + $251**$482.75 + $91.753. Using activity-based costing, a much different picture of the deluxeand regular products emerges. The regular model appears to be more profitable. Perhaps it should be emphasized.4–61. JIT Non-JITSales a$12,500,000 $12,500,000Allocation b750,000 750,000a$125 ⨯100,000, where $125 = $100 + ($100 ⨯0.25), and 100,000 is the average order size times the number of ordersb0.50 ⨯ $1,500,0002. Activity rates:Ordering rate = $880,000/220 = $4,000 per sales orderSelling rate = $320,000/40 = $8,000 per sales callService rate = $300,000/150 = $2,000 per service callJIT Non-JIT Ordering costs:$4,000 ⨯ 200 $ 800,000$4,000 ⨯ 20 $ 80,000 Selling costs:$8,000 ⨯ 20 160,000$8,000 ⨯ 20 160,000 Service costs:$2,000 ⨯ 100 200,000$2,000 ⨯ 50 100,000 T otal $1,160,000 $340,0 0For the non-JIT customers, the customer costs amount to $750,000/20 = $37,500 per order under the original allocation. Using activity assignments, this drops to $340,000/20 = $17,000 per order, a difference of $20,500 per order. For an order of 5,000 units, the order price can be decreased by $4.10 per unit without affecting customer profitability. Overall profitability will decrease, however, unless the price for orders is increased to JIT customers.3. It sounds like the JIT buyers are switching their inventory carryingcosts to Emery without any significant benefit to Emery. Emery needs to increase prices to reflect the additional demands on customer-support activities. Furthermore, additional price increases may be needed to reflect the increased number of setups, purchases, and so on, that are likely occurring inside the plant. Emery should also immediately initiate discussions with its JIT customers to begin negotiations for achieving some of the benefits that a JIT supplier should have, such as long-term contracts. The benefits of long-termcontracting may offset most or all of the increased costs from the additional demands made on other activities.4–71. Supplier cost:First, calculate the activity rates for assigning costs to suppliers: Inspecting components: $240,000/2,000 = $120 per sampling hourReworking products: $760,500/1,500 = $507 per rework hourWarranty work: $4,800/8,000 = $600 per warranty hourNext, calculate the cost per component by supplier:Supplier cost:Vance Foy Purchase cost:$23.50 ⨯ 400,000 $ 9,400,000$21.50 ⨯ 1,600,000 $ 34,400,000Inspecting components:$120 ⨯ 40 4,800$120 ⨯ 1,960 235,200Reworking products:$507 ⨯ 90 45,630$507 ⨯ 1,410 714,870Warranty work:$600 ⨯ 400 240,000$600 ⨯ 7,600 4,560,000 Total supplier cost $ 9,690,430 $ 39,910,070 Units supplied ÷400,000 ÷1,600,000 Unit cost $ 24.23* $ 24.94**RoundedThe difference is in favor of Vance; however, when the price concession is considered, the cost of Vance is $23.23, which is less than Foy’s component. Lumus should accept the contractual offer made by Vance.4–7 Concluded2. Warranty hours would act as the best driver of the three choices.Using this driver, the rate is $1,000,000/8,000 = $125 per warranty hour. The cost assigned to each component would be:Vance Foy。
管理会计chapter_2-文档资料
Chapter Two
2-2
• Why costs? An important part of information system A strategy An example-----Airline company
The Product
2-6
Direct Materials
Raw materials that become an integral part of the product and that can be conveniently and directly
traced to it.
Example: A radio installed in an automobile
of each.
2-12
Matching Principle-----based on Accrual accounting
Costs incurred to generate a particular revenue should be recognized as expenses in the same period that the revenue is recognized.
Economic events are recognized by matching revenues to expenses (the matching principle) at the time in which the transaction occurs rather than when payment is made (or received).
facility. E. Sales commissions.
《管理会计》英文版课后习题答案
第二章产品本钱计算Exercises2–1〔指教材上的第2章练习第1题，下同〕1. Part #72A Part #172CSteel* $ 12.00 $ 18.00Setup cost** 6.00 6.00Total $ 18.00 $ 24.00*($1.00 ? 12; $1.00 ? 18)**($60,000/10,000)Steel cost is assigned by calculating a cost per ounce and then multiplying this by the ounces used by each part:Cost per ounce= $3,000,000/3,000,000 ounces= $1.00 per ounceSetup cost is assigned by calculating the cost per setup and then dividing this by the number of units in each batch (there are 20 setups per year):Cost per setup = $1,200,000/20= $60,0002. The cost of steel is assigned through the driver tracing using the number of ounces of steel, and the cost of the setups is assigned through driver tracing also using number of setups as the driver.3. The assumption underlying number of setups as the driver is that each part uses an equal amount of setup time. Since Part #72A uses double the setup time of Part #172C, it makes sense to assign setup costs based on setup time instead of number of setups. This illustrates the importance of identifying drivers that reflect the true underlying consumption pattern. Using setup hours [(40 ?10) + (20 ? 10)], we get the following rate per hour:Cost per setup hour = $1,200,000/600= $2,000 per hourThe cost per unit is obtained by dividing each part’s total setup costs by the number of units:Part #72A = ($2,000 ? 400)/100,000 = $8.00Part #172C = ($2,000 ? 200)/100,000 = $4.00Thus, Part #72A has its unit cost increased by $2.00, while Part #172C has its unit cost decreased by $2.00.problems2–51. Nursing hours required per year: 4 ? 24 hours ? 364 days* = 34,944*Note: 364 days = 7 days ? 52 weeksNumber of nurses = 34,944 hrs./2,000 hrs. per nurse = 17.472Annual nursing cost = (17 ? $45,000) + $22,500= $787,500Cost per patient day = $787,500/10,000 days= $78.75 per day (for either type of patient)2. Nursing hours act as the driver. If intensive care uses half of the hours and normal care the other half, then 50 percent of the cost is assigned to each patient category. Thus, the cost per patient day by patient category is as follows:Intensive care = $393,750*/2,000 days= $196.88 per dayNormal care = $393,750/8,000 days= $49.22 per day*$525,000/2 = $262,500The cost assignment reflects the actual usage of the nursing resource and, thus, should be more accurate. Patient days would be accurate only if intensive care patients used the same nursing hours per day as normal care patients.3. The salary of the nurse assigned only to intensive care is a directly traceable cost. To assign the other nursing costs, the hours of additional usage would need to be measured. Thus, both direct tracing and driver tracing would be used to assign nursing costs for this new setting.2–61. Bella Obra CompanyStatement of Cost of Services SoldFor the Year Ended June 30, 2006Direct materials:Beginning inventory $ 300,000Add: Purchases 600,000Materials available $ 900,000Less: Ending inventory 450,000*Direct materials used $ 450,000Direct labor 12,000,000Overhead 1,500,000Total service costs added $ 13,950,000Add: Beginning work in process 900,000Total production costs $ 14,850,000Less: Ending work in process 1,500,000Cost of services sold $ 13,350,000*Materials available less materials used2. The dominant cost is direct labor (presumably the salaries of the 100 professionals). Although labor is the major cost of providing many services, it is not always the case. For example, the dominant cost for some medical services may be overhead (e.g., CAT scans). In some services, the dominant cost may be materials (e.g., funeral services).3. Bella Obra CompanyIncome StatementFor the Year Ended June 30, 2006Sales $ 21,000,000Cost of services sold 13,350,000Gross margin $ 7,650,000Less operating expenses:Selling expenses $ 900,000Administrative expenses 750,000 1,650,000Income before income taxes $ 6,000,0004. Services have four attributes that are not possessed by tangible products: (1) intangibility, (2) perishability, (3) inseparability, and (4) heterogeneity. Intangibility means that the buyers of services cannot see, feel, hear, or taste a service before it is bought. Perishability means that services cannot be stored. This property affects the computation in Requirement 1. Inability to store services means that there will never be any finished goods inventories, thus making the cost of services produced equivalent to cost of services sold. Inseparability simply means that providers and buyers of services must be in direct contact for an exchange to take place. Heterogeneity refers to the greater chance for variation in the performance of services than in the production of tangible products.2–71. Direct materials:Magazine (5,000 ? $0.40) $ 2,000Brochure (10,000 ? $0.08) 800 $ 2,800Direct labor:Magazine [(5,000/20) ? $10] $ 2,500Brochure [(10,000/100) ? $10] 1,000 3,500Manufacturing overhead:Rent $ 1,400Depreciation [($40,000/20,000) ? 350*] 700Setups 600Insurance 140Power 350 3,190Cost of goods manufactured $ 9,490*Production is 20 units per printing hour for magazines and 100 units per printing hour for brochures, yielding monthly machine hours of 350 [(5,000/20) + (10,000/100)]. This is also monthly labor hours, as machine labor only operates the presses.2. Direct materials $ 2,800Direct labor 3,500Total prime costs $ 6,300Magazine:Direct materials $ 2,000Direct labor 2,500Total prime costs $ 4,500Brochure:Direct materials $ 800Direct labor 1,000Total prime costs $ 1,800Direct tracing was used to assign prime costs to the two products.3. Total monthly conversion cost:Direct labor $ 3,500Overhead 3,190Total $ 6,690Magazine:Direct labor $ 2,500Overhead:Power ($1 ? 250) $ 250Depreciation ($2 ? 250) 500Setups (2/3 ? $600) 400Rent and insurance ($4.40 ? 250 DLH)* 1,100 2,250Total $ 4,750Brochure:Direct labor $ 1,000Overhead:Power ($1 ? 100) $ 100Depreciation ($2 ? 100) 200Setups (1/3 ? $600) 200Rent and insurance ($4.40 ? 100 DLH)* 440 940Total $ 1,940*Rent and insurance cannot be traced to each product so the costs are assigned using direct labor hours: $1,540/350 DLH = $4.40 per direct labor hour. The other overhead costs are traced according to their usage. Depreciation and power are assigned by using machine hours (250 for magazines and 100 for brochures): $350/350 = $1.00 per machine hour for power and $40,000/20,000 = $2.00 per machine hour for depreciation. Setups are assigned according to the time required. Since magazines use twice as much time, they receive twice the cost: Letting X = the pro?portion of setup time used for brochures, 2X + X = 1 implies a cost assignment ratio of 2/3 for magazines and 1/3 for brochures.Exercises3–11. Resource Total Cost Unit CostPlastic1 $ 10,800 $0.027Direct labor andvariable overhead2 8,000 0.020Mold sets3 20,000 0.050Other facility costs4 10,000 0.025Total $ 48,800 $0.12210.90 ? $0.03 ? 400,000 = $10,800; $10,800/400,000 = $0.0272$0.02 ? 400,000 = $8,000; $8,000/400,000 = $0.023$5,000 ? 4 quarters = $20,000; $20,000/400,000 = $0.054$10,000; $10,000/400,000 = $0.0252. Plastic, direct labor, and variable overhead are flexible resources; molds and other facility costs are committed resources. The cost of plastic, direct labor, and variable overhead are strictly variable. The cost of the molds is fixed for the particular action figure being produced; it is a step cost for the production of action figures in general. Other facility costs are strictly fixed.3–3High (1,400, $7,950); Low (700, $5,150)V = ($7,950 – $5,150)/(1,400 – 700)= $2,800/700 = $4 per oil changeF = $5,150 – $4(700)= $5,150 – $2,800 = $2,350Cost = $2,350 + $4 (oil changes)Predicted cost for January = $2,350 + $4(1,000) = $6,350problems3–61. High (1,700, $21,000); Low (700, $15,000)V = (Y2 – Y1)/(X2 – X1)= ($21,000 – $15,000)/(1,700 – 700) = $6 per receiving orderF = Y2 – VX2= $21,000 – ($6)(1,700) = $10,800Y = $10,800 + $6X2. Output of spreadsheet regression routine with number of receiving orders as the independent variable:Constant 4512.98701298698Std. Err. of Y Est. 3456.24317476605No. of Observations 10Degrees of Freedom 8X Coefficient(s) 13.3766233766234Std. Err. of Coef. 3.59557461331427V = $13.38 per receiving order (rounded)F = $4,513 (rounded)Y = $4,513 + $13.38XR2 = 0.634, or 63.4%Receiving orders explain about 63.4 percent of the variability in receiving cost, providing evidence that Tracy’s choice of a cost driver is reasonable. H owever, other drivers may need to be considered because 63.4 percent may not be strong enough to justify the use of only receiving orders.3. Regression with pounds of material as the independent variable:Constant 5632.28109733183R Squared 0.824833789433823No. of Observations 10Degrees of Freedom 8X Coefficient(s) 0.0449642991356633Std. Err. of Coef. 0.0073259640055344V = $0.045 per pound of material delivered (rounded)F = $5,632 (rounded)Y = $5,632 + $0.045XR2 = 0.825, or 82.5%Pounds of material delivered explains about 82.5 percent of the variability in receiving cost. This is a better result than that of the receiving orders and should convince Tracy to try multiple regression.4. Regression routine with pounds of material and number of receiving orders as the independent variables:Std. Err. of Y Est. 1350.46286973443No. of Observations 10Degrees of Freedom 7V1 = $0.033 per pound of material delivered (rounded)V2 = $7.147 per receiving order (rounded)F = $752 (rounded)Y = $752 + $0.033a + $7.147bR2 = 0.95, or 95%Multiple regression with both variables explains 95 percent of the variability in receiving cost. This is the best result.5–21. Job #57 Job #58 Job #59Balance, 7/1 $ 22,450 $ 0 $ 0Direct materials 12,900 9,900 35,350Direct labor 20,000 6,500 13,000Applied overhead:Power 750 600 3,600Material handling 1,500 300 6,000Purchasing 250 1,000 250Total cost $ 57,850 $ 18,300 $ 58,2002. Ending balance in Work in Process = Job #58 = $18,3003. Ending balance in Finished Goods = Job #59 = $58,2004. Cost of Goods Sold = Job #57 = $57,850problems5–31. Overhead rate = $180/$900 = 0.20 or 20% of direct labor dollars.(This rate was calculated using information from the Ladan job; however, the Myron and Coe jobs would give the same answer.)2. Ladan Myron Coe Walker WillisBeginning WIP $ 1,730 $1,180 $2,500 $ 0 $ 0Direct materials 400 150 260 800 760Direct labor 800 900 650 350 900Applied overhead 160 180 130 70 180Total $ 3,090 $2,410 $3,540 $ 1,220 $ 1,840Note: This is just one way of setting up the job-order cost sheets. You might prefer to keep the detail on the materials, labor, and overhead in beginning inventory costs.3. Since the Ladan and Myron jobs were completed, the others must still be in process. Therefore, the ending balance in Work in Process is the sum of the costs of the Coe, Walker, and Willis jobs.Coe $3,540Walker 1,220Willis 1,840Ending Work in Process $6,600Cost of Goods Sold = Ladan job + Myron job = $3,090 + $2,410 = $5,5004. Naman CompanyIncome StatementFor the Month Ended June 30, 20XXSales (1.5 ? $5,500) $8,250Cost of goods sold 5,500Gross margin $2,750Marketing and administrative expenses 1,200Operating income $1,5505–201. Overhead rate = $470,000/50,000 = $9.40 per MHr2. Department A: $250,000/40,000 = $6.25 per MHrDepartment B: $220,000/10,000 = $22.00 per MHr3. Job #73 Job #74Plantwide:70 ? $9.40 = $658 70 ? $9.40 = $658Departmental:20 ? $6.25 $ 125.00 50 ? $6.25 $ 312.5050 ? $22 1,100.00 20 ? $22 440.00$ 1,225.00 $ 752.50Department B appears to be more overhead intensive, so jobs spending more time in Department B ought to receive more overhead. Thus, departmental rates provide more accuracy.4. Plantwide rate: $250,000/40,000 = $6.25Department B: $62,500/10,000 = $6.25Job #73 Job #74Plantwide:70 ? $6.25 = $437.50 70 ? $6.25 = $437.50Departmental:20 ? $6.25 $ 125.00 50 ? $6.25 $ 312.5050 ? $6.25 312.50 20 ? $6.25 125.00$ 437.50 $ 437.50Assuming that machine hours is a good cost driver, the departmental rates reveal that overhead consumption is the same in each department. In this case, there is no need for departmental rates, and a plantwide rate is sufficient.5–41. Overhead rate = $470,000/50,000 = $9.40 per MHr2. Department A: $250,000/40,000 = $6.25 per MHrDepartment B: $220,000/10,000 = $22.00 per MHr3. Job #73 Job #74Plantwide:70 ? $9.40 = $658 70 ? $9.40 = $658Departmental:20 ? $6.25 $ 125.00 50 ? $6.25 $ 312.5050 ? $22 1,100.00 20 ? $22 440.00$ 1,225.00 $ 752.50Department B appears to be more overhead intensive, so jobs spending more time in Department B ought to receive more overhead. Thus, departmental rates provide more accuracy.4. Plantwide rate: $250,000/40,000 = $6.25Department B: $62,500/10,000 = $6.25Job #73 Job #74Plantwide:70 ? $6.25 = $437.50 70 ? $6.25 = $437.50Departmental:20 ? $6.25 $ 125.00 50 ? $6.25 $ 312.5050 ? $6.25 312.50 20 ? $6.25 125.00$ 437.50 $ 437.50Assuming that machine hours is a good cost driver, the departmental rates reveal that overhead consumption is the same in each department. In this case, there is no need for departmental rates, and a plantwide rate is sufficient.5–51. Last year’s unit-based overhead rate = $50,000/10,000 = $5This year’s unit-based overhead rate = $100,000/10,000 = $10Last Year This YearBike cost:2 ? $20 $ 40 $ 403 ? $12 36 36Overhead:5 ? $5 255 ? $10 50Total $101 $126Price last year = $101 ? 1.40 = $141.40/dayPrice this year = $126 ? 1.40 = $176.40/dayThis is a $35 increase over last year, nearly a 25 percent increase. No doubt the Carsons arenot pleased and would consider looking around for other recreational possibilities.2. Purchasing rate = $30,000/10,000 = $3 per purchase orderPower rate = $20,000/50,000 = $0.40 per kilowatt hourMaintenance rate = $6,000/600 = $10 per maintenance hourOther rate = $44,000/22,000 = $2 per DLHBike Rental Picnic CateringPurchasing$3 ? 7,000 $21,000$3 ? 3,000 $ 9,000Power$0.40 ? 5,000 2,000$0.40 ? 45,000 18,000Maintenance$10 ? 500 5,000$10 ? 100 1,000Other$2 ? 11,000 22,000 22,000Total overhead $50,000 $50,0003. This year’s bike rental overhead rate = $50,000/10,000 = $5Carson rental cost = (2 ? $20) + (3 ? $12) + (5 ? $5) = $101Price = 1.4 ? $101 = $141.40/day4. Catering rate = $50,000/11,000 = $4.55* per DLHCost of Estes job:Bike rental rate (2 ? $7.50) $15.00Bike conversion cost (2 ? $5.00) 10.00Catering materials 12.00Catering conversion (1 ? $4.55) 4.55Total cost $41.55*Rounded5. The use of ABC gives Mountain View Rentals a better idea of the types and costs of activities that are used in their business. Adding Level 4 bikes will increase the use of the most expensive activities, meaning that the rental rate will no longer be an average of $5 per rental day. Mountain View Rentals might need to set a Level 4 price based on the increased cost of both the bike and conversion cost.分步本钱法6–11. Cutting Sewing PackagingDepartment Department DepartmentDirect materials $5,400 $ 900 $ 225Direct labor 150 1,800 900Applied overhead 750 3,600 900Transferred-in cost:From cutting 6,300From sewing 12,600Total manufacturing cost $6,300 $12,600 $14,6252. a. Work in Process—Sewing 6,300Work in Process—Cutting 6,300b. Work in Process—Packaging 12,600Work in Process—Sewing 12,600c. Finished Goods 14,625Work in Process—Packaging 14,625 3. Unit cost = $14,625/600 = $24.38* per pair6–21. Units transferred out: 27,000 + 33,000 – 16,200 = 43,8002. Units started and completed: 43,800 – 27,000 = 16,8003. Physical flow schedule:Units in beginning work in process 27,000Units started during the period 33,000Total units to account for 60,000Units started and completed 16,800Units completed from beginning work in process 27,000Units in ending work in process 16,200Total units accounted for 60,0004. Equivalent units of production:Materials ConversionUnits completed 43,800 43,800Add: Units in ending work in process:(16,200 ? 100%) 16,200(16,200 ? 25%) 4,050 Equivalent units of output 60,000 47,8506–31. Physical flow schedule:Units to account for:Units in beginning work in process 80,000Units started during the period 160,000Total units to account for 240,000Units accounted for:Units completed and transferred out:Started and completed 120,000From beginning work in process 80,000 200,000 Units in ending work in process 40,000Total units accounted for 240,0002. Units completed 200,000Add: Units in ending WIP ? Fraction complete(40,000 ? 20%) 8,000Equivalent units of output 208,0003. Unit cost = ($374,400 + $1,258,400)/208,000 = $7.854. Cost transferred out = 200,000 ? $7.85 = $1,570,000Cost of ending WIP = 8,000 ? $7.85 = $62,8005. Costs to account for:Beginning work in process $ 374,400Incurred during June 1,258,400Total costs to account for $ 1,632,800Costs accounted for:Goods transferred out $ 1,570,000Goods in ending work in process 62,800Total costs accounted for $ 1,632,8006–31、Units t0 account for:Units in beginning work in process(25% completed) 10000Units started during the period 70000 Total units to account for 80000 Units accounted forUnits completed and transferred outStarted and completed 50000From beginning work in process 10000 60000 Units in ending work in process(60% completed) 20000 Total units accounted for 80000 2、60000+20000×60%=72000〔units〕3、Unit cost for materials:〔$/unit〕Unit cost for convension:〔$/unit〕Total unit cost:5+1.13=6.13〔$/unit〕4、The cost of units of transferred out:60000×6.13=367800($)The cost of units of ending work in process:20000×5+20000×20%×1.13=113560($)作业本钱法4–21. Predetermined rates:Drilling Department: Rate = $600,000/280,000 = $2.14* per MHrAssembly Department: Rate = $392,000/200,000= $1.96 per DLH*Rounded2. Applied overhead:Drilling Department: $2.14 ? 288,000 = $616,320Assembly Department: $1.96 ? 196,000 = $384,160Overhead variances:Drilling Assembly TotalActual overhead $602,000 $ 412,000 $ 1,014,000Applied overhead 616,320 384,160 1,000,480Overhead variance $ (14,320) over $ 27,840 under $ 13,5203. Unit overhead cost = [($2.14 ? 4,000) + ($1.96 ? 1,600)]/8,000= $11,696/8,000= $1.46**Rounded4–31. Yes. Since direct materials and direct labor are directly traceable to each product, their cost assignment should be accurate.2. Elegant: (1.75 ? $9,000)/3,000 = $5.25 per briefcaseFina: (1.75 ? $3,000)/3,000 = $1.75 per briefcaseNote: Overhead rate = $21,000/$12,000 = $1.75 per direct labor dollar (or 175 percent of direct labor cost).There are more machine and setup costs assigned to Elegant than Fina. This is clearly a distortion because the production of Fina is automated and uses the machine resources much more than the handcrafted Elegant. In fact, the consumption ratio for machining is 0.10 and 0.90 (using machine hours as the measure of usage). Thus, Fina uses nine times the machining resources as Elegant. Setup costs are similarly distorted. The products use an equal number of setups hours. Yet, if direct labor dollars are used, then the Elegant briefcase receives three times more machining costs than the Fina briefcase.3. Overhead rate = $21,000/5,000= $4.20 per MHrElegant: ($4.20 ? 500)/3,000 = $0.70 per briefcaseFina: ($4.20 ? 4,500)/3,000 = $6.30 per briefcaseThis cost assignment appears more reasonable given the relative demands each product places on machine resources. However, once a firm moves to a multiproduct setting, using only one activity driver to assign costs will likely produce product cost distortions. Products tend to make different demands on overhead activities, and this should be reflected in overhead cost assignments. Usually, this means the use of both unit- and nonunit-level activity drivers. In this example, there is a unit-level activity (machining) and a nonunit-level activity (setting up equipment). The consumption ratios for each (using machine hours and setup hours as the activity drivers) are as follows:Elegant FinaMachining 0.10 0.90 (500/5,000 and 4,500/5,000)Setups 0.50 0.50 (100/200 and 100/200)Setup costs are not assigned accurately. Two activity rates are needed—one based on machine hours and the other on setup hours:Machine rate: $18,000/5,000 = $3.60 per MHrSetup rate: $3,000/200 = $15 per setup hourCosts assigned to each product:Machining: Elegant Fina$3.60 ? 500 $ 1,800$3.60 ? 4,500 $ 16,200Setups:$15 ? 100 1,500 1,500Total $ 3,300 $ 17,700Units ÷3,000 ÷3,000Unit overhead cost $ 1.10 $ 5.904：Elegant Unit overhead cost：[9000+3000+18000*500/5000+3000/2]/3000=$5.1 Fina Unit overhead cost：[3000+3000+18000*4500/5000+3000/2]/3000=$7.94–51. Deluxe Percent Regular PercentPrice $900 100% $750 100%Cost 576 64 600 80Unit gross profit $324 36% $150 20%Total gross profit:($324 ? 100,000) $32,400,000($150 ? 800,000) $120,000,0002. Calculation of unit overhead costs:Deluxe gularUnit-level:Machining:$200 ? 100,000 $20,000,000$200 ? 300,000 $60,000,000Batch-level:Setups:$3,000 ? 300 900,000$3,000 ? 200 600,000Packing:$20 ? 100,000 2,000,000$20 ? 400,000 8,000,000Product-level:Engineering:$40 ? 50,000 2,000,000$40 ? 100,000 4,000,000Facility-level:Providing space:$1 ? 200,000 200,000$1 ? 800,000 800,000Total overhead $25,100,000 $73,400,000Units ÷100,000 ÷800,000Overhead per unit $251 $91.75Deluxe Percent Regular PercentPrice $900 100% $750.00 100%Cost 780* 87*** 574.50** 77***Unit gross profit $120 13%*** $175.50 23%***Total gross profit:($120 ? 100,000) $12,000,000($175.50 ? 800,000) $140,400,000*$529 + $251**$482.75 + $91.753. Using activity-based costing, a much different picture of the deluxe and regular products emerges. The regular model appears to be more profitable. Perhaps it should be emphasized.4–61. JIT Non-JITSalesa $12,500,000 $12,500,000Allocationb 750,000 750,000a$125 ? 100,000, where $125 = $100 + ($100 ? 0.25), and 100,000 is the average order size times the number of ordersb0.50 ? $1,500,0002. Activity rates:Ordering rate = $880,000/220 = $4,000 per sales orderSelling rate = $320,000/40 = $8,000 per sales callService rate = $300,000/150 = $2,000 per service callJIT Non-JITOrdering costs:$4,000 ? 200 $ 800,000$4,000 ? 20 $ 80,000Selling costs:$8,000 ? 20 160,000$8,000 ? 20 160,000Service costs:$2,000 ? 100 200,000$2,000 ? 50 100,000Total $1,160,000 $340,0 0For the non-JIT customers, the customer costs amount to $750,000/20 = $37,500 per order under the original allocation. Using activity assign?ments, this drops to $340,000/20 = $17,000 per order, a difference of $20,500 per order. For an order of 5,000 units, the order price can be decreased by $4.10 per unit without affecting customer profitability. Overall profitability will decrease, however, unless the price for orders is increased to JIT customers.3. It sounds like the JIT buyers are switching their inventory carrying costs to Emery without any significant benefit to Emery. Emery needs to increase prices to reflect the additional demands on customer-support activities. Furthermore, additional price increases may be needed to reflectthe increased number of setups, purchases, and so on, that are likely occurring inside the plant. Emery should also immediately initiate discussions with its JIT customers to begin negotiations for achieving some of the benefits that a JIT supplier should have, such as long-term contracts. The benefits of long-term contracting may offset most or all of the increased costs from the additional demands made on other activities.4–71. Supplier cost:First, calculate the activity rates for assigning costs to suppliers:Inspecting components: $240,000/2,000 = $120 per sampling hourReworking products: $760,500/1,500 = $507 per rework hourWarranty work: $4,800/8,000 = $600 per warranty hourNext, calculate the cost per component by supplier:Supplier cost:Vance FoyPurchase cost:$23.50 ? 400,000 $ 9,400,000$21.50 ? 1,600,000 $ 34,400,000Inspecting components:$120 ? 40 4,800$120 ? 1,960 235,200Reworking products:$507 ? 90 45,630$507 ? 1,410 714,870Warranty work:$600 ? 400 240,000$600 ? 7,600 4,560,000Total supplier cost $ 9,690,430 $ 39,910,070Units supplied ÷400,000 ÷1,600,000Unit cost $ 24.23* $ 24.94**RoundedThe difference is in favor of Vance; however, when the price concession is considered, the cost of Vance is $23.23, which is less than Foy’s component. Lumus should accept the contra ctual offer made by Vance.4–7 Concluded2. Warranty hours would act as the best driver of the three choices. Using this driver, the rate is $1,000,000/8,000 = $125 per warranty hour. The cost assigned to each component would be:Vance FoyLost sales:$125 ? 400 $ 50,000$125 ? 7,600 $ 950,000$ 50,000 $ 950,000Units supplied ÷400,000 ÷1,600,000Increase in unit cost $ 0.13* $ 0.59**Rounded$0.075 per unitCategory II: $45/1,000 = $0.045 per unitCategory III: $45/1,500 = $0.03 per unitCategory I, which has the smallest batches, is the most undercosted of the three categories. Furthermore, the unit ordering cost is quite high relative to Category I’s selling price (9 to 15 percent of the selling price). This suggests that something should be done to reduce the order-filling costs.3. With the pricing incentive feature, the average order size has been increased to 2,000 units for all three product families. The number of orders now processed can be calculated as follows:Orders = [(600 ? 50,000) + (1,000 ? 30,000) + (1,500 ? 20,000)]/2,000= 45,000Reduction in orders = 100,000 – 45,000 = 55,000Steps that can be reduced = 55,000/2,000 = 27 (rounding down to nearest whole number)There were initially 50 steps: 100,000/2,000Reduction in resource spending:Step-fixed costs: $50,000 ? 27 = $1,350,000Variable activity costs: $20 ? 55,000 = 1,100,000$2,450,000预算9-4Norton, Inc.Sales Budget For the Coming YearModel Units Price Total SalesLB-1 50,400 $29.00 $1,461,600LB-2 19,800 15.00 297,000WE-6 25,200 10.40 262,080 WE-7 17,820 10.00 178,200 WE-8 9,600 22.00 211,200 WE-9 4,000 26.00 104,000 Total $2,514,080二、1. Raylene’s Flowers and GiftsProduction Budget for Gift BasketsFor September, October, November, and DecemberSept. Oct. Nov. D ec.Sales 200 150 180 250Desired ending inventory 15 18 25 10Total needs 215 168 205 260Less: Beginning inventory 20 15 18 25 Units produced 195 153 187 2352. Raylene’s Flowers and GiftsDirect Materials Purchases BudgetFor September, October, and NovemberFruit: Sept. Oct. Nov.Production 195 153 187? Amount/basket (lbs.) ? 1 ? 1 ?1Needed for production 195 153 187Desired ending inventory 8 9 12Needed 203 162 200Less: Beginning inventory 10 8 9Purchases193 154 190Small gifts: Sept. Oct. Nov.Production 195 153 187 ? Amount/basket (items) ? 5 ? 5 ? 5Needed for production 975 765 935Desired ending inventory 383 468 588Needed 1,358 1,233 1,523Less: Beginning inventory 488 383 468Purchases 870 850 1,055Cellophane: Sept. Oct. Nov.Production 195 153 187。
管理会计示范性双语课件习题02
CHAPTER 2COST MANAGEMENT CONCEPTS AND COST BEHAVIOR TRUE/FALSE1. There is no single definition of cost.a. Trueb. False2. The role of the management accountant is to tailor the cost calculation to fit the currentdecision situation.a. Trueb. False3. A cost that is useful for one decision may not be useful information for another decision.a. Trueb. False4. In most organizations, managing nonmanufacturing costs as well as manufacturing costs isimportant for financial success.a. Trueb. False5. The cost of a customized machine only used in the production of a single product would beclassified as a direct cost.a. Trueb. False6. The wages of a plant supervisor would be classified as a period cost.a. Trueb. False7. The classification of product and period costs is particularly valuable in managementaccounting.a. Trueb. False8. For external reporting, generally accepted accounting principles require that costs beclassified as either flexible or capacity-related costs.a. Trueb. False9. Knowing whether a cost is a period or a product cost helps to estimate total cost at a newlevel of activity.a. Trueb. False10. Flexible costs are always direct costs.a. Trueb. False11. Capacity-related costs vary with the level of production or sales volume.a. Trueb. False12. Currently, most personnel costs are classified as capacity-related costs.a. Trueb. False13. Some capacity-related costs might be classified as direct manufacturing costs.a. Trueb. False14. Capacity-related costs depend on the resources used, not the resources acquired.a. Trueb. False15. Break-even point is NOT an important concept since the goal of business is to make aprofit.a. Trueb. False16. To perform cost-volume-profit analysis, a company must be able to separate costs intocapacity-related and flexible components.a. Trueb. False17. Cost-volume-profit analysis may be used for single-product and multiproduct analysis.a. Trueb. False18. Selling price per unit is $30, flexible cost per unit is $15, and capacity-related cost per unitis $10. When this company operates above the break-even point, the sale of one more unit will increase net income by $5.a. Trueb. False19. A company with sales of $100,000, flexible costs of $70,000, and capacity-related costs of$50,000 will reach its break-even point if sales are increased by $20,000.a. Trueb. False20. In multiproduct situations when the sales mix shifts toward the product with the lowestcontribution margin, the break-even quantity will decrease.a. Trueb. False21. The opportunity cost of a resource is zero if there is excess capacity of that resource.a. Trueb. False22. When a firm maximizes profits it will simultaneously minimize opportunity costs.a. Trueb. False23. Even when the only constraint limiting production is machine time, a company should bemost concerned with maximizing contribution margin per unit.a. Trueb. False24. The time over which a decision maker can adjust capacity is referred to as the short run.a. Trueb. False25. For general customers, the price charged for a product must cover its long-run cost to theorganization.a. Trueb. False26. In recent years, capacity-related costs have increased as a proportion of total manufacturingcosts.a. Trueb. False27. Machine setup costs are usually classified as a business-sustaining activity.a. Trueb. False28. The benefits of classifying activities using the broader framework of unit-related, batch-related, product-sustaining, customer-sustaining, and business-sustaining activities are there are generally more costs that are directly traceable to cost objects.a. Trueb. False29. Product life-cycle costing helps organizations decide whether a new product should belaunched.a. Trueb. FalseMULTIPLE CHOICE30. An example of a cost object is:a. a productb. a customerc. a departmentd. All of the above are correct.31. Manufacturing costs include:a. machinery used inside of the factoryb. research and development costsc. costs of dealing with customers after the saled. general and administrative costs32. Manufacturing costs include all of the following EXCEPT:a. costs incurred inside the factoryb. both direct and indirect costsc. both flexible and capacity-related costsd. both product and period costs33. Nonmanufacturing costs:a. include only capacity-related costsb. seldom influence financial success or failurec. include the cost of selling, distribution, and after-sales costs for customersd. are considered by GAAP to be an element of product costs34. Product costs:a. include administrative and marketing costsb. are particularly useful in financial accountingc. are expensed in the accounting period manufacturedd. are also referred to as nonmanufacturing costs35. For external reporting:a. costs are classified as either product or period costsb. costs reflect current valuesc. there are no prescribed rules since no one is exactly sure how the investors andcreditors will use these numbersd. expenses include amounts that reflect current and future benefits36. Product costs are expensed on the income statement when:a. raw materials for the product are purchasedb. raw materials are requisitioned for the productc. the product completes the manufacturing processd. the product is sold37. Depreciation of plant facilities is classified as a(n):a. direct material costb. direct labor costc. indirect manufacturing costd. general and administrative cost38. The cost of inventory reported on the balance sheet may include the cost of all thefollowing EXCEPT:a. advertisingb. wages of the plant supervisorc. depreciation of the factory equipmentd. parts used in the manufacturing process39. A plant manufactures several different products. The wages of the plant supervisor can beclassified as a:a. direct costb. product costc. flexible costd. nonmanufacturing cost40. Period costs:a. are treated as expenses in the period they are incurredb. are directly traceable to productsc. include direct labord. are also referred to as indirect manufacturing costs41. Which of the following is NOT a period cost?a. marketing costsb. general and administrative costsc. research and development costsd. manufacturing costs42. Advertising is an example of a _________ cost expensed on the income statement in theaccounting period incurred.a. directb. manufacturingc. periodd. product43. (CMA adapted, June 1992) The terms "direct cost" and "indirect cost" are commonlyused in cost accounting. Classifying a cost as either direct or indirect depends upon:a. the behavior of the cost in response to volume changesb. whether the cost is expended in the period in which it is incurredc. whether the cost can be related readily to resources consumed for a cost objectd. whether an expenditure is unavoidable because it cannot be changed regardless of anyaction taken44. Indirect manufacturing costs:a. can be traced to the product that created the costsb. may have a cause-and-effect relationship with capacity rather than with individualunits of productionc. generally include the cost of material and the cost of labord. are included in period costs45. A manufacturing plant produces two product lines: football equipment and hockeyequipment. An indirect cost for the hockey equipment line is the:a. material used to make the hockey sticksb. labor to bind the shaft to the blade of the hockey stickc. shift supervisor for the hockey lined. plant supervisor46. A manufacturing plant produces two product lines: football equipment and hockeyequipment. Direct costs for the football equipment line are the:a. beverages provided daily in the plant break roomb. monthly lease payments for a specialized piece of equipment needed to manufacturethe football helmetc. salaries of the clerical staff that work in the company administrative officesd. utilities paid for the manufacturing plantTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 47 THROUGH 53.The Bowley Company manufactures several different products. Unit costs associated with product ICT101 are as follows:Direct materials $ 60Direct labor 10Flexible manufacturing support costs 18Capacity-related manufacturing support costs 32Sales commissions (2% of sales) 4Administrative salaries 16Total $14047. Total product costs associated with product ICT101 are:a. $ 50b. $ 88c. $120d. $14048. Total period costs associated with product ICT101 are:a. $ 4b. $16c. $20d. $5249. Total flexible costs associated with product ICT101 are:a. $18b. $22c. $88d. $9250. Total capacity-related costs associated with product ICT101 are:a. $16b. $32c. $48d. $5251. Total nonmanufacturing costs associated with product ICT101 are:a. $ 4b. $16c. $20d. $5252. Total manufacturing costs associated with product ICT101 are:a. $70b. $88c. $120d. $14053. Direct manufacturing costs associated with product ICT101 are:a. $70b. $88c. $92d. $10854. Cost behavior refers to:a. how costs react to a change in the level of activityb. whether a cost is incurred in a manufacturing, merchandising, or service companyc. classifying costs as either product or period costsd. whether a particular expense has been ethically incurred55. Which statement is FALSE?a. All flexible costs are direct costs.b. Because of a cost-benefit tradeoff, some direct costs may be treated as indirect costs.c. All capacity-related costs are indirect costs.d. Direct costs may be flexible or capacity-related.56. An understanding of the underlying behavior of costs helps in all of the followingEXCEPT:a. sales volume can be better estimatedb. costs can be better estimated as volume expands and contractsc. true costs of processes can be better evaluatedd. process inefficiencies can be better identified and, as a result, improved57. Capacity-related costs:a. may be either direct or indirect costsb. vary with production or sales volumec. include parts and materials used to manufacture a productd. can be adjusted in the short run to meet actual demands58. Capacity-related costs depend on:a. the amount of resources usedb. the amount of resources acquiredc. the volume of productiond. the volume of sales59. Currently, most companies consider annual labor costs as:a. a capacity-related costb. a flexible costc. an opportunity costd. a period cost60. Which of the following does NOT describe a flexible cost?a. Flexible cost are always indirect costs.b. Flexible costs increase in total when the actual level of activity increases.c. Flexible costs include most personnel costs and depreciation on machinery.d. Flexible costs can always be traced directly to the cost object.61. Cost-volume-profit analysis is used PRIMARILY by management:a. as a planning toolb. for control purposesc. to establish a target net income for next yeard. to attain extremely accurate financial results62. Contribution margin equals revenues minus:a. product costsb. period costsc. flexible costsd. capacity-related costs63. The break-even point is the level at which revenues:a. equal capacity-related costsb. equal flexible costsc. equal capacity-related costs minus flexible costsd. equal flexible costs plus capacity-related costs64. The break-even point is:a. total costs divided by flexible costs per unitb. contribution margin per unit divided by revenue per unitc. capacity-related costs divided by contribution margin per unitd. (capacity-related costs plus flexible costs) divided by contribution margin per unit65. Cost-volume-profit analysis assumes all of the following EXCEPT:a. all costs are purely flexible or capacity relatedb. units manufactured equal units soldc. total flexible costs remain the same over the relevant ranged. total capacity-related costs remain the same over the relevant range66. All of the following are assumed in a cost-volume-profit analysis EXCEPT:a. a constant product mixb. capacity-related costs increase when activity increasesc. revenue per unit does not change as volume changesd. all costs can be classified as either capacity-related or flexible67. In multiproduct situations, when sales mix shifts toward the product with the highestcontribution margin, then:a. total revenues will decreaseb. breakeven quantity will increasec. total contribution margin will decreased. operating income will increaseTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 68 THROUGH 71. Karen’s Kraft Korner, Inc., sells a single product. This year, 7,000 units were sold resulting in $70,000 of sales revenue, $28,000 of flexible costs, and $12,000 of capacity-related costs.68. Contribution margin per unit is:a. $4.00b. $4.29c. $6.00d. None of the above is correct.69. Break-even point in units is:a. 2,000 unitsb. 3,000 unitsc. 5,000 unitsd. None of the above is correct.70. The number of units that must be sold to achieve $60,000 of profits is:a. 10,000 unitsb. 11,666 unitsc. 12,000 unitsd. None of the above is correct.71. If sales increase by $25,000, profits will increase by:a. $10,000b. $15,000c. $22,200d. an unknown amountTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 72 THROUGH 74.Mr. Paul’s Company sells several products for an average price of $20 per unit and the average flexible costs per unit are as follows:Direct material $4.00Direct labor $1.60Indirect manufacturing costs $0.40Selling commissions $2.00Mr. Paul’s annual capacity-related costs total $96,000.72. The contribution margin per unit is:a. $6b. $8c. $12d. $1473. The number of units that Mr. Paul’s must sell each year to break even is:a. 8,000 unitsb. 12,000 unitsc. 16,000 unitsd. an unknown amount74. The number of units that Mr. Paul’s must sell annually to make a profit of $144,000 is:a. 12,000 unitsb. 18,000 unitsc. 20,000 unitsd. 30,000 unitsTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 75 THROUGH 79.The following information is for Barnett Corporation:Product X Product YRevenue per unit: $10.00 $15.00Flexible cost per unit: $ 2.50 $ 5.00Total capacity-related costs: $50,00075. If the sales mix consists of two units of Product X and one unit of Product Y, what is therevenue per unit of average product?a. $10.00b. $11.66c. $13.33d. $15.0076. If the sales mix consists of two units of Product X and one unit of Product Y, what is thebreak-even point?a. 1,000 units of Y and 2,000 units of Xb. 1012.5 units of Y and 2,025 units of Xc. 2012.5 units of Y and 4,025 units of Xd. 2,000 units of Y and 4,000 units of X77. What is the operating income, assuming actual sales total 150,000 units, and the sales mixis two units of Product X and one unit of Product Y?a. $1,200,000b. $1,250,000c. $1,750,000d. None of the above is correct.78. If the sales mix shifts to one unit of Product X and two units of Product Y, then theweighted-average contribution margin will:a. increase per unitb. stay the samec. decrease per unitd. be undeterminable79. If the sales mix shifts to one unit of Product X and two units of Product Y, then the break-even point will:a. increaseb. stay the samec. decreased. be undeterminable80. Opportunity cost(s):a. of a resource with excess capacity is zerob. should be maximized by organizationsc. are recorded as an expense in the accounting recordsd. are most important to financial accountants81. A recent college graduate has the choice of buying a new auto for $20,000 or to invest themoney for four years with a 12% expected rate of return. If the graduate decides to purchase the auto, the BEST estimate of the opportunity cost of that decision is:a. $2,400b. $11,740c. $20,000d. There is no opportunity cost for this decision.THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 82 THROUGH 86. Brenda’s Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply:Model X Model Y Model Z Selling price $50 $60 $70Direct materials 6 6 6Direct labor ($12 per hour) 12 12 24Flexible support costs ($4 per machine hour) 4 8 8Capacity-related costs 10 10 1082. Which model has the greatest contribution per unit?a. Model Xb. Model Yc. Model Zd. both Models X and Y83. Which model has the greatest contribution per machine hour?a. Model Xb. Model Yc. Model Zd. both Models Y and Z84. If there is excess capacity, which model is the most profitable to produce?a. Model Xb. Model Yc. Model Zd. both Models X and Y85. If there is a machine breakdown, which model is the most profitable to produce?a. Model Xb. Model Yc. Model Zd. both Models Y and Z86. How can Brenda encourage her salespeople to promote the more profitable model?a. Put all sales persons on salary.b. Provide higher sales commissions for higher priced items.c. Provide higher sales commissions for items with the greatest contribution margin perconstrained resource.d. Both (b) and (c) are correct.87. Which statement is FALSE? Short run costs:a. are actually flexible costsb. affect long-run capacityc. are included in the calculation of long-run costsd. increase when one more unit is produced or served88. To sustain the profitability of a product, the list price of a product must cover its:a. flexible costsb. capacity-related costsc. indirect costsd. long-run costs89. Compared to the early 1900s, __________ costs now comprise a much higher share of totalproduct costs.a. direct laborb. direct materialsc. flexibled. capacity-related90. In recent years, the manufacturing cost structure has changed as a result of:a. greater automationb. better customer servicec. the proliferation of multiple productsd. All of the above are correct.91. Cost distortion is common in conventional costing systems because:a. of the recent change in cost structureb. the number of products being manufactured is increasingc. capacity-related costs are allocated using a volume measured. capacity-related costs create higher risks for a company92. Costs that must be allocated to products for external reporting purposes include:a. selling and marketing costsb. direct material and direct labor costsc. the cost of equipment used to manufacture several different productsd. All of the above are correct.93. The benefits of classifying activities using the broader framework of unit, batch, product,customer, and business-sustaining activities are that there are generally more costs:a. directly traceable to cost objectsb. treated as indirect costsc. arbitrarily allocated to cost objectsd. There is no major difference regarding costs.94. For budgeting purposes, product-sustaining activity costs should be:a. allocated to individual unitsb. allocated to individual customersc. assigned directly to individual product linesd. assigned directly to individual batches95. Which of the following activities is a unit-related activity?a. preparing and filing the annual tax return for the organizationb. machine setups for each production runc. quality inspections of 2% of the items producedd. obtaining patents and regulatory approval for each product produced96. Which of the following activities is a batch-related activity?a. preparing and filing the annual tax return for the organizationb. machine setups for each production runc. quality inspections of 2% of the items producedd. obtaining patents and regulatory approval for each product produced97. Which of the following activities is a product-sustaining activity?a. preparing and filing the annual tax return for the organizationb. machine setups for each production runc. quality inspections of 2% of the items producedd. obtaining patents and regulatory approval for each product produced98. Which of the following activities is a business-sustaining activity?a. preparing and filing the annual tax return for the organizationb. machine setups for each production runc. making sales callsd. obtaining patents and regulatory approval for each product produced99. Which of the following activities is a customer-sustaining activity?a. preparing and filing the annual tax return for the organizationb. machine setups for each production runc. making sales callsd. obtaining patents and regulatory approval for each product produced100. Product life-cycle costing:a. is useful for external reportingb. is primarily a planning toolc. includes manufacturing costs but not the cost of research and developmentd. assumes product related costs are incurred evenly over the product’s lifetime101. Companies want to ensure that product revenues cover the product’s:a. manufacturing costsb. manufacturing and distribution costsc. developing, supporting, and abandoning costsd. manufacturing, distribution, developing, supporting, and abandoning costs102. More attention is being devoted to the product development and planning phase because:a. abandonment includes significant costsb. of the need to better understand the relevant costsc. during this phase of the product-life cycle, revenues finally begin to cover long-runcostsd. during this phase of the product-life cycle, price competition becomes intense 103. One of the primary motivations for considering costs other than manufacturing and distribution costs is so that:a. these costs can be amortized over the life of the productb. costs can be more evenly distributed over the pr oduct’s life cyclec. planners can develop reasonable estimates of the costs associated with new productsd. if price competition becomes intense the selling price can be rationalizedEXERCISE/PROBLEM104. Winfield Manufacturing Company produces several different products. Classify each of their following costs as direct materials, direct labor, indirect manufacturing costs, or nonmanufacturing costs.a. Production supervisory salaries.b. Controller's office supplies.c. Executive office heat and air conditioning.d. Executive office security personnel.e. Factory heat and air conditioning.f. Supplies used in small quantities, such as glue, to complete assembly work.g. Power to operate factory equipment.h. Parts used in assembly.i. Wages of the assembly-line workers.j. Property taxes on office buildings for sales staff.k. Depreciation on furniture for sales staff.l. Salaries of top executives in the company.m. Wages of the finishing department workers.n. Sales commissions.o. Sales personnel office rental.105. Stephanie’s Stuffed Animals reported the following:Revenues $1,000Flexible manufacturing costs $ 200Flexible nonmanufacturing costs $ 230Capacity-related manufacturing costs $ 150Capacity-related nonmanufacturing costs $ 140Required:a. Compute contribution margin.b. Compute gross margin.c. Compute operating income.106. In 2005, Grant Company has sales of $800,000, flexible costs of $200,000, and capacity-related costs of $300,000. In 2006, Grant Company expects annual property taxes todecrease by $15,000.Required:a. Calculate operating income and the break even point for 2005.b. Calculate the break even point for 2006.107. Sunshine, Inc., sells a single product. The company's most recent income statement is given below.Sales (4,000 units) $120,000Less flexible expenses (68,000)Contribution margin 52,000Less capacity-related expenses (40,000)Net income $ 12,000Required:a. Contribution margin per unit is $ _______________ per unitb. If sales are doubled to $240,000,total flexible costs will equal $ _______________c. If sales are doubled to $240,000,total capacity-related costs will equal $ _______________d. If 10 more units are sold, profits will increase by $ _______________e. Compute how many units must be sold to break even. # _______________f. Compute how many units must be soldto achieve a profit of $20,000. # _______________ 108. Jeffrey’s, Inc., sells a single product. The company's most recent income statement is given below.Sales $200,000Less flexible expenses (120,000)Contribution margin 80,000Less capacity-related expenses (50,000)Net income $ 30,000Required:a. Contribution margin ratio is __________ %b. Break-even point in total sales dollars is $ _______________c. To achieve $40,000 in net income, sales must total $ _______________d. If sales increase by $50,000, net income will increase by $ _______________109. Yurus Manufacturing Company produces two products, X and Y. The following information is presented for both products:X YSelling price per unit $36 $24Flexible cost per unit 28 12Total capacity-related costs $234,000 Required:Assume the sales mix is 3 units of X for every unit of Y:a. What is the revenue per unit of average product, the weighted average flexible cost,and the contribution margin per unit of average product?b. What is the break-even point in units of both X and Y?110. Bob’s Te xtile Company sells shirts for men and boys. The average selling price and flexible cost for each product are as follows:Men’s BoysSelling price $28.80 $24.00Flexible cost $20.42 $16.80Total capacity-related costs $38,400Required:Assume t he sales mix is 2 men’s shirts for each boy’s shirt:a. What is the revenue per unit of average product, the weighted average flexible cost,and the contribution margin per unit of average product?b. What is the break-even point in units for each type of shirt?c. What is the operating income, assuming sales total 9,000 shirts?111. Charlie’s Chairs manufactures two models, Standard and Premium. Weekly demand is estimated to be 120 units of the Standard Model and 70 units of the Premium Model. Only 420 machine hours are available per week. The following per unit data apply:Standard PremiumContribution margin per unit $12 $15Number of machine hours required 2 3Required:a. For each model, compute the contribution per machine hour.b. To maximize weekly production profits, how many machine hours would yourecommend of each model? How many units of each model?c. If there are 500 machine hours available per week (instead of only 420 machine hoursper week), how many chairs of each model shoul d Charlie’s produce to maximizeprofits?。
管理会计双语课程习题chapter_2
CH02COST MANAGEMENT CONCEPTS AND COST BEHAVIOR TRUE/FALSE1. There is no single definition of cost.a. Trueb. False2. The role of the management accountant is to tailor the cost calculation to fit the currentdecision situation.a. Trueb. False3. A cost that is useful for one decision may not be useful information for another decision.a. Trueb. False4. In most organizations, managing nonmanufacturing costs as well as manufacturing costs isimportant for financial success.a. Trueb. False5. The cost of a customized machine only used in the production of a single product would beclassified as a direct cost.a. Trueb. False6. The wages of a plant supervisor would be classified as a period cost.a. Trueb. False7. The classification of product and period costs is particularly valuable in managementaccounting.a. Trueb. False8. For external reporting, generally accepted accounting principles require that costs beclassified as either flexible or capacity-related costs.a. Trueb. False9. Knowing whether a cost is a period or a product cost helps to estimate total cost at a newlevel of activity.a. Trueb. False10. Flexible costs are always direct costs.a. Trueb. False11. Capacity-related costs vary with the level of production or sales volume.a. Trueb. False12. Currently, most personnel costs are classified as capacity-related costs.a. Trueb. False13. Some capacity-related costs might be classified as direct manufacturing costs.a. Trueb. False14. Capacity-related costs depend on the resources used, not the resources acquired.a. Trueb. False15. Break-even point is NOT an important concept since the goal of business is to make aprofit.a. Trueb. False16. To perform cost-volume-profit analysis, a company must be able to separate costs intocapacity-related and flexible components.a. Trueb. False17. Cost-volume-profit analysis may be used for single-product and multiproduct analysis.a. Trueb. False18. Selling price per unit is $30, flexible cost per unit is $15, and capacity-related cost per unitis $10. When this company operates above the break-even point, the sale of one more unit will increase net income by $5.a. Trueb. False19. A company with sales of $100,000, flexible costs of $70,000, and capacity-related costs of$50,000 will reach its break-even point if sales are increased by $20,000.a. Trueb. False20. In multiproduct situations when the sales mix shifts toward the product with the lowestcontribution margin, the break-even quantity will decrease.a. Trueb. False21. The opportunity cost of a resource is zero if there is excess capacity of that resource.a. Trueb. False22. When a firm maximizes profits it will simultaneously minimize opportunity costs.a. Trueb. False23. Even when the only constraint limiting production is machine time, a company should bemost concerned with maximizing contribution margin per unit.a. Trueb. False24. The time over which a decision maker can adjust capacity is referred to as the short run.a. Trueb. False25. For general customers, the price charged for a product must cover its long-run cost to theorganization.a. Trueb. False26. In recent years, capacity-related costs have increased as a proportion of total manufacturingcosts.a. Trueb. False27. Machine setup costs are usually classified as a business-sustaining activity.a. Trueb. False28. The benefits of classifying activities using the broader framework of unit-related, batch-related, product-sustaining, customer-sustaining, and business-sustaining activities are there are generally more costs that are directly traceable to cost objects.a. Trueb. False29. Product life-cycle costing helps organizations decide whether a new product should belaunched.a. Trueb. FalseMULTIPLE CHOICE30. An example of a cost object is:a. a productb. a customerc. a departmentd. All of the above are correct.31. Manufacturing costs include:a. machinery used inside of the factoryb. research and development costsc. costs of dealing with customers after the saled. general and administrative costs32. Manufacturing costs include all of the following EXCEPT:a. costs incurred inside the factoryb. both direct and indirect costsc. both flexible and capacity-related costsd. both product and period costs33. Nonmanufacturing costs:a. include only capacity-related costsb. seldom influence financial success or failurec. include the cost of selling, distribution, and after-sales costs for customersd. are considered by GAAP to be an element of product costs34. Product costs:a. include administrative and marketing costsb. are particularly useful in financial accountingc. are expensed in the accounting period manufacturedd. are also referred to as nonmanufacturing costs35. For external reporting:a. costs are classified as either product or period costsb. costs reflect current valuesc. there are no prescribed rules since no one is exactly sure how the investors andcreditors will use these numbersd. expenses include amounts that reflect current and future benefits36. Product costs are expensed on the income statement when:a. raw materials for the product are purchasedb. raw materials are requisitioned for the productc. the product completes the manufacturing processd. the product is sold37. Depreciation of plant facilities is classified as a(n):a. direct material costb. direct labor costc. indirect manufacturing costd. general and administrative cost38. The cost of inventory reported on the balance sheet may include the cost of all thefollowing EXCEPT:a. advertisingb. wages of the plant supervisorc. depreciation of the factory equipmentd. parts used in the manufacturing process39. A plant manufactures several different products. The wages of the plant supervisor can beclassified as a:a. direct costb. product costc. flexible costd. nonmanufacturing cost40. Period costs:a. are treated as expenses in the period they are incurredb. are directly traceable to productsc. include direct labord. are also referred to as indirect manufacturing costs41. Which of the following is NOT a period cost?a. marketing costsb. general and administrative costsc. research and development costsd. manufacturing costs42. Advertising is an example of a _________ cost expensed on the income statement in theaccounting period incurred.a. directb. manufacturingc. periodd. product43. (CMA adapted, June 1992) The terms "direct cost" and "indirect cost" are commonlyused in cost accounting. Classifying a cost as either direct or indirect depends upon:a. the behavior of the cost in response to volume changesb. whether the cost is expended in the period in which it is incurredc. whether the cost can be related readily to resources consumed for a cost objectd. whether an expenditure is unavoidable because it cannot be changed regardless of anyaction taken44. Indirect manufacturing costs:a. can be traced to the product that created the costsb. may have a cause-and-effect relationship with capacity rather than with individualunits of productionc. generally include the cost of material and the cost of labord. are included in period costs45. A manufacturing plant produces two product lines: football equipment and hockeyequipment. An indirect cost for the hockey equipment line is the:a. material used to make the hockey sticksb. labor to bind the shaft to the blade of the hockey stickc. shift supervisor for the hockey lined. plant supervisor46. A manufacturing plant produces two product lines: football equipment and hockeyequipment. Direct costs for the football equipment line are the:a. beverages provided daily in the plant break roomb. monthly lease payments for a specialized piece of equipment needed to manufacturethe football helmetc. salaries of the clerical staff that work in the company administrative officesd. utilities paid for the manufacturing plantTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 47 THROUGH 53.The Bowley Company manufactures several different products. Unit costs associated with product ICT101 are as follows:Direct materials $ 60Direct labor 10Flexible manufacturing support costs 18Capacity-related manufacturing support costs 32Sales commissions (2% of sales) 4Administrative salaries 16Total $14047. Total product costs associated with product ICT101 are:a. $ 50b. $ 88c. $120d. $14048. Total period costs associated with product ICT101 are:a. $ 4b. $16c. $20d. $5249. Total flexible costs associated with product ICT101 are:a. $18b. $22c. $88d. $9250. Total capacity-related costs associated with product ICT101 are:a. $16b. $32c. $48d. $5251. Total nonmanufacturing costs associated with product ICT101 are:a. $ 4b. $16c. $20d. $5252. Total manufacturing costs associated with product ICT101 are:a. $70b. $88c. $120d. $14053. Direct manufacturing costs associated with product ICT101 are:a. $70b. $88c. $92d. $10854. Cost behavior refers to:a. how costs react to a change in the level of activityb. whether a cost is incurred in a manufacturing, merchandising, or service companyc. classifying costs as either product or period costsd. whether a particular expense has been ethically incurred55. Which statement is FALSE?a. All flexible costs are direct costs.b. Because of a cost-benefit tradeoff, some direct costs may be treated as indirect costs.c. All capacity-related costs are indirect costs.d. Direct costs may be flexible or capacity-related.56. An understanding of the underlying behavior of costs helps in all of the followingEXCEPT:a. sales volume can be better estimatedb. costs can be better estimated as volume expands and contractsc. true costs of processes can be better evaluatedd. process inefficiencies can be better identified and, as a result, improved57. Capacity-related costs:a. may be either direct or indirect costsb. vary with production or sales volumec. include parts and materials used to manufacture a productd. can be adjusted in the short run to meet actual demands58. Capacity-related costs depend on:a. the amount of resources usedb. the amount of resources acquiredc. the volume of productiond. the volume of sales59. Currently, most companies consider annual labor costs as:a. a capacity-related costb. a flexible costc. an opportunity costd. a period cost60. Which of the following does NOT describe a flexible cost?a. Flexible cost are always indirect costs.b. Flexible costs increase in total when the actual level of activity increases.c. Flexible costs include most personnel costs and depreciation on machinery.d. Flexible costs can always be traced directly to the cost object.61. Cost-volume-profit analysis is used PRIMARILY by management:a. as a planning toolb. for control purposesc. to establish a target net income for next yeard. to attain extremely accurate financial results62. Contribution margin equals revenues minus:a. product costsb. period costsc. flexible costsd. capacity-related costs63. The break-even point is the level at which revenues:a. equal capacity-related costsb. equal flexible costsc. equal capacity-related costs minus flexible costsd. equal flexible costs plus capacity-related costs64. The break-even point is:a. total costs divided by flexible costs per unitb. contribution margin per unit divided by revenue per unitc. capacity-related costs divided by contribution margin per unitd. (capacity-related costs plus flexible costs) divided by contribution margin per unit65. Cost-volume-profit analysis assumes all of the following EXCEPT:a. all costs are purely flexible or capacity relatedb. units manufactured equal units soldc. total flexible costs remain the same over the relevant ranged. total capacity-related costs remain the same over the relevant range66. All of the following are assumed in a cost-volume-profit analysis EXCEPT:a. a constant product mixb. capacity-related costs increase when activity increasesc. revenue per unit does not change as volume changesd. all costs can be classified as either capacity-related or flexible67. In multiproduct situations, when sales mix shifts toward the product with the highestcontribution margin, then:a. total revenues will decreaseb. breakeven quantity will increasec. total contribution margin will decreased. operating income will increaseTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 68 THROUGH 71. Karen’s Kraft Korner, Inc., sells a single product. This year, 7,000 units were sold resulting in $70,000 of sales revenue, $28,000 of flexible costs, and $12,000 of capacity-related costs.68. Contribution margin per unit is:a. $4.00b. $4.29c. $6.00d. None of the above is correct.69. Break-even point in units is:a. 2,000 unitsb. 3,000 unitsc. 5,000 unitsd. None of the above is correct.70. The number of units that must be sold to achieve $60,000 of profits is:a. 10,000 unitsb. 11,666 unitsc. 12,000 unitsd. None of the above is correct.71. If sales increase by $25,000, profits will increase by:a. $10,000b. $15,000c. $22,200d. an unknown amountTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 72 THROUGH 74.Mr. Paul’s Company sells several products for an average price of $20 per unit and the average flexible costs per unit are as follows:Direct material $4.00Direct labor $1.60Indirect manufacturing costs $0.40Selling commissions $2.00Mr. Pau l’s annual capacity-related costs total $96,000.72. The contribution margin per unit is:a. $6b. $8c. $12d. $1473. The number of units that Mr. Paul’s must sell each year to break even is:a. 8,000 unitsb. 12,000 unitsc. 16,000 unitsd. an unknown amount74. The number of units that Mr. Paul’s must sell annually to make a profit of $144,000 is:a. 12,000 unitsb. 18,000 unitsc. 20,000 unitsd. 30,000 unitsTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 75 THROUGH 79.The following information is for Barnett Corporation:Product X Product YRevenue per unit: $10.00 $15.00Flexible cost per unit: $ 2.50 $ 5.00Total capacity-related costs: $50,00075. If the sales mix consists of two units of Product X and one unit of Product Y, what is therevenue per unit of average product?a. $10.00b. $11.66c. $13.33d. $15.0076. If the sales mix consists of two units of Product X and one unit of Product Y, what is thebreak-even point?a. 1,000 units of Y and 2,000 units of Xb. 1012.5 units of Y and 2,025 units of Xc. 2012.5 units of Y and 4,025 units of Xd. 2,000 units of Y and 4,000 units of X77. What is the operating income, assuming actual sales total 150,000 units, and the sales mixis two units of Product X and one unit of Product Y?a. $1,200,000b. $1,250,000c. $1,750,000d. None of the above is correct.78. If the sales mix shifts to one unit of Product X and two units of Product Y, then theweighted-average contribution margin will:a. increase per unitb. stay the samec. decrease per unitd. be undeterminable79. If the sales mix shifts to one unit of Product X and two units of Product Y, then the break-even point will:a. increaseb. stay the samec. decreased. be undeterminable80. Opportunity cost(s):a. of a resource with excess capacity is zerob. should be maximized by organizationsc. are recorded as an expense in the accounting recordsd. are most important to financial accountants81. A recent college graduate has the choice of buying a new auto for $20,000 or to invest themoney for four years with a 12% expected rate of return. If the graduate decides to purchase the auto, the BEST estimate of the opportunity cost of that decision is:a. $2,400b. $11,740c. $20,000d. There is no opportunity cost for this decision.THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 82 THROUGH 86. Brenda’s Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply:Model X Model Y Model Z Selling price $50 $60 $70Direct materials 6 6 6Direct labor ($12 per hour) 12 12 24Flexible support costs ($4 per machine hour) 4 8 8Capacity-related costs 10 10 1082. Which model has the greatest contribution per unit?a. Model Xb. Model Yc. Model Zd. both Models X and Y83. Which model has the greatest contribution per machine hour?a. Model Xb. Model Yc. Model Zd. both Models Y and Z84. If there is excess capacity, which model is the most profitable to produce?a. Model Xb. Model Yc. Model Zd. both Models X and Y85. If there is a machine breakdown, which model is the most profitable to produce?a. Model Xb. Model Yc. Model Zd. both Models Y and Z86. How can Brenda encourage her salespeople to promote the more profitable model?a. Put all sales persons on salary.b. Provide higher sales commissions for higher priced items.c. Provide higher sales commissions for items with the greatest contribution margin perconstrained resource.d. Both (b) and (c) are correct.87. Which statement is FALSE? Short run costs:a. are actually flexible costsb. affect long-run capacityc. are included in the calculation of long-run costsd. increase when one more unit is produced or served88. To sustain the profitability of a product, the list price of a product must cover its:a. flexible costsb. capacity-related costsc. indirect costsd. long-run costs89. Compared to the early 1900s, __________ costs now comprise a much higher share of totalproduct costs.a. direct laborb. direct materialsc. flexibled. capacity-related90. In recent years, the manufacturing cost structure has changed as a result of:a. greater automationb. better customer servicec. the proliferation of multiple productsd. All of the above are correct.91. Cost distortion is common in conventional costing systems because:a. of the recent change in cost structureb. the number of products being manufactured is increasingc. capacity-related costs are allocated using a volume measured. capacity-related costs create higher risks for a company92. Costs that must be allocated to products for external reporting purposes include:a. selling and marketing costsb. direct material and direct labor costsc. the cost of equipment used to manufacture several different productsd. All of the above are correct.93. The benefits of classifying activities using the broader framework of unit, batch, product,customer, and business-sustaining activities are that there are generally more costs:a. directly traceable to cost objectsb. treated as indirect costsc. arbitrarily allocated to cost objectsd. There is no major difference regarding costs.94. For budgeting purposes, product-sustaining activity costs should be:a. allocated to individual unitsb. allocated to individual customersc. assigned directly to individual product linesd. assigned directly to individual batches95. Which of the following activities is a unit-related activity?a. preparing and filing the annual tax return for the organizationb. machine setups for each production runc. quality inspections of 2% of the items producedd. obtaining patents and regulatory approval for each product produced96. Which of the following activities is a batch-related activity?a. preparing and filing the annual tax return for the organizationb. machine setups for each production runc. quality inspections of 2% of the items producedd. obtaining patents and regulatory approval for each product produced97. Which of the following activities is a product-sustaining activity?a. preparing and filing the annual tax return for the organizationb. machine setups for each production runc. quality inspections of 2% of the items producedd. obtaining patents and regulatory approval for each product produced98. Which of the following activities is a business-sustaining activity?a. preparing and filing the annual tax return for the organizationb. machine setups for each production runc. making sales callsd. obtaining patents and regulatory approval for each product produced99. Which of the following activities is a customer-sustaining activity?a. preparing and filing the annual tax return for the organizationb. machine setups for each production runc. making sales callsd. obtaining patents and regulatory approval for each product produced100. Product life-cycle costing:a. is useful for external reportingb. is primarily a planning toolc. includes manufacturing costs but not the cost of research and developmentd. assumes product related costs are incurred evenly over the product’s lifetime101. Companies want to ensure that product revenues cover the product’s:a. manufacturing costsb. manufacturing and distribution costsc. developing, supporting, and abandoning costsd. manufacturing, distribution, developing, supporting, and abandoning costs102. More attention is being devoted to the product development and planning phase because:a. abandonment includes significant costsb. of the need to better understand the relevant costsc. during this phase of the product-life cycle, revenues finally begin to cover long-runcostsd. during this phase of the product-life cycle, price competition becomes intense 103. One of the primary motivations for considering costs other than manufacturing and distribution costs is so that:a. these costs can be amortized over the life of the productb. costs can be more evenly distributed over the product’s life cyclec. planners can develop reasonable estimates of the costs associated with new productsd. if price competition becomes intense the selling price can be rationalizedEXERCISE/PROBLEM104. Winfield Manufacturing Company produces several different products. Classify each of their following costs as direct materials, direct labor, indirect manufacturing costs, or nonmanufacturing costs.a. Production supervisory salaries.b. Controller's office supplies.c. Executive office heat and air conditioning.d. Executive office security personnel.e. Factory heat and air conditioning.f. Supplies used in small quantities, such as glue, to complete assembly work.g. Power to operate factory equipment.h. Parts used in assembly.i. Wages of the assembly-line workers.j. Property taxes on office buildings for sales staff.k. Depreciation on furniture for sales staff.l. Salaries of top executives in the company.m. Wages of the finishing department workers.n. Sales commissions.o. Sales personnel office rental.105. Stephanie’s Stuffed Animals reported the following:Revenues $1,000Flexible manufacturing costs $ 200Flexible nonmanufacturing costs $ 230Capacity-related manufacturing costs $ 150Capacity-related nonmanufacturing costs $ 140Required:a. Compute contribution margin.b. Compute gross margin.c. Compute operating income.106. In 2005, Grant Company has sales of $800,000, flexible costs of $200,000, and capacity-related costs of $300,000. In 2006, Grant Company expects annual property taxes todecrease by $15,000.Required:a. Calculate operating income and the break even point for 2005.b. Calculate the break even point for 2006.107. Sunshine, Inc., sells a single product. The company's most recent income statement is given below.Sales (4,000 units) $120,000Less flexible expenses (68,000)Contribution margin 52,000Less capacity-related expenses (40,000)Net income $ 12,000Required:a. Contribution margin per unit is $ _______________ per unitb. If sales are doubled to $240,000,total flexible costs will equal $ _______________c. If sales are doubled to $240,000,total capacity-related costs will equal $ _______________d. If 10 more units are sold, profits will increase by $ _______________e. Compute how many units must be sold to break even. # _______________f. Compute how many units must be soldto achieve a profit of $20,000. # _______________ 108. Jeffrey’s, Inc., sells a single produ ct. The company's most recent income statement is given below.Sales $200,000Less flexible expenses (120,000)Contribution margin 80,000Less capacity-related expenses (50,000)Net income $ 30,000Required:a. Contribution margin ratio is __________ %b. Break-even point in total sales dollars is $ _______________c. To achieve $40,000 in net income, sales must total $ _______________d. If sales increase by $50,000, net income will increase by $ _______________109. Yurus Manufacturing Company produces two products, X and Y. The following information is presented for both products:X YSelling price per unit $36 $24Flexible cost per unit 28 12Total capacity-related costs $234,000 Required:Assume the sales mix is 3 units of X for every unit of Y:a. What is the revenue per unit of average product, the weighted average flexible cost,and the contribution margin per unit of average product?b. What is the break-even point in units of both X and Y?110. Bob’s Textile Company sells shirts for men and boys. The average selling price and flexible cost for each product are as follows:Men’s BoysSelling price $28.80 $24.00Flexible cost $20.42 $16.80Total capacity-related costs $38,400Required:Assume the sa les mix is 2 men’s shirts for each boy’s shirt:a. What is the revenue per unit of average product, the weighted average flexible cost,and the contribution margin per unit of average product?b. What is the break-even point in units for each type of shirt?c. What is the operating income, assuming sales total 9,000 shirts?111. Charlie’s Chairs manufactures two models, Standard and Premium. Weekly demand is estimated to be 120 units of the Standard Model and 70 units of the Premium Model. Only 420 machine hours are available per week. The following per unit data apply:Standard PremiumContribution margin per unit $12 $15Number of machine hours required 2 3Required:a. For each model, compute the contribution per machine hour.b. To maximize weekly production profits, how many machine hours would yourecommend of each model? How many units of each model?c. If there are 500 machine hours available per week (instead of only 420 machine hoursper week), how many chairs of each model should Cha rlie’s produce to maximizeprofits?。
管理会计英文版答案
CHAPTER 1Managerial Accounting, the Business Organization, andProfessional Ethics1-A1 Solution:Information is often useful for more than one function, so the following classifications for each activity are not definitive but serve as a starting point for discussion:1. Scorekeeping. A depreciation schedule is used in preparing financialstatements to report the results of activities.2. Problem solving. Helps a manager assess the impact of a purchase decision.3. Scorekeeping. Reports on the results of an operation. Could also beattention directing if scrap is an area that might require management attention.4. Attention directing. Focuses attention on areas that need attention.5. Attention directing. Helps managers learn about the information contained ina performance report.6. Scorekeeping. The statement reports what has happened. Could also beattention directing if the report highlights a problem or issue.7. Problem solving. Assuming the cost comparison is to help the managerdecide between two alternatives, this is problem solving.8. Attention directing. Variances point out areas where results differ fromexpectations. Interpreting them directs attention to possible causes of thedifferences.9. Problem solving. Aids a decision about where to make parts.10. Attention directing and problem solving. Budgeting involves makingdecisions about planned activities -- hence, aiding problem solving. Budgets also direct attention to areas of opportunity or concern --hence, directingattention. Reporting against the budget also has a scorekeeping dimension.1-A2 Solution:1. Budgeted Actual DeviationsAmounts Amounts or Variances Room rental $ 140 $ 140 $ 0Food 700 865 165UEntertainment 600 600 0Decorations 220 260 40UTotal $1,660 $1,865 $205U 2. Because of the management by exception rule, room rental and entertainmentrequire no explanation. The actual expenditure for food exceeded the budget by $165. Of this $165, $150 is explained by attendance of 15 persons morethan budgeted (at a budget of $10 per person for food) and $15 is explained by expenditures above $10 per person.Actual expenditures for decorations were $40 more than the budget. Thedecorations committee should be asked for an explanation of the excessexpenditures.1-29 Solution:1. Controller. Financial statements are generally produced by the controller'sdepartment.2. Controller. Advising managers aids operating decisions.3. Controller. Advice on cost analysis aids managers' operating decisions.4. Treasurer. Analysts affect the company's ability to raise capital, which is theresponsibility of the treasurer.5. Treasurer. Financing the business is the responsibility of the treasurer.6. Controller. Tax returns are part of the accounting process overseen by thecontroller.7. Treasurer. Insurance, as with other risk management activities, is usually theresponsibility of the treasurer.8. Treasurer. Allowing credit is a financial decision.CHAPTER 2INTRODUCTION TO COST BEHAVIOR AND COST-VOLUME RELATIONSHIPS2-A3 Solution:The following format is only one of many ways to present a solution. This situation is reallya demonstration of "sensitivity analysis," whereby a basic solution is tested to see how much it is affected by changes in critical factors. Much discussion can ensue, particularly about the finalthree changes.The basic contribution margin per revenue mile is $1.50 - $1.30 = $.20(1) (2) (3) (4) (5)(1)×(2) (3)-(4)Revenue Cont ri buti on To talMi l es Margi n Pe r Cont ri buti on Fi xed NetSol d Revenue Mi l e Margi n Expen se s In co me 1. 800,000$.20$160,000$120,000$ 40,0002. (a) 800,000.35280,000120,000160,000(b) 880,000.20176,000120,00056,000(c) 800,000.0756,000120,000(64,000)(d) 800,000.20160,000132,00028,000(e) 840,000.17142,800120,00022,800(f) 720,000.25180,000120,00060,000(g) 840,000.20168,000132,00036,0002-B2 Solution:1. $2,300 ÷ ($30 - $10) = 115 child-days or 115 × $30 = $3,450 revenue dollars.2. 176 × ($30 - $10) - $2,300 = $3,520 - $2,300 = $1,2203. a. 198 × ($30 - $10) - $2,300 = $3,960 - $2,300 = $1,660 or (22 × $20) + $1,220 = $440 + $1,220 = $1,660 b. 176 × ($30 - $12) - $2,300 = $3,168 - $2,300 = $868 or $1,220 - ($2 × 176) = $868 c. $1,220 - $220 = $1,000d. [(9.5 × 22) × ($30 - $10)] - ($2,300 + $300) = $4,180 - $2,600 = $1,580e.[(7 × 22) × ($33 - $10)] - $2,300 = $3,542 - $2,300 = $1,2422-B 3 So lu tio n :1.$16)($20$5,000- = $4$5,000= 1,250 units2. Contribution margin ratio:($40,000)$30,000)($40,000- = 25%$8,000 ÷ 25% = $32,0003.$14)($30$7,000)($33,000-+ = $16$40,000 = 2,500 units4. ($50,000 - $20,000)(110%) = $33,000 contribution margin;$33,000 - $20,000 = $13,0005. New contribution margin:$40 - ($30 - 20% of $30)= $40 - ($30 - $6) = $16;New fixed expenses: $80,000 × 110% = $88,000;$16$20,000)($88,000+ = $16$108,000 = 6,750 units2-27 Soluti on:2-38Sol uti on:1. 100% Full 50% FullRoom revenue @ $50 $1,825,000 a$ 912,500 bVariable costs @ $10 365,000 182,500Contribution margin 1,460,000 730,000Fixed costs 1,200,000 1,200,000Net income (loss) $ 260,000 $ (470,000)a 100 × 365 = 36,500 rooms per year36,500 × $50 = $1,825,000b50% of $1,825,000 = $912,5002. Let N = number of rooms$50N -$10N - $1,200,000 = 0N = $1,200,000 ÷ $40 = 30,000 rooms Percentage occupancy = 30,000 ÷ 36,500 = 82.2%2-40 Solution:1. Let R = pints of raspberries and 2R = pints of strawberriessales - variable expenses - fixed expenses = zero net income$1.10(2R) + $1.45(R) - $.75(2R) - $.95(R) - $15,600 = 0$2.20R + $1.45R - $1.50R - $.95R -$15,600 = 0$1.2R - $15,600 = 0 R = 13,000 pints of raspberries2R = 26,000 pints of strawberries2. Let S = pints of strawberries($1.10 - $.75) × S - $15,600 = 0.35S - $15,600 = 0S = 44,571 pints of strawberries3. Let R = pints of raspberries($1.45 - $.95) × R - $15,600 = 0$.50R - $15,600 = 0R = 31,200 pints of raspberries2-42 Solution:Several variations of the following general approach are possible:Sales - Variable expenses - Fixed expenses = Target after-tax net income 1 - tax rateS - .75S - $440,000 =.3)-(1$84,000.25S = $440,000 + $120,000 3-A1 Solution:Some of these answers are controversial, and reasonable cases can be built for alternative classifications. Class discussion of these answers should lead to worthwhile disagreements about anticipated cost behavior with regard to alternative cost drivers.1. (b) Discretionary fixed cost.2. (e) Step cost.3. (a) Purely variable cost with respect to revenue.4. (a) Purely variable cost with respect to miles flown.5. (d) Mixed cost with respect to miles driven.6. (c) Committed fixed cost.7. (b) Discretionary fixed cost.8. (c) Committed fixed cost.9. (a) Purely variable cost with respect to cases of Coca-Cola.10. (b) Discretionary fixed cost.11. (b) Discretionary fixed cost.3-A2 Solution:1. Support costs based on 60% of the cost of materials:Sign A Sign B Direct materials cost $400 $200 Support cost (60% of m ater ial s c o st) $240 $120 Support costs based on $50 per power tool operation:Sign A Sign B Power tool operations 3 6 Support cost $150 $300 2. If the activity analysis is reliable, by using the current method, Evergreen Signs is predicting too much cost for signs that use few power tool operations and is predicting too little cost for signs that use many power tool operations. As a result the company could be losing jobs that require few power tool operations because its bids are too high -- it could afford to bid less on these jobs. Conversely, the company could be getting too many jobs that require many power tool operations, because its bids are too low -- given what the "true" costs will be, the company cannot afford these jobs at those prices. Either way, the sign business could be more profitable if the owner better understood and used activity analysis. Evergreen Signs would be advised to adopt the activity-analysis recommendation, but also to closely monitor costs to see if the activity-analysis predictions of support costs are accurate.3-B2 Solution:Board Z15 Board Q52Mark-up method:Material cost $40 $60Support costs (100%) $40 $60Activity analysis method:Manual operations 15 7Support costs (@$4) $60 $28The support costs are different because different cost behavior is assumed by the two methods. If the activity analyses are reliable, then boards with few manual operations are overcosted with the markup method, and boards with many manual operatio ns are undercosted with the markup method.3-B3 Solution:Variable cost per machine hour =Change in Repair Cost Change in Machine Hours= (P260,000,000 - P200,000,000) (12,000 - 8,000)= P15,000 per machine hourFixed cost per month = total cost - variable cost= P260,000,000 - P15,000 x 12,000= P260,000,000 - P180,000,000= P 80,000,000 per monthor = P200,000,000 - P15,000 x 8,000= P200,000,000 - P120,000,000= P 80,000,000 per month3-32 Solution:1. Machining labor: G, number of units completed or labor hours2. Raw material: B, units produced; could also be D if the company’s purchases do not affect the price of the raw material.3. Annual wage: C or E (depending on work levels), labor hours4. Water bill: H, gallons used5. Quantity discounts: A, amount purchased6. Depreciation: E, capacity7. Sheet steel: D, number of implements of various types8. Salaries: F, number of solicitors9. Natural gas bill: C, energy usage3-34 Solution:1. 2001 2002Sales revenues $57 $116Less: Operating income (loss) (19) 18Operating expenses $76 $ 982. Change in operating expenses ÷ Change in revenues = Variable cost percentage($98 - $76) ÷ ($116 - $57) = $22 ÷ $59 = .37 or 37%Fixed cost = Total cost – Variable cost= $76 - .37 × $57= $55or= $98 - .37 × $116= $55Cost function = $55 + .37 × Sales revenue3. Because fixed costs to not change, the entire additional total contributionmargin is added to operating income. The $57 sales revenue in 2001generated a total contribution margin of $57 × (1 - .37) = $36, which was $19 short of covering the $55 of fixed cost. But the additional $59 of salesrevenue in 2002 generated a total contribution margin of $59 × (1 - .37) = $37 that could go directly to operating income because there was no increase infixed costs. It wiped out the $19 operating loss and left $18 of operatingincome.3-35 Solution:1. Fuel costs: $.40 × 16,000 miles per month = $6,400 per month.2. Equipment rental: $5,000 × 7 × 3 = $105,000 for seven pieces of equipment for three months3. Ambulance and EMT cost: $1,200 × (2,400/200) = $1,200 × 12 = $14,4004. Purchasing: $7,500 + $5 × 4,000 = $27,500 for the month.3-36 Solution:There may be some disagreement about these classifications, but reasons for alternative classifications should be explored.Cost Discretionary Committed Advertising $22,000Depreciation $ 47,000 Company health insurance 21,000 Management salaries 85,000 Payment of long-term debt 50,000 Property tax 32,000 Grounds maintenance 9,000Office remodeling 21,000Research and development 46,000Totals $98,000 $235,000。
管理会计课后习题Ronald Hilton 第二章
CHAPTER 2Management Accounting: Cost Termsand ConceptsANSWERS TO REVIEW QUESTIONS2.1See Exhibit 2.1'Traditional versus modern management accounting systems', whichidentifies the four key components of management accounting systems: costing, budgeting, performance measurement and cost management. Traditional costing systems focus on costing responsibility centres, such as departments and products.Modern costing systems focus on activities, together with goods and services, and both customers and suppliers. The focus of traditional budgeting systems is on departments rather than activities and processes. The focus of t raditional performance measurement systems is on financial outcomes, especially cost, whereas modern systems focus on all the critical success factors, including financial factors. Further, modern costing systems take a broader perspective in that they support the management of both customer value and shareholder wealth. Apart from financial performance measures, there is little emphasis on cost management in traditional systems. In contrast, while cost management is an important aspect of modern management accounting, it takes the form of a proactive approach to managing resources by analysing the real causes of costs and eliminating wasteful activities.2.2 The reasons why management accounting systems pay so much attention to costs andwhy a focus on costs will probably always be paramount in management accounting are:∙Ready availability of cost data and information internally provided through the accounting system.∙Cost information is important in helping managers allocate and manage resources effectively to create customer value and shareholder value. Managementaccountants historically have focused on manufacturing production costs,not onlybecause of the need to value inventory and cost of goods sold for external reporting,but because costs incurred outside the production area of the value chain wererelatively insignificant and because internal costs were seen as controllable whereasexternal factors were seen as largely uncontrollable. Today,with the growth of theservice sector, globalisation, competition and sophisticated ITcapability,management accountants tend to focus on many different types of costs(not just manufacturing product costs) and the causes of those costs along the value chain.The monitoring of external factors relating to customer satisfaction and product differentiation and so on is now seen as an important aspect of management accounting.The ‘Real life’ examples in the chapter illustrate how viability can depend on managing, controlling and reducing costs and why management accounting systems pay so much attention to costs.IAG, to keep insurance premiums as low as possible for its customers and to meet its obligations to shareholders, needs to manage costs in every part of its business. It needs to minimise administration costs, look for savings in its supply chain, use technology to increase efficiency and find synergies within its operations, including achieving cost savings through reducing carbon emissions and managing the environment.The Australian hotel industry,to determine the trade-off between room rates and occupancy (as the room rate goes down, the occupancy level goes up),uses cost classification to help set room prices and manage the yield on providing accommodation.In setting room rates the hotel manager must consider cost behaviour: which costsare variable costs of providing accommodation, such as roomcleaning costs, and which are committedcosts, such as council rates, premises costs and insurance costs. Room rates must be set so that theycover at least the variable cost per room per day. The system identifies the variable costs of the two major products of the hotel: rooms and food and beverages. The variable costs per room tend to be low, whereas the variable costs forfood and beverage service tend to be high. This means that the extra profit that can be earned from each extra night of accommodation sold is high. The key to improving profitability is, therefore, maximising room sales. The appropriate classification of costs helps the hotel industry to understand and manage its costs and profitability.The Japanese experience, where it wantedto retain its competitive advantage in high technology manufacturing but was faced with competing against low labour costs in other Asian countries, has been that some companies have found it cost effective to return their manufacturing operations to Japan.Kenwood returnedto Japan because of a lower foreign exchangerate, higher skills and productivity of Japanese labour, and a reduced need for re-exporting. These factors resulted in costsavings across the value chain of 10 per cent,reduced lead times from two weeks to one or two days and reducedinventory levels from 18 to three days. In Japan a cell production method of small production teams working on a range of tasks is used rather than an assembly line approach.This resultsin labour savings and the flexibility of small production lots to meet customer demand more effectively and quickly. Canon returned to Japan because it identified that costs across the value chain from development through to production and distribution can be managed more efficiently and effectively in Japan by using automation to offset Japan’s relatively higher labour costs.Film makers also need to analyse and manage their costs effectively. In seeking finance, film producers provide detailed budgets of estimated production costs. They need to manage actual costs carefully once production begins. Careful costing becomes even more important in an environment of rising costs and, according tothe Australian Film Commission, the costs of making Australian feature films have increased significantly over time. The Film Finance Corporation Australia (FFC) compared the costs in 1993 and 2001 of shooting the same feature film. Location costs, including council fees, security fees, facilities and cleaning up,rose by more than 380 per cent; equipment, including cameras, grips, lighting and sound, increased by an average of 177 per cent;rentals and storage, including for the art department and office, construction, toilets, cleaning, and editing facilities, increased by 81 per cent; and fringe costs, including cast and crew overtime, night and other loadings, rose by more than 150 per cent.The cost of gold production in Australia has continued to rise and the price of gold is subject to world market supply and demand. Assigning costs to cost objects is important in assessing the future of the gold industry.A key figure for gold miners and their investors is the estimated production cost per ounce for gold. When the gold price in June 1997 fell to $450 per ounce, only nine of the top 25 mines were comfortably covering costs. Recent record prices have more than offset the increase in gold production costs; but gold mining is capital intensive, involving large scale power generation and mining equipment. By the end of 2006 average global mine cash costs had risen to approximately $400 per ounce, and the total production costs including depreciation and other capital expenses had risen to $508 per ounce. There are high energy costs in extracting the ore from the ground and refining it; these processes may need particular attention to reduce environmental costs in a carbon-constrained future.2.3 We often classify information as qualitative or quantitative. We can then furthercategorise quantitative information as financial or non-financial (i.e. representing monetary amounts or numerically representing other measures). However, this question asks the student to first distinguish between financial and non-financial information. The non-financial information can therefore bepresented in the subcategories of qualitative and quantitative information.Many answers are possible.A quick check on the internet will reveal to students that the Australian Open run by Tennis Australia encourages applications for a wide range of jobs, both paid and voluntary. Data is therefore required about the staffing requirements of the Open. Weather information assists with decisions relating to having the roof of centre court open or closed at the start of a match, as only extreme weather eventswill lead to it being closed after the start of the match. The timing of an Australia Day fireworks display in the areaalso affects matches, as they pause matches while the display is on. Weather forecasts can also affect the amount and nature of drinks that are ordered; more cold drinks and ice creams are probably sold during hot spells, whereas colder sessions can create higher demand for hot food and drink. Hotter weather puts a strain on medical services, whereas wet and cold weather can change demand at the tournament clothing outlets. The timing of cricket matches at the neighbouring MCG has an impact on parking and should be known in advance. The number of presold tickets can affect both the number of tickets sold on the day and the number of quick entry lanes for presold tickets (when they have them) needed.Instructor: a useful discussion can focus on which information is quantitative and which is qualitative.2.4Managers in the head office of Qantas could use cost information in planning when theydevelop a budget for their operations during the following year. Included in that budget would be projected costs associated with:existing planes, buildings and equipment (rent, depreciation, maintenance etc.);staff salaries, recruitment and training;food for on-board meals in the different classes of seat (a few years ago there was publicity about how much Qantas saved by cutting one olive from each First Class meal);advertising contracts; and so on. At the end of the year, or each month, this budget would be used for cost control, by comparing the actual costs incurred with projected costs in the budget and analysing variances.2.5Costs can be classified and reported in many different ways, depending on the purposefor which managers will use the information. Students should be careful how they interpret this phrase. It is not really different costs but the same bundle of costs with different cost classifications for different purposes. Cost data that are classified and reported in a particular way for one purpose may be inappropriate for another use.2.6Fixed costs remain constant in total across changes in activity levels, whereas variablecosts change inproportion to the level of activity. Examples are:Fixed costs Variable costsSalaries of permanent staff Casual staff salaries will vary with forecastdemand and the need to cover permanent staffleave arrangementsDepreciation of buildings and equipment Paper and postage costs, while declining, varywith the number of customers who have notadopted the online communication methodsSecurity services:if they are outsourced they are often subject to long-term contracts which would also make them fixed Telephone banking costs and across the counter retail banking may decline as internet banking increasesOther long-term contracts may includethose for cleaningStudents should note that it is important to recognise what a variable cost ‘varies with’.The answer to Question 2.7 is directly relevant here. In the context of a bank it is interesting to discuss the measures of output, the activities and the measures of input;cost is one measure of the inputs (resources consumed) that support the activities that produce the outputs. Costs in the table above can be extended to include those relating to investment activity and community engagement.2.7 When analysing cost behaviour the ‘level of activity’refers to the level of workperformed in the organisation. The activity causes the cost and, for this reason, the level of activity is often referred to as the level of cost driver. Activity can be expressed in many different ways, including units produced, number of machine hours, number of direct labour hours, number of transactions, kilometres driven, kilowatts used, pages printed, number of set-ups, number of engineering hours and so on. In a university, academic teaching activity is variously related to the number of courses/units/subjects prepared and taught, the number of hours of class contact, the number of students taught, marking load and various online teaching tasks.2.8 Cost objects are items for which managers need separate measures of cost. Examplesare:Cost object ‘Real l ife’ examples Reason for management interestcustomer IAG policy holders, hotelindustry guests, bar patrons,restaurant patrons to find out if particular customers are profitableproduct IAG policies, hotel industryaccommodation, food andbeverage;high technology TVs,cameras, printers and so on;afilm; an ounce of goldto find out if a product is profitableactivities IAG claims handling; hotelroom cleaning; assembling TVs;film editing;drilling for gold to obtain activity cost / per unit of activity for estimating the costs of other cost objects such as products, as well as for benchmarkingdepartment IAG policy and claimsdepartments;hotelaccommodation and food andbeverage departments; hightechnology research anddevelopment and administrativedepartments; film locationlogistics; gold refining to evaluate performance against a budget2.9 A direct cost can be traced to a cost object in an economic manner. An indirect costcannot be traced in an economic manner. Many costs could be traced if the organisation was willing to spend resources on tracing the costs. This is why we use the term ‘in an economic manner’. For indirect costs, the benefits of tracing the cost to the cost object are less than the cost of doing so.In an IT department in a law firm, for example, direct costs would include the depreciation of computer hardware, the cost of software and the salary costs of the IT staff. Other direct costs to the department include heating and lighting and depreciation on their office furniture. Costs that are indirect to the department include a share of accounting costs, the use of cleaning staff, and security costs.2.10 Costs that are direct to a plant but indirect to the products they produce include the costof secretarial staff at the plant, the salaries of the manager, telephone and IT costs, the depreciation of buildings, cleaning costs, car park and landscaping costs. Even costs more closely related to the manufacturing process can be direct to the plant but indirect to items produced. Hence, three other costs that could be classified as direct costs of a chemicals production plant but indirect costs of the chemicals produced are rent of factory, factory machine maintenance and factory supervision.2.11Controllable by CEO of the AFL Uncontrollable by CEO of the AFLWages of staff hired by and under the direction of AFL staff Items controlled by others such as the football club managers,e.g. the maintenance of playing arenasCosts for cleaning and security directly managed by AFL staff Items affected by outside influences such as the weather, legislation, and suppliers, e.g. refreshment costsContract items at the time of making the contract. These can include outsourced security, cleaning and so on. Note that lease costs are included here Contract/lease costs during the life of the contractsNote that ‘control’ relates to the manager's degree of influence. There is a broadspectrum between absolute, total control and no influence at all.Absolute and totalcontrol is rare. When we refer to ‘controllable’ we usually mean ‘significant influence’.2.12 The value chain is a set of linked processes or activities that begins with resources andends with providing (and supporting) products (i.e. goods and services) which customers value. Each of these segments can be examined from the viewpoint of providing managers with useful cost information.Research and development costs include building and running laboratories or research facilities, developing and testing new products and obtaining market data to ascertain demand for the product. As competition escalates, managers need to know where their competitive advantage might lie in keeping ahead of the market in introducing new (or modified) products or services.Design costs involve translating the research and development information into productsthat will satisfy customers’ needs. This includes all costs associated with the design of the product and the processes by which it will be produced. It may also require further R & D to be undertaken if the product or process design reaches a point where the firm cannot proceed until additional information is attained. It is important for managers to know the extent of design costs, since these must be recovered over the life of the product. Changing the design of the product can also bring changes in the costs of production, supply and distribution.Supply costs relate to the procurement and receipt of all incoming materials, parts or components related to the production of the product. Included also should be the costs of dealing with various suppliers so that the firm can evaluate its most suitable and cost-effective supplier profile. Managers who have (and fully understand) supply costs will make more effective supplier relationship decisions.Production costs include the costs associated with the collection and assembly of the resources to produce a product or service. Manufacturing costs (as opposed to costs in service environments) are the most common example of production costs and are regarded as those costs which are incurred within the factory area. Managers can use production costs to determine the cost per unit produced, whether this varies with batch size or volume produced, what additional costs are incurred with variations to the product, and so on. Apart from knowing these costs for planning, control and decisionmaking, production costs are required for financial reporting purposes. Marketing costs include costs associated with linking product features with customer needs and wants, together with promoting and selling the product. Managers need these costs to manage a vital part of the value chain, which is often misunderstood—and the total costs of which are often difficult to determine.Distribution costs are any costs associated with getting the finished product into the hands of the customer, and include transport and storage, distribution channel costs and so on. Managers need these costs to determine the most cost-effective way to distribute the product – something which may change over time and with different markets served by the firm.Customerservice (or support)costs comprise all costs incurred in serving or supporting the customer: answering inquiries, providing information about product features, installation, after-sales service, warranties and repairs, and so on. Managers who understand these costs will be better placed to accurately determine customer profitability compared to managers who do not.2.13 Value chain for a computer manufacturer:Value chain segment Examples of costsResearch and development Evaluating the suitability of using new material to manufacture the computersStudy of overseas trends to determine appropriate styles for local marketDesign Developing a new look computerDesigning new functionality into the computers Supply Cost of materialsCustoms duties on imported materialsManufacturing or production Direct materials and direct labour Factory overheadMarketing Media advertising to promote the productSales force costs associated with calling on prospective retailcustomersDistribution Warehousing and storageDelivery to customersCustomer service Warranty claims relating to defective workmanshipAnswering customer queries relating to installation of softwareand so onOnly manufacturing costs are included in the inventory value (shown on the balance sheet) for financial reporting purposes.2.14 The three main components of product cost are direct material, direct labour andmanufacturing overhead. Direct material is the cost of materials consumed in the process of manufacturing the product that can be directly traced to each product. Direct labour is the cost of personnel who work directly on the manufactured product, including salary, wages and labour on-costs. Manufacturing overhead covers all other costs of manufacturing the product that are not direct material or direct labour, including indirect materials, indirect labour and costs of depreciation, insurance, utilities and costs of manufacturing support departments. For example, if we consider Calvin Klein jeans,the cost of the denim used to make the jeans would be classified as direct material, the wages of the workers who cut and sew the jeans would constitute a direct labour cost and the heating and lighting of the assembly area would be part of the manufacturing overhead cost.A useful discussion can cover the classification of stitching thread as indirect material although it could technically be traced to the jeans.However, when fancy stitching is a design feature of the jeans, how should that thread be classified?2.15 Inventoriable cost is another term for product cost.It relates to the costs normallypermitted to be included as product cost for external reporting purposes (i.e. as inventory cost in the list of assets and for the determination of cost of goods sold in the calculation of profit). The term is derived from the storage of the goods as inventory until the goods are sold.2.16 Product costs are costs that are associated with manufactured goods and once they aresold the product costs become expenses. Period costs are those costs that are expensed during the time period in which they are incurred.Examples of each follow:Product costs Period costsDirect labour Upstream costs such as research anddevelopmentDirect material Support service costs such asaccountants’ salaries, depreciation ofoffice equipmentManufacturing overhead such as wages of factory manager and supervisors, machine maintenance, depreciation of factory building and equipment Downstream costs of selling and marketing such as sales personnel salaries, advertising, distribution2.17 In most service firms there is no inventory as the product is consumed as it is produced.All costs are thustreated as period costs.2.18 The four major steps in the flow of costs through a manufacturing company are outlinedin Exhibit 2.6 and described as follows:1 When raw material for manufacturing production is purchased, its cost is added toraw materials inventory.2 As it is consumed in the production, its cost is removed from raw material inventoryand added to work in process inventory account, which records the cost of productson which manufacture has begun but has only partially been completed at balancedate. Work in process inventory also accumulates the costs of direct labour andmanufacturing overhead incurred in the production.3 When products are finished, their costs are transferred from work in processinventory to finished goods inventory, which refers to manufactured goods that arecomplete and ready for sale.4 Finally, when products are sold their costs are transferred from finished goodsinventory to cost of goods sold account, which is an expense during the period whenthe sale is made.2.19 Product cost in a manufacturing context is the cost assigned to goods that aremanufactured. Product cost is classified as an asset and appears on the balance sheet when it moves through the raw material, work in process and finished goods inventories.When the goods are sold, their cost is transferred from finished goods inventory account to cost of goods sold, an expense account, and is deducted from sales revenue to estimate the gross profit appearing on the income statement. As costs are resources given up to obtain future benefits, if the benefits extend beyond the current accounting period, the costs are recorded as assets (e.g. raw material or finished goods inventories accounts). When the benefits from a cost are confined to the current period, the costs are recorded as an expense that is used up in the generation of revenue (e.g. cost of goods sold expense).2.20 Cost of goods manufactured is the total cost of goods that are completed during theperiod and moved to finished goods inventory, and cost of goods sold is the total cost of goods that are sold during the period and removed from finished goods inventory.Cost of goods manufactured can also be distinguished from manufacturing costs. The manufacturing costs are the total cost of resources consumed in production within a particular period. These can include resources still in the production stage at the end of the period.The cost of goods manufactured is the cost of goods finished in the period, even if they were started in a previous period.SOLUTIONS TO EXERCISESEXERCISE 2.21 (10 minutes) Classifying costs of support department; direct, indirect, controllable and uncontrollable costsEXERCISE 2.22 (20 minutes) Classifying product and period costs, variable and fixed costs, manufacturing costs1 Advertising costs: period cost, fixed non-manufacturing cost2 Straight-line depreciation: product cost, fixed manufacturing overhead3 Wages of assembly line workers: product cost, variable, direct labour4 Delivery costs on customer shipments: period cost, variable non-manufacturing cost5 Newsprint consumed: product cost, variable, manufacturing cost (direct material)6 Plant insurance: product cost, fixed, manufacturing cost (manufacturing overhead)7 Glass costs: product cost, variable, direct material8 Tyre costs: product cost, variable, manufacturing cost (direct material)9 Sales commissions: period cost, variable non-manufacturing cost10 Wood glue: product cost, variable, manufacturing cost (either direct material ormanufacturing overhead (i.e., indirect material) depending on how significant the cost is) 11 Wages of security guards: product cost, variable, (manufacturing cost) manufacturingoverhead12 Salary of financial vice president: period cost, fixed non-manufacturing cost EXERCISE 2.23 (20 minutes) Classifying product and period costs, variable and fixed costs, manufacturing costs1 Handbrake pads: product cost, variable, manufacturing cost (direct material)2 Inward shipping costs: product cost, variable, manufacturing cost (direct material)3 Oil consumed by sewing machines: product cost, variable, manufacturing cost(manufacturing overhead)4 Hourly wages of cleaners: period cost, variable, non-manufacturing cost5 Salary of financial controller: period cost, fixed, non-manufacturing cost6 Advertising: period cost, fixed, non-manufacturing cost7 Straight-line depreciation on factory machinery: product cost, fixed, manufacturing cost(manufacturing overhead)8 Wages of assembly workers: product cost, variable, manufacturing cost (direct labour)9 Delivery costs on customer shipments: period cost, variable, non-manufacturing cost10 Printed circuit boards: product cost, variable, manufacturing cost (direct material)11 Plant insurance: product cost, fixed, manufacturing cost (manufacturing overhead)12 Grain costs: product cost, variable, manufacturing cost (direct material)EXERCISE 2.24 (10 minutes) Classifying costs; value chain: manufacturer1 (d)。
管理会计英文版课后习题答案
第二章产品成本计算Exercises2–1（指教材上的第2章练习第1题，下同）1. Part #72A Part #172CSteel* $ 12.00 $ 18.00Setup cost** 6.00 6.00Total $ 18.00 $ 24.00*($1.00 ⨯ 12; $1.00 ⨯ 18)**($60,000/10,000)Steel cost is assigned by calculating a cost per ounce and then multiplying this by the ounces used by each part:Cost per ounce = $3,000,000/3,000,000 ounces= $1.00 per ounceSetup cost is assigned by calculating the cost per setup and then dividing this by the number of units in each batch (there are 20 setups per year):Cost per setup = $1,200,000/20= $60,0002. The cost of steel is assigned through the driver tracing using thenumber of ounces of steel, and the cost of the setups is assigned through driver tracing also using number of setups as the driver.3. The assumption underlying number of setups as the driver is thateach part uses an equal amount of setup time. Since Part #72A uses double the setup time of Part #172C, it makes sense to assign setup costs based on setup time instead of number of setups. This illustrates the importance of identifying drivers that reflect the true underlying consumption pattern. Using setup hours [(40 ⨯ 10) + (20 ⨯10)], we get the following rate per hour:Cost per setup hour = $1,200,000/600= $2,000 per hourThe cost per unit is obtained by dividing each part’s total setup costs by the number of units:Part #72A = ($2,000 ⨯ 400)/100,000 = $8.00Part #172C = ($2,000 ⨯ 200)/100,000 = $4.00Thus, Part #72A has its unit cost increased by $2.00, while Part #172C has its unit cost decreased by $2.00.problems2–51. Nursing hours required per year: 4 ⨯ 24 hours ⨯ 364 days* = 34,944*Note: 364 days = 7 days ⨯ 52 weeksNumber of nurses = 34,944 hrs./2,000 hrs. per nurse = 17.472Annual nursing cost = (17 ⨯ $45,000) + $22,500= $787,500Cost per patient day = $787,500/10,000 days= $78.75 per day (for either type of patient)2. Nursing hours act as the driver. If intensive care uses half of thehours and normal care the other half, then 50 percent of the cost is assigned to each patient category. Thus, the cost per patient day by patient category is as follows:Intensive care = $393,750*/2,000 days= $196.88 per dayNormal care = $393,750/8,000 days= $49.22 per day*$525,000/2 = $262,500The cost assignment reflects the actual usage of the nursing resource and, thus, should be more accurate. Patient days would be accurate only if intensive care patients used the same nursing hours per day as normal care patients.3. The salary of the nurse assigned only to intensive care is a directlytraceable cost. To assign the other nursing costs, the hours of additional usage would need to be measured. Thus, both direct tracing and driver tracing would be used to assign nursing costs for this new setting.2–61. Bella Obra CompanyStatement of Cost of Services SoldFor the Year Ended June 30, 2006 Direct materials:.............................................................................. Beginninginventory .............................................................. $ 300,000.............................................................................. Add: Purchases 600, .............................................................................. Materials available $ 900, .............................................................................. Less: Endinginventory .............................................................. 450,000*Direct materials used .......................................... $ 450,000 Direct labor .......................................................... 12,000,0 Overhead .............................................................. 1,500,00 Total service costs added .................................. $ 13,950,0 Add: Beginning work in process ....................... 900,000 Total production costs ........................................ $ 14,850,0 Less: Ending work in process ........................... 1,500,00 Cost of services sold .......................................... $ 13,350,0 *Materials available less materials used2. The dominant cost is direct labor (presumably the salaries of the 100professionals). Although labor is the major cost of providing manyservices, it is not always the case. For example, the dominant costfor some medical services may be overhead (e.g., CAT scans). Insome services, the dominant cost may be materials (e.g., funeralservices).3. Bella Obra CompanyIncome StatementFor the Year Ended June 30, 2006 Sales ..................................................................... $ 21,000,0 Cost of services sold .......................................... 13,350,0 Gross margin ....................................................... $ 7,650,00 Less operating expenses:.............................................................................. Selling expenses $ 900, .............................................................................. Administrativeexpenses ............................................................................................................................... 750,000.............................................................. 1,650,000Income before income taxes .............................. $ 6,000,00 4. Services have four attributes that are not possessed by tangibleproducts: (1) intangibility, (2) perishability, (3) inseparability, and (4)heterogeneity. Intangibility means that the buyers of services cannotsee, feel, hear, or taste a service before it is bought. Perishabilitymeans that services cannot be stored. This property affects thecomputation in Requirement 1. Inability to store services means thatthere will never be any finished goods inventories, thus making thecost of services produced equivalent to cost of services sold.Inseparability simply means that providers and buyers of servicesmust be in direct contact for an exchange to take place.Heterogeneity refers to the greater chance for variation in theperformance of services than in the production of tangible products.2–71. Direct materials:Magazine (5,000 ⨯ $0.40) $ 2,000Brochure (10,000 ⨯ $0.08) 800 $ 2,800 Direct labor:Magazine [(5,000/20) ⨯ $10] $ 2,500Brochure [(10,000/100) ⨯ $10] 1,000 3,500 Manufacturing overhead:Rent $ 1,400Depreciation [($40,000/20,000) ⨯ 350*] 700Setups 600Insurance 140Power 350 3,190 Cost of goods manufactured $ 9,490*Production is 20 units per printing hour for magazines and 100units per printing hour for brochures, yielding monthly machinehours of 350 [(5,000/20) + (10,000/100)]. This is also monthly laborhours, as machine labor only operates the presses.2. Direct materials $ 2,800Direct labor 3,500Total prime costs $ 6,300Magazine:Direct materials $ 2,000Direct labor 2,500Total prime costs $ 4,500Brochure:Direct materials $ 800Direct labor 1,000Total prime costs $ 1,800Direct tracing was used to assign prime costs to the two products.3. Total monthly conversion cost:Direct labor $ 3,500Overhead 3,190Total $ 6,690Magazine:Direct labor $ 2,500 Overhead:Power ($1 ⨯ 250) $ 250Depreciation ($2 ⨯ 250) 500Setups (2/3 ⨯ $600) 400Rent and insurance ($4.40 ⨯ 250 DLH)* 1,100 2,250 Total $ 4,750 Brochure:Direct labor $ 1,000 Overhead:Power ($1 ⨯ 100) $ 100Depreciation ($2 ⨯ 100) 200Setups (1/3 ⨯ $600) 200Rent and insurance ($4.40 ⨯ 100 DLH)* 440 940 Total $ 1,940 *Rent and insurance cannot be traced to each product so the costsare assigned using direct labor hours: $1,540/350 DLH = $4.40 perdirect labor hour. The other overhead costs are traced according totheir usage. Depreciation and power are assigned by using machine hours (250 for magazines and 100 for brochures): $350/350 = $1.00 per machine hour for power and $40,000/20,000 = $2.00 per machine hour for depreciation. Setups are assigned according to the time required. Since magazines use twice as much time, they receive twice the cost: Letting X = the proportion of setup time used for brochures, 2X + X = 1 implies a cost assignment ratio of 2/3 for magazines and 1/3 for brochures.Exercises3–11. Resource Total Cost Unit CostPlastic1$ 10,800 $0.027Direct labor andvariable overhead28,000 0.020Mold sets320,000 0.050Other facility costs410,000 0.025 Total $ 48,800 $0.12210.90 ⨯ $0.03 ⨯ 400,000 = $10,800; $10,800/400,000 = $0.0272$0.02 ⨯ 400,000 = $8,000; $8,000/400,000 = $0.023$5,000 ⨯ 4 quarters = $20,000; $20,000/400,000 = $0.054$10,000; $10,000/400,000 = $0.0252. Plastic, direct labor, and variable overhead are flexible resources;molds and other facility costs are committed resources. The cost of plastic, direct labor, and variable overhead are strictly variable. The cost of the molds is fixed for the particular action figure being produced; it is a step cost for the production of action figures in general. Other facility costs are strictly fixed.3–3High (1,400, $7,950); Low (700, $5,150)V = ($7,950 – $5,150)/(1,400 – 700)= $2,800/700 = $4 per oil changeF = $5,150 – $4(700)= $5,150 – $2,800 = $2,350Cost = $2,350 + $4 (oil changes)Predicted cost for January = $2,350 + $4(1,000) = $6,350problems3–61. High (1,700, $21,000); Low (700, $15,000)V = (Y2– Y1)/(X2– X1)= ($21,000 – $15,000)/(1,700 – 700) = $6 per receiving orderF = Y2– VX2= $21,000 – ($6)(1,700) = $10,800Y = $10,800 + $6X2. Output of spreadsheet regression routine with number of receivingorders as the independent variable:Constant 4512.98701298698 Std. Err. of Y Est. 3456.24317476605 R Squared 0.633710482694768 No. of10ObservationsDegrees of8 FreedomX Coefficient(s) 13.3766233766234Std. Err. of Coef. 3.59557461331427V = $13.38 per receiving order (rounded)F = $4,513 (rounded)Y = $4,513 + $13.38XR2 = 0.634, or 63.4%Receiving orders explain about 63.4 percent of the variability in receiving cost, providing evidence that Tracy’s choi ce of a cost driver is reasonable. However, other drivers may need to beconsidered because 63.4 percent may not be strong enough to justify the use of only receiving orders.3. Regression with pounds of material as the independent variable:Constant 5632.28109733183 Std. Err. of Y Est. 2390.10628259277 R Squared 0.824833789433823 No. of10ObservationsDegrees of8 FreedomX Coefficient(s) 0.0449642991356633Std. Err. of Coef. 0.0073259640055344V = $0.045 per pound of material delivered (rounded)F = $5,632 (rounded)Y = $5,632 + $0.045XR2 = 0.825, or 82.5%Pounds of material delivered explains about 82.5 percent of the variability in receiving cost. This is a better result than that of the receiving orders and should convince Tracy to try multiple regression.4. Regression routine with pounds of material and number of receiving orders as the independent variables:Constant 752.104072925631 Std. Err. of Y Est. 1350.46286973443 R Squared 0.951068418023306 No. of10ObservationsDegrees of7 FreedomX Coefficient(s) 0.0333883151096915 7.14702865269395 Std. Err. of Coef. 0.00495524841198368 1.68182916088492 V1= $0.033 per pound of material delivered (rounded)V2= $7.147 per receiving order (rounded)F = $752 (rounded)Y = $752 + $0.033a + $7.147bR2= 0.95, or 95%Multiple regression with both variables explains 95 percent of thevariability in receiving cost. This is the best result.5–21. Job #57 Job #58 Job #59Balance, 7/1 $ 22,450 $ 0 $ 0Direct materials 12,900 9,900 35,350Direct labor 20,000 6,500 13,000Applied overhead:Power 750 600 3,600Material handling 1,500 300 6,000Purchasing 250 1,000 250 Total cost $ 57,850 $ 18,300 $ 58,2002. Ending balance in Work in Process = Job #58 = $18,3003. Ending balance in Finished Goods = Job #59 = $58,2004. Cost of Goods Sold = Job #57 = $57,850problems5–31. Overhead rate = $180/$900 = 0.20 or 20% of direct labor dollars.(This rate was calculated using information from the Ladan job;however, the Myron and Coe jobs would give the same answer.)2. Ladan Myron Coe Walker WillisBeginning WIP $ 1,730 $1,180 $2,500 $ 0 $ 0 Direct materials 400 150 260 800 760 Direct labor 800 900 650 350 900 Applied overhead 160 180 130 70 180 Total $ 3,090 $2,410 $3,540 $ 1,220 $ 1,840 Note: This is just one way of setting up the job-order cost sheets.You might prefer to keep the detail on the materials, labor, andoverhead in beginning inventory costs.3. Since the Ladan and Myron jobs were completed, the others muststill be in process. Therefore, the ending balance in Work in Process is the sum of the costs of the Coe, Walker, and Willis jobs.Coe $3,540Walker 1,220Willis 1,840Ending Work in Process $6,600Cost of Goods Sold = Ladan job + Myron job = $3,090 + $2,410 = $5,5004. Naman CompanyIncome StatementFor the Month Ended June 30, 20XXSales (1.5 ⨯ $5,500) ................................................................... $8,250 Cost of goods sold ................................................................... 5,500 Gross margin ............................................................................ $2,750 Marketing and administrative expenses ................................ 1,200 Operating income ..................................................................... $1,550 5–201. Overhead rate = $470,000/50,000 = $9.40 per MHr2. Department A: $250,000/40,000 = $6.25 per MHrDepartment B: $220,000/10,000 = $22.00 per MHr3. Job #73 Job #74Plantwide:70 ⨯ $9.40 = $658 70 ⨯ $9.40 = $658Departmental:20 ⨯ $6.25 $ 125.00 50 ⨯ $6.25 $ 312.5050 ⨯ $22 1,100.00 20 ⨯ $22 440.00$ 1,225.00 $ 752.50Department B appears to be more overhead intensive, so jobs spending more time in Department B ought to receive more overhead. Thus, departmental rates provide more accuracy.4. Plantwide rate: $250,000/40,000 = $6.25Department B: $62,500/10,000 = $6.25Job #73 Job #74Plantwide:70 ⨯ $6.25 = $437.50 70 ⨯ $6.25 = $437.50Departmental:20 ⨯ $6.25 $ 125.00 50 ⨯ $6.25 $ 312.5050 ⨯ $6.25 312.50 20 ⨯ $6.25 125.00$ 437.50 $ 437.50 Assuming that machine hours is a good cost driver, the departmental rates reveal that overhead consumption is the same in each department. In this case, there is no need for departmental rates, anda plantwide rate is sufficient.5–41. Overhead rate = $470,000/50,000 = $9.40 per MHr2. Department A: $250,000/40,000 = $6.25 per MHrDepartment B: $220,000/10,000 = $22.00 per MHr3. Job #73 Job #74Plantwide:70 ⨯ $9.40 = $658 70 ⨯ $9.40 = $658Departmental:20 ⨯ $6.25 $ 125.00 50 ⨯ $6.25 $ 312.5050 ⨯ $22 1,100.00 20 ⨯ $22 440.00$ 1,225.00 $ 752.50 Department B appears to be more overhead intensive, so jobs spending more time in Department B ought to receive more overhead. Thus, departmental rates provide more accuracy.4. Plantwide rate: $250,000/40,000 = $6.25Department B: $62,500/10,000 = $6.25Job #73 Job #74Plantwide:70 ⨯ $6.25 = $437.50 70 ⨯ $6.25 = $437.50Departmental:20 ⨯ $6.25 $ 125.00 50 ⨯ $6.25 $ 312.5050 ⨯ $6.25 312.50 20 ⨯ $6.25 125.00$ 437.50 $ 437.50 Assuming that machine hours is a good cost driver, the departmental rates reveal that overhead consumption is the same in each department. In this case, there is no need for departmental rates, anda plantwide rate is sufficient.5–51. Last year’s unit-based overhead rate = $50,000/10,000 = $5This year’s unit-based overhead rate = $100,000/10,000 = $10Last Year This Year Bike cost:2 ⨯ $20 $ 40 $ 403 ⨯ $12 36 36Overhead:5 ⨯ $5 255 ⨯ $10 50Total $101 $126P rice last year = $101 ⨯ 1.40 = $141.40/dayPrice this year = $126 ⨯ 1.40 = $176.40/dayThis is a $35 increase over last year, nearly a 25 percent increase. No doubt the Carsons are not pleased and would consider looking around for other recreational possibilities.2. Purchasing rate = $30,000/10,000 = $3 per purchase orderPower rate = $20,000/50,000 = $0.40 per kilowatt hourMaintenance rate = $6,000/600 = $10 per maintenance hourOther rate = $44,000/22,000 = $2 per DLHBike Rental Picnic Catering Purchasing$3 ⨯ 7,000 $21,000$3 ⨯ 3,000 $ 9,000 Power$0.40 ⨯ 5,000 2,000$0.40 ⨯ 45,000 18,000 Maintenance$10 ⨯ 500 5,000$10 ⨯ 100 1,000 Other$2 ⨯ 11,000 22,000 22,000 Total overhead $50,000 $50,000 3. This year’s bike rental overhead rate = $50,000/10,000 = $5Carson rental cost = (2 ⨯ $20) + (3 ⨯ $12) + (5 ⨯ $5) = $101Price = 1.4 ⨯ $101 = $141.40/day4. Catering rate = $50,000/11,000 = $4.55* per DLHCost of Estes job:Bike rental rate (2 ⨯ $7.50) $15.00Bike conversion cost (2 ⨯ $5.00) 10.00Catering materials 12.00Catering conversion (1 ⨯ $4.55) 4.55Total cost $41.55*Rounded5. The use of ABC gives Mountain View Rentals a better idea of thetypes and costs of activities that are used in their business. Adding Level 4 bikes will increase the use of the most expensive activities, meaning that the rental rate will no longer be an average of $5 per rental day. Mountain View Rentals might need to set a Level 4 price based on the increased cost of both the bike and conversion cost.分步成本法6–11. C utting Sewing PackagingDepartment Department Department Direct materials $5,400 $ 900 $ 225 Direct labor 150 1,800 900 Applied overhead 750 3,600 900 Transferred-in cost:From cutting 6,300From sewing 12,600 Total manufacturing cost $6,300 $12,600 $14,625 2. a. Work in Process—Sewing ................. 6,300Work in Process—Cutting .......... 6,300b. Work in Process—Packaging ............ 12,600Work in Process—Sewing .......... 12,600c. Finished Goods ................................... 14,625Work in Process—Packaging ..... 14,6253. Unit cost = $14,625/600 = $24.38* per pair6–21. Units transferred out: 27,000 + 33,000 – 16,200 = 43,8002. Units started and completed: 43,800 – 27,000 = 16,8003. Physical flow schedule:Units in beginning work in process 27,000Units started during the period 33,000 Total units to account for 60,000 Units started and completed 16,800Units completed from beginning work in process 27,000Units in ending work in process 16,200 Total units accounted for 60,0004. Equivalent units of production:Materials Conversion Units completed 43,800 43,800 Add: Units in ending work in process:(16,200 ⨯ 100%) 16,200(16,200 ⨯ 25%) 4,050 Equivalent units of output 60,000 47,850 6–31. Physical flow schedule:Units to account for:Units in beginning work in process 80,000 Units started during the period 160,000 Total units to account for 240,000 Units accounted for:Units completed and transferred out:Started and completed 120,000From beginning work in process 80,000 200,000 Units in ending work in process 40,000 Total units accounted for 240,000 2. Units completed 200,000Add: Units in ending WIP ⨯ Fraction complete(40,000 ⨯ 20%) 8,000 Equivalent units of output 208,0003. Unit cost = ($374,400 + $1,258,400)/208,000 = $7.854. Cost transferred out = 200,000 ⨯ $7.85 = $1,570,000Cost of ending WIP = 8,000 ⨯ $7.85 = $62,8005. Costs to account for:Beginning work in process $ 374,400Incurred during June 1,258,400Total costs to account for $ 1,632,800Costs accounted for:Goods transferred out $ 1,570,000Goods in ending work in process 62,800 Total costs accounted for $ 1,632,8006–31、Units t0 account for:Units in beginning work in process(25% completed) 10000 Units started during the period 70000 Total units to account for 80000 Units accounted forUnits completed and transferred outStarted and completed 50000From beginning work in process 10000 60000 Units in ending work in process(60% completed) 20000 Total units accounted for 80000 2、60000+20000×60%=72000（units ） 3、Unit cost for materials:4900035100056000020000+=+（$/unit ）Unit cost for convension:2625787351.136000012000+=+（$/unit ）Total unit cost:5+1.13=6.13（$/unit ）4、The cost of units of transferred out:60000×6.13=367800($)The cost of units of ending work in process:20000×5+20000×20%×1.13=113560($)作业成本法4–21. Predetermined rates:Drilling Department: Rate = $600,000/280,000 = $2.14* per MHrAssembly Department: Rate = $392,000/200,000= $1.96 per DLH*Rounded2. Applied overhead:Drilling Department: $2.14 ⨯ 288,000 = $616,320Assembly Department: $1.96 ⨯ 196,000 = $384,160Overhead variances:Drilling Assembly Total Actual overhead $602,000 $ 412,000 $ 1,014,000 Applied overhead 616,320 384,160 1,000,480 Overhead variance $ (14,320) over $ 27,840 under $ 13,520 3. Unit overhead cost = [($2.14 ⨯ 4,000) + ($1.96 ⨯ 1,600)]/8,000= $11,696/8,000= $1.46**Rounded4–31. Yes. Since direct materials and direct labor are directly traceable toeach product, their cost assignment should be accurate.2. Elegant: (1.75 ⨯ $9,000)/3,000 = $5.25 per briefcaseFina: (1.75 ⨯ $3,000)/3,000 = $1.75 per briefcaseNote: Overhead rate = $21,000/$12,000 = $1.75 per direct labor dollar (or 175 percent of direct labor cost).There are more machine and setup costs assigned to Elegant thanFina. This is clearly a distortion because the production of Fina isautomated and uses the machine resources much more than thehandcrafted Elegant. In fact, the consumption ratio for machining is0.10 and 0.90 (using machine hours as the measure of usage). Thus,Fina uses nine times the machining resources as Elegant. Setupcosts are similarly distorted. The products use an equal number of setups hours. Yet, if direct labor dollars are used, then the Elegant briefcase receives three times more machining costs than the Finabriefcase.3. Overhead rate = $21,000/5,000= $4.20 per MHrElegant: ($4.20 ⨯ 500)/3,000 = $0.70 per briefcaseFina: ($4.20 ⨯ 4,500)/3,000 = $6.30 per briefcaseThis cost assignment appears more reasonable given the relativedemands each product places on machine resources. However, oncea firm moves to a multiproduct setting, using only one activity driverto assign costs will likely produce product cost distortions. Productstend to make different demands on overhead activities, and thisshould be reflected in overhead cost assignments. Usually, thismeans the use of both unit- and nonunit-level activity drivers. In thisexample, there is a unit-level activity (machining) and a nonunit-levelactivity (setting up equipment). The consumption ratios for each(using machine hours and setup hours as the activity drivers) are asfollows:Elegant FinaMachining 0.10 0.90 (500/5,000 and4,500/5,000)Setups 0.50 0.50 (100/200 and 100/200)Setup costs are not assigned accurately. Two activity rates areneeded—one based on machine hours and the other on setup hours:Machine rate: $18,000/5,000 = $3.60 per MHrSetup rate: $3,000/200 = $15 per setup hourCosts assigned to each product:Machining: Elegant Fina$3.60 ⨯ 500 $ 1,800$3.60 ⨯ 4,500 $ 16,200Setups:$15 ⨯ 100 1,500 1,500Total $ 3,300 $ 17,700Units ÷3,000 ÷3,000Unit overhead cost $ 1.10 $ 5.904：Elegant Unit overhead cost：[9000+3000+18000*500/5000+3000/2]/3000=$5.1 Fina Unit overhead cost：[3000+3000+18000*4500/5000+3000/2]/3000=$7.94–51. Deluxe Percent Regular PercentPrice $900 100% $750 100%Cost 576 64 600 80Unit gross profit $324 36% $150 20% Total gross profit:($324 ⨯ 100,000) $32,400,000($150 ⨯ 800,000) $120,000,000 2. Calculation of unit overhead costs:Deluxe gularUnit-level:Machining:$200 ⨯ 100,000 $20,000,000$200 ⨯ 300,000 $60,000,000 Batch-level:Setups:$3,000 ⨯ 300 900,000$3,000 ⨯ 200 600,000 Packing:$20 ⨯ 100,000 2,000,000$20 ⨯ 400,000 8,000,000 Product-level:Engineering:$40 ⨯ 50,000 2,000,000$40 ⨯ 100,000 4,000,000 Facility-level:Providing space:$1 ⨯ 200,000 200,000$1 ⨯ 800,000 800,000 Total overhead $25,100,000 $73,400,000 Units ÷100,000 ÷ 800,000 Overhead per unit $251 $91.75Deluxe Percent Regular Percent Price $900 100% $750.00 100% Cost 780* 87*** 574.50** 77*** Unit gross profit $120 13%*** $175.50 23%*** Total gross profit:($120 ⨯ 100,000) $12,000,000($175.50 ⨯ 800,000) $140,400,000*$529 + $251**$482.75 + $91.753. Using activity-based costing, a much different picture of the deluxeand regular products emerges. The regular model appears to be more profitable. Perhaps it should be emphasized.4–61. JIT Non-JITSales a$12,500,000 $12,500,000Allocation b750,000 750,000a$125 ⨯100,000, where $125 = $100 + ($100 ⨯0.25), and 100,000 is the average order size times the number of ordersb0.50 ⨯ $1,500,0002. Activity rates:Ordering rate = $880,000/220 = $4,000 per sales orderSelling rate = $320,000/40 = $8,000 per sales callService rate = $300,000/150 = $2,000 per service callJIT Non-JIT Ordering costs:$4,000 ⨯ 200 $ 800,000$4,000 ⨯ 20 $ 80,000 Selling costs:$8,000 ⨯ 20 160,000$8,000 ⨯ 20 160,000 Service costs:$2,000 ⨯ 100 200,000$2,000 ⨯ 50 100,000 T otal $1,160,000 $340,0 0For the non-JIT customers, the customer costs amount to $750,000/20 = $37,500 per order under the original allocation. Using activity assignments, this drops to $340,000/20 = $17,000 per order, a difference of $20,500 per order. For an order of 5,000 units, the order price can be decreased by $4.10 per unit without affecting customer profitability. Overall profitability will decrease, however, unless the price for orders is increased to JIT customers.3. It sounds like the JIT buyers are switching their inventory carryingcosts to Emery without any significant benefit to Emery. Emery needs to increase prices to reflect the additional demands on customer-support activities. Furthermore, additional price increases may be needed to reflect the increased number of setups, purchases, and so on, that are likely occurring inside the plant. Emery should also immediately initiate discussions with its JIT customers to begin negotiations for achieving some of the benefits that a JIT supplier should have, such as long-term contracts. The benefits of long-termcontracting may offset most or all of the increased costs from the additional demands made on other activities.4–71. Supplier cost:First, calculate the activity rates for assigning costs to suppliers: Inspecting components: $240,000/2,000 = $120 per sampling hourReworking products: $760,500/1,500 = $507 per rework hourWarranty work: $4,800/8,000 = $600 per warranty hourNext, calculate the cost per component by supplier:Supplier cost:Vance Foy Purchase cost:$23.50 ⨯ 400,000 $ 9,400,000$21.50 ⨯ 1,600,000 $ 34,400,000Inspecting components:$120 ⨯ 40 4,800$120 ⨯ 1,960 235,200Reworking products:$507 ⨯ 90 45,630$507 ⨯ 1,410 714,870Warranty work:$600 ⨯ 400 240,000$600 ⨯ 7,600 4,560,000 Total supplier cost $ 9,690,430 $ 39,910,070 Units supplied ÷400,000 ÷1,600,000 Unit cost $ 24.23* $ 24.94**RoundedThe difference is in favor of Vance; however, when the price concession is considered, the cost of Vance is $23.23, which is less than Foy’s component. Lumus should accept the contractual offer made by Vance.4–7 Concluded2. Warranty hours would act as the best driver of the three choices.Using this driver, the rate is $1,000,000/8,000 = $125 per warranty hour. The cost assigned to each component would be:Vance Foy。
管理会计(双语)-2
indirect costs(overheads) indirect manufacturing expenses(overheads) indirect administrative expense (overheads) indirect selling expense (overheads)
Specific order costing job costing batch costing contract costing Operation costing process costing service costing
3. cost behaviour
Fixed cost Variable cost Semi-variable cost Stepped cost(semi-fixed cost)
Materials costs, labor costs and other expenses
simple and straightforward
Direct and indirect costs
Direct costs direct material costs direct labor costs direct expenses
1. Cost and Classification of costs
Different ways in which costs can be classified 1.functional costs 2.materials costs, labor costs and other expenses 3.direct and indirect costs 4.product or service costs and period costs
管理会计双语第2章
Quantity
Job No. _____ Unit cost Amount
GENERAL JOURNAL
DATE DESCRIPTION
REF
DEBIT
CREDIT
Work in process inventory Manufacturing overhead Materials inventory
Actual Overhead Costs Overhead Allocated
Work in process
Direct Materials Direct Labor Overhead Allocated
Actual vs Predetermined If actual rate is computed monthly or quarterly, seasonal factors in overhead costs or in the allocation base can fluctuate in the overhead rate and such fluctuations serve no meaningful purpose The manufacturing overhead for a particular job may not be known until the end of the year while these jobs have completed and shipped to customers.
Job Cost Record Job No. Customer Name and Address Job Description Date Promised Direct Materials Requisition No.
双语 管理会计
Fundamental Concepts
Chapter 2 (cont.)
基础概念 第2章（续）
Compare, contrast, and compute 比较，对照与计算
Gross margin.销货毛利 Contribution margin. 边际贡献 Profit margin. 边际利润 Compare and contrast income statements prepared for managerial use and those prepared for external reporting. 比较并对照用管理目的与用于外部报表的损益 表
Distinguish between resources used and resources supplied 区别已使用资源及已供应资源. Identify the advantages of activity-based reporting for unused resources. 明确未使用资源的作业管理基础报告的优点
Understanding the value chain concept in preparing income statements for managerial use. 了解编制管理用损益表时所应用的价值链概念
•al Decision Making
Chapter 3
管理决策的制定 第3章
Understand the importance of effective communication among users of managerial accounting information 理解使用管理会计信息进行有些沟通的重要性
Describe how managerial accounting supports the new production environment. 描述管理会计如何支持新的生产环境的
管理会计第五版(英文版)课后题答案第二章
Cost ManagementConcepts and CostBehaviorQUESTIONS2-1Cost information is used in deciding whether to introduce a new product or discontinue an existing product (given the price and cost structure), assessing the efficiency of a particular operation, and budgeting. Cost information is also used for the valuation of inventory and cost of goods sold.2-2Different types of cost information are needed for different managerial purposes and decisions. For example, product cost information is used for product mix and pricing decisions. The cost of serving customer segments will include the cost of activities that support customer service. For management control purposes, an organization may compare actual costs to budgeted (standard) costs.2-3 A cost object is something for which it is desired to compute a cost. Examples of cost objects include a product, a product line, or an organizational unit such as the call center that responds to customers’ phone calls.2-4 A direct cost is a cost of a resource or activity that is acquired for or used by a single cost object and is easily traced to the cost object, such as a product manufactured or service rendered. An indirect cost is the cost of a resource that was acquired to be used by more than one cost object. Indirect costs cannot be easily identified with individual cost objects.2-5Variable costs are the costs of variable resources, whose costs are proportional to the amount of the resource used. Fixed costs are the costs of capacity-related resources, which are acquired and paid for in advance of when the work is done. Fixed costs depend on how much of the resource (capacity) is acquired, rather than on how much is used. Depreciation on machinery is an example of a fixed cost.– 29 –Atkinson, Solutions Manual t/a Management Accounting, 5E2-6Variable costs can be direct or indirect. For example, suppose the cost object isa passenger on an airplane. The cost of complimentary refreshments varies inproportion to the number of passengers, and is a direct variable cost. The cost of fuel varies with the number of flights (and perhaps to a small extent with respect the total weight of the passengers and their luggage, which is related to the number of passengers). The cost of the fuel that varies with the number of flights is an indirect variable cost.In some cases, direct variable costs may be treated as indirect costs if it is inconvenient to account for them as direct costs and the cost is only a small part of total costs. Costs for materials such as glue or thread, for example, are variable costs with respect to products but are generally a very small part of product cost. These costs are consequently often labeled as indirect materials and included with manufacturing overhead.2-7Fixed costs can be direct or indirect. For example, in the case of a multi-product firm that acquires a special piece of equipment for the exclusive use of one product, that equipment would be fixed and direct to the product that uses it. If the equipment will be used to produce multiple products, its cost will be indirect.2-8For external reporting, costs in a manufacturing firm are classified as product costs or period costs. The portion of product costs assigned to the products sold in a period appears as cost of goods sold expense in that period’s income statement; the remaining portion of product costs is assigned to the products in inventory and appears as an asset in the balance sheet. Period costs are expensed in the period incurred.2-9Costs represent the monetary value of goods and services expended to obtain current or future benefits. Expenses reported in the income statement are the costs of assets that the financial accountant deems have been used up when goods or services are sold (e.g., cost of goods sold), or period costs, whose benefits are not easily matched with products or services sold in a specific period (e.g., advertising).2-10The two principal categories of manufacturing costs are direct manufacturing costs (traced or assigned to the products that created those costs) and indirect manufacturing costs (allocated to products).– 30 –Chapter 2: Cost Management Concepts and Cost Behavior 2-11Only the manufacturing costs are included in the valuation of finished goods inventory. Therefore, traditional cost accounting systems, designed for valuing inventory, analyze these costs in greater detail in order to assign them to individual products.2-12Inside the organization, costs serve two broad purposes: planning and evaluation. Cost calculations can be tailored to a specific purpose. For example, for planning purposes, cost might serve as a reference point for determining the selling price of a prospective product, or might be used in a budgeting model to forecast costs under different levels of production and selling activities. Evaluation purposes occur, for example, when comparing actual costs to budgeted (standard) costs or when judging whether a process is efficient compared with the costs of similar internal or external processes.2-13Contribution margin per unit is the difference between revenue per unit and variable cost per unit. The contribution margin is an important component of the equation to determine the breakeven point. It is also used to help evaluate whether or not an investment in a business venture can be profitable.2-14In evaluating whether a business venture will be profitable, the breakeven point is the volume at which the profit equals zero, that is, revenues equal costs.2-15The most accurate and complete cost system possible may be inordinately costly to implement. Although it is often difficult to compute the value of usinga particular cost system, in principle the benefit should outweigh the cost of thesystem.2-16An opportunity cost is the sacrifice one makes when using a resource for one purpose instead of another.2-17Short-run is the period over which a decision-maker cannot adjust capacity.Short-run costs are variable costs, which vary in proportion to production.Long-run costs are the sum of variable and fixed costs associated with a cost object. Long-run costs are important for product planning purposes because they are an estimate of the cost of the all the resources consumed to make the product.2-18In the early part of the twentieth century, when formal cost systems were first installed at many businesses, direct labor comprised a large proportion of the total manufacturing cost. In today’s industrial environment, direct labor comprises a much smaller portion of the total costs, while the share of indirect costs has grown considerably. As a result, cost accounting systems must now– 31 –Atkinson, Solutions Manual t/a Management Accounting, 5Eanalyze indirect costs in greater detail to reflect their true behavior. Cost accounting systems that use volume measures to allocate indirect costs may be very inaccurate.2-19The five categories of production-related activities and their descriptions are listed below.1. Unit-related activities relate directly to the number of units produced(e.g., direct labor costs).2. Batch-related activities relate to the number of batches produced ratherthan the number of units produced (e.g., machine setups).3.Product-sustaining activities are performed to support the production andsale of individual products (e.g., product design).4.Customer-sustaining activities enable the company to sell to anindividual customer but are independent of the volume and mix of theproducts and services sold and delivered to the customer (e.g., technicalsupport provided to individual customers).5.Business-sustaining activities are required to support the upkeep of theplant or the basic functioning of the plant or the business (e.g., rent, plantmaintenance, a nd CEO’s salary).2-20Customer-related costs have attracted increasing attention in recent years because they are large and growing in many organizations. Furthermore, the costs can vary widely across different customers or customer segments.Organizations may use customer cost information to decide which customers or customer groups to retain or de-emphasize, or to decide on differential service fees to cover costs of services.EXERCISES2-21(a) Manufacturing (g) Nonmanufacturing(b) Nonmanufacturing (h) Nonmanufacturing(c)Nonmanufacturing (i) Manufacturing(d)Nonmanufacturing (j) Nonmanufacturing(e)Manufacturing (k) Nonmanufacturing(f) Nonmanufacturing (l) Nonmanufacturing– 32 –Chapter 2: Cost Management Concepts and Cost Behavior 2-22(a) Indirect (g) Indirect(b) Direct (h) Indirect(c)Direct (i) Direct(d)Indirect (j) Indirect(e)Direct (k) Direct(f) Indirect (l) Indirect2-23(a) Unit-related (g) Product-sustaining(b) Batch-related (h) Business-sustaining(c)Product-sustaining (i) Batch-related(d)Business-sustaining (j) Batch-related(e)Unit-related (k) Business-sustaining(f) Batch-related (l) Product-sustaining2-24(a) Unit- or batch-related (g) Business-sustaining(b) Batch-related (h) Product-sustaining(c)Product-sustaining (i) Business-sustaining(d)Business-sustaining (j) Business-sustaining(e)Batch-related (k) Business-sustaining(f)Unit-related (l) Unit-related2-25(a) Fixed(b)Variable(c)Variable(d)Fixed(e)Variable(f)Fixed(g)Fixed or variable (if number of billing clerks can vary in the short run)(h)Variable(i)Variable(j)Variable(k)Fixed– 33 –Atkinson, Solutions Manual t/a Management Accounting, 5E2-26(a) Variable(b)Fixed or variable (if number of production workers can vary in the shortrun)(c)Fixed(d)Variable(e)Fixed(f)Fixed(g)Variable(h)Variable(i)Fixed(j)Fixed2-27(a) Let P= charges per patient-day.(2,300 ⨯P) - (45.70 ⨯ 2,300) - 91,000) = 0P = $196,110 ) 2,300 = $85.27(b) Let X= the average number of patient days per month necessary togenerate a target profit of $45,000 per monthRevenue – Costs = Income(Price × Quantity) – Variable costs – Fixed costs = Income$100X– $45.70X– $91,000 = $45,000$54.30X = $91,000 + $45,000 = $136,000X = 2,505 patient days (rounded)2-28(a) Contribution margin per unit = $30 – $19.50 = $10.50(b) Let X = the number of units sold to break evenSales revenue – Costs = Income(Price × Quantity) – Variable costs – Fixed costs = Income$30X– $19.50X– $147,000 = $0$10.50X– $147,000 = 0X = 14,000 units– 34 –Chapter 2: Cost Management Concepts and Cost Behavior (c) Let X = the number of units sold to generate revenue necessary to earn pretaxincome of 20% of revenueSales revenue – Costs = Income(Price × Quantity) – Variable costs – Fixed costs = Income$30X– $19.50X– $147,000 = 0.2 × $30X$10.50X– $147,000 = $6XX = 32,667 units (rounded)Desired revenue = $30X = $30 × 32,667 = $980,010(d) Let Y = necessary increase in sales unitsIncremental sales revenue –Incremental variable costs –Incremental fixed costs = $0$30Y– $19.50Y– $38,500 = $0Y = 3,667 units (rounded)2-29(a)Sales $1,260,000– Cost of Goods Sold (Expense) $640,500Gross Margin or Gross Profit $619,500Selling & Admin (or GS&A or Operating expenses) $410,000 Net income (Operating income) $209,500(b) Revenue – Variable costs – Fixed costs = Profit$1,260,000 – $570,000 – $480,500 = $209,500(c)Let Y = sales dollars necessary for a before-tax target profit of $250,000The contribution margin ratio = ($1,260,000 – $570,000)/$1,260,000 =0.547619 (rounded).Using equation (2.10),Y = (Target Profit + Fixed Cost)/Contribution Margin RatioY = ($250,000 + $480,500)/0.547619Y = $1,333,956.60(d)Let Y = sales dollars necessary to break evenUsing equation (2.11),Y = Fixed Cost/Contribution Margin RatioY = $480,500/0.547619Y = $877,434.85– 35 –Atkinson, Solutions Manual t/a Management Accounting, 5E– 36 –2-30 (a)Alligators DolphinsTotalUnits sold140,00060,000200,000Sales mix percentage*.7.3Weighted average**Weighted average**Sum of weighted averagesSales price per unit$20.00$14.00$25.00$7.50 $21.50Variable costs per unit$ 8.00$ 5.60$10.00 $3.00$ 8.60Unit CM$12.00$ 8.40 $15.00$4.50$12.90* 140,000/(140,000 + 60,000) = .7; 60,000/(140,000 + 60,000) = .3 ** $20 × .7 = $14; $8 × .7 = $5.60; $25 × .3 = $7.50; $10 × .3 = $3Breakeven units = $1,290,000/$12.90 = 100,000 units. Of these, 100,000 × .7 = 70,000 will be alligators and 100,000 × .3 = 30,000 will be dolphins.(b) AlligatorsDolphinsTotalUnits sold60,000140,000200,000Sales mix percentage*.3.7Weighted average**Weighted average** Sum of weighted averagesSales price per unit$20.00$6.00$25.00$17.50$23.50Variable costs per unit$ 8.00$2.40$10.00$ 7.00 $ 9.40Unit CM$12.00$3.60$15.00 $10.50$14.10* 60,000/(140,000 + 60,000) = .3; 140,000/(140,000 + 60,000) = .7** $20 × .3 = $6; $8 × .3 = $2.40; $25 × .7 = $17.50; $10 × .7 = $7Chapter 2: Cost Management Concepts and Cost Behavior Breakeven units = $1,290,000/$14.10 = 91,489.36, which we round up to91,490 units. Of these, 91,490 × .3 = 27,447 will be alligators and 91,490× .7 = 64,043 will be dolphins.(c) In part (b), the sales mix percentage for the higher-CM product(dolphins) is greater than in part (a). Consequently, fewer total units arerequired to break even (91,490 in part (b) versus 100,000 in part (a)).2-31(a) Healthy Hearth has sufficient excess capacity to handle the one-time (short-run) order for 1,000 meals next month. Consequently, the analysisfocuses on incremental revenues and costs associated with the order:Incremental revenue per meal $3.50Incremental cost per meal 3.00Incremental contribution margin per meal $0.50Number of meals × 1,000Increase in contribution margin and operating income $ 500Healthy Hearth will be better off by $500 with this one-time order. Notethat total fixed costs remain unchanged, so it is sufficient to evaluate thechange in the contribution margin. If the order had been long-term,Healthy Hearth would need to evaluate whether the price provides thedesired profitability considering the fixed costs and whether filling thegovernment order might require giving up higher-priced regular sales.(b) Healthy Hearth has insufficient excess capacity to handle the one-timeorder for 1,000 meals next month, and must give up regular sales of 500meals at $4.50 each, resulting in an opportunity cost.Incremental contribution margin from one-time orderIncremental revenue per meal $3.50Incremental cost per meal 3.00Incremental contribution margin per meal $0.50Number of meals 1,000Increase in operating income from one-time order $ 500Opportunity costLost contribution margin on regular sales: 500 × ($4.50 – $3.00) $(750)Change in contribution margin and operating income $(250)– 37 –Atkinson, Solutions Manual t/a Management Accounting, 5ENow, Healthy Hearth will be worse off by $250 with this one-time order.Again, total fixed costs remain unchanged, so it is sufficient to evaluatethe change in the contribution margin.2-32(a) Customer 1 Customer 2 Sales revenue $1,200 $1,200Cost of goods sold $750 $750Support costs: 30% of revenue 360 1,110 360 1,110Customer margin $ 90 $ 90(b) Customer 1 Customer 2Sales revenue $1,200 $1,200Cost of goods sold $750 $750Support costs: $35 per order 70 820 420 1,170Customer margin $ 380 $ 30(c) The current system does not reflect the different costs of servingcustomers with very different ordering patterns. Although the revenueand cost of goods sold are the same for both customers, customer 1orders only twice per year and customer 2 orders 12 times per year.Because customer support costs are assigned on the basis of salesrevenue, the reported support costs are the same for both customers, andboth customers appear equally profitable. The proposed system moreaccurately assigns customer support costs to each customer based on thenumber of orders, showing the customer 1 is more profitable thancustomer 2 under the current pricing and sales volume.– 38 –Chapter 2: Cost Management Concepts and Cost Behavior PROBLEMS2-33(a)Sales $3,500,000Cost of goods sold a1,900,000Gross margin 1,600,000Selling and administrative expenses b620,000Net income before taxes, etc. $980,000a Cost of goods sold:Carpenter labor to make shelves $600,000Wood to make the shelves 450,000Depreciation on carpentry equipment 50,000Miscellaneous fixed manufacturing overhead (support) 150,000Rent for the building where the shelves are made 300,000Miscellaneous variable manufacturing overhead (support) 350,000$1,900,000b Selling and administrative expenses:Sales staff salaries $80,000Office and showroom rental expenses 150,000Advertising 200,000Sales commissions based on number of units sold 180,000Depreciation for office equipment 10,000$620,000(b)The following items are variable costs:Carpenter labor to make shelves $600,000Wood to make the shelves 450,000Sales commissions based on number of units sold 180,000Miscellaneous variable manufacturing overhead (support) 350,000Total variable costs $1,580,000Atkinson, Solutions Manual t/a Management Accounting, 5EThe variable costs per unit are $1,580,000/50,000 = $31.60. The followingitems are fixed costs:Sales staff salaries $80,000Office and showroom rental expenses 150,000Depreciation on carpentry equipment 50,000Advertising 200,000Miscellaneous fixed manufacturing overhead (support) 150,000Rent for the building where the shelves are made 300,000Depreciation for office equipment 10,000Total fixed costs $940,000 Let X = the number of units sold to earn a pre-tax profit of $500,000Revenue – Costs = Income(Price × Quantity) – Variable costs – Fixed costs = Income$70X– $31.60X– $940,000 = $500,000X = 37,500 units2-34 (a) Expected profit = 0.4($170,000 – 150,000) + 0.6($170,000 – 200,000) = $8,000 – 18,000 = – $10,000. Therefore, JF will not undertake the newproject and will earn $0.(b) If JF knows what the cost will be, it will choose the following decisions:If the cost is $150,000, then JF will undertake the project and earn($170,000 – 150,000) = $20,000.If the cost is $200,000, then JF will not undertake the project and earn$0, which is greater than ($170,000 – 200,000) = – $30,000.Therefore, JF’s expected profit if the consultant is hired is 0.4($20,000)+ 0.6($0) = $8,000. Therefore, JF is willing to pay the differencebetween the expected profit after hiring the consultant and the expectedprofit without hiring the consultant, or $8,000 –$0 = $8,000.Chapter 2: Cost Management Concepts and Cost Behavior 2-35(a) Direct material cost:∙Cost of fabric used in dresses $60,000Direct labor cost:∙Wages of dressmakers $5,000∙Wages of dress designers 4,000 9,000Manufacturing support:∙Wages of the employee who repairs the shop’spattern and sewing machines 2,000∙Cost of electricity used in the PatternDepartment 200∙Depreciation on pattern machines and sewingMachines 10,000∙Cost of insurance for the production employees(could instead be included under direct laborcost) 2,000∙Rent for the building (6,000 ⨯ 1/2) 3,000 17,200Selling costs:∙Wages of sales personnel 1,000∙Rent for the building (6,000 ⨯ 1/4) 1,500 2,500Marketing costs:∙Cost of new sign in front of retail shop 400∙Cost of advertisements in local media 800∙Cost of hiring a plane and a pilot to advertise 1,400 2,600R & D costs:∙Wages of designers who experiment with newfabrics and dress designs 3,000 General & administrative costs:∙Salary of the owner’s assistant1,200∙Rent for the building (6,000 ⨯ 1/4) 1,500 2,700Total costs $97,000Atkinson, Solutions Manual t/a Management Accounting, 5E(b) Classifications in this question may depend on the interpretation of theproduction and selling processes, and assumptions about how variouscosts are related to activities.Unit-related cost:∙Cost of fabric used in dresses $60,000∙Wages of dressmakers 5,000∙Wages of dress designers 4,000∙Depreciation on pattern machines and sewingmachines (depreciation on pattern machinescould be included in product-sustainingcost) 10,000 79,000 Batch-related cost:∙Wages of sales personnel (could also beclassified as unit-related if customersgenerally purchase only one dress at a time) 1,000 Product-sustaining cost:∙Cost of electricity used in the PatternDepartment 200∙Wages of designers who experiment withnew fabrics and dress designs 3,000 3,200 Business-sustaining cost:∙Wages of the employee who repairs thepattern and sewing machines 2,000∙Salary of the owner’s assistant1,200∙Cost of new sign in front of retail shop 400∙Cost of advertisements in local media 800∙Cost of hiring a plane and a pilot to advertise 1,400∙Cost of insurance for the productionEmployees 2,000∙Rent for the building 6,000 13,800Total costs $97,000Chapter 2: Cost Management Concepts and Cost Behavior 2-36(a) The number of miles driven is an important activity measure in estimating the cost of driving. In comparing the cost of driving to workor taking public transportation, Shannon may also want to consider thecost of parking at work. The cost of parking may vary with the numberof days at work or may be a flat rate per month.(b)Incremental costs of driving include gas, oil, maintenance, and tireexpenditures. Costs associated with driving also include toll costs andparking fees.(c)Fixed costs include taxes, depreciation of the vehicle, car registration,and insurance.(d)For a two-week vacation by car, two likely activity measures are numberof miles driven and number of days (for lodging and meals).2-37(a) Estimated support costs based on direct labor cost:May: $28,500 (= $9.50 × 3,000)June: $39,900 (= $9.50 × 4,200)Estimated support costs based on the new equation:May: $42,000 (= $3,000 + [$200 × 50] + [$300 × 30] + [$20 × 1,000])June: $54,200 (= $4,200 + [$200 × 70] + [$300 × 40] + [$20 × 1,200])(b) The two sets of estimates differ because the old equation omits severalimportant cost drivers that are not proportional to direct labor cost.(c) Neither method recognizes that some support costs may be committedand will not vary unless their resource capacity is exceeded. This willlead to discrepancies with both methods. The second equation, however,is preferred because it recognizes important cost drivers.Atkinson, Solutions Manual t/a Management Accounting, 5E2-38(a) Direct materialcost Meat, cheese, bread, lettuce and otheringredients. $ 8,100Direct labor cost Cooks’ wages.5,000Indirect support costs Utilities, depreciation on cookingequipment, paper supplies, rent, andjanitor’s wag es.2,200Selling support Servers’ wages1,500Marketing costs Advertisement in local newspaper 300Total cost $17,100 * A portion of utilities, janitor’s wages, and rent could be allocated to administrative support, if we were given a suitable allocation basis.(b) Unit-relatedcost Meat, cheese, bread, lettuce and other ingredients, cooks’ wages,depreciation on equipment, andpaper supplies. $13,600Batch-related cost Servers’ wages1,500Business-sustaining cost Janitor’s wages, utilities, rent, andadvertisement in local newspaper. 2,000Total cost $17,100 2-39(a) Costs that vary with number of passengers:Meals and refreshments = $5Let X= number of passengers needed to break even each weekTotal revenue per week – costs per passenger per week – costs per flightper week – fixed costs per week = profit per week($200 ⨯X⨯ 70) – ($5 ⨯X⨯ 70) – ($5,000 ⨯ 70) – $400,000 = $0$13,650X = $750,000X= $750,000 ÷ $13,650 = 54.95 (i.e., 55 passengers per flight)(b) Let N= number of flights to earn a profit of $500,000 per weekNumber of passengers per flight = 60% ⨯ 150 = 90($200 ⨯ 90 ⨯N)– ($5 ⨯ 90 ⨯N)– ($5,000 ⨯N– $400,000) = $500,000N= 71.71 (i.e., 72 flights)Chapter 2: Cost Management Concepts and Cost Behavior (c)Fuel costs are fixed once the flights are scheduled, but these costs varywith the number of flights.(d)In this case, there is no opportunity cost to the airline because the seatwould otherwise go empty. The variable cost for the additional passenger is $5 for the meals and refreshments and perhaps a small amount of additional fuel cost.2-40(a) Johnson Co. breakeven point in number of ridesCapacity-related costs Unit contribution marginrides===$300,$6,00050000Smith Co. breakeven point in number of ridesCapacity-related costs Unit contribution marginrides===$1,,$15,500000100000(b) Let x be the number of rides.Johnson Co.’s profit function:πJ x x x=--=-$30,$6,24300000300000 Smit h Co.’s profit function:πS x x x=--=-$30,,$15,,1515000001500000Atkinson, Solutions Manual t/a Management Accounting, 5ENumber of ridesProfitProfit-Volume ChartπJπS 133,333100,00050,000$0($300,000)($1,500,000)Loss(c)We cannot say which firm’s cost structure is more profitable as profits depend on sales volume. If sales drop to below 133,333 rides, Johnson Company’s cost structure leads to more profits. Howe ver, if sales remain above 133,334 rides, then Smith Company’s cost structure leads to more profits.(d)The contribution margin generated must first cover the fixed costs and then the balance remaining after the fixed costs are fully covered goes toward profits. If the contribution margin is not sufficient to cover the fixed costs, then a loss occurs for the period. Once the breakeven point has been reached, profit will increase by the unit contribution margin for each additional unit sold. Here, Smith Company is more risky because it has higher fixed costs to cover and a higher unit contribution margin, which makes its profits more sensitive to decreases in the sales activity level.2-41 (a) Contribution margin per unit:Selling price$250Less variable costs:Variable production costs$100Variable selling and distribution support 20120Contribution margin per unit$130Chapter 2: Cost Management Concepts and Cost Behavior(b) Let X = the sales volume at which the profit on sales is 10%Profit =250X X X X XX X --+()=⨯()-===12020000062,50001250130262,50025105262,5002,500 units.,.(c)(1) Single-shift operations 04,400≤≤()X : Selling price $200 Variable costs120 Contribution margin per unit $80Fixed costs =$200,000 + $62,500 + $17,500 = $280,000Breakeven point = $280,000 ÷ $80 = 3,500 unitsnote: 0≤≤()35004400,,Atkinson, Solutions Manual t/a Management Accounting, 5E(2) Two-shift operations 4,4008800≤≤()X ,:Selling price $200 Variable costs120Contribution margin per unit$80Fixed costs =$310,000 + $62,500 + $17,500 = $390,000 Breakeven point = $390,000 ÷ $80 = 4,875 units()800,8875,4,4004 :note ≤≤(d)Profit to sales ratio in September:=⨯-⨯=-=13030002625002503000390000262500750000017,,,,,,.(1) Single-shift operations 04,400≤≤()X2001202800000172008028000034462800006087X X XX XX X --=⨯-===,.,,, units(Not acceptable because X cannot be more than 4,400 units with single-shift operations)(2) Two-shift operations 4,4008800≤≤()X , 2001203900000172008039000034463900008478 unitsX X XX XX X --=⨯-===,.,,,()800,8478,8,4004 :note ≤≤。
管理会计quiz 2--ch 4 5 8
QUIZ 2 CH 4/5/8(20 MARKS ）1。
Gold Nest Company of Guandong, China, is a family —owned enterprise that makesbirdcages for the South China market 。
A popular pastime among older Chinese men is to take their pet birds on daily excursions to teahouses and public parks where they meet with other bird owners to talk and play mahjong. A great deal of attention is lavished on these birds, and the birdcages are often elaborately constructed from exotic woods and contain porcelain feeding bowls and silver roosts. Gold Nest Company makes a broad range of birdcages that it sells through an extensive network of street vendors who receive commissions on their sales. The Chinese currency is the renminbi, which is denoted by Rmb. All of the company's transactions with customers, employees ， and suppliers are conducted in cash ； there is no credit.The company uses a job —order costing system in which overhead is applied to jobs on the basis of direct labor cost. At the beginning of the year ， it was estimated that the total direct labor cost for the year would be Rmb110，000 and the total manufacturing overhead cost would be Rmb275，000. At the beginning of the year, the inventory balances were as follows: Raw materials ...................Rmb13，000Work in process ................Rmb30,000Finished goods ..................Rmb65，000During the year ， the following transactions were completed ：a 。
管理会计quiz 2--ch 4 5 8
QUIZ 2 CH 4/5/8（20 MARKS ）1。
Gold Nest Company of Guandong ， China ， is a family —owned enterprise thatmakes birdcages for the South China market. A popular pastime among older Chinese men is to take their pet birds on daily excursions to teahouses and public parks where they meet with other bird owners to talk and play mahjong 。
A great deal of attention is lavished on these birds ， and the birdcages are often elaborately constructed from exotic woods and contain porcelain feeding bowls and silver roosts 。
Gold Nest Company makes a broad range of birdcages that it sells through an extensive network of street vendors who receive commissions on their sales. The Chinese currency is the renminbi, which is denoted by Rmb 。
All of the company’s transactions with custo mers ， employees, and suppliers are conducted in cash; there is no credit 。
管理会计英文版课后习题答案
第二章产品成本计算Exercises2–1（指教材上的第2章练习第1题，下同）1. Part #72A Part #172CSteel* $ 12.00 $ 18.00Setup cost** 6.00 6.00$ 18.00 $ 24.00*($1.00 ⨯ 12; $1.00 ⨯ 18)**($60,000/10,000)Steel cost is assigned by calculating a cost per ounce and then multiplying this by the ounces used by each part:Cost per ounce = $3,000,000/3,000,000 ounces= $1.00 per ounceSetup cost is assigned by calculating the cost per setup and then dividing this by the number of units in each batch (there are 20 setups per year):Cost per setup = $1,200,000/20= $60,0002. The cost of steel is assigned through the driver tracing using thenumber of ounces of steel, and the cost of the setups is assigned through driver tracing also using number of setups as the driver. 3. The assumption underlying number of setups as the driver is thateach part uses an equal amount of setup time. Since Part #72A uses double the setup time of Part #172C, it makes sense to assign setup costs based on setup time instead of number of setups. This illustrates the importance of identifying drivers that reflect the true underlying consumption pattern. Using setup hours [(40 ⨯ 10) + (20 ⨯10)], we get the following rate per hour:Cost per setup hour = $1,200,000/600= $2,000 per hourThe cost per unit is obtained by dividing each part’s total setup costs by the number of units:Part #72A = ($2,000 ⨯ 400)/100,000 = $8.00Part #172C = ($2,000 ⨯ 200)/100,000 = $4.00Thus, Part #72A has its unit cost increased by $2.00, while Part #172C has its unit cost decreased by $2.00.problems2–51. Nursing hours required per year: 4 ⨯ 24 hours ⨯ 364 days* = 34,944*Note: 364 days = 7 days ⨯ 52 weeksNumber of nurses = 34,944 hrs./2,000 hrs. per nurse = 17.472Annual nursing cost = (17 ⨯ $45,000) + $22,500= $787,500Cost per patient day = $787,500/10,000 days= $78.75 per day (for either type of patient)2. Nursing hours act as the driver. If intensive care uses half of thehours and normal care the other half, then 50 percent of the cost is assigned to each patient category. Thus, the cost per patient day by patient category is as follows:Intensive care = $393,750*/2,000 days= $196.88 per dayNormal care = $393,750/8,000 days= $49.22 per day*$525,000/2 = $262,500The cost assignment reflects the actual usage of the nursing resource and, thus, should be more accurate. Patient days would be accurate only if intensive care patients used the same nursing hours per day as normal care patients.3. The salary of the nurse assigned only to intensive care is a directlytraceable cost. To assign the other nursing costs, the hours of additional usage would need to be measured. Thus, both direct tracing and driver tracing would be used to assign nursing costs for this new setting.2–6Statement of Cost of Services SoldFor the Year Ended June 30, 2006 Direct materials:.............................................................................. Beginninginventory .............................................................. $ 300,000.............................................................................. Add: Purchases 600, .............................................................................. Materials available $ 900, .............................................................................. Less: Endinginventory .............................................................. 450,000*Direct materials used .......................................... $ 450,000 Direct labor .......................................................... 12,000,0 Overhead ............................................................. 1,500,00 Total service costs added .................................. $ 13,950,0 Add: Beginning work in process ....................... 900,000 Total production costs ....................................... $ 14,850,0 Less: Ending work in process ........................... 1,500,00 Cost of services sold .......................................... $ 13,350,0 *Materials available less materials used2. The dominant cost is direct labor (presumably the salaries of the 100professionals). Although labor is the major cost of providing manyservices, it is not always the case. For example, the dominant costfor some medical services may be overhead (e.g., CAT scans). Insome services, the dominant cost may be materials (e.g., funeralservices).Income StatementFor the Year Ended June 30, 2006 Sales ..................................................................... $ 21,000,0 Cost of services sold .......................................... 13,350,0 Gross margin ....................................................... $ 7,650,00 Less operating expenses:.............................................................................. Selling expenses $ 900, .............................................................................. Administrativeexpenses ............................................................................................................................... 750,000.............................................................. 1,650,000Income before income taxes .............................. $ 6,000,00 4. Services have four attributes that are not possessed by tangibleproducts: (1) intangibility, (2) perishability, (3) inseparability, and (4)heterogeneity. Intangibility means that the buyers of services cannotsee, feel, hear, or taste a service before it is bought. Perishabilitymeans that services cannot be stored. This property affects thecomputation in Requirement 1. Inability to store services means thatthere will never be any finished goods inventories, thus making thecost of services produced equivalent to cost of services sold.Inseparability simply means that providers and buyers of servicesmust be in direct contact for an exchange to take place.Heterogeneity refers to the greater chance for variation in theperformance of services than in the production of tangible products.2–71. Direct materials:Magazine (5,000 ⨯ $0.40) $ 2,000Brochure (10,000 ⨯ $0.08) 800 $ 2,800 Direct labor:Magazine [(5,000/20) ⨯ $10] $ 2,500Brochure [(10,000/100) ⨯ $10] 1,000 3,500 Manufacturing overhead:Rent $ 1,400Depreciation [($40,000/20,000) ⨯ 350*] 700Setups 600Insurance 140Power 350 3,190 Cost of goods manufactured $ 9,490*Production is 20 units per printing hour for magazines and 100units per printing hour for brochures, yielding monthly machinehours of 350 [(5,000/20) + (10,000/100)]. This is also monthly laborhours, as machine labor only operates the presses.2. Direct materials $ 2,800Direct labor 3,500Total prime costs $ 6,300Magazine:Direct materials $ 2,000Direct labor 2,500Total prime costs $ 4,500Brochure:Direct materials $ 800Direct labor 1,000Total prime costs $ 1,800Direct tracing was used to assign prime costs to the two products.3. Total monthly conversion cost:Direct labor $ 3,500Overhead 3,190Total $ 6,690Magazine:Direct labor $ 2,500 Overhead:Power ($1 ⨯ 250) $ 250Depreciation ($2 ⨯ 250) 500Setups (2/3 ⨯ $600) 400Rent and insurance ($4.40 ⨯ 250 DLH)* 1,100 2,250 Total $ 4,750 Brochure:Direct labor $ 1,000 Overhead:Power ($1 ⨯ 100) $ 100Depreciation ($2 ⨯ 100) 200Setups (1/3 ⨯ $600) 200Rent and insurance ($4.40 ⨯ 100 DLH)* 440 940 Total $ 1,940 *Rent and insurance cannot be traced to each product so the costsare assigned using direct labor hours: $1,540/350 DLH = $4.40 perdirect labor hour. The other overhead costs are traced according totheir usage. Depreciation and power are assigned by using machine hours (250 for magazines and 100 for brochures): $350/350 = $1.00 per machine hour for power and $40,000/20,000 = $2.00 per machine hour for depreciation. Setups are assigned according to the time required. Since magazines use twice as much time, they receive twice the cost: Letting X = the proportion of setup time used for brochures, 2X + X = 1 implies a cost assignment ratio of 2/3 for magazines and 1/3 for brochures.Exercises3–11. Resource Total Cost Unit CostPlastic1$ 10,800 $0.027Direct labor andvariable overhead28,000 0.020Mold sets320,000 0.050Other facility costs410,000 0.025 Total $ 48,800 $0.12210.90 ⨯ $0.03 ⨯ 400,000 = $10,800; $10,800/400,000 = $0.0272$0.02 ⨯ 400,000 = $8,000; $8,000/400,000 = $0.023$5,000 ⨯ 4 quarters = $20,000; $20,000/400,000 = $0.054$10,000; $10,000/400,000 = $0.0252. Plastic, direct labor, and variable overhead are flexible resources;molds and other facility costs are committed resources. The cost of plastic, direct labor, and variable overhead are strictly variable. The cost of the molds is fixed for the particular action figure being produced; it is a step cost for the production of action figures in general. Other facility costs are strictly fixed.3–3High (1,400, $7,950); Low (700, $5,150)V = ($7,950 – $5,150)/(1,400 – 700)= $2,800/700 = $4 per oil changeF = $5,150 – $4(700)= $5,150 – $2,800 = $2,350Cost = $2,350 + $4 (oil changes)Predicted cost for January = $2,350 + $4(1,000) = $6,350problems3–61. High (1,700, $21,000); Low (700, $15,000)V = (Y2– Y1)/(X2– X1)= ($21,000 – $15,000)/(1,700 – 700) = $6 per receiving orderF = Y2– VX2= $21,000 – ($6)(1,700) = $10,800Y = $10,800 + $6X2. Output of spreadsheet regression routine with number of receivingorders as the independent variable:V = $13.38 per receiving order (rounded)F = $4,513 (rounded)Y = $4,513 + $13.38XR2 = 0.634, or 63.4%Receiving orders explain about 63.4 percent of the variability in receiving cost, providing evidence that Tracy’s choi ce of a cost driver is reasonable. However, other drivers may need to beconsidered because 63.4 percent may not be strong enough to justify the use of only receiving orders.3. Regression with pounds of material as the independent variable:V = $0.045 per pound of material delivered (rounded)F = $5,632 (rounded)Y = $5,632 + $0.045XR2 = 0.825, or 82.5%Pounds of material delivered explains about 82.5 percent of the variability in receiving cost. This is a better result than that of the receiving orders and should convince Tracy to try multiple regression.4. Regression routine with pounds of material and number of receiving orders as the independent variables:V1= $0.033 per pound of material delivered (rounded)V2= $7.147 per receiving order (rounded)F = $752 (rounded)Y = $752 + $0.033a + $7.147bR2= 0.95, or 95%Multiple regression with both variables explains 95 percent of thevariability in receiving cost. This is the best result.5–21. Job #57 Job #58 Job #59Balance, 7/1 $ 22,450 $ 0 $ 0Direct materials 12,900 9,900 35,350Direct labor 20,000 6,500 13,000Applied overhead:Power 750 600 3,600Material handling 1,500 300 6,000Purchasing 250 1,000 250 Total cost $ 57,850 $ 18,300 $ 58,2002. Ending balance in Work in Process = Job #58 = $18,3003. Ending balance in Finished Goods = Job #59 = $58,2004. Cost of Goods Sold = Job #57 = $57,850problems5–31. Overhead rate = $180/$900 = 0.20 or 20% of direct labor dollars.(This rate was calculated using information from the Ladan job;however, the Myron and Coe jobs would give the same answer.)2. Ladan Myron Coe Walker WillisBeginning WIP $ 1,730 $1,180 $2,500 $ 0 $ 0 Direct materials 400 150 260 800 760 Direct labor 800 900 650 350 900 Applied overhead 160 180 130 70 180 Total $ 3,090 $2,410 $3,540 $ 1,220 $ 1,840 Note: This is just one way of setting up the job-order cost sheets.You might prefer to keep the detail on the materials, labor, andoverhead in beginning inventory costs.3. Since the Ladan and Myron jobs were completed, the others muststill be in process. Therefore, the ending balance in Work in Process is the sum of the costs of the Coe, Walker, and Willis jobs.Coe $3,540Walker 1,220Willis 1,840Ending Work in Process $6,600Cost of Goods Sold = Ladan job + Myron job = $3,090 + $2,410 = $5,5004. Naman CompanyIncome StatementFor the Month Ended June 30, 20XXSales (1.5 ⨯ $5,500) ................................................................... $8,250 Cost of goods sold.................................................................... 5,500 Gross margin ............................................................................. $2,750 Marketing and administrative expenses ................................. 1,200 Operating income...................................................................... $1,550 5–201. Overhead rate = $470,000/50,000 = $9.40 per MHr2. Department A: $250,000/40,000 = $6.25 per MHrDepartment B: $220,000/10,000 = $22.00 per MHr3. Job #73 Job #74Plantwide:70 ⨯ $9.40 = $658 70 ⨯ $9.40 = $658Departmental:20 ⨯ $6.25 $ 125.00 50 ⨯ $6.25 $ 312.5050 ⨯ $22 1,100.00 20 ⨯ $22 440.00$ 1,225.00 $ 752.50Department B appears to be more overhead intensive, so jobs spending more time in Department B ought to receive more overhead. Thus, departmental rates provide more accuracy.4. Plantwide rate: $250,000/40,000 = $6.25Department B: $62,500/10,000 = $6.25Job #73 Job #74Plantwide:70 ⨯ $6.25 = $437.50 70 ⨯ $6.25 = $437.50Departmental:20 ⨯ $6.25 $ 125.00 50 ⨯ $6.25 $ 312.5050 ⨯ $6.25 312.50 20 ⨯ $6.25 125.00$ 437.50 $ 437.50 Assuming that machine hours is a good cost driver, the departmental rates reveal that overhead consumption is the same in each department. In this case, there is no need for departmental rates, and a plantwide rate is sufficient.5–41. Overhead rate = $470,000/50,000 = $9.40 per MHr2. Department A: $250,000/40,000 = $6.25 per MHrDepartment B: $220,000/10,000 = $22.00 per MHr3. Job #73 Job #74Plantwide:70 ⨯ $9.40 = $658 70 ⨯ $9.40 = $658Departmental:20 ⨯ $6.25 $ 125.00 50 ⨯ $6.25 $ 312.5050 ⨯ $22 1,100.00 20 ⨯ $22 440.00$ 1,225.00 $ 752.50 Department B appears to be more overhead intensive, so jobs spending more time in Department B ought to receive more overhead. Thus, departmental rates provide more accuracy.4. Plantwide rate: $250,000/40,000 = $6.25Department B: $62,500/10,000 = $6.25Job #73 Job #74Plantwide:70 ⨯ $6.25 = $437.50 70 ⨯ $6.25 = $437.50Departmental:20 ⨯ $6.25 $ 125.00 50 ⨯ $6.25 $ 312.5050 ⨯ $6.25 312.50 20 ⨯ $6.25 125.00$ 437.50 $ 437.50 Assuming that machine hours is a good cost driver, the departmental rates reveal that overhead consumption is the same in each department. In this case, there is no need for departmental rates, and a plantwide rate is sufficient.5–51. Last year’s unit-based overhead rate = $50,000/10,000 = $5This year’s unit-based overhead rate = $100,000/10,000 = $10Last Year This Year Bike cost:2 ⨯ $20 $ 40 $ 403 ⨯ $12 36 36Overhead:5 ⨯ $5 255 ⨯ $10 50Total $101 $126 P rice last year = $101 ⨯ 1.40 = $141.40/dayPrice this year = $126 ⨯ 1.40 = $176.40/dayThis is a $35 increase over last year, nearly a 25 percent increase. No doubt the Carsons are not pleased and would consider looking around for other recreational possibilities.2. Purchasing rate = $30,000/10,000 = $3 per purchase orderPower rate = $20,000/50,000 = $0.40 per kilowatt hourMaintenance rate = $6,000/600 = $10 per maintenance hourOther rate = $44,000/22,000 = $2 per DLHBike Rental Picnic Catering Purchasing$3 ⨯ 7,000 $21,000$3 ⨯ 3,000 $ 9,000 Power$0.40 ⨯ 5,000 2,000$0.40 ⨯ 45,000 18,000 Maintenance$10 ⨯ 500 5,000$10 ⨯ 100 1,000 Other$2 ⨯ 11,000 22,000 22,000 Total overhead $50,000 $50,000 3. This year’s bike rental overhead rate = $50,000/10,000 = $5Carson rental cost = (2 ⨯ $20) + (3 ⨯ $12) + (5 ⨯ $5) = $101Price = 1.4 ⨯ $101 = $141.40/day4. Catering rate = $50,000/11,000 = $4.55* per DLHCost of Estes job:Bike rental rate (2 ⨯ $7.50) $15.00Bike conversion cost (2 ⨯ $5.00) 10.00Catering materials 12.00Catering conversion (1 ⨯ $4.55) 4.55Total cost $41.55*Rounded5. The use of ABC gives Mountain View Rentals a better idea of thetypes and costs of activities that are used in their business. Adding Level 4 bikes will increase the use of the most expensive activities, meaning that the rental rate will no longer be an average of $5 per rental day. Mountain View Rentals might need to set a Level 4 price based on the increased cost of both the bike and conversion cost.分步成本法6–11. C utting Sewing PackagingDepartment Department Department Direct materials $5,400 $ 900 $ 225 Direct labor 150 1,800 900 Applied overhead 750 3,600 900 Transferred-in cost:From cutting 6,300From sewing 12,600 Total manufacturing cost $6,300 $12,600 $14,625 2. a. Work in Process—Sewing .................. 6,300Work in Process—Cutting ........... 6,300b. Work in Process—Packaging ............ 12,600Work in Process—Sewing ........... 12,600c. Finished Goods ................................... 14,625Work in Process—Packaging ...... 14,6253. Unit cost = $14,625/600 = $24.38* per pair6–21. Units transferred out: 27,000 + 33,000 – 16,200 = 43,8002. Units started and completed: 43,800 – 27,000 = 16,8003. Physical flow schedule:Units in beginning work in process 27,000Units started during the period 33,000 Total units to account for 60,000 Units started and completed 16,800Units completed from beginning work in process 27,000Units in ending work in process 16,200 Total units accounted for 60,0004. Equivalent units of production:Materials Conversion Units completed 43,800 43,800 Add: Units in ending work in process:(16,200 ⨯ 100%) 16,200(16,200 ⨯ 25%) 4,050 Equivalent units of output 60,000 47,850 6–31. Physical flow schedule:Units to account for:Units in beginning work in process 80,000 Units started during the period 160,000 Total units to account for 240,000 Units accounted for:Units completed and transferred out:Started and completed 120,000From beginning work in process 80,000 200,000 Units in ending work in process 40,000 Total units accounted for 240,000 2. Units completed 200,000Add: Units in ending WIP ⨯ Fraction complete(40,000 ⨯ 20%) 8,000 Equivalent units of output 208,0003. Unit cost = ($374,400 + $1,258,400)/208,000 = $7.854. Cost transferred out = 200,000 ⨯ $7.85 = $1,570,000Cost of ending WIP = 8,000 ⨯ $7.85 = $62,8005. Costs to account for:Beginning work in process $ 374,400Incurred during June 1,258,400Total costs to account for $ 1,632,800Costs accounted for:Goods transferred out $ 1,570,000Goods in ending work in process 62,800 Total costs accounted for $ 1,632,8006–31、Units t0 account for:Units in beginning work in process(25% completed) 10000 Units started during the period 70000 Total units to account for 80000 Units accounted forUnits completed and transferred outStarted and completed 50000From beginning work in process 10000 60000 Units in ending work in process(60% completed) 20000 Total units accounted for 80000 2、60000+20000×60%=72000（units ） 3、Unit cost for materials:4900035100056000020000+=+（$/unit ）Unit cost for convension:2625787351.136000012000+=+（$/unit ）Total unit cost:5+1.13=6.13（$/unit ）4、The cost of units of transferred out:60000×6.13=367800($)The cost of units of ending work in process:20000×5+20000×20%×1.13=113560($)作业成本法4–21. Predetermined rates:Drilling Department: Rate = $600,000/280,000 = $2.14* per MHrAssembly Department: Rate = $392,000/200,000= $1.96 per DLH*Rounded2. Applied overhead:Drilling Department: $2.14 ⨯ 288,000 = $616,320Assembly Department: $1.96 ⨯ 196,000 = $384,160Overhead variances:Drilling Assembly Total Actual overhead $602,000 $ 412,000 $ 1,014,000 Applied overhead 616,320 384,160 1,000,480 Overhead variance $ (14,320) over $ 27,840 under $ 13,520 3. Unit overhead cost = [($2.14 ⨯ 4,000) + ($1.96 ⨯ 1,600)]/8,000= $11,696/8,000= $1.46**Rounded4–31. Yes. Since direct materials and direct labor are directly traceable toeach product, their cost assignment should be accurate.2. Elegant: (1.75 ⨯ $9,000)/3,000 = $5.25 per briefcaseFina: (1.75 ⨯ $3,000)/3,000 = $1.75 per briefcaseNote: Overhead rate = $21,000/$12,000 = $1.75 per direct labor dollar(or 175 percent of direct labor cost).There are more machine and setup costs assigned to Elegant thanFina. This is clearly a distortion because the production of Fina isautomated and uses the machine resources much more than thehandcrafted Elegant. In fact, the consumption ratio for machining is0.10 and 0.90 (using machine hours as the measure of usage). Thus,Fina uses nine times the machining resources as Elegant. Setupcosts are similarly distorted. The products use an equal number ofsetups hours. Yet, if direct labor dollars are used, then the Elegantbriefcase receives three times more machining costs than the Finabriefcase.3. Overhead rate = $21,000/5,000= $4.20 per MHrElegant: ($4.20 ⨯ 500)/3,000 = $0.70 per briefcaseFina: ($4.20 ⨯ 4,500)/3,000 = $6.30 per briefcaseThis cost assignment appears more reasonable given the relativedemands each product places on machine resources. However, oncea firm moves to a multiproduct setting, using only one activity driverto assign costs will likely produce product cost distortions. Productstend to make different demands on overhead activities, and thisshould be reflected in overhead cost assignments. Usually, thismeans the use of both unit- and nonunit-level activity drivers. In thisexample, there is a unit-level activity (machining) and a nonunit-levelactivity (setting up equipment). The consumption ratios for each(using machine hours and setup hours as the activity drivers) are asfollows:Elegant FinaMachining 0.10 0.90 (500/5,000 and4,500/5,000)Setups 0.50 0.50 (100/200 and 100/200)Setup costs are not assigned accurately. Two activity rates areneeded—one based on machine hours and the other on setuphours:Machine rate: $18,000/5,000 = $3.60 per MHrSetup rate: $3,000/200 = $15 per setup hourCosts assigned to each product:Machining: Elegant Fina$3.60 ⨯ 500 $ 1,800$3.60 ⨯ 4,500 $ 16,200Setups:$15 ⨯ 100 1,500 1,500Total $ 3,300 $ 17,700Units ÷3,000 ÷3,000Unit overhead cost $ 1.10 $ 5.904：Elegant Unit overhead cost：[9000+3000+18000*500/5000+3000/2]/3000=$5.1 Fina Unit overhead cost：[3000+3000+18000*4500/5000+3000/2]/3000=$7.94–51. Deluxe Percent Regular PercentPrice $900 100% $750 100%Cost 576 64 600 80Unit gross profit $324 36% $150 20% Total gross profit:($324 ⨯ 100,000) $32,400,000($150 ⨯ 800,000) $120,000,000 2. Calculation of unit overhead costs:Deluxe gularUnit-level:Machining:$200 ⨯ 100,000 $20,000,000$200 ⨯ 300,000 $60,000,000 Batch-level:Setups:$3,000 ⨯ 300 900,000$3,000 ⨯ 200 600,000 Packing:$20 ⨯ 100,000 2,000,000$20 ⨯ 400,000 8,000,000 Product-level:Engineering:$40 ⨯ 50,000 2,000,000$40 ⨯ 100,000 4,000,000 Facility-level:Providing space:$1 ⨯ 200,000 200,000$1 ⨯ 800,000 800,000 Total overhead $25,100,000 $73,400,000 Units ÷100,000 ÷ 800,000Overhead per unit $251 $91.75Deluxe Percent Regular Percent Price $900 100% $750.00 100% Cost 780* 87*** 574.50** 77*** Unit gross profit $120 13%*** $175.50 23%*** Total gross profit:($120 ⨯ 100,000) $12,000,000($175.50 ⨯ 800,000) $140,400,000*$529 + $251**$482.75 + $91.753. Using activity-based costing, a much different picture of the deluxeand regular products emerges. The regular model appears to be more profitable. Perhaps it should be emphasized.4–61. JIT Non-JITSales a$12,500,000 $12,500,000Allocation b750,000 750,000a$125 ⨯ 100,000, where $125 = $100 + ($100 ⨯ 0.25), and 100,000 is the average order size times the number of ordersb0.50 ⨯ $1,500,0002. Activity rates:Ordering rate = $880,000/220 = $4,000 per sales orderSelling rate = $320,000/40 = $8,000 per sales callService rate = $300,000/150 = $2,000 per service callJIT Non-JIT Ordering costs:$4,000 ⨯ 200 $ 800,000$4,000 ⨯ 20 $ 80,000 Selling costs:$8,000 ⨯ 20 160,000$8,000 ⨯ 20 160,000 Service costs:$2,000 ⨯ 100 200,000$2,000 ⨯ 50 100,000 T otal $1,160,000 $340,0 0For the non-JIT customers, the customer costs amount to $750,000/20 = $37,500 per order under the original allocation. Using activity assignments, this drops to $340,000/20 = $17,000 per order, a difference of $20,500 per order. For an order of 5,000 units, the order price can be decreased by $4.10 per unit without affecting customer profitability. Overall profitability will decrease, however, unless the price for orders is increased to JIT customers.3. It sounds like the JIT buyers are switching their inventory carryingcosts to Emery without any significant benefit to Emery. Emery needs to increase prices to reflect the additional demands on customer-support activities. Furthermore, additional price increases may be needed to reflect the increased number of setups, purchases, and so on, that are likely occurring inside the plant.Emery should also immediately initiate discussions with its JIT customers to begin negotiations for achieving some of the benefits that a JIT supplier should have, such as long-term contracts. Thebenefits of long-term contracting may offset most or all of the increased costs from the additional demands made on other activities.4–71. Supplier cost:First, calculate the activity rates for assigning costs to suppliers: Inspecting components: $240,000/2,000 = $120 per sampling hourReworking products: $760,500/1,500 = $507 per rework hourWarranty work: $4,800/8,000 = $600 per warranty hourNext, calculate the cost per component by supplier:Supplier cost:Vance Foy Purchase cost:$23.50 ⨯ 400,000 $ 9,400,000$21.50 ⨯ 1,600,000 $ 34,400,000Inspecting components:$120 ⨯ 40 4,800$120 ⨯ 1,960 235,200Reworking products:$507 ⨯ 90 45,630$507 ⨯ 1,410 714,870Warranty work:$600 ⨯ 400 240,000$600 ⨯ 7,600 4,560,000 Total supplier cost $ 9,690,430 $ 39,910,070 Units supplied ÷400,000 ÷1,600,000 Unit cost $ 24.23* $ 24.94**RoundedThe difference is in favor of Vance; however, when the price concession is considered, the cost of Vance is $23.23, which is less than Foy’s component. Lumus should accept the contractual offer made by Vance.4–7 Concluded2. Warranty hours would act as the best driver of the three choices.Using this driver, the rate is $1,000,000/8,000 = $125 per warranty hour. The cost assigned to each component would be:Vance Foy Lost sales:$125 ⨯ 400 $ 50,000$125 ⨯ 7,600 $ 950,000$ 50,000 $ 950,000 U nits supplied ÷ 400,000 ÷1,600,000I ncrease in unit cost $ 0.13* $ 0.59**Rounded$0.075 per unitCategory II: $45/1,000 = $0.045 per unitCategory III: $45/1,500 = $0.03 per unitCategory I, which has the smallest batches, is the most undercosted of the three categories. Furthermore, the unit ordering cost is quite high relative to Category I’s selling pr ice (9 to 15 percent of the selling price). This suggests that something should be done to reduce the order-filling costs.3. With the pricing incentive feature, the average order size has beenincreased to 2,000 units for all three product families. The number of orders now processed can be calculated as follows:Orders = [(600 ⨯ 50,000) + (1,000 ⨯ 30,000) + (1,500 ⨯ 20,000)]/2,000 = 45,000Reduction in orders = 100,000 – 45,000 = 55,000Steps that can be reduced = 55,000/2,000 = 27 (rounding down to nearest whole number)There were initially 50 steps: 100,000/2,000Reduction in resource spending:Step-fixed costs: $50,000 ⨯ 27 = $1,350,000Variable activity costs: $20 ⨯ 55,000 = 1,100,000$2,450,000预算9-4Norton, Inc.Sales Budget For the Coming YearModel Units Price Total Sales LB-1 50,400 $29.00 $1,461,600 LB-2 19,800 15.00 297,000 WE-6 25,200 10.40 262,080 WE-7 17,820 10.00 178,200。
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管理会计双语课程习题chapter2CH02COST MANAGEMENT CONCEPTS AND COST BEHAVIORTRUE/FALSE1. There is no single definition of cost.a. Trueb. False2. The role of the management accountant is to tailor the cost calculationto fit the current decision situation.a. Trueb. False3. A cost that is useful for one decision may not be useful information foranother decision.a. Trueb. False4. In most organizations, managing nonmanufacturing costs as well asmanufacturing costs is important for financial success.a. Trueb. False5. The cost of a customized machine only used in the production of a singleproduct would be classified as a direct cost.a. Trueb. False6. The wages of a plant supervisor would be classified as a period cost.a. Trueb. False7. The classification of product and period costs is particularly valuablein management accounting.a. Trueb. False8. For external reporting, generally accepted accounting principles requirethat costs be classified as either flexible or capacity-related costs.a. Trueb. False9. Knowing whether a cost is a period or a product cost helps to estimatetotal cost at a new level of activity.a. Trueb. False10. Flexible costs are always direct costs.a. Trueb. False11. Capacity-related costs vary with the level of production or sales volume.a. Trueb. False12. Currently, most personnel costs are classified as capacity-related costs.a. Trueb. False13. Some capacity-related costs might be classified as directmanufacturingcosts.a. Trueb. False14. Capacity-related costs depend on the resources used, not the resourcesacquired.a. Trueb. False15. Break-even point is NOT an important concept since the goal of businessis to make a profit.a. Trueb. False16. To perform cost-volume-profit analysis, a company must be able toseparate costs into capacity-related and flexible components.a. Trueb. False17. Cost-volume-profit analysis may be used for single-product andmultiproduct analysis.a. Trueb. False18. Selling price per unit is $30, flexible cost per unit is $15, andcapacity-related cost per unit is $10. When this company operates above the break-even point, the sale of one more unit will increase net income by $5.a. True19. A company with sales of $100,000, flexible costs of $70,000, andcapacity-related costs of $50,000 will reach its break-even point ifsales are increased by $20,000.a. Trueb. False20. In multiproduct situations when the sales mix shifts toward the productwith the lowest contribution margin, the break-even quantity willdecrease.a. Trueb. False21. The opportunity cost of a resource is zero if there is excess capacity ofthat resource.a. Trueb. False22. When a firm maximizes profits it will simultaneously minimize opportunitycosts.a. Trueb. False23. Even when the only constraint limiting production is machine time, acompany should be most concerned with maximizing contribution margin per unit.a. True24. The time over which a decision maker can adjust capacity is referred toas the short run.a. Trueb. False25. For general customers, the price charged for a product must cover itslong-run cost to the organization.a. Trueb. False26. In recent years, capacity-related costs have increased asa proportion oftotal manufacturing costs.a. Trueb. False27. Machine setup costs are usually classified as a business-sustainingactivity.a. Trueb. False28. The benefits of classifying activities using the broader framework ofunit-related, batch-related, product-sustaining, customer-sustaining, and business-sustaining activities are there are generally more costs thatare directly traceable to cost objects.a. Trueb. False29. Product life-cycle costing helps organizations decidewhether a newproduct should be launched.a. Trueb. FalseMULTIPLE CHOICE30. An example of a cost object is:a. a productb. a customerc. a departmentd. All of the above are correct.31. Manufacturing costs include:a. machinery used inside of the factoryb. research and development costsc. costs of dealing with customers after the saled. general and administrative costs32. Manufacturing costs include all of the following EXCEPT:a. costs incurred inside the factoryb. both direct and indirect costsc. both flexible and capacity-related costsd. both product and period costs33. Nonmanufacturing costs:a. include only capacity-related costsb. seldom influence financial success or failurec. include the cost of selling, distribution, and after-sales costs forcustomersd. are considered by GAAP to be an element of product costs34. Product costs:a. include administrative and marketing costsb. are particularly useful in financial accountingc. are expensed in the accounting period manufacturedd. are also referred to as nonmanufacturing costs35. For external reporting:a. costs are classified as either product or period costsb. costs reflect current valuesc. there are no prescribed rules since no one is exactly sure how theinvestors and creditors will use these numbersd. expenses include amounts that reflect current and future benefits36. Product costs are expensed on the income statement when:a. raw materials for the product are purchasedb. raw materials are requisitioned for the productc. the product completes the manufacturing processd. the product is sold37. Depreciation of plant facilities is classified as a(n):a. direct material costb. direct labor costc. indirect manufacturing costd. general and administrative cost38. The cost of inventory reported on the balance sheet may include the costof all the following EXCEPT:a. advertisingb. wages of the plant supervisorc. depreciation of the factory equipmentd. parts used in the manufacturing process39. A plant manufactures several different products. The wages of the plantsupervisor can be classified as a:a. direct costb. product costc. flexible costd. nonmanufacturing cost40. Period costs:a. are treated as expenses in the period they are incurredb. are directly traceable to productsc. include direct labord. are also referred to as indirect manufacturing costs41. Which of the following is NOT a period costa. marketing costsb. general and administrative costsc. research and development costsd. manufacturing costs42. Advertising is an example of a _________ cost expensed on the incomestatement in the accounting period incurred.a. directb. manufacturingc. periodd. product43. (CMA adapted, June 1992) The terms "direct cost" and "indirect cost" arecommonly used in cost accounting. Classifying a cost as either direct or indirect depends upon:a. the behavior of the cost in response to volume changesb. whether the cost is expended in the period in which it is incurredc. whether the cost can be related readily to resourcesconsumed for acost objectd. whether an expenditure is unavoidable because it cannot be changedregardless of any action taken44. Indirect manufacturing costs:a. can be traced to the product that created the costsb. may have a cause-and-effect relationship with capacity rather thanwith individual units of productionc. generally include the cost of material and the cost of labord. are included in period costs45. A manufacturing plant produces two product lines: football equipment andhockey equipment. An indirect cost for the hockey equipment line is the:a. material used to make the hockey sticksb. labor to bind the shaft to the blade of the hockey stickc. shift supervisor for the hockey lined. plant supervisor46. A manufacturing plant produces two product lines: football equipment andhockey equipment. Direct costs for the football equipment line are the:a. beverages provided daily in the plant break roomb. monthly lease payments for a specialized piece of equipment needed tomanufacture the football helmetc. salaries of the clerical staff that work in the companyadministrative officesd. utilities paid for the manufacturing plantTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 47 THROUGH 53.The Bowley Company manufactures several different products. Unit costs associated with product ICT101 are as follows:Direct materials $ 60Direct labor 10Flexible manufacturing support costs 18Capacity-related manufacturing support costs 32Sales commissions (2% of sales) 4Administrative salaries 16Total $14047. Total product costs associated with product ICT101 are:a. $ 50b. $ 88c. $120d. $14048. Total period costs associated with product ICT101 are:a. $ 4b. $16c. $20d. $5249. Total flexible costs associated with product ICT101 are:a. $18b. $22c. $88d. $9250. Total capacity-related costs associated with product ICT101 are:a. $16b. $32c. $48d. $5251. Total nonmanufacturing costs associated with product ICT101 are:a. $ 4b. $16c. $20d. $5252. Total manufacturing costs associated with product ICT101 are:a. $70b. $88c. $120d. $14053. Direct manufacturing costs associated with product ICT101 are:a. $70b. $88c. $92d. $10854. Cost behavior refers to:a. how costs react to a change in the level of activityb. whether a cost is incurred in a manufacturing, merchandising, orservice companyc. classifying costs as either product or period costsd. whether a particular expense has been ethically incurred55. Which statement is FALSEa. All flexible costs are direct costs.b. Because of a cost-benefit tradeoff, some direct costs may be treatedas indirect costs.c. All capacity-related costs are indirect costs.d. Direct costs may be flexible or capacity-related.56. An understanding of the underlying behavior of costs helps in all of thefollowing EXCEPT:a. sales volume can be better estimatedb. costs can be better estimated as volume expands and contractsc. true costs of processes can be better evaluatedd. process inefficiencies can be better identified and, as a result,improved57. Capacity-related costs:a. may be either direct or indirect costsb. vary with production or sales volumec. include parts and materials used to manufacture a productd. can be adjusted in the short run to meet actual demands58. Capacity-related costs depend on:a. the amount of resources usedb. the amount of resources acquiredc. the volume of productiond. the volume of sales59. Currently, most companies consider annual labor costs as:a. a capacity-related costb. a flexible costc. an opportunity costd. a period cost60. Which of the following does NOT describe a flexible costa. Flexible cost are always indirect costs.b. Flexible costs increase in total when the actual level of activityincreases.c. Flexible costs include most personnel costs and depreciation onmachinery.d. Flexible costs can always be traced directly to the cost object.61. Cost-volume-profit analysis is used PRIMARILY by management:a. as a planning toolb. for control purposesc. to establish a target net income for next yeard. to attain extremely accurate financial results62. Contribution margin equals revenues minus:a. product costsb. period costsc. flexible costsd. capacity-related costs63. The break-even point is the level at which revenues:a. equal capacity-related costsb. equal flexible costsc. equal capacity-related costs minus flexible costsd. equal flexible costs plus capacity-related costs64. The break-even point is:a. total costs divided by flexible costs per unitb. contribution margin per unit divided by revenue per unitc. capacity-related costs divided by contribution margin per unitd. (capacity-related costs plus flexible costs) divided by contributionmargin per unit65. Cost-volume-profit analysis assumes all of the following EXCEPT:a. all costs are purely flexible or capacity relatedb. units manufactured equal units soldc. total flexible costs remain the same over the relevant ranged. total capacity-related costs remain the same over the relevant range66. All of the following are assumed in a cost-volume-profit analysis EXCEPT:a. a constant product mixb. capacity-related costs increase when activity increasesc. revenue per unit does not change as volume changesd. all costs can be classified as either capacity-related or flexible67. In multiproduct situations, when sales mix shifts toward the product withthe highest contribution margin, then:a. total revenues will decreaseb. breakeven quantity will increasec. total contribution margin will decreased. operating income will increaseTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 68 THROUGH 71.Karen’s Kraft Korner, Inc., sells a single product. This year, 7,000 units were sold resulting in $70,000 of sales revenue,$28,000 of flexible costs, and $12,000 of capacity-related costs.68. Contribution margin per unit is:a. $b. $c. $d. None of the above is correct.69. Break-even point in units is:a. 2,000 unitsb. 3,000 unitsc. 5,000 unitsd. None of the above is correct.70. The number of units that must be sold to achieve $60,000 of profits is:a. 10,000 unitsb. 11,666 unitsc. 12,000 unitsd. None of the above is correct.71. If sales increase by $25,000, profits will increase by:a. $10,000b. $15,000c. $22,200d. an unknown amountTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 72 THROUGH 74.Mr. Paul’s Company sells several products for an average price of $20 per unit and the average flexible costs per unit are as follows:Direct material $Direct labor $Indirect manufacturing costs $Selling commissions $Mr. Paul’s annual capacity-related costs total $96,000.72. The contribution margin per unit is:a. $6b. $8c. $12d. $1473. The number of units that Mr. Paul’s must sell each year to break evenis:a. 8,000 unitsb. 12,000 unitsc. 16,000 unitsd. an unknown amount74. The number of units that Mr. Paul’s must sell annually to make a profitof $144,000 is:a. 12,000 units。