管理会计(英文版)课后习题答案(高等教育出版社)chapter 16

合集下载

管理会计课后答案Ch06 Solutions

6Business Decisions Using Cost BehaviorSOLUTIONS TO APPLY WHAT YOU HAVE LEARNED6-15.Fresh Baked Cookie CompanyContribution Income StatementFor the Year Ended December 31, 2008Sales $36,000 Variable Cost:Cost of Goods Sold $ 4,000Variable Selling Expense ($18,000 x .2) 3,600Variable Administrative Expense($10,000 x .05) 500Total Variable Cost (8,100)Contribution Margin $27,900Fixed Cost:Fixed Selling Expense ($18,000 x .8) $14,400Fixed Administrative Expense($10,000 x .95) 9,500Total Fixed Cost (23,900)Operating Income $ 4,000Steinmann's Bait ShopContribution Income StatementFor the Year Ended December 31, 2008Sales$98,000 Variable Cost:Cost of Goods Sold $22,000Variable Selling Expense ($27,000 x .3) 8,100Variable Administrative Expense($36,000 x .1) 3,600Total Variable Cost (33,700)Contribution Margin $64,300Fixed Cost:Fixed Selling Expense ($27,000 x .7) $ 18,900Fixed Administrative Expense($36,000 x .9) 32,400Total Fixed Cost (51,300)Operating Income $13,000Placid Greeting Card ShopProjected Contribution Income StatementFor the Month of November 2008Sales (3,000 x $2) $ 6,000Variable Cost:Cost of Goods Sold (3,000 x $.50) $1,500Miscellaneous Variable Cost (3,000 x $.10) 300Total Variable Cost (1,800)Contribution Margin $ 4,200Fixed Cost:Salaries $1,200Rent 550 Electricity 200Telephone 95 Miscellaneous Fixed Cost 150Total Fixed Cost (2,195)Operating Income $ 2,0056-18. a.Joe's Pretzel StandContribution Income StatementFor the Year Ended December 31, 2008Sales (8,000 x $2) $16,000Variable Cost:Cost of Goods Sold (8,000 x $.25) $ 2,000Wages (8,000 x $.20) 1,600Total Variable Cost (3,600)Contribution Margin $12,400Fixed Cost:Rent $12,000Total Fixed Cost (12,000)Operating Income $ 4006-18. (Continued) b. The selling price must be $2.45.Contribution income statement showing given amounts:Joe's Pretzel StandContribution Income StatementFor the Year Ended December 31, 2008Sales (8,000 x $?) $ ? Variable Cost:Cost of Goods Sold (8,000 x $.25) $ 2,000Wages (8,000 x $.20) 1,600Total Variable Cost (3,600) Contribution Margin $ ? Fixed Cost:Rent $12,000Total Fixed Cost (12,000) Operating Income $ 4,000 Working from the bottom of the statement, determine amounts as shown in the three steps below:Joe's Pretzel StandContribution Income StatementFor the Year Ended December 31, 2008Sales (Step 3: $19,600 / 8,000 Units = $2.45)(Step 2: $16,000 + $3,600= $19,600) Variable Cost:Cost of Goods Sold (8,000 x $.25) $ 2,000Wages (8,000 x $.20) 1,600Total Variable Cost (3,600) Contribution Margin (Step 1: $4,000 + $12,000 = $16,000)$16,000 Fixed Cost:Rent $12,000Total Fixed Cost (12,000) Operating Income $ 4,000Blaire's Snow Cone StandContribution Income StatementFor the Year Ended December 31, 2008Sales (6,000 x $1.25) $7,500Variable Cost:Cost of Goods Sold (6,000 x $.30) $1,800Wages (6,000 x $.40) 2,400Total Variable Cost (4,200)Contribution Margin $3,300Fixed Cost:Rent $2,400Total Fixed Cost (2,400)Operating Income $ 9006-20.The Bivans CompanyContribution Income StatementFor the Year Ended December 31, 2009Sales $800,000 Variable Cost (528,000)Contribution Margin $272,000Fixed Cost (181,000)Operating Income $ 91,000The Bivans CompanyIncome StatementFor the Year Ended December 31, 2009Sales $800,000 Cost of Goods Sold 420,000Gross Profit $380,000Operating Expenses:Selling Expenses $203,000Administrative Expenses 86,000 (289,000)Operating Income $ 91,000Paradise ManufacturingContribution Income StatementFor the Year Ended December 31, 2008Sales $2,780,000 Variable Cost:Direct Material $ 680,000Direct Labor 420,000Variable Manufacturing Overhead 130,000Variable Selling Cost 240,000Variable Administrative Cost 198,000Total Variable Cost (1,668,000)Contribution Margin $1,112,000Fixed Cost:Fixed Manufacturing Overhead $900,000Fixed Selling Cost 60,000Fixed Administrative Cost 22,000Total Fixed Cost (982,000)Operating Income $ 130,000Alumacraft ManufacturingContribution Income StatementFor the Year Ended December 31, 2009Sales $7,900,000 Variable Cost:Variable Manufacturing Overhead $ 540,000Variable Selling Cost 323,000Variable Administrative Cost 218,500Total Variable Cost (1,081,500)Contribution Margin $6,818,500Fixed Cost:Direct Material $2,600,000Direct Labor 1,820,000Fixed Manufacturing Overhead 1,900,000Fixed Selling Cost 57,000Fixed Administrative Cost 11,500Total Fixed Cost (6,388,500)Operating Income $ 430,0006-24.a. Total Fixed Cost + Target Profit = Required Sales in UnitsContribution Margin Per Unit($200,000 + $0) = 3,076.92 ≈ 3,077 tests$25)-($90b. Total Fixed Cost + Target Profit = Required Sales in UnitsContribution Margin Per Unit($200,000 + $25,000) = 3,461.54 ≈ 3,462 tests$25)-($906-25.a. Total Fixed Cost + Target Profit = Required Sales in Units Contribution Margin Per Unit($3,000 + $0) = 1,000 square yards($5 - $2)b. Total Fixed Cost + Target Profit = Required Sales in Units Contribution Margin Per Unit($3,000 + $5,000) =2,666.67 ≈ 2,667 square yards ($5 - $2)6-25. (Continued)c.Total Fixed Cost = Required SalesContribution Margin Ratio - Target Profit % in DollarsContribution margin calculation:Percentage PerUnit of SalesSales $5 100%Variable cost $2 40%Contribution margin $3 ($3/$5) 60%$3,000 = $7,500 Required Sales in Dollars60% – 20%Solution Check (not required):Sales in units ($7,500 / $5) 1,500 UnitsSales $7,500Variable Cost (1,500 x $2) (3,000)Contribution Margin $4,500Fixed Cost (3,000)Operating Income $1,500ORContribution Margin – Fixed Cost = Profits($7,500 x 60%) - $3,000 = $1,500Sales of $7,500 x 20% desired profit = $1,5006-26.a. Sales – Variable Cost = Contribution Margin RatioSales($200,000 - $130,000) = .35 or 35%$200,000Total Fixed Cost + Target Profit = Required Sales in Dollars Contribution Margin Ratio$147,428.57 [$48,000 + ($300 x 12)] + $0 =35%b. Total Fixed Cost + Target Profit = Required Sales in DollarsContribution Margin Ratio[$48,000 + ($300 x 12)] + $20,000] = $204,571.4335%6-27.a. Sales – Variable Cost = Contribution Margin RatioSales$1,250,000 - $600,000 = .52 or 52%$1,250,000Total Fixed Cost + Target Profit = Required Sales in Dollars Contribution Margin Ratio$951,923.07 ($495,000 + $0) =52%b. Total Fixed Cost + Target Profit = Required Sales in DollarsContribution Margin Ratio$495,000 + $120,000 =$1,182,692.30 52%6-27. (Continued)c.Total Fixed Cost = Required Sales Contribution Margin Ratio - Target Profit % in Dollars $495,000 = $1,337,837.84 Sales in Dollars52% – 15%Solution Check (not required):Sales $1,337,837.84 Variable Cost ($1,337,837.84 x 48%) (642,162.16)Contribution Margin($1,337,837.84 x 52%) $ 695,675.68Fixed Cost (495,000.00)Operating Income $ 200,675.68ORContribution Margin – Fixed Cost = Profits($1,337,837.84 x 52%) - 495,000.00 = $200,675.68Sales of $1,337,837.84 x 15% desired profit = $200,675.686-28.a. Sales – Variable Cost = Contribution Margin RatioSales$3,650,000 - $1,387,000 = .62 or 62%$3,650,000Total Fixed Cost + Target Profit = Required Sales in Dollars Contribution Margin Ratio$362,903.22 ($225,000 + $0) =62%b. Total Fixed Cost + Target Profit = Required Sales in DollarsContribution Margin Ratio$225,000 + $125,000 =$564,516.12 62%6-28. (Continued)c.Total Fixed Cost = Required Sales Contribution Margin Ratio - Target Profit % in DollarsSales in Dollars $225,000 =$416,666.6762% – 8%Solution Check (not required):Sales $416,666.67 Variable Cost ($416,666.67 x 38%) (158,333.33)Contribution Margin($416,666.67 x 62%) $ 258,333.34Fixed Cost (225,000.00)Operating Income $ 33,333.34ORContribution Margin – Fixed Cost = Profits($416,666.67 x 62%) - 225,000.00 = $33,333.34Sales of $416,666.67 x 8% desired profit = $333,333.33is due to rounding.)difference$0.01(Thea. Fixed Costs: Rent = $125 per monthb. Variable Costs: Cost of Goods Sold ($3/12) = $0.25 per canc. Unit Selling Price – Unit Cost = Unit Contribution Margin$0.75 – $0.25 = $0.50 per unitd. (1) Total Fixed Cost + Target Profit = Required Sales in UnitsContribution Margin Per Unit$125 =cans250 $0.5(2) Sales ($0.75 x 250) $187.50Variable Cost ($0.25 x 250) (62.50)Contribution Margin $125.00Fixed Cost (125.00)Operating Income $ 0.00e. (1) Total Fixed Cost + Target Profit = Required Sales in UnitsContribution Margin Per Unit350cans$125 +$50 = $0.5(2) Sales ($0.75 x 350) $ 262.50Variable Cost ($0.25 x 350) (87.50)Contribution Margin $ 175.00Fixed Cost $(125.00)Operating Income $ 50.00a. Fixed Costs: Rent = $90 per monthb. Variable Costs: Cost of Goods Sold ($1/8) = $.125 per barc. Unit Selling Price – Unit Cost = Unit Contribution Margin$0.35 – $0.125 = $0.225 per unitd. (1) Total Fixed Cost + Target Profit = Required Sales in UnitsContribution Margin Per Unit$90 + $0 =bars400 $0.225(2) Sales ($0.35 x 400) $140Variable Cost ($0.125 x 400) (50)Contribution Margin $90Fixed Cost (90)Operating Income $ 0e. (1) Total Fixed Cost + Target Profit = Required Sales in UnitsContribution Margin Per Unit1,200bars$90 +$180 = $0.225(2) Sales ($0.35 x 1,200) $420Variable Cost ($0.125 x 1,200) (150)Contribution Margin $270Fixed Cost (90)Operating Income $180a. Fixed Costs: Rent = $48.88 per monthb. Variable Costs: Cost of Goods Sold = $0.12 per cupc. Unit Selling Price – Unit Cost = Unit Contribution Margin$2 – $0.12 = $1.88 per unitd. (1) Total Fixed Cost + Target Profit = Required Sales in UnitsContribution Margin Per Unitcups$48.88 =26$1.88(2) Sales ($2.00 x 26) $52.00Variable Cost ($0.12 x 26) (3.12)Contribution Margin $48.88Fixed Cost (48.88)Operating Income $ 0.00e. (1) Total Fixed Cost + Target Profit = Required Sales in UnitsContribution Margin Per Unit≈ 80 cups*79.19($48.88 +$100.00) =$1.88* Number is rounded up because partial units cannot be sold and the additional unit is needed to meet the required amount.(2) Sales ($2.00 x 80) $160.00Variable Cost ($0.12 x 80) (9.60)Contribution Margin $150.40Fixed Cost (48.88)Operating Income $101.52a. $200 / 4 years = $50 per yearb. $50 + $300 = $350 fixed cost per yearc.$0.15 + $0.20 = $0.35 variable cost per buttond. (1) Total Fixed Cost + Target Profit = Required Sales in UnitsContribution Margin Per Unit≈ 539 buttons*$350 + $0 =538.46$0.35-$1* Number is rounded up because partial units cannot be sold and the additional unit is needed to meet the required amount.(2) Sales – Variable Cost = Contribution Margin RatioSales$1.00 - $0.35 = .65 or 65%$1.00Total Fixed Cost + Target Profit = Required Sales in Dollars Contribution Margin Ratio($350 +$0) ≈ $538.46*65%ORUnit Selling Price x Required Units = Breakeven Sales Dollars $1 X 539 = $539** Differences are due to rounding6-32. (Continued)e. Total Fixed Cost + Target Profit = Required Sales in UnitsContribution Margin Per Unit($350 +$800) =1,769.23 ≈ 1,770 buttons ($1.00 - $0.35)f. Total Fixed Cost + Target Profit = Required Sales in Dollars Contribution Margin Ratio($350 +$800)≈ $1,769.23*65% OR Unit Selling Price x Required Units = Breakeven Sales Dollars$1 X $1,770= $1,770* * Differences are due to rounding6-33.a. (1) Sales at 100% – Variable Cost % = Contribution Margin Ratio100% - 40% - 5% = .55 or 55%Total Fixed Cost + Target Profit =Required Sales in Dollars Contribution Margin Ratio($2,800 + $1,200 + $0) ≈ $7,272.7355%(2) Total Fixed Cost + Target Profit = Required Sales DollarsContribution Margin Ratio($2,800 + $1,200 + $2,000) ≈ $10,909.0955%(3) Total Fixed Cost + Target Profit = Required Sales DollarsContribution Margin Ratio($2,800 + $1,200 - $200 + $0) ≈ $6,909.0955%6-33. (Continued)b. (1)(1 – discount) x cost of merchandise sold percent = new cost of merchandise sold percent(1 - .1) x (.4) = .36Sales – Variable Cost = Contribution Margin Ratio100% - 36% - 5% = 59%(2) Total Fixed Cost + Target Profit = Required Sales DollarsContribution Margin Ratio($2,800 + $1,200 - $200 + $0) ≈ $6,440.6859%a. (1) Sales – Variable Cost = Contribution Margin Ratio100% - 10% - 30% = 60%Total Fixed Cost + Target Profit =Required Sales in Dollars Contribution Margin Ratio($3,286 +$4,200 + $0) ≈ $12,476.6760%(2) Total Fixed Cost + Target Profit = Required Sales DollarsContribution Margin Ratio($3,286 + $4,200 +$1,500) ≈ $14,976.6760%(3) Total Fixed Cost + Target Profit = Required Sales DollarsContribution Margin Ratio($3,286 + $4,200 - $300 + $0) ≈ $11,976.6760%b. (1)(1 – discount) x cost of merchandise sold percent = new cost of merchandise sold percent(1 - .05) x (.3) = .285Sales – Variable Cost = Contribution Margin Ratio100% - 28.5% - 10% = 61.5%(2) Total Fixed Cost + Target Profit = Required Sales DollarsContribution Margin Ratio($3,286 + $4,200 - $300 + $0) ≈ $11,684.5561.5%a. There are no variable costs.b. Fixed Costs: $2,900 + $2,000 + 1,200 = $6,100c. Total Fixed Cost + Target Profit = Required Sales in UnitsContribution Margin Per Unit($6,100 + $0) =3,050 tapes ($2 - $0)d. Total Fixed Cost + Target Profit = Required Sales in UnitsContribution Margin Per Unit($6,100 + $1,000) =3,550 tapes ($2 - $0)6-36.a. ($1,800 x12) = $21,600b. ($1,200 x 12) = $14,400c. Sales at 100% – Variable Cost Ratio = Contribution Margin Ratio 100% - 55% = 45%d. Total Fixed Cost + Target Profit = Required Sales in Dollars Contribution Margin Ratio($21,600 +$14,400 + $0) = $80,00045%e. Total Fixed Cost + Target Profit = Required Sales in Dollars Contribution Margin Ratio($21,600 +$14,400 + $12,000) ≈ $106,666.6745%Students’ responses will vary but the reports might include the following considerations:The sales price increase of $19 per unit will result in an increase of $19 in the unit contribution margin. Operating income will also increase by $19 per unit or $11,400 total (600 x $19). Therefore, the total operating income for the sale of 600 units would be $19,140 (last year's profit of $7,740 + the increase of $11,400). The comparative contribution margin income statements are as follows:Year 1 Year 2 Per Unit Yr. 2$148.00 Sales $77,400$88,800Variable Cost (19,660) (19,660) (32.77) Contribution Margin $57,740 $69,140 $115.23Fixed Cost (50,000) (50,000)Operating Income $ 7,740 $19,140(Sales is calculated by multiplying the 600 units sold times the respective selling price. Then the $50,000 fixed cost is added to theprofit to find the contribution margin. Next, taking sales minus the contribution margin gives the variable cost. Finally, the per unitamounts are calculated by dividing the corresponding year 2 amounts by the 600 units.)The total fixed cost and unit variable cost are assumed to be unaffected by the price increase. Managers are also assuming that aprice increase of $19 per unit (about 15%) will have no effect on the unit sales volume. This assumption may be risky because the customers may be unwilling to pay the increased price and they may seek competitors’ products.After the price increase:Breakeven sales in units = $50,000 = 434 units$115.23 Unit sales to meet year 1 profits = ($50,000 + $7,740) = 502 units$115.23If, after the price increase, sales fall below 502 units, the company will earn less than they did before the increase. If sales fall below 434 units, the company will incur a loss. The logical recommendation would be to make the price increase only if the risk of sales falling below 502 is considered an acceptable risk by the company’s management.6-38. Students can provide any reasonable amounts in response to the questions below. The amounts provided in the solution below are examples only.a. (1) Contact the owner of the parking to inquire about rental costs.(2) Example: $100 per month(3) Example: $7.00 per hour(4) Example: 8 hours per day (11:00 a.m. to 7:00 p.m.)(5) 8 hours x 26 days x $7 = $1,456(6) Example: $2.00b. (1) The variable cost per hot dog will include the cost ofingredients and variable costs of preparation.Example: $0.50 per hot dog(2) Monthly fixed cost = rent ($100) + wages ($1,456) + licensecost ($42) = $1,598(3) Unit sales price $2.00Unit variable cost .50Unit contribution margin $1.50(4) Contribution margin ratio = $1.50 / $2.00 = 75%(5) Variable cost ratio = $0.50 / $2.00 = 25%(6) a. Breakeven units = $1,598 / $1.50 = 1,065.33 ≈ 1,066* *Number is rounded up because partial units cannot be sold and the additional unit is needed to meet the required amount.b. Sales (1,066 x $2.00) $2,132Variable cost (1,066 x $.50) (533)Contribution margin $1,599Fixed cost 1,598Operating income $ 1*(7) a. Units for target profit = ($1,598 + $300) / $1.50 = 1,266hot dogsb. Sales (1,266 x $2.00) $2,532Variable cost (1,266 x $.50) (633)Contribution margin $1,899cost 1,598FixedOperating income $ 301** Difference due to rounding.Extra problems followed by solutions:LO2 & 8 Determine Per Unit Amounts under Absorption and Variable Costing 6-54. The following information is available for the Tarrago Company: Beginning finished goods inventory 0produced 2,400UnitsUnits available for sale 2,400Lesssold (2,400)unitsEnding finished goods inventory 0Selling price per unit $100.00 Variable costs per unit:Variable product cost:Direct material $ 9.00Direct labor $17.00overhead $ 6.00 VariablemanufacturingTotal variable manufacturing cost per unit $32.00 Variable selling and administrative expense $19.00 Fixed cost per year:Fixed manufacturing overhead cost $13,200.00Fixed selling and administrative expense $10,800.00 Required:a. Calculate the product cost per unit under absorption costing.b. Calculate the product cost per unit under variable costingLO 1, 2 & 8 Prepare Income Statements Under Absorption and Variable Costing When Beginning and Ending Inventories are Zero6-55. The following information is available for the year ended December 31 2008 for the Linda Tarrago Company:Inventory information:Beginning inventory 0Units produced 1,200Units available for sale 1,200Less units sold (1,200)Ending inventory 0Selling price per unit $175Cost Information:Variable costs per unit:Variable product cost:Direct material $10Direct labor $22Variable manufacturing overhead $13Total variable manufacturing cost per unit $45Variable selling and administrative expenses $36Fixed cost per year:Fixed manufacturing overhead cost $18,000Fixed selling and admin. Expenses $58,000Required:a. Prepare an absorption costing multiple step income statement for the companyb. Prepare a variable costing contribution income statement for the companyc. Compare the income and ending inventory amounts under absorption and variable costing. Ifthey are the same under each method, explain why this happened. If they are different under each method, explain why they are different.6-56. The following information is available for the year ended December 31 2009 for the Linda Tarrago Company:Inventory information:Beginning inventory 0Units produced 1,500Units available for sale 1,500Less units sold (1,200)Ending inventory 300Selling price per unit $175Cost Information:Variable costs per unit:Variable product cost:Direct material $10Direct labor $22Variable manufacturing overhead $13Total variable manufacturing cost per unit $45Variable selling and administrative expenses $36Fixed cost per year:Fixed manufacturing overhead cost $18,000Fixed selling and admin. Expenses $58,000Required:a. Prepare an absorption costing multiple step income statement for the companyb. Prepare a variable costing contribution income statement for the companyc. Compare the income and ending inventory amounts under absorption and variable costing. Ifthey are the same under each method, explain why this happened. If they are different under each method, explain why they are different.6-57. Note: This problem is a continuation of Problem 6-56. Problem 6-56 must be completed to determine the costs of the beginning inventory. The following information is available for the year ended December 31 2010 for the Linda Tarrago Company:Inventory information:Beginning inventory 300Units produced 900Units available for sale 1,200Less units sold (1,200)Ending inventory 0Selling price per unit $175Cost Information:Variable costs per unit:Variable product cost:Direct material $10Direct labor $22Variable manufacturing overhead $13Total variable manufacturing cost per unit $45Variable selling and administrative expenses $36Fixed cost per year:Fixed manufacturing overhead cost $18,000Fixed selling and admin. Expenses $58,000Note: Problem 6-56 must be completed to determine the costs of the beginning inventory. Required:a. Prepare an absorption costing multiple step income statement for the companyb. Prepare a variable costing contribution income statement for the companyc. Compare the income and ending inventory amounts under absorption and variable costing. Ifthey are the same under each method, explain why this happened. If they are different under each method, explain why they are different.Solutions to extra problems:6-54a.Product cost under absorption costing:Direct material $ 9.00 Direct labor $17.00 Variable manufacturing overhead $ 6.00 Fixed manufacturing overhead cost($13,200.00 / 2,400 units) $ 5.50 Absorption costing cost per unit $37.50 b.Product cost variable costing:Direct material $ 9.00 Direct labor $17.00 Variable manufacturing overhead $ 6.00 Variable costing cost per unit $32.00c. In this situation, the amount of income under absorption costing and variable costing is equal. This is because inventory was zero at both the beginning and the end of the period. Therefore, all of the fixed manufacturing overhead was expensed under either methods.c. The amount of income is $3,600 greater under absorption costing because more units were produced than were sold. And, under absorption costing the fixed cost allocated to the unsold units remains in ending inventory whereas under variable costing fixed cost is treated as a period cost and expensed as it is incurred. (See notes and arrows above.)6-56 (Continued)Absorption costing fixed manufacturing overhead per unit = $18,000 / 1,500 = $12.00 per unitFixed manufacturing overhead in the beginning inventory 0 x $0 = $ 0 Fixed manufacturing overhead in current production 1,500 x $12 = 18,000Fixed manufacturing overhead in absorption cost of goods sold assuming FIFO inventory cost flow: Beginning inventory sold first 0 units x $0 = 0 Remaining sales from current production 1,200 units x $12 = 14,400 Fixed manufacturing overhead in cost of goods sold under absorption costing 14,400Fixed manufacturing overhead expensed under variable costing (18,000) Difference in absorption versus variable costing operating income $ 3,600 Fixed manufacturing overhead in ending finished goods inventory under absorption:300 units x $12 = $ 3,600c. The amount of income is $3,600 less under absorption costing because fewer units were produced than were sold, thus necessitating selling units produced in a prior period. Under absorption costing the units in the beginning inventory include an allocation of fixed cost from the prior period. On the other hand, under variable costing fixed cost is6-57 (Continued)treated as a period cost and expensed as it is incurred so the beginning inventory does not include a fixed cost component. (See notes and arrows above.)Current absorption costing fixed manufacturing overhead per unit = $18,000 / 900 = $20.00 per unitFixed manufacturing overhead in the beginning inventory 300 x $12 = $ 3,600Fixed manufacturing overhead in current production 900 x $20 = 18,000Fixed manufacturing overhead in absorption cost of goods sold assuming FIFO inventory cost flow: Beginning inventory sold first 300 units x $12 = 3,600Remaining sales from current production 900 units x $20 = 18,000Fixed manufacturing overhead in cost of goods sold under absorption costing 21,600Fixed manufacturing overhead expensed under variable costing (18,000) Difference in absorption versus variable costing operating income $ 3,600Fixed manufacturing overhead in ending finished goods inventory under absorption:0 units x $0 = $ 0。

(完整版)管理会计课后习题学习指导书习题答案(第一章)

第一章课后习题一、思考题1.从管理会计定义的历史研究中你有哪些思考和想法？答：从管理会计定义的历史研究中我发现，管理会计的概念是随着历史的发展不断完善的，因为在历史进程中，人们会发现原有概念的不足，进而不断去修改完善，这才有了现在的管理会计。

这也启发了我们，要善于发现问题，去思考，解决问题。

2.经济理论对管理会计的产生和发展有哪些重要影响？你从中得到了什么启示？答：社会经济的发展和经济理论的丰富，使得管理会计的理论体系逐渐完善，内容更加丰富，逐步形成了预测、决策、预算、控制、考核、评价的管理会计体系。

由于市场竞争的日趋激烈，人们认识到对外部环境的准确决策就是不可能的，企业的计划必须以外部环境的变化为基础，更加留心市场变化的动态，更加密切关注竞争对手。

与此相适应，战略管理的理论有了长足的发展。

这启示了我们，要细心观察，因地制宜，适应变化莫测的外部环境，进行自身调整。

同时，实践出真知，只有经过了实践考验理论才是好理论。

3.科学管理理论对现代管理会计有哪些重要影响？这些影响在管理会计的不同发展阶段是如何表现的？答：现代管理科学为管理会计的形成奠定了一定的基础。

在以成本控制为基本特征的管理会计阶段，古典组织理论特别是科学管理理论的出现促使现代会计分化为财务会计和管理会计，现代会计的管理职能得以表现出来。

该阶段，管理会计以成本控制为基本特征，以提高企业的生产效率和工作效率为目的，其主要内容包括标准成本、预算控制、差异分析。

在以预测、决策为基本特征的管理会计阶段，以标准成本制度为主要内容的管理控制继续得到了强化并有了新的发展。

责任会计将行为科学的理论与管理控制的理论结合起来，不仅进一步加强了对企业经营的全面控制（不仅仅是成本控制），而且将责任者的责、权、利结合起来，考核、评价责任者的工作业绩，从而极大地激发了经营者的积极性和主动性。

社会经济的发展和经济理论的丰富，使得管理会计的理论体系逐渐完善。

4.什么是价值链分析？价值链分析的目的是什么？答：价值链分析是指将一个企业的经营活动分解为若干战略性相关的价值活动，每一种价值活动都会对企业的相对成本产生影响，进而成为企业采取差异化战略的基础。

管理会计第14版(charles 查尔斯)英文影印版课后答案

COVERAGE OF LEARNING OBJECTIVESManagerial Accounting and the Business Organization1-A1 (10-15 min.)Because the accountant's duties are often not sharply defined, some of these answers could be challenged:1. 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, directing attention. Reporting against the budget also has ascorekeeping dimension.2. Problem solving. Helps a manager assess the impact of a decision.3. Scorekeeping. Reports on the results of an operation. Could also beattention direction if scrap is an area that might require management decisions.4. Attention directing. Focuses attention on areas that need attention.5. Attention directing. Helps managers learn about the informationcontained in a performance report.6. Scorekeeping. The statement merely reports what has happened.7. Problem solving. The cost comparison is apparently useful becausethe manager wishes to decide between two alternatives. Thus, it aids problem solving.8. Attention directing. Variances point out areas where results differfrom expectations. Interpreting them directs attention to possiblecauses of the differences.9. Problem solving. Aids a decision about where the parts should bemade.10. Scorekeeping. Determining a depreciation schedule is simply anexercise in preparing financial statements to report the results ofactivities.1. Budgeted Actual DeviationsAmounts Amounts or Variances Room rental $ 140 $ 140 $ 0Food 800 1,008 208UEntertainment 600 600 0Decorations 220 190 30FTotal $1,760 $1,938 $178U2. Because of the management by exception rule, room rental andentertainment require no explanation. The actual expenditure forfood exceeded the budget by $208. Of this $208, $150 is explained by attendance of 15 persons more than budgeted (at a budget of $10 per person) and $58 is explained by expenditures above $10 per person.Actual expenditures for decorations were $30 less than the budget. If all desired decorations were purchased, the decorations committee should be commended for their savings.1-A3 (10 min.)All of the situations raise possibilities for violation of the integrity standard. In addition, the manager in each situation must address an additional ethical standard:1. The General Mills manager must respect the confidentiality standard.He or she should not disclose any information about the new cereal.2. Roberto must address his level of competence for the assignment. Ifhis supervisor knows his level of expertise and wants an analysisfrom a “layperson” point of view, he should do it. However, if thesupervisor expects an expert analysis, Roberto must admit his lackof competence.3. The objectivity standard should cause Helen to decline to omit theinformation from her budget. It is relevant information, and itsomission may mislead readers of the budget.Because the accountant’s duties are often not sharply defined, some of these answers could be challenged:1. Scorekeeping. Records events.2. Scorekeeping. Simply recording of what has happened.3. Problem solving. Helps a manager decide between alternatives.4. Attention directing. Directs attention to the use of overtime labor.5. Problem solving. Provides information to managers for decidingbetween alternatives.6. Attention directing. Directs attention to why nursing costs increased.7. Attention directing. Directs attention to areas where actual resultsdiffered from the budget.8. Problem solving. Helps the vice-president to decide which course ofaction is best.9. Scorekeeping. Records costs in the department to which theybelong.10. Scorekeeping. Records actual overtime costs.11. Attention directing. Directs attention to stores with either high or lowratios of advertising expenses to sales.12. Attention directing. Directs attention to causes of returns of the drug.13. Attention directing or problem solving, depending on the use of theschedule. If it is to identify areas of high fuel usage it is attentiondirecting. If it is to plan for purchases of fuel, it is problem solving. 14. Problem solving. Provides information for deciding between twoalternative courses of action.15. Scorekeeping. Records items needed for financial statements.1 & 2. Budget Actual VarianceSales $75,000 $74,860 $ 140UCosts:Fireworks $35,000 $39,500 $4,500ULabor 15,000 13,000 2,000FOther 8,000 8,020 20UProfit $17,000 $14,340 $2,660U3. The cost of fireworks was $4,500 ÷ $35,000 = 13% over budget. Didfireworks suppliers raise their prices? Did competition cause retailprices to be lower than expected? There should be someexplanation for the extra cost of fireworks. Also, the labor cost was$2,000 ÷ $15,000 =13% below budget. It would be useful to discover why this cost was saved. Both sales and other costs were very close to budget.1-B3 (10 - 15 min.)1. Treasurer. Analysts affect the company's ability to raise capital,which is the responsibility of the treasurer.2. Controller. Advising managers aids operating decisions.3. Controller. Advice on cost analysis aids managers' operatingdecisions.4. Controller. Divisional financial statements report on operations.Financial statements are generally produced by the controller'sdepartment.5. Treasurer. Financing the business is the responsibility of thetreasurer.6. Controller. Tax returns are part of the accounting process overseenby the controller.7. Treasurer. Insurance, as with other risk management activities, isusually the responsibility of the treasurer.8. Treasurer. Allowing credit is a financial decision.1-1 Decision makers within and outside an organization use accounting information for three broad purposes:1. Internal reporting to managers for planning and controllingoperations.2. Internal reporting to managers for special decision-making and long-range planning.3. External reporting to stockholders, government, and other interestedparties.1-2 The emphasis of financial accounting has traditionally been on the historical data presented in the external reports. Management accounting emphasizes planning and control purposes.1-3 The branch of accounting described in the quotation is management accounting.1-4 Scorekeeping is the recording of data for a later evaluation of performance. Attention directing is the reporting and interpretation of information for the purpose of focusing on inefficiencies of operation or opportunities for improvement. Problem solving presents a concise analysis of alternative courses of action.1-5 GAAP applies to publicly issued annual financial reports. Internal accounting reports are not restricted by GAAP.1-6 Yes, but it covers more than that. The Foreign Corrupt Practices Act applies to all publicly-held companies and covers the quality of internal accounting control as well as bribes and other matters.1-7 Users cannot easily observe the quality of accounting information. Thus, they rely on the integrity of accountants to be sure the information is accurate. Information that is unreliable is worthless, so if accountants do not have a reputation for integrity, the information they produce will not have value.1-8 Three examples of service organizations are banks, insurance companies, and public accounting firms. Such organizations tend to be labor intensive, have outputs that are difficult to define and measure, and have both inputs and outputs that are difficult or impossible to store.1-9 Two considerations are cost-benefit balance and behavioral effects. Cost-benefit balance refers to how well an accounting system helps achieve management's goals in relation to the cost of the system. The behavioral consideration specifies that an accounting system should be judged by how it will affect the behavior (that is, decisions) of managers.1-10 Yes. The act of recording events has become as much a part of operating activities as the act of selling or buying. For example, cash receipts and disbursements must be traced, and receivables and payables must be recorded, or else gross confusion would ensue.1-11 A budget is a prediction and guide; a performance report is a tabulation of actual results compared with the budget; and a variance reconciles the differences between budget and actual.1-12 No. Management by exception means that management spends more effort on those areas that seem to be out of control and less on areas that are functioning as planned. This method is an efficient way for managers to decide where to put their time and effort.1-13 No. There is no perfect system of automatic control, nor does accounting control anything. Accounting is a tool used by managers in their control of operations.1-14 Information that is relevant for decisions about a product depends on the product's life-cycle stage. Therefore, to prepare and interpret information, accountants should be aware of the current stage of a product's life cycle.1-15 The six functions are: (1) research and development – generation and experimentation with new ideas; (2) product and service process design – detailed design and engineering of products; (3) production – use of resources to produce a product or service; (4) marketing - informing customers of the value and features of products or services; (5) distribution – delivering products or services to customers; and (6) customer service –support provided to customers.1-16 No. Not all of the functions are of equal importance to the success of a company. Measurement and reporting should focus on those functions that enable a company to gain and maintain a competitive edge.1-17 Line managers are directly responsible for the production and sale of goods or services. Staff managers have an advisory function – they support line managers.1-18 Management accountants are the information specialists, even in non-hierarchical companies. However, in such companies they are more directly involved with managers and are often parts of cross-functional teams.1- 19 A treasurer is concerned mainly with the company's financial matters, the controller with operating matters. In large organizations, there are sufficient activities associated with both financial and operating matters to justify two separate positions. In a small organization the same person might be both treasurer and controller.1-20 The four parts of the CMA examination are: (1) economics, finance, and management, (2) financial accounting and reporting, (3) management reporting, analysis, and behavioral issues, and (4) decision analysis and information systems.1-21 This is not true. About one-third of CEOs come from finance or accounting backgrounds. Accounting is excellent preparation for top management positions because accountants are often exposed to many parts of the company early in their careers.1-22 Changes in technology are affecting how accountants operate. They must be able to account for e-commerce transactions efficiently and safely, they often must integrate their accounting systems into ERP systems, and an increasing number are beginning to use XBRL to communicate information electronically.1-23 The essence of the just-in-time philosophy is the elimination of waste, accomplished by reducing the time products spend in the production process and trying to eliminate the time spent in processes that do not add value to the product.1-24 Moving tools and products that are in process from one location to another in a plant is an activity that does not add value to the product. So changing the plant layout to eliminate wasted movement and time improves production efficiency.1-25 The four major responsibilities are: (1) competence - develop knowledge; know and obey laws, regulations, and technical standards; and perform appropriate analyses, (2) confidentiality - refrain from disclosing or using confidential information, (3) integrity - avoid conflicts of interest, refuse gifts that might influence actions, recognize limitations, and avoid activities that might discredit the profession, and (4) objectivity - communicate information fairly, objectively, and completely, within confidentiality constraints.1-26 Standards do not always provide the needed guidance. Sometimes an action borders on being unethical, but it is not clearly an ethical violation. Other times two ethical standards conflict. In situations such as these, accountants must make ethical judgments.1-27 (5-10 min.)Typical activities associated with the treasurer function include:❑Provision of capital❑Investor relations❑Short-term financing❑Banking and custody❑Credits and collections❑Investments❑Risk managementTypical activities associated with the controller function include:❑Planning for control❑Reporting and interpreting❑Evaluating and consulting❑Tax administration❑Government reporting❑Protection of assets❑Economic appraisal1-28 (5-10 min.)Activities 2, 4, 5, and 6 are primarily associated with marketing decisions. The management accountant would assist in these decisions as follows: Boeing Company’s pricing decision requires cost data relevant to the new method of distributing spare parts. will need to know the costs of the advertising program as well as the additional costs of other value chain functions resulting from increased sales. TexMex Foods will need to know the incremental revenues and incremental costs associated with the special order. Target Stores needs to know the impact on both revenues and costs of closing one of its stores.Activities 1, 7, and 8 are primarily associated with production decisions. The management accountant would assist in these decisions as follows. Porsche Motor Company needs an analysis of the costs associated with purchasing the part compared to the costs of making the part. Dell will need to know the costs of the training program and the savings associated with increased efficiencies in the setup and changeover activities. General Motors needs to know the costs and salvage values of the replacement equipment, the proceeds of the sale of the old equipment, and the operating savings associated with the use of the new equipment.1-30 (5 min.)1. Management 4. Management 7. Financial2. Management 5. Management3. Financial 6. Financial1. Performance ReportBudget Actual Variance Explanation Revenues $220,000 $228,000 $8,000 F Additional salesfrom newproducts* Advertising cost 15,000 16,500 (1,500) U New advertisingCampaignNet $6,500 F* From the New Products Report, seven new products were added. This exceeded the plan to add six.2.Factors that may not have been considered include:a.The costs of new products may have exceeded their price.b.Customer satisfaction with new products may not have been partof the new products report.petitors’ reactions to the Starbucks store’s actions may nothave been anticipated.d.External uncontrollable factors such as increases in operatingcosts, adverse weather, changes in the overall economy, newcompetitors entering the market, or key employee turnover mayhave decreased efficiency.1-32 (5 min.)1. Line, support 3. Staff, marketing 5. Staff, support2. Staff, support 4. Line, marketing 6. Line, productionMicrosoft is a company that most students will know and have some understanding of what functions its managers perform. Nevertheless, this may not be an easy exercise for those who have little knowledge of how companies operate.Research & development – Because software companies must continually come out with new products and upgrades to their current products this is a critical function for Microsoft. More than one-fourth of Microsoft’s operating expenses are devoted to R&D.Design of products, services, or processes – For Microsoft the design and R&D process probably overlap considerably. Product design is critical; process design is probably not. One essential part of design is beta testing – that is, field testing of new software. This quality-control step is essential to prevent customer dissatisfaction with new products.Production – Microsoft produces disks and CD-ROMs and the manuals and packaging to go with them. However, they are increasingly delivering software over the Internet, which takes an initial process design and then few resources. It is not likely a major focus for Microsoft.Marketing – Microsoft spends more on sales and marketing than on any other operating expense. Increasing competition in software sales makes marketing essential to the company’s future. This function includes advertising and direct marketing activities, but it also includes activities of the company’s sales force. Distribution – This function is becoming simpler for Microsoft as it delivers more and more software over the Internet. Although the company must stay abreast of competitors in delivery methods, this is not likely to create a major competitive advantage or disadvantage for Microsoft.Customer service – Customer service is important, but Microsoft tries to minimize its costs in this area by product design – making things work right without needing deep computer expertise. Still, poor customer service can severely impact a company, so Microsoft must attend to it.Support functions – Most of the time these are not a major focus. There is one exception recently for Microsoft. Legal support has been front and center. The very future of the company was based on court judgments for which good legal support was essential.The management accountant's major purpose is to provide information that helps line managers in making decisions regarding the planning and controlling of operations. The accountant supplies information for scorekeeping, attention directing, and problem solving. In turn, managers use this and other information for routine and non-routine decisions and for evaluating subordinates and the performance of sub-parts of the organization. Management accountants must walk a delicate line between (1) making sure that managers are properly using the pertinent information and (2) making sure that the managers, not the accountants, are doing the actual managing.1-35(5 min.)Other costs of a poor ethical environment include legal costs and costs due to high employee turnover. Other benefits of a good ethical environment include low employee turnover, low loss from internal theft, and improved customer satisfaction resulting from better quality and service (that result from a more productive work environment).1-36(5 min.)There are numerous examples.“You understand how important it is to record this sale before year end, don’t you?”“Doing it this way is common for all companies in our business, so don’t worry!”“Trust me, the inventory is at the warehouse.”This problem can form the basis of an introductory discussion of the entire field of management accounting.1. The focus of management accounting is on helping internal users tomake better decisions, whereas the focus of financial accounting ison helping external users to make better decisions. Managementaccounting helps in making a host of decisions, including pricing,product choices, investments in equipment, making or buying goods and services, and manager rewards.2. Generally accepted accounting standards or principles affect bothinternal and external accounting. However, change in internalaccounting is not inhibited by generally accepted principles. Forexample, if an organization wants to account for assets on the basisof replacement costs for internal purposes, no outside agency canprohibit such accounting. Of course, this means that organizationsmay have to keep more than one set of records. There is nothingimmoral or unethical about having multiple sets of books, but theyareexpensive. Accounting data are commodities, just like butter or eggs.Innovations in internal accounting systems must meet the samecost-benefit tests that other commodities endure. That is, theirperceived increases in benefits must exceed their perceivedincreases in costs. Ultimately, benefits are measured by whetherbetter decisions are forthcoming in the form of increased net profitsor cost savings.3. Budgets, the formal expressions of management plans, are a majorfeature of management accounting, whereas they are not asprominent in financial accounting. Budgets are major devices forcompelling and disciplining management planning.4. An important use of management accounting information is theevaluation of performance, which often takes the form of comparisonof actual results against budgets, providing incentives and feedback to improve future decisions.5.Accounting systems have an enormous influence on the behavior ofindividuals affected by them. Management accounting is moreconcerned with the likely behavioral effects of various accountingalternatives that may be adopted than is financial accounting.1-38(10 min.)The main point of this question is that cost information is crucial for decisions regarding which products and services should be emphasized or de-emphasized. The incentives to measure costs precisely are far greater when flat fees are being received instead of reimbursements of costs.Note, too, that nonprofit organizations and profit-seeking organizations have similar desires regarding management accounting. Accountability is now in fashion for many purposes, including justification of prices, cost control, and response to criticisms by investors (whether they be donors, taxpayers, or others).When somebody's money is at stake, accounting systems get much love and attention. In a survey of 550 hospitals, hospital financial executives said that improved cost accounting systems "are crucial to responding to changes in hospital payment mechanisms and that better cost information is essential for more profitable and efficient operations." Hospitals will increasingly identify costs by product (type of case), not just by departments.1-39 (10 min.)Paperwork and systems often seem to become ends in themselves. However, the rationale that should underlie systems design is the cost-benefit philosophy or approach that is implied in the quotation. The aim is to get the managers and their subordinates collectively to make better decisions under one system versus another system -- for a given level of costs.Marks & Spencer should look at each of the management accounting reports it produces with an eye toward how it helps managers make better decisions. Does it provide needed scorekeeping? Does it direct attention to aspects of operations that might need altering? Does it provide information for specific management decisions? These types of questions will help identify the benefit of the information in the report.Then the company must consider the cost – not just the cost of collecting the data and preparing the reports, but the cost of educating managers to use the information and the cost of the time to read, digest, and act on the information. Too much information may be costly because it makes it time-consuming (and thus costly) to sift through the reams of information to find the few items that are important. And one cost may be the loss of important information because the total volume of information makes it too difficult to ferret out the important items.1-40(10 min.) Financial information is important in all companies. But how managers get and use financial information can differ depending on the culture and philosophies of the company.Top executives of a company often represent a functional area that is critical to the comparative economic advantage of the company. If technology is crucial, engineers generally hold important executive positions. If marketing differentiates the company from others, marketing executive s usually dominate. But regardless of the source of a company’s competitive advantage, its success will eventually be measured in economic terms. They must attend to financial aspects to thrive and often even to survive.Management accountants must work with the dominant managers in any organization. The modern trend toward use of cross-functional teams places management accountants at the center of the action regardless of what type of managers and executives dominate. Most companies realize that there is a financial dimension to almost every major decision, so they want the financial experts, management accountants, involved in the decisions. But to be accepted as an important part of these teams, the management accountants must know how to help managers in various functional areas. In General Mills, if accountants can’t talk the language of marketing, they will not have great influence. In ArvinMeritor, if they do not understand the information needs of engineers they will not provide value.1-41(10-15 min.)1. Boeing's competitive environment and manufacturing processeschanged greatly during the 1990s. An accounting system that served them well in their old environment would not necessarily be optimal in the 2000s. Boeing's management probably thought that changes in the accounting system were necessary to produce the kind of information necessary to remain competitive.2. A cost-benefit criterion was probably used. Boeing's management maynot have quantified the costs and the benefits, but they certainlyassessed whether the new system would help decisions enough towarrant the cost of the system.Many of the benefits of a better accounting system are hard to measure.They affect many strategic decisions of an organization. Withoutaccurate product costs, management will find it difficult to assess the consequences of their decisions. An accurate accounting system will help to price airplanes and other products competitively.3. More accurate product costs will usually result in better managementdecisions. But if the cost of the accounting system that produces the more accurate costs is too high, it may be best to forego the increased accuracy. The benefit of better decisions must exceed the added cost of the system for a change to be desirable.1-42(10 min.)1. There are many possible activities for each function of Nike's valuechain. Some possibilities are:Research and development -- Determining changes in customers'tastes and preferences for shoes and sportswear to come up withnew products (maybe the next "Air Jordans").Product and service process design -- Design a shoe to meet theincreasing demands of competitive athletes.Production -- Determine where to produce products and negotiatecontracts with the companies producing them.Marketing -- Signing prominent athletes to endorse Nike's products.Distribution -- Select the best locations for warehouses fordistribution to retail outlets.Customer service -- Formulate return policies for products thatcustomers perceive to be defective.2. Accounting information that aids managers' decisions includes:Research and development -- Trends in sales for various products, to determine which are becoming more and less popular.Product and service process design -- Production costs of variousshoe designs.Production -- Measure total costs, including both purchase cost and transportation costs, for production in various parts of the world.Marketing -- The added profits generated by the added sales due toproduct endorsements.Distribution -- Storage and shipping costs for different alternativewarehouse locations.Customer service -- The net cost of returned merchandise, to becompared with the benefits of better customer relations.。

管理会计课后习题答案（全）

管理会计课后习题答案(全) -标准化文件发布号：（9456-EUATWK-MWUB-WUNN-INNUL-DDQTY-KII管理会计课后习题答案第一章总论总论一、单项选择题 1. B 2. C 3. D 4.A 二、多项选择题二、多项选择题1. ABCD 2. ABCD 3. ABCD 4. ABC 5. ABCD 三、判断题三、判断题1.√ 2. √ 3.× 4.√ 5.× 6.√第二章成本性态与变动成本法一、单选题一、单选题1. D 2. C 3. B 4.A 5. C 6.D 7. B 8.D 9.D 10. B二、多项选择题二、多项选择题1. AB 2. ACD 3. AB 4. AB 5. ABC 6. BCD 7. ABD 8. ABCD 9. BC 10. CD 三、判断题三、判断题1.× 2.× 3.√ 4.× 5.√ 6.√ 7.× 8.√ 四、实践练习题四、实践练习题实践练习1某企业生产一种机床，最近五年的产量和历史成本资料如下：某企业生产一种机床，最近五年的产量和历史成本资料如下：年份产量（千台）产品成本（万元）200660500 200755 470 200850 460 200965 510201070 550 要求: （1）采用高低点法进行成本性态分析；（2）采用回归直线法进行成本性态分析。

解：（1）采用高低点法进行成本性态分析:460=a+50b550=a+70b, 故b=(550-460)÷(70-50)=4.5; a=460-50×4.5=235则 Y=235+4.5X（2）采用回归直线法进行成本性态分析:年度产销量X i（千台）总成本Y i（万元）X i Y i X i22006 2007 2008 2009 20106055506570500475450520550 30000 26125 22500 33800 38500 3600 3025 2500 4225 4900合计n=5∑X i=300∑Y i=2495∑X i Y i =150925 ∑X i2= 18250 b=（5×150925-300×2495）÷（5×18250-300×300）=4.9a=（2495-4.9×300）÷5=205（万元）则 Y=205+4.9X实践练习2已知：某企业本期有关成本资料如下：单位直接材料成本为10元，单位直接人工成本为5元，单位变动性制造费用为7元，固定性制造费用总额为4,000元，单位变动性销售管理费用为4元，固定性销售管理费用为1,000元。

管理会计(英文版)课后习题答案(高等教育出版社)chapter 4

管理会计（高等教育出版社）于增彪（清华大学）改编余绪缨（厦门大学）审校CHAPTER 4ACTIVITY-BASED COSTINGQUESTIONS FOR WRITING AND DISCUSSION1.Unit costs provide essential informationneeded for inventory valuation and prepara-tion of income statements. Knowing unit costs is also critical for many decisions such as bidding decisions and accept-or-reject special order decisions.2.Cost measurement is determining the dollaramounts associated with resources used in production. Cost assignment is associating the dollar amounts, once measured, with units produced.3.An actual overhead rate is rarely used be-cause of problems with accuracy and timeli-ness. Waiting until the end of the year to en-sure accuracy is rejected because of the need to have timely information. Timeliness of information based on actual overhead costs runs into difficulty (accuracy problems) because overhead is incurred nonuniformly and because production also may be non-uniform.4.For plantwide rates, overhead is first col-lected in a plantwide pool, using direct trac-ing. Next, an overhead rate is computed and used to assign overhead to products. 5.First stage: Overhead is assigned to produc-tion department pools using direct tracing, driver tracing, and allocation. Second stage: Individual departmental rates are used to assign overhead to products as they pass through the departments.6.Departmental rates would be chosen overplantwide rates whenever some depart-ments are more overhead intensive than others and if certain products spend more time in some departments than they do in others.7.Plantwide overhead rates assign overheadto products in proportion to the amount of the unit-level cost driver used. If the prod-ucts consume some overhead activities in different proportions than those assigned by the unit-level cost driver, then cost dis-tortions can occur (the product diversity factor). These distortions can be significant if the nonunit-level overhead costs represent a significant proportion of total overhead costs.8.Low-volume products may consume non-unit-level overhead activities in much greater proportions than indicated by a unit-levelcost driver and vice versa for high-volumeproducts. If so, then the low-volume prod-ucts will receive too little overhead and thehigh-volume products too much.9.If some products are undercosted and oth-ers are overcosted, a firm can make a num-ber of competitively bad decisions. For ex-ample, the firm might select the wrongproduct mix or submit distorted bids.10.Nonunit-level overhead activities are thoseoverhead activities that are not highly corre-lated with production volume measures. Ex-amples include setups, material handling,and inspection. Nonunit-level cost driversare causal factors—factors that explain theconsumption of nonunit-level overhead. Ex-amples include setup hours, number ofmoves, and hours of inspection.11.Product diversity is present whenever prod-ucts have different consumption ratios fordifferent overhead activities.12.An overhead consumption ratio measuresthe proportion of an overhead activity con-sumed by a product.13.Departmental rates typically use unit-levelcost drivers. If products consume nonunit-level overhead activities in different propor-tions than those of unit-level measures, thenit is possible for departmental rates to moveeven further away from the true consumptionratios, since the departmental unit-level ra-tios usually differ from the one used at theplant level.14.Agree. Prime costs can be assigned usingdirect tracing and so do not cause cost dis-tortions. Overhead costs, however, are notdirectly attributable and can cause distor-tions. For example, using unit-level activitydrivers to trace nonunit-level overhead costswould cause distortions.15.Activity-based product costing is an over-head costing approach that first assignscosts to activities and then to products. Theassignment is made possible through theidentification of activities, their costs, and theuse of cost drivers.16.An activity dictionary is a list of activitiesaccompanied by information that describeseach activity (called attributes)17. A primary activity is consumed by the finalcost objects such as products and custom-ers, whereas secondary activities are con-sumed by other activities (ultimately con-sumed by primary activities).18.Costs are assigned using direct tracing andresource drivers.19.Homogeneous sets of activities are pro-duced by associating activities that have thesame level and that can use the same driverto assign costs to products. Homogeneoussets of activities reduce the number of over-head rates to a reasonable level.20. A homogeneous cost pool is a collection ofoverhead costs that are logically related tothe tasks being performed and for whichcost variations can be explained by a singleactivity driver. Thus, a homogeneous pool ismade up of activities with the same process,the same activity level, and the same driver.21.Unit-level activities are those that occur eachtime a product is produced. Batch-level activi-ties are those that are performed each time abatch of products is produced. Product-levelor sustaining activities are those that areperformed as needed to support the variousproducts produced by a company. Facility-level activities are those that sustain a facto-ry’s general man ufacturing process.22.ABC improves costing accuracy wheneverthere is diversity of cost objects. There arevarious kinds of cost objects, with productsbeing only one type. Thus, ABC can be use-ful for improving cost assignments to costobjects like customers and suppliers. Cus-tomer and supplier diversity can occur for asingle product firm or for a JIT manufactur-ing firm.23.Activity-based customer costing can identifywhat it is costing to service different custom-ers. Once known, a firm can then devise astrategy to increase its profitability by focus-ing more on profitable customers, convertingunprofitable customers to profitable oneswhere possible, and “firing” customers thatcannot be made profitable.24.Activity-based supplier costing traces allsupplier-caused activity costs to suppliers.This new total cost may prove to be lowerthan what is signaled simply by purchaseprice.EXERCISES4–11.Quarter 1 Quarter 2 Q uarter 3 Quarter 4 Total Units produced 400,000 160,000 80,000 560,000 1,200,000 Prime costs $8,000,000 $3,200,000 $1,600,000 $11,200,000 $24,000,000 Overhead costs $3,200,000 $2,400,000 $3,600,000 $2,800,000 $12,000,000 Unit cost:Prime $20 $20 $20 $20 $20Overhead 8 15 45 5 10Total $28 $35 $65 $25 $30 2. Actual costing can produce wide swings in the overhead cost per unit. Thecause appears to be nonuniform incurrence of overhead and nonuniform production (seasonal production is a possibility).3. First, calculate a predetermined rate:OH rate = $11,640,000/1,200,000= $9.70 per unitThis rate is used to assign overhead to the product throughout the year.Since the driver is units produced, $9.70 would be assigned to each unit.Adding this to the actual prime costs produces a unit cost under normal cost-ing:Unit cost = $9.70 + $20.00 = $29.70This cost is close to the actual annual cost of $30.00.1. $13,500,000/3,600,000 = $3.75 per direct labor hour (DLH)2. $3.75 ⨯ 3,456,000 = $12,960,0003. Applied overhead $ 12,960,000A ctual overhead 13,600,000U nderapplied overhead $ 640,0004. Predetermined rates allow the calculation of unit costs and avoid the prob-lems of nonuniform overhead incurrence and nonuniform production asso-ciated with actual overhead rates. Unit cost information is needed throughout the year for a variety of managerial purposes.4–31. Predetermined overhead rate = $4,500,000/600,000 = $7.50 per DLH2. Applied overhead = $7.50 ⨯ 585,000 = $4,387,5003. Applied overhead $ 4,387,500Actual overhead 4,466,250Underapplied overhead $ (78,750)4. Unit cost:Prime costs $ 6,750,000Overhead costs 4,387,500Total $ 11,137,500Units ÷750,000Unit cost $ 14.851. Predetermined overhead rate = $4,500,000/187,500 = $24 per machine hour(MHr)2. Applied overhead = $24 187,875 = $4,509,0003. Applied overhead $ 4,509,000Actual overhead 4,466,250Overapplied overhead $ 42,7504. Unit cost:Prime costs $ 6,750,000Overhead costs 4,509,000Total $ 11,259,000Units ÷750,000Unit cost $ 15.01**Rounded5. Gandars needs to determine what causes its overhead. Is it primarily labordriven (e.g., composed predominantly of fringe benefits, indirect labor, and personnel costs), or is it machine oriented (e.g., composed of depreciation on machinery, utilities, and maintenance)? It is impossible for a decision to be made on the basis of the information given in this exercise.1. 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**Rounded1. Activity rates:Machining = $632,000/300,000= $2.11* per MHrInspection = $360,000/12,000= $30 per inspection hour*Rounded2. Unit overhead cost = [($2.11 ⨯ 8,000) + ($30 ⨯ 800)]/8,000= $40,880/8,000= $5.114–71. Yes. Since direct materials and direct labor are directly traceable to eachproduct, 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.4–7 Concluded3. 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 assign-ments. 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 non-unit-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 $ 5.90Activity dictionary:Activity Activity Primary/ ActivityName Description Secondary Driver Providing nursing Satisfying patient Primary Nursing hours care needsSupervising Coordinating Secondary Number of nurses nurses nursing activitiesFeeding patients Providing meals Primary Number of mealsto patientsLaundering Cleaning and Primary Pounds of laundry bedding and delivering clothesclothes and beddingProviding Therapy treatments Primary Hours of therapy physical directed bytherapy physicianMonitoring Using equipment to Primary Monitoring hours patients monitor patientconditions1. dCost of labor (0.75 ⨯ $40,000) $30,000Forklift (direct tracing) 6,000 Total cost of receiving $36,000 2. b3. a4. c5. dActivity rates (Questions 2–5):Receiving: $36,000/50,000 = $0.72 per partSetup: $60,000/300 = $200 per setupGrinding: $90,000/18,000 = $5 per MHrInspecting: $45,000/4,500 = $10 per inspection hour6. aOverhead rate = $231,000/20,000 = $11.55 per DLH Direct materials $ 850Direct labor 600Overhead ($11.55 ⨯ 50) 578*Total cost $ 2,028Units ÷100Unit cost $ 20.28*Rounded4–9 Concluded7. bDirect materials $ 850.00Direct labor 600.00Overhead:Setup 200.00 ($200 ⨯ 1)Inspecting 40.00 ($10 ⨯ 4)Grinding 100.00 ($5 ⨯ 20)Receiving 14.40 ($0.72 ⨯ 20) Total costs $ 1,804.40Units ÷100Unit cost $ 18.04**Rounded4–101. Unit-level: Testing products, inserting dies2. Batch-level: Setting up batches, handling wafer lots, purchasingmaterials, receiving materials3. Product-level: Developing test programs, making probe cards,engineering design, paying suppliers4. Facility-level: Providing utilities, providing space4–111. Unit-level activities: MachiningBatch-level activities: Setups and packing Product-level activities: ReceivingFacility-level activities: None2. Pools and drivers:Unit-levelPool 1:Machining $80,000Activity driver: Machine hoursBatch-levelPool 2:Setups $24,000Packing 30,000Total cost $54,000Product-levelPool 3:Receiving $18,000Activity driver: Receiving orders4–11 Concluded3. Pool rates:Pool 1: $80,000/40,000 = $2 per MHrPool 2: $54,000/300 = $180 per setupPool 3: $18,000/600 = $30 per receiving order 4. Overhead assignment:InfantryPool 1: $2 ⨯ 20,000 = $ 40,000Pool 2: $180 ⨯ 200 = 36,000Pool 3: $30 ⨯ 200 = 6,000Total $ 82,000Special forcesPool 1: $2 ⨯ 20,000 = $ 40,000Pool 2: $180 ⨯ 100 = 18,000Pool 3: $30 ⨯ 400 = 12,000Total $ 70,0004–121. Deluxe Percent Regular PercentPrice $900 100% $750 100% Cost 576 64 600 80 Unit 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 Regular Unit-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 + $91.75***Rounded3. Using activity-based costing, a much different picture of the deluxe and regu-lar products emerges. The regular model appears to be more profitable. Per-haps it should be emphasized.4–131. 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-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 ⨯ 50 100,000T otal $ 1,160,000 $ 340,000For 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 or-der. 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 toEmery without any significant benefit to Emery. Emery needs to increase prices to reflect the additional demands on customer-support activities. Fur-thermore, 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 cus-tomers 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.4–141. 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 $ 34,400,000 Inspecting components:$120 ⨯ 40 4,800$120 ⨯ 1,960 235,200 Reworking products:$507 ⨯ 90 45,630$507 ⨯ 1,410 714,870 Warranty work:$600 ⨯ 400 240,000$600 ⨯ 7,600 4,560,000 Total 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 con sidered, the cost of Vance is $23.23, which is less than Foy’s component.Lumus should accept the contractual offer made by Vance.4–14 Concluded2. Warranty hours would act as the best driver of the three choices. Using thisdriver, the rate is $1,000,000/8,000 = $125 per warranty hour. The cost as-signed 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**RoundedPROBLEMS4–151. Product cost assignment:Overhead rates:Patterns: $30,000/15,000 = $2.00 per DLHFinishing: $90,000/30,000 = $3.00 per DLHUnit cost computation:Duffel BagsPatterns:$2.00 ⨯ 0.1 $0.20$2.00 ⨯ 0.2 $0.40Finishing:$3.00 ⨯ 0.2 0.60$3.00 ⨯ 0.4 1.20Total per unit $0.80 $1.602. Cost before addition of duffel bags:$60,000/100,000 = $0.60 per unitThe assignment is accurate because all costs belong to the one product.4–15 Concluded3. Activity-based cost assignment:Stage 1:Pool rate = $120,000/80,000 = $1.50 per transactionStage 2:Overhead applied:Backpacks: $1.50 ⨯ 40,000* = $60,000Duffel bags: $1.50 ⨯ 40,000 = $60,000*80,000 transactions/2 = 40,000 (number of transactions had doubled)Unit cost:Backpacks: $60,000/100,000 = $0.60 per unitDuffel bags: $60,000/25,000 = $2.40 per unit4. This problem allows the student to see what the accounting cost per unitshould be by providing the ability to calculate the cost with and without the duffel bags. With this perspective, it becomes easy to see the benefits of the activity-based approach over those of the functional-based approach. The activity-based approach provides the same cost per unit as the single-product setting. The functional-based approach used transactions to allocate accounting costs to each producing department, and this allocation probably reflects quite well the consumption of accounting costs by each producing department. The problem is the second-stage allocation. Direct labor hours do not capture the consumption pattern of the individual products as they pass through the departments. The distortion occurs, not in using transac-tions to assign accounting costs to departments, but in using direct labor hours to assign these costs to the two products.In a single-product environment, ABC offers no improvement in product cost-ing accuracy. However, even in a single-product environment, it may be poss-ible to increase the accuracy of cost assignments to other cost objects such as customers.4–161. Plantwide rate = $660,000/440,000 = $1.50 per DLHOverhead cost per unit:Model A: $1.50 ⨯ 140,000/30,000 = $7.00Model B: $1.50 ⨯ 300,000/300,000 = $1.502. Departmental rates:Department 1: $420,000/180,000 = $2.33 per MHr*Department 2: $240,000/400,000 = $0.60 per DLHDepartment 1: $420,000/40,000 = $10.50 DLHDepartment 2: $240,000/40,000 = $6.00 per MHrOverhead cost per unit:Model A: [($2.33 ⨯ 10,000) + ($0.60 ⨯ 130,000)]/30,000 = $3.38Model B: [($2.33 ⨯ 170,000) + ($0.60 ⨯ 270,000)]/300,000 = $1.86Overhead cost per unit:Model A: [($10.50 ⨯ 10,000) + ($6.00 ⨯ 10,000)]/30,000 = $5.50Model B: [($10.50 ⨯ 30,000) + ($6.00 ⨯ 30,000)]/300,000 = $1.65*Rounded numbers throughoutA common justification is that of using machine hours for machine-intensivedepartments and labor hours for labor-intensive departments. Using this rea-soning, the first set of departmental rates would be selected (machine hours for Department 1 and direct labor hours for Department 2).3. Calculation of pool rates:Driver Pool RateBatch-level pool:Setup and inspection Product runs $320,000/100 = $3,200 per runUnit-level pool:Machine andmaintenance Machine hours $340,000/220,000 = $1.545 per MHr Note: Inspection hours could have been used as an activity driver instead of production runs.Overhead assignment:Model BBatch-level:Setups and inspection$3,200 ⨯ 40 $ 128,000$3,200 ⨯ 60 $ 192,000Unit-level:Power and maintenance$1.545 ⨯ 20,000 30,900$1.545 ⨯ 200,000 309,000Total overhead $ 158,900 $ 501,000Units produced ÷30,000 ÷ 300,000Overhead per unit $ 5.30 $ 1.674. Using activity-based costs as the standard, we can say that the first set ofdepartmental rates decreased the accuracy of the overhead cost assignment (over the plantwide rate) for both products. The opposite is true for the second set of departmental rates. In fact, the second set is very close to the activity assignments. Apparently, departmental rates can either improve or worsen plantwide assignments. In the first case, D epartment 1’s costs are assigned at a 17:1 ratio which overcosts B and undercosts A in a big way.Yet, this is the most likely set of rates at the departmental level! This raises some doubt about the conventional wisdom regarding departmental rates.4–171. Labor and gasoline are driver tracing.Labor (0.75 ⨯ $120,000) $ 90,000 Time = Resource driverGasoline ($3 ⨯ 6,000 moves) 18,000 Moves = Resource driverDepreciation (2 ⨯ $6,000) 12,000 Direct tracingTotal cost $ 120,0002. Plantwide rate = $600,000/20,000= $30 per DLHUnit cost:DeluxePrime costs $80.00 $160Overhead:$30 ⨯ 10,000/40,000 7.50$30 ⨯ 10,000/20,000 15$87.50 $1753. Pool 1: Maintenance $ 114,000Engineering 120,000Total $ 234,000Maintenance hours ÷4,000Pool rate $ 58.50Note:Engineering hours could also be used as a driver. The activities are grouped together because they have the same process, are both product lev-el, and have the same consumption ratios (0.25, 0.75).Pool 2: Material handling $ 120,000Number of moves ÷6,000Pool rate $ 20Pool 3: Setting up $ 96,000Number of setups ÷80Pool rate $ 1,200Note: Material handling and setups are both batch-level activities but have dif-ferent consumption ratios.Pool 4: Purchasing $ 60,000Receiving 40,000Paying suppliersTotal $ 130,000Orders processed ÷750Pool rate $ 173.33Note:The three activities are all product-level activities and have the same consumption ratios.Pool 5: Providing space $ 20,000Machine hours ÷10,000Pool rate $ 2Note: This is the only facility-level activity.4. Unit cost:Basic Deluxe Prime costs $ 3,200,000 $ 3,200,000Overhead:Pool 1:$58.50 ⨯ 1,000 58,500$58.50 ⨯ 3,000 175,500 Pool 2:$20 ⨯ 2,000 40,000$20 ⨯ 4,000 80,000 Pool 3:$1,200 ⨯ 20 24,000$1,200 ⨯ 60 72,000 Pool 4:$173.33 ⨯ 250 43,333$173.33 ⨯ 500 86,665 Pool 5:$2 ⨯ 5,000 10,000$2 ⨯ 5,000 10,000 Total $ 3,375,833 $ 3,624,165Units produced ÷40,000 ÷20,000Unit cost (ABC) $ 84.40 $ 181.21Unit cost (traditional) $ 87.50 $ 175.00The ABC costs are more accurate (better tracing—closer representation of actual resource consumption). This shows that the basic model was over-costed and the deluxe model undercosted when the plantwide overhead rate was used.1. Unit-level costs ($120 ⨯ 20,000) $ 2,400,000Batch-level costs ($80,000 ⨯ 20) 1,600,000Product-level costs ($80,000 ⨯ 10) 800,000Facility-level ($20 ⨯ 20,000) 400,000Total cost $ 5,200,0002. Unit-level costs ($120 ⨯ 30,000) $ 3,600,000Batch-level costs ($80,000 ⨯ 20) 1,600,000Product-level costs ($80,000 ⨯ 10) 800,000Facility-level costs 400,000Total cost $ 6,400,000The unit-based costs increase because these costs vary with the number of units produced. Because the batches and engineering orders did not change, the batch-level costs and product-level costs remain the same, behaving as fixed costs with respect to the unit-based driver. The facility-level costs are fixed costs and do not vary with any driver.3. Unit-level costs ($120 ⨯ 30,000) $ 3,600,000Batch-level costs ($80,000 ⨯ 30) 2,400,000Product-level costs ($80,000 ⨯ 12) 960,000Facility-level costs 400,000Total cost $ 7,360,000Batch-level costs increase as the number of batches changes, and the costs of engineering support change as the number of orders change. Thus, batches and orders increased, increasing the total cost of the model.4. Classifying costs by category allows their behavior to be better understood.This, in turn, creates the ability to better manage costs and make decisions.1. The total cost of care is $1,950,000 plus a $50,000 share of the cost of super-vision [(25/150) ⨯ $300,000]. The cost of supervision is computed as follows: Salary of supervisor (direct) $ 70,000Salary of secretary (direct) 22,000Capital costs (direct) 100,000Assistants (3 ⨯ 0.75 ⨯ $48,000) 108,000Total $ 300,000Thus, the cost per patient day is computed as follows:$2,000,000/10,000 = $200 per patient day(The total cost of care divided by patient days.) Notice that every maternity patient—regardless of type—would pay the daily rate of $200.2. First, the cost of the secondary activity (supervision) must be assigned to theprimary activities (various nursing care activities) that consume it (the driver is the number of nurses):Maternity nursing care assignment:(25/150) ⨯ $300,000 = $50,000Thus, the total cost of nursing care is $950,000 + $50,000 = $1,000,000.Next, calculate the activity rates for the two primary activities:Occupancy and feeding: $1,000,000/10,000 = $100 per patient dayNursing care: $1,000,000/50,000 = $20 per nursing hour。

管理会计(英文版)课后习题答案(高等教育出版社)chapter 19

管理会计（高等教育出版社）于增彪（清华大学）改编余绪缨（厦门大学）审校CHAPTER 19INVENTORY MANAGEMENTQUESTIONS FOR WRITING AND DISCUSSION1.Ordering costs are the costs of placing andreceiving an order. Examples include clerical costs, documents, insurance, and unloading.2.Setup costs are the costs of preparingequipment and facilities so that they can be used for producing a product or component.Examples include wages of idled production workers, lost income, and the costs of test runs.3.Carrying costs are the costs of carrying in-ventory. Examples include insurance, taxes, handling costs, and the opportunity cost of capital tied up in inventory.4.Stockout costs are the costs of insufficientinventory (e.g., lost sales and interrupted production).5.As ordering costs decrease, fewer and larg-er orders must be placed. This, in turn, in-creases the units in inventory and, thus, in-creases carrying costs.6.Reasons for carrying inventory include thefollowing: (a) to balance setup and carrying costs; (b) to satisfy customer demand; (c) to avoid shutting down manufacturing facilities;(d) to take advantage of discounts; and (e)to hedge against future price increases.7.The economic order quantity is the amountthat should be ordered so as to minimize the sum of ordering and carrying costs.8.Reorder point = 3 12 = 36 units; Safetystock = 3(15 – 12) = 9 units9.Safety stock is simply the difference be-tween maximum demand and average de-mand, multiplied by the lead time. By reor-dering whenever the inventory level hits thesafety stock point, a company is ensured ofalways having sufficient inventory on hand tomeet demand.10.JIT minimizes carrying costs by driving in-ventories to insignificant levels. Orderingcosts are minimized by entering into long-term contracts with suppliers (or driving se-tup times to zero).11.JIT manufacturing is a demand-pull ap-proach to manufacturing. It differs from tradi-tional manufacturing by significantly reducingreliance on inventories, forming manufactur-ing cells, using interdisciplinary labor, decen-tralizing services, and adopting a philosophyof total quality control.12.Manufacturing cells are collections of ma-chines and labor dedicated to the productionof a single product or subassembly. Eachcell is capable of performing a variety of op-erations. This differs from the departmentalorganization where a collection of the samemachines is used to perform the same oper-ation on multiple products.13.By forming manufacturing cells that arededicated to a single product, all costs asso-ciated with the cell are traceable to the prod-uct. Machinery and services that formerlybelonged to several products now belongonly to a single product. For example, de-preciation, material handling, and mainten-ance become direct product costs.14.JIT hedges against future price increasesand obtains lower input prices (better usuallythan quantity discounts) by the use of long-term contractual relationships with suppliers.Suppliers are willing to give these breaks sothat they can reduce the uncertainty in thedemand for their products.15.EDI, or electronic data interchange, allowssuppliers to have access to a buyer’s dat a-base. Information on the buyer’s database isused to determine when supplies should bedelivered. When supplies arrive, their receiptis noted electronically, and payment is in-itiated. No paperwork is involved. Conti-nuous replenishment is where suppliers aregiven responsibility to replenish the buyer’sinventory stock. EDI facilitates this by provid-ing information (electronically) needed by thesupplier to make replenishment decisions. 16.Shutdowns in a JIT environment are avoidedby practicing total preventive maintenanceand total quality control and by developingclose relationships with suppliers to ensureon-time delivery of materials. Internally, aKanban system is used to ensure the timelyflow of materials and components.17.The Kanban system is used to ensure thatparts or materials are available whenneeded (just in time). The flow of materials iscontrolled through the use of markers orcards that signal production of the necessaryquantities at the necessary time.18.Constraints represent limited resources ordemand. Internal constraints are limiting fac-tors found within the firm. External con-straints are limiting factors imposed on thefirm from external sources.19.Loose constraints are those where the prod-uct mix chosen does not consume all theavailable resources. A binding constraint isone where the product mix uses all the li-mited resource.20.Following are three measures of organiza-tional performance used by the theory ofconstraints: throughput—the rate at whichan organization generates money; invento-ry—the money an organization spends inturning materials into throughput; and oper-ating expenses—the money the organiza-tion spends in turning inventories intothroughput. The objective is to maximizethroughput and minimize inventory and op-erating expenses.21.Lower inventories mean that a companymust pay attention to higher quality—it can-not afford to have production go down be-cause of defective parts or products. It alsomeans that improvements can reach thecustomer sooner. Lower inventories meanless space, less overtime, less equipment—in short, lower costs of production and, thus,lower prices are possible. Lower inventoriesalso mean (usually) shorter lead times andbetter ability then to respond to customer re-quests.22.Following are the five steps that TOC usesto improve organizational performance: (1)identify constraints, (2) exploit binding con-straints, (3) subordinate everything else todecisions made in Step 2, (4) elevate bind-ing constraints, and (5) repeat process.23.The drum is the binding constraint that setsthe production rate in the factory. The ropesimply means that the release of materials tothe first process is tied to the rate of thedrummer constraint. The buffer is an amountof inventory placed in front of the drummerprocess to protect throughput.EXERCISES19–11. Annual ordering cost = PD/Q= $500 ⨯ 96,000/6,000= $8,0002. Annual carrying cost = CQ/2= $6 ⨯ 6,000/2= $18,0003. Cost of current inventory policy = Ordering cost + Carrying cost= $8,000 + $18,000= $26,00019–21. EOQ = 2PD/C= 96,000)/6500⨯(2⨯= 16,000,000= 4,0002. Ordering cost = PD/Q= $500 ⨯ 96,000/4,000= $12,000Carrying cost = CQ/2= $6 ⨯ 4,000/2= $12,000Total cost = $6,000 + $6,000= $24,0003. Savings = $26,000 – $24,000 = $2,0001. EOQ = 2PD/C= /0.10⨯(2⨯1,440,000)45= 0001,296,000,= 36,0002. Carrying cost = CQ/2= $0.10 ⨯ 36,000/2= $1,800Ordering cost = PD/Q= $45 ⨯ 1,440,000/36,000= $1,80019–41. Reorder point = Average rate of usage ⨯ Lead time= 8,000 ⨯ 3= 24,000 pounds2. Maximum usage 12,000Average usage 8,000Difference 4,000Lead time ⨯ 3Safety stock 12,000Reorder point = (Average rate of usage ⨯ Lead time) + Safety stock= (8,000 ⨯ 3) + 12,000= 36,000 pounds1. EOQ = 2PD/C= 324,000)/2⨯4,000(2⨯= 000= 36,000 (batch size for lawn mower engines) 2. Setup cost = PD/Q= $4,000 ⨯ 324,000/36,000= $36,000Carrying cost = CQ/2= $2 ⨯ 36,000/2= $36,000Total cost = $72,000 ($36,000 + $36,000)3. ROP = Average daily sales ⨯ Lead timeROP = 1,296 ⨯ 11 = 14,256 lawn mower engines4. EOQ = 2PD/C= 750,000)/3⨯7,200(2⨯= 0003,600,000,= 60,000 (batch size for jet ski engines) Setup cost = $7,200 ⨯ 750,000/60,000= $90,000Carrying cost = $3 ⨯ 60,000/2= $90,000Total cost = $180,000 ($90,000 + $90,000)ROP = 1,500 ⨯ 12 = 18,000 jet ski engines19–5 Concluded5. Lawn mowers require 9 batches per year (324,000/36,000). Jet ski engines re-quire 12.5 batches per year (750,000/60,000). The lead time for the lawn mow-er engines is 11 days and that of the jet ski engines is 12 days. Thus, the total work days needed to produce the annual demand is 249 [(11 ⨯9) + (12 ⨯12.5)]. Since there are 250 work days available each year, it is possible tomeet the annual demand. Given the initial inventory levels of each product, the daily and annual demand, and the lead times, Shields must build a sche-dule that coordinates production, inventory usage, and sales. This is a push system because production and inventory use anticipated demand rather than current demand.19–61. EOQ = 1,000)/2⨯(2⨯324,000= 0324,000,00= 18,000 lawn mower enginesEOQ = 100)/2⨯(2⨯324,000= 32,400,000≈ 5,692 lawn mower engines2. The batch size decreases as the setup time and cost decrease. If the setuptime is 0.05 day (about 1 hour), then the firm can produce 4,000 ⨯ 0.95 = 3,800 units per day, sufficient to meet the combined daily demand for the two en-gines. This implies the ability to produce on demand and eliminates the need to carry finished goods inventory, a JIT objective.19–7Maximum daily usage 1,750Average daily usage 1,500Difference 250Lead time ⨯ 5Safety stock 1,250Reorder point = (Average rate of usage ⨯ Lead time) + Safety stock= (1,500 ⨯ 5) + 1,250= 8,750 units1. a. JIT does not accept setup (or ordering) costs as a given; rather, JIT at-tempts to drive these costs to zero through reducing the time it takes to set up and by developing long-term contracts with suppliers. Carrying costs are minimized by reducing inventories to insignificant levels.b. JIT reduces lead times, which increases a firm’s ability to meet requesteddelivery dates. This is accomplished by (1) reduction of setup times, (2) improved quality, and (3) cellular manufacturing.c. The problems that usually cause shutdowns are (1) machine failure, (2) de-fective material or subassembly, and (3) unavailability of a material or subassembly, or (4) late delivery of parts. JIT attempts to solve each of the four problems by emphasizing total preventive maintenance and total quality control (strives for zero defects) and building the right kind of rela-tionship with suppliers.d. Unreliable production processes are addressed by total quality man-agement. As fewer and fewer defective units are produced, there is less and less need for inventory to replace nonconforming units.e. The objective of taking advantage of discounts is to lower the cost of in-ventory. JIT accomplishes the same objective by negotiating long-term contracts with a few chosen suppliers and establishing more extensive supplier involvement.f. JIT emphasizes long-term contracts that stipulate prices and acceptablequality levels.2. JIT has the policy of stopping production if a problem is detected so that theproblem can be corrected (of course, the problem may also cause production to stop, independent of a policy or practice of stopping so that the source of the problem can be corrected). Since JIT produces on demand, any interrup-tion of production means that throughput is lost. TOC uses a time buffer lo-cated in front of the binding constraint to protect throughput. The time buffer is designed to keep the constrained resource busy for a specified period of time, a time long enough to overcome most disruptions in production.1. The withdrawal Kanban controls movement of work among the manufactur-ing processes. It specifies the quantity that a subsequent process should withdraw from the preceding process.2. The production Kanban also controls movement of work among the manufac-turing processes. It specifies the quantity that the preceding process should produce.3. The vendor Kanban controls movement of parts between the processes andoutside suppliers. It is used to notify suppliers to deliver more parts.19–10The phrase ―implementing JIT‖ conveys to many the notion that one day a co m-pany is conventional and the next day it is JIT with all of the benefits that are typ-ically assigned to JIT. In reality, changing to a JIT environment takes time and pa-tience. It is more of an evolutionary process than a revolutionary process. It takes time to build a ―partners-in-profits‖ relationship with su ppliers. Many firms at-tempt to force the JIT practices with suppliers by dictating terms, but this ap-proach really runs counter to the notion of developing close relationships, some-thing that is vital for the JIT purchasing side to work. There must be trust and mutual benefits, not unilateral benefits, for JIT purchasing to become a success. Also, management should be aware of the disequilibrium that workers may expe-rience with JIT. Many workers may view JIT methodology as simply a way of ex-tracting more and more work out of them with no compensating benefits. Others may see JIT as a threat to their job security as the nonvalue-added activities they perform are eliminated or reduced. Furthermore, management should be ready and willing to place some current sales at risk with the hope of ensuring stronger future sales, or with the hope of reducing inventory and operating costs to im-prove overall profitability. How else can you justify lost sales due to production stoppages that are designed to improve quality and efficiency?1. e2. a3. d4. e5. c19–121. Before JIT unit cost: $247,100/100,000 = $2.471After JIT unit cost: $232,100/100,000 = $2.321JIT costing is more accurate because there are more costs that are traceable to each product.2. Direct materials: DirectDirect labor: DirectMaintenance: DirectPower: DirectDepreciation: Direct (on cell equipment)Material handling: DirectEngineering: Driver tracingSetups: DirectBuilding and grounds: Allocated (driver tracing using square feet for the building costs may be a reasonable possibility)Supplies: DirectSupervision (plant): AllocatedCell supervision: Direct19–131. Type I Type II Type IIIPrice $40.00 $60.00 $75.00 Variable cost 20.00 44.00 34.00 Contribution margin $20.00 $16.00 $41.00 ÷ Machine hours ÷0.50 ÷0.20 ÷1.50 Contribution margin per machine hour $40.00 $80.00 $27.33 The company should sell only the Type II rod with contribution margin per machine hour of $80. Lavel can produce 100,000 (30,000/0.2) Type II rods per year. These 100,000 units, multiplied by the $16 contribution margin per unit, would yield a total contribution margin of $1,600,000.2. Produce and sell 75,000 Type II rods, which would use 15,000 machine hours.Then, produce and sell 10,000 Type I rods, which would use the remaining 5,000 machine hours.Total contribution margin = ($16 ⨯ 75,000) + ($20 ⨯ 10,000)= $1,400,00019–141. The production rate is 600 regular bows per day and 200 deluxe bows perday. The rate is set by the molding process. It is the drummer process since it is the only one with a buffer inventory in front of it.2. Goicoechea has 0.5 day of buffer inventory (400 bows/800 bows per day).This time buffer is determined by how long it takes the plant to correct prob-lems that create production interruptions.3. A is the rope, B is the time buffer, and C is the drummer constraint. The ropeties the production rate of the drummer constraint to the release of raw mate-rials to the first process. The time buffer is used to protect throughput. Suffi-cient inventory is needed to keep the bottleneck operating if the first process goes down. The drummer sets the production rate.PROBLEMS 19–151. Ordering cost = PD/Q= $40 ⨯ 14,000/400= $1,400Carrying cost = CQ/2= $1.75* ⨯ 400/2= $350*10 percent of purchase price or 0.10 ⨯ $17.50 Total cost = $1,400 + $350 = $1,7502. EOQ = 2PD/C= 75/),(⨯⨯402.000114= 000640,= 800Ordering cost = PD/Q= $40 ⨯ 14,000/800= $700Carrying cost = CQ/2= $1.75 ⨯ 800/2= $700Total cost = $700 + $700 = $1,400Savings = $1,750 – $1,400 = $35019–15 Concluded3. Rate of usage = 7 ⨯ 50 = 350 days= 14,000/350 = 40 blocks per dayReorder point = Average rate of usage ⨯ Lead time= 40 ⨯ 5= 200This coincides with the current reorder policy.4. The order quantity would have to be 600 instead of 800 (the EOQ). If so, thefollowing inventory costs would be incurred:Ordering cost = $40 ⨯ 14,000/600= $933Carrying cost = $1.75 ⨯ 600/2= $525Total cost = $933 + $525= $1,458This restriction would mean an additional cost of only $58 ($1,458 – $1,400) over the cost of using the EOQ.5. The most cheese that should be kept on hand given the 10-day constraint is400 blocks (40 ⨯10). Reorder would occur when inventory dropped to 200 units.1. EOQ = 2PD/C= 65,/)⨯2.(⨯3903007= 000360,= 600Reorder point = Average rate of usage ⨯ Lead time= 20 ⨯ 4= 80Ordering cost = PD/Q= $90 ⨯ 7,300/600= $1,095Carrying cost = CQ/2= $3.65 ⨯ 600/2= $1,095Total cost = $1,095 + $1,095= $2,1902. Maximum usage 30Average usage 20Difference 10Lead time ⨯ 4Safety stock 40Ordering cost = PD/Q= $90 ⨯ 7,300/600= $1,095Carrying cost = CQ/2= $3.65 ⨯ [(40 + 600)/2]= $1,168Total cost = $1,095 + $1,168= $2,263New reorder point = (Average usage ⨯ Lead time) + Safety stock= (20 ⨯ 4) + 40= 1201. EOQ = 2PD/C= 3,⨯,(⨯6000360002/)= 000000,144,= 12,000 (batch size)Geneva’s response was correct given its current production environment.The setup time is two working days. The production rate possible is 750 units per day after setup. Thus, the time required to produce the additional 9,000 units would be 14 working days [2 + (9,000/750)].2. To have met the order’s requirements, Geneva could have produced 3,750units within the 7-work-day window [(7 – 2)750] and would have needed 8,250 units in stock—5,250 more than available. Solving delivery problems like the one described would likely require much more inventory than is currently car-ried. If the maximum demand is predictable, then safety stock could be used.The demand can be as much as 9,000 units per year above the expected de-mand. If it is common for all of this extra demand to occur from one or a few large orders, then protecting against lost sales could demand a sizable in-crease in inventory, an approach that could be quite costly. Perhaps some safety stock with expediting and overtime would be more practical. Or, per-haps Geneva should explore alternative inventory management approaches such as those associated with JIT or TOC.3. EOQ = 2PD/C= 3(⨯,⨯362/)00094= 000,2562,≈ 1,502 (batch size)The new lead time = (1.5 hours) + [(1,502/2,000) ⨯ 8 hours]≈ 7.5 hours, or about one work day19–17 ConcludedAt a production rate of 2,000 units per day, Geneva could have satisfied the customer’s time requirements in less than seven days, even without any f i-nished goods inventory. This illustrates very forcefully that inventory may not be the solution to meeting customer needs or dealing with demand uncertain-ty. Perhaps paying attention to setup, moving, and waiting activities offers more benefits. JIT tends to produce smaller batches and shorter cycle times than conventional manufacturing environments. As the EOQ batch size com-putation revealed, by focusing on improving the way production is done, the batch size could be reduced to about 12.5 percent of what it was before the improvements.4. EOQ = 2PD/C= 3(⨯⨯2/),1000036= 000240,≈ 490 (batch size)This further reduction in setup time and cost reduces the batch size even more. As the setup time is reduced to even lower levels and the cost is re-duced, the batch size becomes even smaller.If the cost is $0.864, the batch size is 144:EOQ = 2PD/C= 3,2/)(⨯⨯.00036864= 73620,= 144 (batch size)Furthermore, with the ability to produce 2,000 units per day or 250 units per hour, the day’s demand (36,000/250 = 144) can b e produced in less than an hour. This provides the ability to produce on demand. The key to this out-come was the decrease in setup time and the reduction of wait and move time—all nonvalue-added activities. This illustrates what is meant by refer-ring to inventory management as an ancillary benefit of JIT.19–181. a. The expected demand for the RJ47 battery during the lead time is calcu-lated as the sum of the demand during the lead time times the demand probability for all demand points:Expected demand = (100 ⨯ 0.03) + (200 ⨯ 0.05) + (300 ⨯ 0.20) + (400 ⨯ 0.40)+ (500 ⨯ 0.25) + (600 ⨯ 0.07)= 400b. The reorder point to minimize stockouts would be the maximum demandduring lead time, or 600 units.2. The probability of a stockout at a special reorder point is the sum of theprobabilities for demand greater than the reorder point of 400 units: Probability of 500 units 0.25Probability of 600 units 0.07Total 0.3219–191. KEVCO can expect the following effects:Planning:∙Production planning will change from a centralized batch function process to a more decentralized activity. In some cases, production teams will be responsible for the entire production process of a product.∙The method and timing of how the company prepares its production sche-dules (including capacity requirements) will change to parallel the demand pull approach as opposed to the push approach.∙The Purchasing Department will need production to have high-quality, reli-able, and flexible suppliers who can quickly deliver orders of varying sizes as needed.19–19 ConcludedOperations:∙Setup time changes will reduce lead times significantly.∙ A Kanban system will need to be implemented. A triggering device such asa Kanban card is necessary so that the department or cell knows when tobegin production.∙Greater employee participation will result from cell production team ar-rangements.2. At least five benefits:∙Less rework and fewer defective units because of cell-level accountability and control and product solving at the cell level.∙ A lower cash investment in inventory and plant space. Handling, storage, insurance, breakage, and obsolescence will all be lower.∙More satisfied customers should result because of shorter lead times and higher quality.∙Improved labor productivity as a result of rearranging the production process and the creation of manufacturing cell teams.∙ A reduction of the number of suppliers leading to improved relationships and communication.∙More accurate product costing because direct tracing increases.3. Behavioral effects:∙Higher team morale and motivation, since each cell team is responsible for all cell production and will, therefore, have more control over its work and an increased sense of ownership.∙Higher individual satisfaction, development, and motivation, as manage-ment will encourage participation, training, and input on how to improve the product and production process.∙ A possible resistance to change by those employees who may feel inse-cure or threatened by the change.∙ A sense of partnership with management in achieving the goals and objec-tives of the organization resulting in goal congruence.1. The entire Kanban cycle begins with the need to produce a final product—aproduct demanded by a customer. The demand for a product to be assembled is known from the production schedule. Assume that a final product is needed. The withdrawal Kanban controls movement of work between the as-sembly process and the manufacturing processes. It specifies the quantity that a subsequent process should withdraw from the preceding process. The assembly process uses withdrawal Kanbans to notify the first process that more subassemblies are needed. This is done by having an assembly worker remove the withdrawal Kanban from the container in the withdrawal store and place it on the withdrawal post. This W-Kanban signals that the assembly process is using one unit of Subassembly A and that a replacement for it is needed. The replacement activity is initiated by a carrier who removes the production Kanban from the container of subassemblies in the SB stores area and places this P-Kanban on the production post. The container in the SB stores area is then moved to the withdrawal stores area with the W-Kanban attached (taken from the withdrawal post). The production Kanban tells the workers in the Subassembly A cell to begin producing another unit.The production Kanban is removed and goes with the unit produced (which goes to the SB stores area). This Kanban system ensures that the second process withdraws subassemblies from the first process in the necessary quantity at the necessary time. The Kanban system also controls the first process by allowing it to produce only the quantities withdrawn by the second process. In this way, inventories are kept at a minimum, and the components arrive just in time to be used.2. The second process uses a vendor Kanban to signal the supplier that anotherorder is needed. The process is similar to the internal flow described in Re-quirement 1. However, for the process to work with suppliers, the suppliers must be willing to make frequent and small deliveries. It also means that the supply activity works best if the supplier is located in close proximity to the buyer. The subassemblies must be delivered just in time for use. This calls for a close working relationship with the supplier. The inventory function on the materials side is largely assumed by the supplier. To bear this cost, there must be some compensating benefits for the supplier. Long-term contracts and the reduction of demand uncertainty are significant benefits for the sup-plier. EDI can facilitate the entire arrangement. If the supplier has access to the buyer’s on-line database, then the supplier can use the buyer’s produ c-tion schedule to determine its own production and delivery schedule, making it easier to deliver parts just in time. In effect, the supplier and buyer almost operate as one company.1. ImmuneBoost: CM per machine hour = ($4.00 – $2.40)/1.60= $1.00MentaGrowth: CM per machine hour = ($4.80 – $3.60)/0.80= $1.50Since MentaGrowth provides the greatest contribution per machine hour, the company should produce 800,000 bottles of MentaGrowth (640,000/0.8) and zero bottles of ImmuneBoost. The total contribution margin is 800,000 ⨯ $1.50 = $1,200,000.2. First, the company should produce 480,000 bottles of MentaGrowth. Thisuses up 384,000 machine hours (480,000 ⨯ 0.8). The remaining hours can then be used to produce 160,000 bottles of ImmuneBoost (256,000/1.6). Thus, the optimal mix is 160,000 bottles of ImmuneBoost and 480,000 bottles of Menta-Growth. The maximum total contribution margin is $832,000 [($1.60 ⨯ 160,000) + ($1.20 ⨯ 480,000)].19–221. Dept. B Dept. C TotalC omponent 12-L (1,000 units)Test hours a2,000 3,000 3,000 8,000 Machine hours b1,000 1,000 2,000 4,000C omponent 14-M (800 units)Test hours c800 1,600 —2,400 Machine hours d800 800 —1,600 Component 40-S (2,000 units)Test hours e4,000 4,000 4,000 12,000 Machine hours f4,000 4,000 2,000 10,000 Total test hours 6,800 8,600 7,000 22,400 Total machine hours 5,800 5,800 4,000 15,600 a2 ⨯ 1,000; 3 ⨯ 1,000; 3 ⨯ 1,000 d1 ⨯ 800; 1 ⨯ 800b1 ⨯ 1,000; 1 ⨯ 1,000; 2 ⨯ 1,000 e2 ⨯ 2,000; 2 ⨯ 2,000; 2 ⨯ 2,000c1 ⨯ 800; 2 ⨯ 800 f2 ⨯ 2,000; 2 ⨯ 2,000; 1 ⨯ 2,000The demand can be met in all departments except for Department C. Produc-tion requires 7,000 test hours in Department C, but only 5,500 hours are avail-able.。

《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 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. 3456.24317476605R Squared 0.633710482694768No. 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 o f a cost driver is reasonable. However, 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 5632.28109733183Std. Err. of Y Est. 2390.10628259277R 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:Constant 752.104072925631Std. Err. of Y Est. 1350.46286973443R Squared 0.951068418023306No. of Observations 10Degrees of Freedom 7X Coefficient(s) 0.0333883151096915 7.14702865269395Std. Err. of Coef. 0.00495524841198368 1.68182916088492V1 = $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.分步成本法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 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 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 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。

管理会计课后练习参考答案.

第一章一、单选题1-5 BDBDB 6-9 DBBD二、多选题1-5 BCD ABC ABC ABCD ABCD 6-9 ABCD ABD ABC BCD三、简答题1. 狭义管理会计，又称微观管理会计，认为管理会计只为企业内部管理者提供计划，以控制所需信息的内部控制。

狭义管理会计的核心观点为：管理会计以企业为主体展开其管理活动；管理会计只为管理当局的管理目标服务；管理会计是一个信息系统，与财务会计并立，都是会计学的一个分支。

2. 20世纪70年代，管理会计的外延开始扩大，出现了广义管理会计概念。

广义管理会计的核心观点为：与狭义管理会计一样，管理会计以企业为主体展开其管理活动；但是管理会计不但为企业管理当局的管理目标服务，而且也为股东、债权人、税务当局等非管理集团服务；而从内容上看，管理会计包括了财务会计，同时还包括成本会计及财务管理。

3. 早期管理会计（20世纪初至50年代）。

19世纪末至20世纪早期，产业革命加速了资本主义经济的发展，促使企业生产规模迅速扩大，合伙经营和股份有限公司等企业组织形式相继出现，为会计的发展提供了广阔的天地。

20世纪，随着经济的发展，企业生产规模扩大，市场竞争也愈加激烈。

企业家意识到企业的经营效益不仅取决于产量的增长和外部市场的交易价格，更重要的是取决于成本的高低。

于是，从内部管理需要的角度出发，企业效益的衡量逐渐从由单纯的外部因素确定转向内部成本的计算和控制，产生了关于直接材料成本、人工成本、制造费用等成本项目的分类及具体的核算方法。

在该阶段，管理会计以成本控制为基本特征，以提高企业的生产效率和工作效率为主要目的。

其主要内容包括标准成本、预算控制和差异分析。

现代管理会计（20世纪50年代至80年代）。

20世纪50年代后，资本主义进入战后期。

现代科学技术的发展日新月异，并被大规模应用于生产，生产力获得迅速发展。

同时，资本主义企业进一步集中，跨国公司大量涌现，企业规模越来越大，市场情况瞬息万变，竞争愈加激烈。

管理会计习题及答案6406522814.doc

I • Choose the best answer for each of the following. Only one answer is correct1.Which of the following is the objective of management accounting System?P4 ( D ) A・ To provide information for costing.B.To provide information for planning, controlling, evaluation, and continuous improvement.C.To provide information for decision making-D.All of the above.2.Any difference between absorption-costing income and variable-costing income is dueto the differing treatment of P458 ( C )A.selling and administrative expense.B.overhead.C・ fixed overhead.D. variable overhead.3.The cost of flexible resources is ( A )A.variable cost.B.a committed fixed cost.C・ discretionary fixed cost.D. a period expenses.4.Which of the following is a production (or unit-level) driver? ( D )A.Direct labor hours.B.Direct materials.C・ Direct machine hours.D. All of the above.5.If investigation revealed that the unfavorable materials usage variance is the result of thelower-quality materials, who should be responsible for it? ( B )A.the production manage匸B.the purchasing department.C.maintenance manage匚D.personnel department.6- If the variable cost per unit goes up,A・ increases increasesB. decreases decreasesC. decreases increasesD. increases remains unchanged7.The major differences between functional and activity-based budgeting are found withinP230A.the direct materials and direct labor categories.B.the overhead and selling and administration expenses categories.C・ the direct materials and the overhead categories.D. the direct labor and the overhead categories.8.Which of the following is not an advantage of the use of ROI? ( B ) P399 A・ It encourages managers to focus on the relationship among sales, expenses, andinvestment, as should be the case for a manager of an investment center.B.It encourages managers to focus on the profitability of the overall firm.C.It encourages managers to focus on cost efficiency.D・ It encourages managers to focus on operating assets efficiency.9.If there is a perfectly competitive outside market for the transferred product, the correcttransfer price is ( C )A.the negotiated transfer price.B.the cost-based transfer price.C・ the market price.D.All of the above.10.The cost assignment approach that assigns the costs of direct materials, direct labor, andoverhead to products using quantity and price standards is called ( C ) P250A.actual costing・B.normal costing.C・ standard costing.D. target costing.11.Mutually exclusive capital budgeting projects are those that ( D ) P553A・ if accepted will produce a positive net present value.B.if accepted will produce a positive payback period.C.if accepted or reject do not affect the cash flows of other projects.D・ if accepted precludes the acceptance of all other competing projects.12.To record cost variances, we can follow a general rule: (D ) P268A・ all inventories are carried at standard cost.B.actual costs are never entered into an inventory account.C.unfavorable variances are always debits, and favorable variances are always credits.D.All of the above.13.Which of the following organizations need management accounting information?(D )A.manufacturing organizationsB.health careC.legal serviceD.all of the above14.Which of the following is an example of batch-level activities? ( C )A・ Direct labor activityB.Plant depreciationC.setup activityD・ Marketing a product15.Which of the following is an example of relevant cost? ( C )A・ Sunk cost.B.Allocations of common fixed costs.C.opportunity cos匸D・ None of the above.16.What "product cost'，means depends on the managerial objective being served. If themanagerial objective is external financial reporting, product cost means ( A ) P40A・ Production cost.B.Operating product cost.C.Marketing cost.D・ Value-chain product cost.17.Which budget is the basis for all of the other operating budgets and most of the(A )financial budgets?A.The sales budgetB.The production budgetC・ The direct materials purchases budgetD. The cash budget18.A cost that, in total, varies in direct proportion to changes in activity output is a ( B )A.fixed costB.variable costC・ mixed costD. step cost(D)19. One reason that firms may decide to decentralize is toA.train and motivate managersB.encourage competition among divisionsC・ permit upper management to focus on strategic issuesD. all of the above20.Which of the following is the part of financial budget? ( A ) P219A.budgeted balance sheetB.cost of goods sold budgetC・ ending finished goods inventory budgetD. selling and administrative budget(D)21.The potential sources of quantitative standards includesA.Historical experienceB.Engineering studiesC・ Input from operating personnelD. All of the above22. If the contribution margin per unit is $7 and the break-even point is 10,000 units, how(B)much profit will a firm make if 15,000 units are sold?A. $0B.$35,000C.$70,000D.$105,00023.Flexible budgets are sometimes referred to as(A )A・ variable budgets.B.budgeted balance sheet.C.cash budget.D・ continuous budgets.24.The current focus of management accounting can best be described as ( B ) P9A・ 1 acking a customer orientation.B.having emphasis on activity-based costing and process value analysis.C.a system that achieves relevance by making financial accounting information more useful tointernal users.D・ having emphasis on assigning manufacturing costs to products so that inventory cost can be reported to external users.25.Which of the following statement is true? ( A )A・ In the long run, all costs are variable.B.In the long run, all costs are fixed.C.Variable costs vary with drivers that are correlated with the number of units produced・D.None of the above.26.To reduce the number of overhead rates required and streamline the process, activitiescan be grouped into homogeneous sets based on similar characteristics: ( D )A.they are logically related.B.they have the same consumption ratios for all products.C.they vary with the number of units produced・D.Both A and B.27.The usual financial budgets prepared are: ( D )A・ The cash budget.B.The budgeted balance sheet.C.The budget for capital expenditures.D.All of the above.28.If the actual overhead is greater than the applied overhead, the variance is called (B)A・ overhead variance. P95 B. underapplied overhead.C.overapplied overhead・D・ standard overhead.29.If there is a decrease in inventory from the beginning of the period to the end of theperiod,absorption-costing income will be P458 (B)A.greater than variable-costing income.B.less than variable-costing income.C・ equal to variable-costing income.D.twice as large as variable-costing income.30.Which of the following impairs the ability of unit-based plantwide and departmental ratesto assign overhead costs accurately: P98 (C)A.The proportion of nonunit-related overhead costs to total overhead costs is large.B.The degree of product diversity is great.C.Both A and B.D.None of the above.31. Which of the following is an advantage of the high-low method ? ( A)A.It allows a manager to get a quick fix on a cost relationship using only two data point.B.It enables the analyst to determine whether or not the data are linea匸C・ It gives goodness-of-fit measures.D.It allows the choice of the more representative points.32.The activity-based cost management system can best be described as ( D )A.It uses both financial and nonfinancial measures of performance.B.It is tracing-intensive.C.It focuses on managing activities.D.All of the above.33.Fixed costs common to two or more plants within a division ( A )A・ are shown as a common cost for the division.B.are divided among the plants in accordance with relative sales.C.are added to prime cost and subtracted from sales to yield contribution margin・D・ are divided among the plants in accordance with relative amount of manufacturing cost.34.The way, that assigns actual costs of direct materials and direct labor to products, however, apredetermined overhead rate is used to assigned manufacturing overhead to products ,isA.actual costing.B.normal costing.C・ standard costing.D.activity-based costing.35.When functional-based costing is used, if the overhead variance is relatively small, at theend of year P95 (A) A・ Underapplied overhead is added to cost of goods sold.B. Underapplied overhead is subtracted from cost of goods soldC・ overapplied overhead is added to cost of goods sold.D・ underapplied or overapplied overhead may be treated as an adjustment to inventory. 36.To build an activity-based budget, some steps are needed P230 ( D ) A・ identifies activities.B. estimates demands for activity output.C・ assesses the cost of resources needed to support the activity output demanded.D.All of the above.37.In the cost-volume-profit graph, P497 ( C )A.the break-even point is found where the total revenue curve crosses the x-axis.B.the area of loss cannot be determined from this graph.C・ the area of profit is to the right of the break-even point.D.the area of profit is to the left of the break-even point.38Capital investment decisions involving automated technology ( D )A・ are the same as any other long-term investment decisions.B.should use both financial and nonfinancial criteria.C.pay more attention to inputs used in discounted cash-flow analysis.D.Both B and C.39. Which of following is not the characteristic of management accounting? ( B )A・ It focuses on providing information for internal users.B.It must follow externally imposed rules.C.It produces financial and nonfinancial information.D. It provides very detailed information for managers.40- Which of following is an advantage of activity-based management accounting?(D )A・ It improves product costing accuracy.B.It improves decision making.C.It enhances strategic planning, and better ability to manage activities.D.All of the above.41.Which of following is the oldest and most well-known certification in accounting?(B )A.The Certificate in Management Accounting.B.The Certificate in Public Accounting.C.The Certificate in Internal Auditing.D.None of the above・42.Which of following is not the characteristic of activity-based management accountingsystem? (C)A・ It focuses on managing activities.B.It emphasizes the maximization of systemwide performance.C.It assigns resource costs to functional units and then to products.D.Il uses of both financial and nonfinancial measures of performance・43- Assume that a company has a fixed overhead rate of $8 per unit produced. During the year, the company produced 10,000 units and sold &000・ What is the difference income generatedaccording to absorption costing versus variable costing? (B)A・ Absorption-costing net income is $16,000 less than variable-costing net income.B.Absorption-costing net income is $ 16,000 higher than variable-costing net income.C.Absorption-costing net income is $8,000 higher than variable-costing net income.D.Absorption-costing net income equals variable-costing net income.II ・ Fill in the blanks:1 • Transfer prices are prices charged for goods transfeired between two divisions of the same firm.The output of the selling division is used as input of the buying division.2.An opportunity cost is the benefit given up when one alternative is chosen over anothe 匚3.UnitJevel activities are those performed each time a unit is produced. For example, power is usedeach time a unit is produced. P1094.The master budget is a comprehensive financial plan consisting of various individualbudgets. P2125.The brcak・even point is the point where total revenues equal total expenses, the point whereprofit equals zero.6.Target costing determines the cost of a product or service based on the price (target price) thatcustomers are willing to pay. The marketing department determines what characteristics and price for the product are acceptable to customers, then engineers design and develop the product so that cost and profit can be covered by that price. P5367.The payback period is the time required for a firm to recover its original investment.8.Responsibility accounting is a system that measures the results of each responsibilitycenter according to the information managers needs to operate their center. P3949.The internal rate of return is defined as the interest rate that sets the present valueof a project's cash inflows equal to the present value of the project's cost (the point where NPV = 0).P55910.Profit center is a responsibility center in which a manager is responsible for both revenues andcosts. P3941 L Operating leverage _______ is the use of fixed costs to extract higher percentagechanges in profits as sales activity changes.12.The profit contribution each segment makes toward covering a firm's common fixed costsis called the segment mar父in •P46913.Activity drivers are divided into two general categories: unit・level andnonunit-level drivers.14.Cost behavior is the way in which a cost changes in relation to changes in activityusage. By cost behavior, all costs of the company are classified into one of the three categories: fixed cost§_ . variable costs, and mixed costs.15.There are three methods of assigning costs to cost objects: direct tracing, driver tracing, andallocation. Of the three methods, direct tracing is the most accurate.16.The goods should be transferred internally whenever the opportunity cost (minimum price) of theselling division is Jess, —than the opportunity cost (maximum price) of the buying division. 17.If the variances are not material in amount, at the end of year, the variances formaterials and labor are usually closed to cost of Roods sold18.A master budget can be divided into —Operating and financial budgets.19.If the amount of fixed overhead in inventory increases, then absorption-costingincome is _______ g reater than variable-costing income by the amount of the netincrease.20.To meet external reporting requirements, costs must be classified according toabsorption costing _____________ .21.The —Certificate in Public Accounting is the oldest and most well-known certification inaccounting.22.Three methods generally are used for setting transfer prices; they are market-based, negotiated,and cost-based・ If a perfectly competitive market exists for the intermediate product,」hen market・based price_ is the best transfer price.23.The _sales_ _______ budget is the basis for all of the other operating budgets and mostof the financial budgets.24.The unit product cost under absorption-costing is always higher—— than the unit product costunder variable-costing.25.There are three formal methods of decomposing mixed costs: the ^high-low method . thescatterplot method, and the method of least squares. P6726.When activity-based costing is applied to cost-volume-profit analysis, fixed costs includebatch・1 evel costs , product-level costs, and facility-level costs. Pill27.The markup __________________ is a percentage applied to the based cost; it includesdesired profit and any cost not included in the based cost.2& Cost behavior is the general term for describing whether costs change as output changes.29.A continuous budget is a moving twelve-month budget. As a month expires in the budget, anadditional month is added so that the company always has a twelve-month plan on hand. P212 30.The margin of safety ______ is defined as the difference between sales (actual orexpected) and the break-even volume.31.Flexible resources are resources that are acquired from outside sources, and the organization isfree to buy only the quantity of the resource needed. P6232.Economic value added is after-tax operating profit minus the total annual cost ofcapital.HI. Key terms explanation1 Act i v i ty-based man ageme nt: It is a sys temwide, inte gra ted approach thatfocuses management' s attention on activities with the objective of improving customer value and the resulting profit.2、Internal value chain：It is the set of activities required to design, develop, produce,market, and deliver products and services to customers.Opportunity cost: It is the benefit given up or sacrificed when one al ternative is chosen over another.4、Batch-level activities: B atch-level activities are those performed5、each time a batch of goodsMaster budget: The materplan for the organizationsis produced.budget is the comprehensive financial as awhole.6、7、Continuous budget: A continuous budget is a moving 12-month budget. Flexible budget: The budget that enables a firm to compute expected costs for a range of activity levels is called a flexible budget.8、Relevant costs: Relevant costs are future costs that differacross alternatives.9、S egment margin：The profit contribution each segment makes toward covering afirm" s common fixed costs is called a segment margin.10、Operating leverage: Operating leverage is the use of fixed costs to extract higher percentage changes in profits as sales activity changes.11> Transfer prices: The value of the transferred good is revenue to the selling division and cost to the buying division, this value, or internal price, is called the transfer price.12 > Responsibility accounting: Responsibility accounting is a system that measures the result of each responsibility center according to the information managers need to operate their canters.13> Flexible resources: Flexible resources are supplied as used and needed, they are acquired from outside sources , where the termsof acquisition do not require any long-term commitment for any given amount of the resource.14> Margin of safety：The margin of safety is the units sold or expected to be sold or the revenue earned or expected to be earned above the break-even point.IV. Question1.有哪几种类型的作业？分别举例说明。

管理会计（英文版）课后习题答案（高等教育出版社）chapter3

管理会计（英文版）课后习题答案（高等教育出版社）chapter3管理会计（高等教育出版社）于增彪（清华大学）改编余绪缨（厦门大学）审校CHAPTER 3ACTIVITY COST BEHAVIORQUESTIONS FOR WRITING AND DISCUSSION1.Knowledge of cost behavior allows a man-ager to assess changes in costs that result from changes in activity. This allows a man-ager to assess the effects of choices that change activity. For example, if excess ca-pacity exists, bids that at least cover variable costs may be totally appropriate. Knowing what costs are variable and what costs are fixed can help a manager make better bids.2.The longer the time period, the more likelythat a cost will be variable. The short run is a period of time for which at least one cost is fixed. In the long run, all costs are variable.3.Resource spending is the cost of acquiringthe capacity to perform an activity, whereas resource usage is the amount of activity ac-tually used. It is possible to use less of the activity than what is supplied. Only the cost of the activity actually used should be as-signed to products.4.Flexible resources are those acquired fromoutside sources and do not involve any long-term commitment for any given amount of resource. Thus, the cost of these resources increases as the demand for them increas-es, and they are variable costs (varying in proportion to the associatedactivity driver).mitted resources are acquired by theuse of either explicit or implicit contracts toobtain a given quantity of resources, regard-less of whether the quantity of resource available is fully used or not. For multiperiod commitments, the cost of these resources essentially corresponds to committed fixed costs. Other resources acquired in advance are short term in nature and essentially cor-respond to discretionary fixed costs.mitted fixed costs are those incurred forthe acquisition of long-term activity capacity and are not subject to change in the short run. Annual resource expenditure is inde-pendent of actual usage. For example, the cost of a factory building is a committed fixed cost. Discretionary fixed costs are those incurred for the acquisition of short-term activity capacity, the levels of which can be altered quickly. In the short run, resource expenditure is also independent of actual ac-tivity usage. An engineer’s salary is an e x-ample of such an expenditure.7. A variable cost increases in direct proportionto changes in activity usage. A one-unit in-crease in activity usage produces an in-crease in cost. A step cost, however, in-creases only as activity usage changes in small blocks or chunks. An increase in cost requires an increase in several units of activ-ity. When a step cost changes over relativelynarrow ranges of activity, it may be moreconvenient to treat it as a variable cost.8. A step cost with narrow steps can be treatedas variable, while one with wide steps is typ-ically treated as fixed.9.An activity rate is the resource expenditure for an activity divided by the activity’s pra c- tical capacity.10.Mixed costs are usually reported in total in the accounting records. How much of the cost is fixed and how much is variable is un- known and must be estimated.11. A scattergraph allows a visual portrayal of the relationship between cost and activity. It reveals to the investigator whether a rela- tionship may exist and, if so, whether a li- near function can be used to approximate the relationship.12.Managers can use their knowledge of cost relationships to estimate fixed and variable components. A scattergraph can be used as an aid in this process. From a scattergraph,a manager can select two points that best represent the relationship. These two points can then be used to derive a linear cost for- mula. The high-low method tells the manag- er which two points to select to compute the linear cost formula. The selection of these two points is not left to judgment.13.Because the scatterplot method is not re- stricted to the high and low points, it is poss- ible to select two points that better represent the relationship between activity and costs, producing a better estimate of fixed and va- riable costs. The main advantage of thehigh-low method is that it removes subjec-tivity from the choice process. The same linewill be produced by two different people.14.Assuming that the scattergraph reveals thata linear cost function is suitable, then themethod of least squares selects a line thatbest fits the data points. The method alsoprovides a measure of goodness of fit sothat the strength of the relationship betweencost and activity can be assessed.15.The best-fitting line is the one that is “clo s-est” to the data points. This is usually meas-ured by the line that has the smallest sum ofsquared deviations.16.No. The best-fitting line may not explainmuch of the total cost variability. There mustbe a strong relationship as well. 17.The coefficient of determination is the per-centage of total variability in costs explainedby the activity. As such, it is a measure ofthe goodness of fit, the strength of the rela-tionship between cost and activity.18.The correlation coefficient is the square rootof the coefficient of determination. The cor-relation coefficient reveals the direction ofthe relationship in addition to the strength ofthe relationship.19.If the variation in cost is not well explainedby activity usage (the coefficient of determi-nation is low) as measured by a single driv-er, then other explanatory variables may beneeded to build a good cost formula.20.If the mixed costs are immaterial, then themethod of decomposition is unimportant. Furthermore, sometimes managerial judg-ment may be more useful for assigningcosts than the use of formal statistical me-thodology.EXERCISES3–11. N umber of Units Total Cost Cost per Unit0 $240,000 NA100,000 240,000 $2.40200,000 240,000 1.20300,000 240,000 0.80400,000 240,000 0.60500,000 240,000 0.482. This depreciation cost is strictly fixed.3–21. Miles Traveled Total Cost Cost per Mile0 $ 0 $0.005,000 6,500 1.30*10,000 13,000 1.3015,000 19,500 1.3020,000 26,000 1.3025,000 32,500 1.30 *$5,200/4,000 or $26,000/20,000 = $1.30 2. The cost of fuel for the delivery activity is strictly variable. 3–31. Number of Units Total Cost Cost per Unit0 $10,000 NA10,000 10,000 $1.0020,000 10,000 0.5030,000 20,000 0.6740,000 20,000 0.5050,000 30,000 0.602. Forming machines rental cost is a step cost.Resource Flexible/Committed Cost BehaviorJet rental Committed FixedHotel rooms Committed FixedBuffet Flexible VariableFavor package Flexible VariableBuses Committed Step3–51. Total Cost Unit CostPlastic$ 10,800 $0.027Direct labor andvariable overhead28,000 0.020 Mold sets320,000 0.050Other facility costs410,000 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 andother 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 produc-tion of action figures in general. Other facility costs are strictly fixed.1. X-ray film and developing supplies are likely to vary with the number of pa-cemakers produced. As production increases, we would expect more film and developing supplies to be used. Inspectors and X-ray machines should re-main constant within the relevant range.2. Total cost = $310,000 + ($1.60 ? 100,000) = $470,000Total fixed cost = $310,000Total variable cost = $1.60 ? 100,000 = $160,0003. Unit cost = $470,000/100,000 = $4.70 per pacemaker4. Unit fixed cost = $310,000/100,000 = $3.10 per pacemaker5. Unit variable cost = $1.60 per pacemaker6. a. $438,000/80,000 = $5.48; $310,000/80,000 = $3.88; $1.60b. $502,000/120,000 = $4.18; $310,000/120,000 = $2.58; $1.60The unit cost increases in the first case and decreases in the second case.This is attributable to spreading fixed costs over fewer units of activity output in the first case and over more units in the second case. The unit variable cost stays constant.1. Committed resources: trucks and technicians’ salariesFlexible resources: supplies, small tools, and fuel2. Variable activity rate = $840,000/70,000 = $12 per callFixed activity rate = $1,200,000*/80,000 = $15 per callTotal cost of one call = $12 + $15 = $27 per call*($26,250 ? 40) + ($6,000 ? 25)3. Activity availability = Activity usage + Unused capacityCalls available = Calls made + Unmade calls80,000 calls = 70,000 calls + 10,000 calls4. Total cost of Cost of Cost ofc ommitted resources = activity used + unused capacity$1,200,000 = ($15 ? 70,000) + ($15 ? 10,000)$1,200,000 = $1,050,000 + $150,000Note: The analysis is restricted to committed resources, since only these re-sources will ever have any unused capacity.1. Committed resource charges: monthly fee, activation fee, cancellation fee (iftriggered by contract cancellation prior to one year)Flexible resource charges: all additional charges for airtime, long distance and roaming2. Plan 1:Minutes available = Minutes used + Unused minutes60 minutes = 45 minutes + 15 minutesPlan 2:Minutes available = Minutes used + Unused minutes120 minutes = 45 minutes + 75 minutesPlan 1 is more cost effective. Jana will have some unused capacity (on aver-age, 15 minutes a month), and the overall cost will be lower by $10 per month.3. Plan 1*:Minutes available = Minutes used + Unused minutes60 minutes = 90 minutes + (- 30) minutesPlan 1*:M inutes available = Minutes used + Unused minutes60 minutes = 60 minutes + 0 minutesAdditional minutes = 30 minutes*There are a number of ways to illustrate the use of minuteswith Plan 1. Here are two possibilities. The problem, of course, is that all included monthly minutes are used, and Jana must purchase additional minutes.Plan 2:Minutes available = Minutes used + Unused minutes120 minutes = 90 minutes + 30 minutesPlan 2 is now more cost effective, as the monthly cost is $30. Under Plan 1, Jana will pay $20 plus $30 (30 minutes ? $1.00) or $50 per month. (The $1.00 additional charge includes the airtime and regional roaming charge.)1.Cost of Oil Changes$0$1,000$2,000$3,000$4,000$5,000$6,000$7,000$8,000$9,00005001,0001,500Number of Oil ChangesC o s tThe scattergraph provides evidence for a linear relationship.2. High (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) = $6,3503–9 Concluded3. Output of the regression routine calculated by a spreadsheet:Rounding the coefficients:Variable rate = $4.65 per oil changeFixed cost = $1,697Predicted cost for January = $1,697 + $4.65 (oil changes)= $1,697 + $4.65(1,000) = $6,347R2 = 0.97 (rounded)This says that 97 percent of the variability in the cost of providing oil changes is explained by the number of oil changes performed.4. The least-squares method is better because it uses all eight data points in-stead of just two.3–101.The scattergraph provides evidence for a linear relationship, but the observa-tion for 300 moves may be an outlier.2. High (800, $14,560); Low (100, $3,000)V = ($14,560 – $3,000)/(800 – 100)= $11,560/700 = $16.51 per move (rounded)F = $3,000 – $16.51(100)= $3,000 – $1,651 = $1,349Cost = $1,349 + $16.51 (moves)Predicted cost = $1,349 + $16.51(550) = $10,430 (rounded) 3–10 Concluded3. Output of the regression routine calculated by a spreadsheet:Rounding the coefficients:Variable rate = $18.43 per moveFixed cost = $498Cost = $498 + $18.43 (moves)= $498 + $18.43(550) = $10,635 (rounded)R2 = 0.93 (rounded)This says that 93 percent of the variability in the cost of moving materials is explained by the number of moves.4. Normally, we would prefer the least-squares method since the data appear tobe linear. However, the third observation may be an outlier. If the third obser-vation (300 moves and $3,400 of cost) is dropped, the R2 rises to 99 percent.The new cost formula would beCost = $1,411 + $17.28 (moves)The higher fixed cost is much more in keeping with what we observed with the scatterplot in requirement 1.1. Independent variable = number of inspections;Dependent variable = inspection costHigh point (500, $10,000); low point (100, $6,200)2. Variable rate = ($10,000 –$6,200)/(500 –100) = $3,800/400 = $9.50 per inspectionFixed cost = $10,000 – ($9.50)(500) = $5,250Formula for inspection cost = $5,250 + $9.50XEstimated inspection cost = $5,250 + $9.50(280) = $7,9103. Output of regression routine using spreadsheet program:Variable rate = $9.62 per hourFixed cost = $5,370Formula for setup cost = $5,370 + $9.62XEstimated setup cost = $5,370 + $9.62(280) = $8,064 (rounded)R2 = 0.958 or 95.8%The coefficient of determination is high—indicating a strong relationship be-tween inspection cost and the number of inspections.1. Depreciation:Variable rate = ($170,000 – $170,000)/(48,000 – 24,000) = 0 Fixed cost = $170,000 – $0(24,000) = $170,000Depreciation = $170,000Depreciation is purely fixed.Power usage:Variable = ($16,320 – $8,160)/(48,000 – 24,000) = $0.34Fixed cost = $8,160 – $0.34(24,000) = $0Power usage = $0.34(machine hours)Power usage is purely variable.Maintenance:Variable rate = ($149,000 –$101,000)/(48,000 –24,000) = $2.00Fixed cost = $101,000 – $2.00(24,000) = $53,000Maintenance = $53,000 + $2.00(machine hours)Maintenance is a mixed cost.2. Depreciation = $170,000Power usage = $0.34(32,000) = $10,880Maintenance = $53,000 + $2.00(32,000) = $117,0003. Machine related overhead = Depreciation + Power usage + Maintenance= $170,000 + $0.34(MHr) + $53,000 + $2.00(MHr)= $223,000 + $2.34(MHr)For 32,000 machine hours:Machine-related overhead = $223,000 + $2.34(32,000)= $223,000 + $74,880 = $297,880Cost formulas can be combined if the activities they describe share a com-mon objective and if the activity driver is the same. If the activities are not logically related, then it may not be wise to combine cost formulas even if they have a common driver.1. Maintenance cost = $5,750 + $16X2. Maintenance cost = $5,750 + $16(650) = $5,750 + $10,400 = $16,1503. To obtain the percentage explained, r needs to be squared: 0.89 0.89 = 79.21percent. The relationship appears strong but perhaps could be improved by searching for another explanatory variable. Leaving about 20 percent of the variability unexplained may produce less than satisfactory predictions.4. Maintenance cost = 12($5,750) + $16(8,400) = $69,000 + $134,400 = $203,400Note: The fixed cost from the regression results is the fixed cost for the month (since monthly data were used to estimate the equation). However, the question asks for the cost for the year. Therefore, the fixed cost from the re-gression equation must be multiplied by 12.3–141. Overhead = $2,130 + $17(DLH) + $810(setups) + $26(purchase orders)2. Overhead = $2,130 + $17(600) + $810(50)+ $26(120)= $2,130 + $10,200 + $40,500+ $3,120= $55,9503. Since total setup cost is $40,500 for the following month,a 50 percent de-crease would reduce setup cost to $20,250, saving $20,250 for the month.1. Warranty repair cost = $2,000 + $60(number of defects) –$10(inspectionhours)2. Warranty repair cost = $2,000 + $60(100) –$10(150) = $6,5003. The number of defects is positively correlated with warranty repair costs. In-spection hours are negatively correlated with warranty repair costs.4. In this equation, the independent variables—number of defects and inspec-tion hours—account for 88 percent of the variability in warranty repair costs.It seems that analysts have identified some very good drivers for warranty re-pair costs.3–161. Independent variable = direct labor hours; dependent variable = overheadcostHigh point (1,300, $35,200); low point (800, $23,370)Note: The high point is the point of highest direct labor hours (the indepen-dent variable), not the highest cost (which is for Month 7 in this case).2. Variable rate = ($35,200 – $23,370)/(1,300 – 800)= $11,830/500 = $23.66 per direct labor hourFixed cost = $35,200 – ($23.66)(1,300) = $4,442Formula for overhead cost = $4,442 + $23.66 (direct labor hours)Estimated overhead cost = $4,442 + $23.66(1,120) = $30,941 (rounded)3–16 Concluded3. Output of regression routine using spreadsheet program:Variable rate = $25.21 per direct labor hourFixed cost = $3,132Formula for overhead cost = $3,132 + $25.21 (direct labor hours)Estimated overhead cost = $3,132 + $25.21(1,120) = $31,367 (rounded)R2 = 0.95, or 95%The coefficient of determination is high—indicating a strong relationship be-tween overhead cost and direct labor hours.3–171. a2. c3. a4. e5. ePROBLEMS3–181. Salaries:Senior accountant—fixedOffice assistant—fixedInternet and software subscriptions—mixed Consulting by senior partner—variable Depreciation (equipment)—fixed Supplies—mixedAdministration—fixedRent (offices)—fixedUtilities—mixed2. Internet and software subscriptions:V = (Y2– Y1)/(X2– X1)= ($850 – $700)/(150 – 120) = $5 per hourF = Y2– VX2= $850 – ($5)(150) = $100Consulting by senior partner:V = (Y2– Y1)/(X2– X1)= ($1,500 – $1,200)/(150 – 120) = $10 per hour F = Y2– VX2= $1,500 – ($10)(150) = $0Supplies:V = (Y2– Y1)/(X2– X1)= ($1,100 – $905)/(150 – 120) = $6.50 per hour F = Y2– VX2= $1,100 – ($6.50)(150) = $125Utilities:V = (Y2– Y1)/(X2– X1)= ($365 – $332)/(150 – 120) = $1.10 per hour F = Y2– VX2= $365 – ($1.10)(150) = $2003–18 Concluded3. UnitFixed Variable Cost Salaries:Senior accountant $2,500 $ —Office assistant 1,200 —Internet and subscriptions 100 5.00 Consulting —10.00Depreciation (equipment) 2,400 —Supplies 125 6.50Administration 500 —Rent (offices) 2,000 —Utilities 200 1.10 Total cost $9,025 $22.60 Thus, total clinic cost = $9,025 + $22.60/professional hourFor 140 professional hours:Clinic cost = $9,025 + $22.60(140) = $12,189Charge per hour = $12,189/140 = $87.06Fixed charge per hour = $9,025/140 = $64.46Variable charge per hour = $22.604. F or 170 professional hours:Charge/day = $9,025/170 + $22.60 = $53.09 + $22.60 = $75.69The charge drops because the fixed costs are spread over more professional hours.。

新编[经济学]管理会计英文版课后习题答案高等教育出版社chapter 9

CHAPTER 9standard costing:a managerial control toolQUESTIONS FOR WRITING AND DISCUSSION1.Standard costs are essentially budgetedamounts on a per-unit basis. Unit standardsserve as inputs in building budgets.2.Unit standards are used to build flexiblebudgets. Unit standards for variable costsare the variable cost component of a flexiblebudgeting formula.3.The quantity decision is determining howmuch input should be used per unit of out-put. The pricing decision determines howmuch should be paid for the quantity of inputused.4.Historical experience is often a poor choicefor establishing standards because the his-torical amounts may include more inefficien-cy than is desired.5.Engineering studies can serve as importantinput to standard setting. Many feel that thisapproach by itself may produce standardsthat are too rigorous.6.Ideal standards are perfection standards,representing the best possible outcomes.Currently attainable standards are standardsthat are challenging but allow some waste.Currently attainable standards are oftenchosen because many feel they tend to mo-tivate rather than frustrate.7.Standard costing systems improve planningand control and facilitate product costing. 8.By identifying standards and assessing devi-ations from the standards, managers can lo-cate areas where change or corrective be-havior is needed.9.Actual costing assigns actual manufacturingcosts to products. Normal costing assignsactual prime costs and estimated overheadcosts to products. Standard costing assignsestimated manufacturing costs to products.10. A standard cost sheet presents the standardamount of and price for each input and usesthis information to calculate the unit standardcost. 11.Managers generally tend to have more con-trol over the quantity of an input used ratherthan the price paid per unit of input.12. A standard cost variance should be investi-gated if the variance is material and if thebenefit of investigating and correcting thedeviation is greater than the cost.13.Control limits indicate how large a variancemust be before it is judged to be materialand the process is out of control. Control lim-its are usually set by judgment although sta-tistical approaches are occasionally used. 14.The materials price variance is often com-puted at the point of purchase rather than is-suance because it provides control infor-mation sooner.15.Disagree. A materials usage variance canbe caused by factors beyond the control ofthe production manager, e.g., purchase of alower-quality material than normal.16.Disagree. Using higher-priced workers toperform lower-skilled tasks is an example ofan event that will create a rate variance thatis controllable.17.Some possible causes of an unfavorablelabor efficiency variance are inefficient labor,machine downtime, and poor quality materi-als.18.Part of a variable overhead spending vari-ance can be caused by inefficient use ofoverhead resources.19.Agree. This variance, assuming that variableoverhead costs increase as labor usage in-creases, is caused by the efficiency or ineffi-ciency of labor usage.20.Fixed overhead costs are either committedor discretionary. The committed costs willnot differ by their very nature. Discretionarycosts can vary, but the level the companywants to spend on these items is decided atthe beginning and usually will be met unlessthere is a conscious decision to change thepredetermined levels.21.The volume variance is caused by the actualvolume differing from the expected volumeused to compute the predetermined stand-ard fixed overhead rate. If the actual volumeis different from the expected, then the com-pany has either lost or earned a contributionmargin. The volume variance signals thisoutcome, and if the variance is large, thenthe loss or gain is large since the volumevariance understates the effect.22.The spending variance is more important.This variance is computed by comparing ac-tual expenditures with budgeted expendi-tures. The volume variance simply tellswhether the actual volume is different fromthe expected volume.EXERCISES 9–11. d2. e3. d4. c5. e6. a9–21. a. The operating personnel of each cost center should be involved in settingstandards. They are the primary source for quantity information. The mate-rials manager and purchasing manager are a source of information for ma-terial prices, and personnel are knowledgeable on wage information. The Accounting Department should be involved in overhead standards and should provide information about past prices and usage. Finally, if infor-mation about absolute efficiency is desired, industrial engineers can pro-vide important input.b. Standards should be attainable; they should include an allowance forwaste, breakdowns, etc. Market prices for materials as well as labor (un-ions) should be a consideration for setting standards. Labor prices should include fringe benefits, and material prices should include freight, taxes, etc.2. In principle, before formal responsibility is assigned, the causes of the vari-ances must be known. To be responsible, a manager must have the ability to control or influence the variance. The following assignments of responsibility are general in nature and have exceptions:MPV: Purchasing managerMUV: Production managerLRV: Production managerLEV: Production managerOH variances: Departmental managers1. SH = 0.8 ⨯ 95,000 = 76,000 hours2. SQ = 5 ⨯ 95,000 = 475,000 components9–41. MPV = (AP – SP)AQ= ($0.03 – $0.032)6,420,000 = $12,840 FMUV = (AQ – SQ)SP= (6,420,000 – 6,400,000)$0.032 = $640 U2. LRV = (AR – SR)AH= ($12.50 – $12.00)2,000 = $1,000 UL EV = (AH – SH)SR= (2,000 – 1,850)$12.00 = $1,800 U9–51. Variable overhead analysis:Actual VOH Budgeted VOH Applied VOH2. Fixed overhead analysis:Actual FOH Budgeted FOH Applied FOH1. Materials: $60 ⨯ 20,000 = $1,200,000L abor: $21 ⨯ 20,000 = $420,0002. Actual Cost* Budgeted Cost VarianceMaterials $1,215,120 $1,200,000 $ 15,120 U Labor 390,000 420,000 30,000 F *$122,000 ⨯ $9.96; 31,200 ⨯ $12.503. MPV = (AP – SP)AQ= ($9.96 – $10)122,000 = $4,880 FMUV = (AQ – SQ)SP= (122,000 – 120,000)$10 = $20,000 UAP ⨯ AQ SP ⨯ AQ SP ⨯ SQ4. LRV = (AR – SR)AH= ($12.50 – $14)31,200 = $46,800 FLEV = (AH – SH)SR= (31,200 – 30,000)$14 = $16,800 UAR ⨯ AH SR ⨯ AH SR ⨯ SH1. MPV = (AP – SP)AQ= ($8.35 – $8.25)114,000 = $11,400 UMUV = (AQ – SQ)SP= (112,500 – 115,200)$8.25 = $22,275 F(A three-pronged variance diagram is not shown because MPV is for mate-rials purchased and not materials used.)2. LRV = (AR – SR)AH= ($9.80 – $9.65)37,560 = $5,634 UNote: AR = $368,088/37,560LEV = (AH – SH)SR= (37,560 – 38,400)$9.65 = $8,106 FAR ⨯ AH SR ⨯ AH SR ⨯ SH3. Materials Inventory ................................... 940,500M PV ............................................................ 11,400Accounts Payable ............................... 951,900Work in Process ....................................... 950,400MUV ...................................................... 22,275Materials Inventory .............................. 928,125Work in Process ....................................... 370,560LRV ............................................................ 5,634LEV ....................................................... 8,106Accrued Payroll ................................... 368,0881. Fixed overhead rate = $0.55/(1/2 hr. per unit) = $1.10 per DLHSH = 1,180,000 ⨯ 1/2 = 590,000Applied FOH = $1.10 ⨯ 590,000 = $649,0002. Fixed overhead analysis:Actual FOH Budgeted FOH Applied FOH(600,000 expected hours = 1/2 hour ⨯ 1,200,000 units)3. Variable OH rate = ($1,350,000 – $660,000)/600,000= $1.15 per DLH4. Variable overhead analysis:Actual VOH Budgeted VOH Applied VOH1. Cases needing investigation:Week 2: Exceeds the 10% rule.Week 4: Exceeds the $8,000 rule and the 10% rule.Week 5: Exceeds the 10% rule.2. The purchasing agent. Corrective action would require a return to the pur-chase of the higher-quality material normally used.3. Production engineering is responsible. If the relationship is expected to per-sist, then the new labor method should be adopted, and standards for materi-als and labor need to be revised.9–101. Standard fixed overhead rate = $2,160,000/(120,000 ⨯ 6)= $3.00 per DLHStandard variable overhead rate = $1,440,000/720,000= $2.00 per DLH2. Fixed: 119,000 ⨯ 6 ⨯ $3.00 = $2,142,000Variable: 119,000 ⨯ 6 ⨯ $2.00 = $1,428,000Total FOH variance = $2,250,000 – $2,142,000= $108,000 UTotal VOH variance = $1,425,000 – $1,428,000= $3,000 F3. Fixed overhead analysis:Actual FOH Budgeted FOH Applied FOHThe spending variance is the difference between planned and actual costs.Each item’s variance should be analyzed to see if these costs can be r e-duced. The volume variance is the incorrect prediction of volume, or alterna-tively, it is a signal of the loss or gain that occurred because of producing at a level different from the expected level.4. Variable overhead analysis:Actual VOH Budgeted VOH Applied VOHThe variable overhead spending variance is the difference between the actual variable overhead costs and the budgeted costs for the actual hours used.The variable overhead efficiency variance is the savings or extra cost at-tributable to the efficiency of labor usage.9–111. MPV = (AP – SP)AQ= ($6.60 – $6.40)1,488,000= $297,600 UMUV = (AQ – SQ)SP= (1,480,000 – 1,400,000)$6.40= $512,000 UNote: There is no three-pronged analysis for materials because materials purchased is different from the materials used. (MPV uses materials pur-chased and MUV uses materials used.)2. LRV = (AR – SR)AH= ($18.10 – $18.00)580,000= $58,000 ULEV = (AH – SH)SR= (580,000 – 560,000)$18.00= $360,000 UAR ⨯ AH SR ⨯ AH SR ⨯ SH3. Fixed overhead analysis:Actual FOH Budgeted FOH Applied FOHNote: Practical volume in hours = 2 ⨯ 288,000 = 576,000 hours4. Variable overhead analysis:Actual VOH Budgeted VOH Applied VOH1. Materials Inventory ................................... 9,523,200MPV ............................................................ 297,600Accounts Payable ............................... 9,820,8002. Work in Process ....................................... 8,960,000MUV ............................................................ 512,000Materials Inventory .............................. 9,472,0003. Work in Process ....................................... 10,080,000LRV ............................................................ 58,000LEV ............................................................. 360,000Accrued Payroll ................................... 10,498,0004. Work in Process ....................................... 3,080,000Fixed Overhead Control...................... 2,240,000Variable Overhead Control ................. 840,0005. Materials and labor:Cost of Goods Sold .................................. 1,227,600MPV ...................................................... 297,600MUV ...................................................... 512,000LRV ....................................................... 58,000LEV ....................................................... 360,000 Overhead disposition:Cost of Goods Sold .................................. 160,000Fixed Overhead Control...................... 160,000Cost of Goods Sold .................................. 32,000Variable Overhead Control ................. 32,0001. Tom purchased the large quantity to obtain a lower price so that the pricestandard could be met. In all likelihood, given the reaction of Jackie Iverson, encouraging the use of quantity discounts was not an objective of setting price standards. Usually, material price standards are to encourage the pur-chasing agent to search for sources that will supply the quantity and quality of material desired at the lowest price.2. It sounds like the price standard may be out of date. Revising the pricestandard and implementing a policy concerning quantity purchases would likely prevent this behavior from reoccurring.3. Tom apparently acted in his own self-interest when making the purchase. Hesurely must have known that the quantity approach was not the objective.Yet, the reward structure suggests that there is considerable emphasis placed on meeting standards. His behavior, in part, was induced by the re-ward system of the company. Probably, he should be retained with some ad-ditional training concerning the goals of the company and a change in em-phasis and policy to help encourage the desired behavior.9–14Materials:AP ⨯ AQ SP ⨯ AQ SP ⨯ SQLabor:AR ⨯ AH SR ⨯ AH SR ⨯ SH1. Materials Inventory ................................... 47,700MPV ...................................................... 5,700Accounts Payable ............................... 42,0002. Work in Process ....................................... 45,000MUV ............................................................ 2,700Materials Inventory .............................. 47,7003. Work in Process ....................................... 105,000LRV ....................................................... 2,300LEV (700)Accrued Payroll ................................... 102,0004. Cost of Goods Sold .................................. 2,700MUV ...................................................... 2,700MPV ............................................................ 5,700LRV ............................................................ 2,300LEV (700)Cost of Goods Sold ............................. 8,7001. VOH efficiency variance = (AH – SH)SVOR$8,000 = (1.2SH – SH)$2$8,000 = $0.4SHSH = 20,000AH = 1.2SH = 24,000 2. LEV = (AH – SH)SR$20,000 = (24,000 – 20,000)SR$20,000 = 4,000SRSR = $5LRV = (AR – SR)AH$6,000 = (AR – $5)24,000$0.25 = AR – $5AR = $5.253. SH = 4 ⨯ Units produced20,000 = 4 ⨯ Units produced Units produced = 5,000PROBLEMS9–171. Materials:AP ⨯ AQ SP ⨯ AQ SP ⨯ SQThe new process saves 0.25 ⨯ 4,000 ⨯ $3 = $3,000. Thus, the net savings at-tributable to the higher-quality material are ($6,000 – $3,000) – $2,300 = $700.Keep the higher-quality material!2. Labor for new process:AR ⨯ AH SR ⨯ AH SR ⨯ SHThe new process gains $3,000 in materials (see Requirement 1) but loses $6,000 from the labor effect, giving a net loss of $3,000. If this pattern is ex-pected to persist, then the new process should be abandoned.3. Labor for new process, one week later:AR ⨯ AH SR ⨯ AH SR ⨯ SHIf this is the pattern, then the new process should be continued. It will save $260,000 per year ($5,000 ⨯52 weeks). The weekly savings of $5,000 is the materials savings of $3,000 plus labor savings of $2,000.9–181. e2. h3. k4. n5. d6. g7. o8. b9. m10. l11. j12. c13. a14. i15. f9–191. Material quantity standards:1.25 feet per cutting board⨯ 67.50 feet for five good cutting boardsUnit standard for lumber = 7.50/5 = 1.50 feetUnit standard for foot pads = 4.0Material price standards:Lumber: $3.00 per footPads: $0.05 per padLabor quantity standards:Cutting: 0.2 hrs. ⨯ 6/5 = 0.24 hours per good unitAttachment: 0.25 hours per good unitUnit labor standard 0.49 hours per good unit Labor rate standard: $8.00 per hourStandard prime cost per unit:Lumber (1.50 ft. @ $3.00) $4.50Pads (4 @ $0.05) 0.20Labor (0.49 hr. @ $8.00) 3.92Unit cost $8.629–19 Concluded2. Standards allow managers to compare planned and actual performance. Thedifference can be broken down into price and efficiency variances to identify the cause of a variance. With this feedback, managers are able to improve productivity as they attempt to produce without cost overruns.3. a. The purchasing manager identifies suppliers and their respective pricesand quality of materials.b. The industrial engineer often conducts time and motion studies to deter-mine the standard direct labor time for a unit of product. They also can de-termine how much material is needed for the product.c. The cost accountant has historical information as well as current infor-mation from the purchasing agent, industrial engineers, and operating personnel. He or she can compile this information to obtain an achievable standard.4. Lumber:MPV = (AP – SP)AQ= ($3.10 – $3.00)16,000 = $1,600 UMUV = (AQ – SQ)SP= (16,000 – 15,000)$3 = $3,000 URubber pads:MPV = (AP – SP)AQ= ($0.048 – $0.05)51,000 = $102 FMUV = (AQ – SQ)SP= (51,000 – 40,000)$0.05 = $550 ULabor:LRV = (AR – SR)AH= ($8.05 – $8.00)5,550 = $277.50 ULEV = (AH – SH)SR= (5,550 – 4,900)$8 = $5,200 U9–201. The cumulative average time per unit is an average. It includes the2.5 hoursper unit when 40 units are produced as well as the 1.024 hours per unit when 640 units are produced. As more units are produced, the cumulative average time per unit will decrease.2. The standard should be 0.768 hour per unit as this is the average time takenper unit once efficiency is achieved:[(1.024 ⨯ 640) – (1.28 ⨯ 320)]/(640 – 320)3. Std. Price Std. Usage Std. CostDirect materials $ 4 25.000 $100.00 Direct labor 15 0.768 11.52 Variable overhead 8 0.768 6.14 Fixed overhead 12 0.768 9.22* Standard cost per unit $126.88* *Rounded4. There would be unfavorable efficiency variances for the first 320 units be-cause the standard hours are much lower than the actual hours at this level.Actual hours would be approximately 409.60 (320 ⨯ 1.28), and standard hours would be 245.76 (320 ⨯ 0.768).9–211. MPV = (AP – SP)AQ= ($4.70 – $5.00)260,000 = $78,000 FMUV = (AQ – SQ)SP= (320,000 – 300,000)$5 = $100,000 UThe materials usage variance is viewed as the most controllable because prices for materials are often market-driven and thus not controllable. Re-sponsibility for the variance in this case likely would be assigned to purchas-ing. The lower-quality materials are probably the cause of the extra usage.2. LRV = (AR – SR)AH= ($13 – $12)82,000 = $82,000 ULEV = (AH – SH)SR= (82,000 – 80,000)$12 = $24,000 UAR ⨯ AH SR ⨯ AH SR ⨯ SHProduction is usually responsible for labor efficiency. In this case, efficiency may have been affected by the lower-quality materials, and purchasing, thus, may have significant responsibility for the outcome. Other possible causes are less demand than expected, poor supervision, lack of proper training, and lack of experience.3. Variable overhead variances:Actual VOH Budgeted VOH Applied VOHFormula approach:VOH spending variance = Actual VOH – (SVOR ⨯ AH)= $860,000 – ($10 ⨯ 82,000)= $40,000 UVOH efficiency variance = (AH – SH)SVOR= (82,000 – 80,000)$10= $20,000 U4. Fixed overhead variances:Actual FOH Budgeted FOH Applied FOHThe volume variance is a measure of unused capacity. This cost is reduced as production increases. Thus, selling more goods is the key to reducing this variance (at least in the short run).5. Four variances are potentially affected by material quality:MPV $ 78,000 FMUV 100,000 ULEV 24,000 UVOH efficiency 20,000 U$ 66,000 UIf the variance outcomes are largely attributable to the lower-quality materi-als, then the company should discontinue using this material.6. (Appendix required)Materials Inventory ................................... 1,300,000MPV ...................................................... 78,000Accounts Payable ............................... 1,222,000Work in Process ....................................... 1,500,000MUV ............................................................ 100,000Materials Inventory .............................. 1,600,0009–21 ConcludedWork in Process ....................................... 960,000LRV ............................................................ 82,000LEV ............................................................. 24,000Accrued Payroll ................................... 1,066,000Cost of Goods Sold .................................. 206,000MUV ...................................................... 100,000LRV ....................................................... 82,000LEV ....................................................... 24,000MPV ............................................................ 78,000Cost of Goods Sold ............................. 78,000VOH Control .............................................. 860,000Various Credits .................................... 860,000FOH Control .............................................. 556,000Various Credits .................................... 556,000Work in Process ....................................... 800,000VOH Control ......................................... 800,000Work in Process ....................................... 480,000FOH Control ......................................... 480,000Cost of Goods Sold .................................. 60,000VOH Control ......................................... 60,000Cost of Goods Sold .................................. 76,000FOH Control ......................................... 76,0009–221. Fixed overhead rate = $2,400,000/600,000 hours*= $4 per hour*Standard hours allowed = 2 ⨯ 300,000 units2. Little Rock plant:Actual FOH Budgeted FOH Applied FOHAthens plant:Actual FOH Budgeted FOH Applied FOHThe spending varian ce is almost certainly caused by supervisor’s salaries (for example, an unexpected midyear increase due to union pressures). It is unlikely that the lease payments or depreciation would be greater than budg-eted. Changing the terms on a 10-year lease in the first year would be unusual (unless there is some sort of special clause permitting increased payments for something like unexpected inflation). Also, the depreciation should be on target (unless more equipment was purchased or the depreciation budget was set before the price of the equipment was known with certainty).The volume variance is easy to explain. The Little Rock plant produced less than expected, and so there was an unused capacity cost: $4 ⨯ 120,000 hours = $480,000. The Athens plant had no unused capacity.9–22 Concluded3. It appears that the 120,000 hours of unused capacity (60,000 subassemblies)is permanent for the Little Rock plant. This plant has 10 supervisors, each making $50,000. Supervision is a step-cost driven by the number of produc-tion lines. Unused capacity of 120,000 hours means that two lines can be shut down, saving the salaries of two supervisors ($100,000 at the original salary level). The equipment for the two lines is owned. If it could be sold, then the money could be reinvested, and the depreciation charge would be reduced by20 percent (two lines shut down out of 10). There is no way to directly reducethe lease payments for the building. Perhaps the company could use the space to establish production lines for a different product. Or perhaps the space could be subleased. Another possibility is to keep the supervisors and equipment and try to fill the unused capacity with special orders orders for the subassembly below the regular selling price from a market not normally served. If the selling price is sufficient to cover the variable costs and cover at least the salaries and depreciation for the two lines, then the special order option may be a possibility. This option, however, is fraught with risks, e.g., the risk of finding enough orders to justify keeping the supervisors and equipment, the risk of alienating regular customers who pay full price, and the risk of violating price discrimination laws. Note:You may wish to point out the value of the resource usage model in answering this question (see Chapter 3).4. For each plant, the standard fixed overhead rate is $4 per direct labor hour.Since each subassembly should use two hours, the fixed overhead cost per unit is $8, regardless of where they are produced. Should they differ? Some may argue that the rate for the Little Rock plant needs to be recalculated. For example, one possibility is to use expected actual capacity, instead of practi-cal capacity. In this case, the Little Rock plant would have a fixed overhead rate of $2,400,000/480,000 hours = $5 per hour and a cost per subassembly of $10. The question is: Should the subassemblies be charged for the cost of the unused capacity? ABC suggests a negative response. Products should be charged for the resources they use, and the cost of unused capacity should be reported as a separate item—to draw management’s attention to the need to manage this unused capacity.9–231. Normal Patient Day:Standard Standard StandardPrice Usage Cost Direct materials $10.00 8.00 lb. $ 80.00 Direct labor 16.00 2 hr. 32.00 Variable overhead 30.00 2 hr. 60.00 Fixed overhead 40.00 2 hr. 80.00 Unit cost $252.00 Cesarean Patient Day:Standard Standard StandardPrice Usage Cost Direct materials $10.00 20.00 lb. $200.00 Direct labor 16.00 4 hr. 64.00 Variable overhead 30.00 4 hr. 120.00 Fixed overhead 40.00 4 hr. 160.00 Unit cost $544.00 2. MPV = (AP – SP)AQ= ($9.50 – $10.00)172,000 = $86,000 FMUV = (AQ – SQ)SPMUV (Normal) = [30,000 – (8 ⨯ 3,500)]$10 = $20,000 UMUV (Cesarean) = [142,000 – (20 ⨯ 7,000)]$10 = $20,000 UMaterials .................................................... 1,720,000MPV ...................................................... 86,000Accounts Payable ............................... 1,634,000Work in Process ....................................... 1,680,000M UV ........................................................... 40,000Materials .............................................. 1,720,000MPV ............................................................ 86,000MUV ............................................................ 40,000Cost of Services Sold ......................... 126,0003. LRV = (AR – SR)AH= ($15.90 – $16.00)36,500 = $3,650 FLEV = (AH – SH)SRLEV (Normal) = [7,200 – (2 ⨯ 3,500)]$16 = $3,200 ULEV (Cesarean) = [29,300 – (4 ⨯ 7,000)]$16 = $20,800 UWork in Process ....................................... 560,000*LEV ............................................................. 24,000LRV ....................................................... 3,650Accrued Payroll ................................... 580,350 *[(2 ⨯ 3,500) + (4 ⨯ 7,000)] ⨯ $16 = $560,000Cost of Services Sold ............................... 20,350LRV ............................................................ 3,650LEV ....................................................... 24,0004. Variable overhead variances:Actual VOH Budgeted VOH Applied VOHFixed overhead variances:Actual FOH Budgeted FOH Applied FOHNote: SH = (2 ⨯ 3,500) + (4 ⨯ 7,000) = 35,000。

成本与管理会计亨格瑞第13版英文版CA16

Product – any output with a positive sales value, or an output that enables a firm to avoid incurring costs
Value can be high or low
2020/2/10
6
Joint Cost Terminology ，conts.
Separable Costs – all costs incurred beyond the splitoff point that are assignable to each of the nowidentifiable specific products
2020/2/10
3
Example of Joint Cost stituation
2020/2/10
15
Physical-Measure Method
Allocates joint costs to joint products on the basis of the relative weight, volume, or other physical measure at the splitoff point of total production of the products p455(577)
220000 580000
condensed milk : 400000
220000
290000
220000 580000ห้องสมุดไป่ตู้
(3) production cost per gallon
buttercream : (110000 280000) 20000 19.50

国际财务管理(英文版) 第11版马杜拉答案 Chapter 16

Chapter 16Long-Term FinancingLecture OutlineLong-Term Financing DecisionSources of EquitySources of DebtCost of Debt FinancingMeasuring the Cost of FinancingActual Effects of Exchange Rate Movements on Financing Costs Assessing the Exchange Rate Risk of Debt Financing Use of Exchange Rate ProbabilitiesUse of SimulationReducing Exchange Rate RiskOffsetting Cash InflowsContractsForwardSwapsCurrencyLoansParallelDiversifying Among CurrenciesInterest Rate Risk from Debt FinancingThe Debt Maturity DecisionThe Fixed Versus Floating-rate DecisionHedging With Interest Rate SwapsPlain Vanilla SwapChapter ThemeThis chapter introduces the long-term sources of funds available to MNCs. Should the MNC choose bonds as a medium to attract long-term funds, a currency for denomination must be chosen. This is a critical decision for the MNC. While there is no clear-cut solution, this chapter illustrates how such a problem can be analyzed. A suggested method of presenting this analysis is to run through an example under assumed exchange rates. Then stress that future exchange rates are not known with certainty. Therefore, the firm should consider the possible costs of financing under a variety of exchange rate scenarios.Topics to Stimulate Class Discussion1. Why would U.S. firms consider issuing bonds denominated in a foreign currency?2. What are the desirable characteristics related to a currency’s interest rate (high or low) and value(strong or weak) that would make the currency attractive from a borrower’s perspective?Critical debateAre swaps deceiving the market?Proposition. Yes. Interest rates are charged to firms because the market estimates that the risk is appropriate for the borrower. For MNC’s to then swap the loans is to ignore this judgment and puts lenders at risk and hence the interests of the shareholders.Opposing View. No. The difference in rates is often small and hardly related to non payment. There are other reasons for swaps to do with currencies and changing the nature of the loan, so there is no second guessing the market.With whom do you agree? Provide a reasoned argument as to why you agree or with one of the above views.ANSWER:The swap rates will be in line with forward rates, so that MNCs will not benefit from borrowing low interest rate currencies and simultaneously hedging. As the forward rates are market rates there is little by the way of deceiving the market especially as swaps are usually between highly creditworthy companies.Answers to End of Chapter Questions1. Floating-Rate Bonds.a. What factors should be considered by a UK firm that plans to issue a floating rate bonddenominated in a foreign currency?b. Is the risk of issuing a floating rate bond higher or lower than the risk of issuing a fixed ratebond? Explain.c. How would an investing firm differ from a borrowing firm in the features (i.e., interest rate andcurrency’s future exchange rates) it would prefer a floating rate foreign currency-denominated bond to exhibit?ANSWER:a. A firm should consider the interest rate for each possible currency as well as forecasts of theexchange rate relative to the firm’s home currency. The firm should also determine whether it has future cash inflows in any foreign currencies that could denominate the bond. Finally, the firm should forecast the future path of the coupon rate.b. The risk from issuing a floating rate bond is that the interest rate may rise over time. The riskfrom issuing a fixed rate bond is that the firm is obligated to pay that coupon rate even if interest rates decline. Some firms may feel that a fixed rate bond is less risky since at least they know with certainty the coupon rate they must pay in the future. This question is somewhat open-ended.c. An investing firm prefers a bond denominated in a currency that is expected to appreciate andwith an interest rate that is high and expected to increase. A borrowing firm prefers a bond denominated in a currency that is expected to depreciate and with an interest rate that is low and expected to decrease.2.Risk From Issuing Foreign Currency-Denominated Bonds. What is the advantage of usingsimulation to assess the bond financing position?ANSWER: Unlike point forecasts, simulation provides a distribution of possible outcomes. Thus, the firm can determine the probability that a particular foreign issued bond will be a less expensive source of funds than a locally issued bond.3. Exchange Rate Effects.a. Explain the difference in the cost of financing with foreign currencies during a strong-poundperiod versus a weak-pound period for a UK firm.b. Explain how a UK-based MNC issuing bonds denominated in euros may be able to offset aportion of its exchange rate risk.ANSWER:a. The cost of financing with foreign currencies is low when the pound strengthens, and highwhen the pound weakens.b. It may offset some exchange rate risk if it has cash inflows in euros. These euros could beused to make coupon payments.4.Bond Offering Decision. Columbia plc is a UK company with no foreign currency cash flows. Itplans to issue either a bond denominated in euros with a fixed interest rate or a bond denominated in UK pounds with a floating interest rate. It estimates its periodic pound cash flows for each bond. Which bond do you think would have greater uncertainty surrounding these future pound cash flows? Explain.ANSWER: Exchange rates are generally more volatile than interest rates over time. Therefore the pound value of payments made on euro-denominated bonds would likely be more uncertain than the payments made on floating-rate bonds denominated in pounds. Also, the principal payment is subject to exchange rate risk but not to interest rate risk.5. Currency Diversification. Why would a UK firm consider issuing bonds denominated inmultiple currencies?ANSWER: The firm may issue bonds in multiple currencies to reduce exchange rate risk. This is especially possible when the currencies used to denominate bonds are not highly correlated.6.Financing That Reduces Exchange Rate Risk. Kerr, Plc a major UK exporter of products toJapan, denominates its exports in pounds and has no other international business. It can borrow pounds at 9 percent to finance its operations or borrow yen at 3 percent. If it borrows yen, it will be exposed to exchange rate risk. How can Kerr borrow yen and possibly reduce its economic exposure to exchange rate risk?ANSWER: Kerr could invoice its exports in yen and use the proceeds to pay back loans. Its economic exposure would be reduced because Japanese consumers would not be subjected to exchange rate swings.7. Exchange Rate Effects. Katina, Plc is a UK firm that plans to finance with bonds denominated ineuros to obtain a lower interest rate than is available on pound-denominated bonds. What is the most critical point in time when the exchange rate will have the greatest impact?ANSWER: The most critical time is maturity, since the principal will be paid back at that time.8.Financing Decision. Ivax plc (based in Germany) is a drug company that has attempted to capitalize on new opportunities to expand in Eastern Europe. The production costs in most Eastern European countries are very low, often less than one-fourth of the cost in Germany or Switzerland. Furthermore, there is a strong demand for drugs in Eastern Europe. Ivax penetrated Eastern Europe by purchasing a 60 percent stake in Galena AS, a Czech firm that produces drugs.a. Should Ivax finance its investment in the Czech firm by borrowing euros that would then be converted into koruna (the Czech currency) or by borrowing koruna from a local Czech bank? What information do you need to know to answer this question?b. How can borrowing koruna locally from a Czech bank reduce the exposure of Ivax to exchange rate risk?c. How can borrowing koruna locally from a Czech bank reduce the exposure of Ivax to political risk caused by government regulations?ANSWER:a. Ivax would need to consider the interest rate in the Europe versus the interest rate when borrowingkoruna (the Czech currency). It would also need to consider the potential change in the koruna currency against the euro. If it finances the project in dollars, it is more exposed to exchange rate risk, because the funds would be remitted to Germany before paying the interest expenses on the loan. Conversely, if it finances the project in koruna, it could use some of its local funds to pay off its interest expenses before remitting any funds to the parent. Another reason for borrowing from a local Czech bank is that the bank may help Ivax avoid any excessive regulatory restrictions that could be imposed on foreign firms in the drug industry. These potential advantages of borrowing locally must be weighed against the potentially higher interest rate when borrowing locally.b. By borrowing koruna, the Czech subsidiary of Ivax should make its interest payments beforeremitting any funds to the parent. Therefore, there are less funds that have to be remitted (less exposure) than if the funds are remitted to Europe before interest payments are paid to a European bank.c. By borrowing from a local Czech bank, Ivax may be able to avoid excessive regulations thatcould be imposed on foreign firms by the local government. Also, there is less chance of any extreme action to be taken on a foreign firm when that firm’s failure would cause defaults on loans provided by local lenders.Advanced Questions9. Bond Financing Analysis. Sambuka plc can issue bonds in either UK pounds or in Swiss francs.Pound-denominated bonds would have a coupon rate of 15 percent; Swiss franc-denominated bonds would have a coupon rate of 12 percent. Assuming that Sambuka can issue bonds worth £10,000,000 in either currency, that the current exchange rate of the Swiss franc is £0.47, and that the forecasted exchange rate of the franc in each of the next three years is £0.50, what is the annual cost of financing for the franc-denominated bonds? Which type of bond should Sambuka issue?ANSWER:If Sambuka issues Swiss franc-denominated bonds, the bonds would have a face value of £10,000,000/£0.47 = Sf21,276,595.2Year3YearYear1SF Payment SF2,553,191 SF2,553,191 SF23,829,786£0.50£0.50rateExchange£0.50Payments in £ £1,276,596 £1,276,596 £11,914,893A UK bond at 15% on £10m would cost more (annual payments being £1.5m etc) but can wereally assume that the exchange ratte will stay as it is? A change of 1.5/1.276 – 1 = 17 ½% would make the SF more expensive, this is quite a big change but Sambuka would be wise to carry out a risk assessment.10. Bond Financing Analysis. Hatton ltd has just agreed to a long-term deal in which it willexport products to Japan. It needs funds to finance the production of the products that it will export. The products will be denominated in pounds. The prevailing UK long-term interest rate is 9 percent versus 3 percent in Japan. Assume that interest rate parity exists, and that Hatton believes that the international Fisher effect holds.a. Should Hatton finance its production with yen and leave itself open to exchange rate risk?Explain.b. Should Hatton finance its production with yen and simultaneously engage in forward contractsto hedge its exposure to exchange rate risk?c. How could Hatton plc achieve low-cost financing while eliminating its exposure to exchangerate risk?ANSWER:a. No. The exchange rate of the yen is expected to rise according to the IFE, whichwould offset the interest rate differential.b. No. The forward rate premium should reflect the interest rate differential, so the financing ratewould be 9% if Hawaii used this strategy.c. Hawaii could request that the Japanese importers pay for their imports in yen. It could financein yen at 3% and use a portion of the proceeds from its export revenue to cover its finance payments.11. Cost of Financing. Assume that Seminole, plc considers issuing a Singapore pound-denominatedbond at its present coupon rate of 7 percent, even though it has no incoming cash flows to cover the bond payments. It is attracted to the low financing rate, since UK pound-denominated bonds issued in the United Kingdom would have a coupon rate of 12 percent. Assume that either type of bond would have a four-year maturity and could be issued at par value. Seminole needs to borrow £10 million. Therefore, it will issue either UK pound-denominated bonds with a par value of £10 million or bonds denominated in Singapore dollars with a par value of S$20 million. The spot rate of the Singapore dollar is £0.33. Seminole has forecasted the Singapore dollar’s value at the end of each of the next four years, when coupon payments are to be paid:End of Year Pound Exchange Rateof Singapore1 £0.342 0.353 0.384 0.33Determine the expected annual cost of financing with Singapore pounds. Should Seminole, Plc issue bonds denominated in UK pounds or Singapore pounds? Explain.ANSWER:End of Year:1234 S$ payment S$1,400,000S$1,400,000S$1,400,000 S$21,400,000 Exchange rate £0.340.350.38 0.33£ payment £476,000£490,000£532,000 £7,062,000 S$20m is at the spot rate only worth 20 x 0.33 = £6,600,000 so some borrowing will also be needed. The question is whether the foreign borrowing in S$ is cheaper than the UK equivalent.?12% of £6,600,000 is £792,000 so it would seenm that borrowing in Singapore dollars would be much cheaper. But clearly the validity of the exchange rate predictions must be examined.12.Interaction Between Financing and Invoicing Policies. Assume that Hurricane, plc is a UKcompany that exports products to the United States, invoiced in pounds. It also exports products to Denmark, invoiced in pounds. It currently has no cash outflows in foreign currencies, and it plans to issue bonds in the near future. Hurricane could issue bonds at par value in (1) pounds with a coupon rate of 12 percent, (2) Danish kroner with a coupon rate of 9 percent, or (3) dollars with a coupon rate of 15 percent. It expects the kroner and dollar to strengthen over time. How could Hurricane revise its invoicing policy and make its bond denomination decision to achieve low financing costs without excessive exposure to exchange rate fluctuations?ANSWER: Hurricane could invoice goods exported to Denmark in kroner instead of pounds.Thus, it would now have inflows in kroner that could be used to make coupon payments on bonds denominated in kroner that it could issue. This strategy achieves a cost of financing of 9 percent,which is lower than the cost of other financing alternatives. To the extent that the inflows in kroner can cover bond payments, this strategy is not exposed to exchange rate risk.13.Swap Agreement. Grant, plc is a well-known UK firm that needs to borrow 10 million dollars tosupport a new business in the United States. However, it cannot obtain financing from US banks because it is not yet established within the United States. It decides to issue pound-denominated debt (at par value) in the United Kingdom, for which it will pay an annual coupon rate of 10 percent. It then will convert the pound proceeds from the debt issue into dollars at the prevailing spot rate (the prevailing spot rate is one pound = $1.70). Over each of the next three years, it plans to use the revenue in dollars from the new business in the United States to make its annual debt payment. Grant, plc engages in a currency swap in which it will convert dollars to pounds at an exchange rate of $1.70 per pound at the end of each of the next three years. How many pounds must be borrowed initially to support the new business in the United States? How many dollars should Grant plc specify in the swap agreement that it will swap over each of the next three years in exchange for pounds so that it can make its annual coupon payments to the UK creditors?ANSWER: Since Grant Inc. needs $10 million, Grant will need to issue debt amounting to £5.882 million (computed as $10 million / $1.70 per pound). Grant will pay 10% on the principal amount of £5.882 million annually as a coupon rate, which is equal to £0.5882 million. It should specify that 1 million dollars are to be swapped for pounds in each of the next three years.14.Interest Rate Swap. Janutis plc has just issued fixed rate debt at 10 percent. Yet, it prefers toconvert its financing to incur a floating rate on its debt. It engages in an interest rate swap in which it swaps variable rate payments of LIBOR plus 1 percent in exchange for payments of 10 percent.The interest rates are applied to an amount that represents the principal from its recent debt issue in order to determine the interest payments due at the end of each year for the next three years.Janutis plc expects that the LIBOR will be 9 percent at the end of the first year, 8.5 percent at the end of the second year, and 7 percent at the end of the third year. Determine the financing rate that Janutis plc expects to pay on its debt after considering the effect of the interest rate swap.ANSWER: The fixed rate of 10% to be received from the interest rate swap offsets the 10% payments made on the debt. Therefore, the annual cost of financing on the debt over the next three years is simply the variable rate that is paid out on the interest rate swap. This rate is derived below:End of Year LIBOR Variable Rate Paid Due to Swap1 9.0% 9.0% + 1.0% = 10.0%2 8.5% 8.5% + 1.0% = 9.5%3 7.0% 7.0% + 1.0% = 8.0%。

管理会计英文版红色书第十六章

第16章本——量——利分析：管理计划的工具【目标1】确定达到盈亏平衡点或实现目标利润的销售量·盈亏平衡点（break-even point）指总收入与总成本次昂等，利润为零的状态(PP484,P4,L3) 。

应用CVP分析的销售量法，首先要确定销售单位（P5,L1-L2）。

第二步要奋力固定成本和变动成本。

由于我们要了解CVP 分析中的销售量，因此要确定与销售量相关的固定成本、变动成本以及销售收入。

……变动成本指所有随销售量的变化而变化的成本，包括直接材料、直接人工、变动性制造费用和变动的销售及管理费用。

同样，固定成本则包括固定制造费用和固定销售及管理费用(PP484,P6)。

·营业收益方程式如下：营业收益=（单价×销售量）-（单位变动成本×销售量）-总固定成本假如要计算达到盈亏平衡点或利润为零的销售量，只要令营业收益为零，代入该方程即可求解（PP485,P4,L5-L8，P5）。

盈亏平衡点销售量=固定成本/单位贡献毛益（PP486,P1,L7）即 =固定成本/（单价-单位变动成本）·实现目标利润的销售量=（固定成本+目标利润）/单位贡献毛益（*此处为税前目标利润）实现税后目标利润的销售量=[固定成本+税后目标利润/（1-所得税税率）]/单位贡献毛益【目标2】确定达到盈亏平衡点或实现目标利润的销售收入·变动成本率（variable cost ratio）指每单位销售收入中用来补偿变动成本的比例（PP488,B3-4）变动成本率=单位变动成本/单价或=变动成本总额/销售收入贡献毛益率（contribution margin ratio）指每单位销售收入中可用来补偿固定成本并提供利润的比例（PP489,P1,L2-L3）。

贡献毛益（contribution margin）=销售收入-变动成本总额单位贡献毛益（unit contribution margin）=单价-单位变动成本贡献毛益率=单位贡献毛益/单价或=贡献毛益总额/销售收入变动成本率+贡献毛益率=1·如PP490图表16.2所示：当固定成本=贡献毛益时，企业利润为零（处于盈亏平衡状态）；（图A）当固定成本﹤贡献毛益时，企业实现利润；(图B)当固定成本﹥贡献毛益时，企业发生亏损。

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 ≤≤。

1、下载文档前请自行甄别文档内容的完整性，平台不提供额外的编辑、内容补充、找答案等附加服务。
2、"仅部分预览"的文档,不可在线预览部分如存在完整性等问题,可反馈申请退款(可完整预览的文档不适用该条件!)。
3、如文档侵犯您的权益，请联系客服反馈,我们会尽快为您处理(人工客服工作时间：9:00-18:30)。

管理会计（高等教育出版社）于增彪（清华大学）改编余绪缨（厦门大学）审校CHAPTER 16COST-VOLUME-PROFIT ANALYSIS: A MANAGERIAL PLANNING TOOL QUESTIONS FOR WRITING AND DISCUSSION1.CVP analysis allows managers to focus onselling prices, volume, costs, profits, and sales mix. Many diffe rent “what if” questions can be asked to assess the effect on profits of changes in key variables.2.The units-sold approach defines sales vo-lume in terms of units of product and gives answers in these same terms. The sales-revenue approach defines sales volume in terms of revenues and provides answers in these same terms.3.Break-even point is the level of sales activitywhere total revenues equal total costs, or where zero profits are earned.4.At the break-even point, all fixed costs arecovered. Above the break-even point, only variable costs need to be covered. Thus, contribution margin per unit is profit per unit, provided that the unit selling price is greater than the unit variable cost (which it must be for break-even to be achieved).5.Profit = $7.00 ⨯ 5,000 = $35,0006.Variable cost ratio = Variable costs/Sales.Contribution margin ratio = Contribution margin/Sales. Contribution margin ratio = 1 –Variable cost ratio.7.Break-even revenues = $20,000/0.40 =$50,0008.No. The increase in contribution is $9,000(0.30 ⨯ $30,000), and the increase in adver-tising is $10,000.9.Sales mix is the relative proportion sold ofeach product. For example, a sales mix of3:2 means that three units of one productare sold for every two of the second product.10.Packages of products, based on the ex-pected sales mix, are defined as a singleproduct. Selling price and cost informationfor this package can then be used to carryout CVP analysis.11.Package contribution margin: (2 ⨯ $10) + (1⨯ $5) = $25. Break-even point = $30,000/$25= 1,200 packages, or 2,400 units of A and1,200 units of B.12.Profit = 0.60($200,000 – $100,000) =$60,00013. A change in sales mix will change the contri-bution margin of the package (defined by thesales mix) and, thus, will change the unitsneeded to break even.14.Margin of safety is the sales activity inexcess of that needed to break even. Thehigher the margin of safety, the lower therisk.15.Operating leverage is the use of fixed coststo extract higher percentage changes inprofits as sales activity changes. It isachieved by increasing fixed costs while lo-wering variable costs. Therefore, increasedleverage implies increased risk, and viceversa.16.Sensitivity analysis is a “what if” techniquethat examines the impact of changes in un-derlying assumptions on an answer. A com-pany can input data on selling prices, varia-ble costs, fixed costs, and sales mix and setup formulas to calculate break-even pointsand expected profits. Then, the data can bevaried as desired to see what impactchanges have on the expected profit.17.By specifically including the costs that varywith nonunit drivers, the impact of changesin the nonunit drivers can be examined. Intraditional CVP, all nonunit costs are lumpedtogether as “fixed costs.” While the costs arefixed with respect to units, they vary with re-spect to other drivers. ABC analysis remindsus of the importance of these nonunit driversand costs.18.JIT simplifies the firm’s cost equation sincemore costs are classified as fixed (e.g., di-rect labor). Additionally, the batch-level vari-able is gone (in JIT, the batch is one unit).Thus, the cost equation for JIT includes fixedcosts, unit variable cost times the number ofunits sold, and unit product-level cost timesthe number of products sold (or related cost driver). JIT means that CVP analysis ap-proaches the standard analysis with fixed and unit-level costs only.EXERCISES 16–11. e2. c3. d4. b5. a16–21. f2. d3. b4. a5. g6. e7. c16–31. Units = Fixed cost/Contribution margin= $10,350/($15 – $12)= 3,4502. Sales (3,450 ⨯ $15) $51,750Variable costs (3,450 ⨯ $12) 41,400Contribution margin $ 10,350Fixed costs 10,350Operating income $ 03. Units = (Target income + Fixed cost)/Contribution margin= ($9,900 + $10,350)/($15 – $12)= $20,250/$3= 6,7501. Contribution margin per unit = $15 – $12 = $3Contribution margin ratio = $3/$15 = 0.20, or 20%2. Variable cost ratio = $60,000/$75,000 = 0.80, or 80%3. Revenue = Fixed cost/Contribution margin ratio= $10,350/0.20= $51,7504. Revenue = (Target income + Fixed cost)/Contribution margin ratio= ($9,900 + $10,350)/0.20= $101,25016–51. 0.15($15)(Units) = $15(Units) – $12(Units) – $10,350$2.25(Units) = $3(Units) – $10,350$10,350 = $0.75(Units)Units = 13,8002. Sales (13,800 ⨯ $15) $ 207,000Variable costs (13,800 ⨯ $12) 165,600Contribution margin $ 41,400Fixed costs 10,350Operating income $ 31,050$31,050 does equal 15% of $207,000, so the answer of 13,800 units is correct.1. Before-tax income = (After-tax income)/(1 – Tax rate)= $6,000/(1 – 0.40)= $10,000Units = (Target income + Fixed cost)/Contribution margin= ($10,000 + $10,350)/($15 – $12)= 6,783**The answer is 6,783.3333, and so it must be rounded to a whole unit. You may prefer that students round up the answer to 6,784, instead, since it is better to be marginally above break-even than marginally below it.2. Before-tax income = (After-tax income)/(1 – Tax rate)= $6,000/(1 – 0.50)= $12,000Units = (Target income + Fixed cost)/Contribution margin= ($12,000 + $10,350)/($15 – $12)= 7,4503. Before-tax income = (After-tax income)/(1 – Tax rate)= $6,000/(1 – 0.30)= $8,571Units = (Target income + Fixed cost)/Contribution margin= ($8,571 + $10,350)/($15 – $12)= 6,30716–71. Break-even units = Fixed costs/(Price – Variable cost)= $150,000/($2.45 – $1.65)= $150,000/$0.80= 187,5002. Units = ($150,000 + $12,600)/($2.45 – $1.65)= $162,600/$0.80= 203,2503. Unit variable cost = $1.65Unit variable manufacturing cost = $1.65 – $0.17 = $1.48The unit variable cost is used in cost-volume-profit analysis, since it includes all of the variable costs of the firm.1. Before-tax income = $25,200/(1 – 0.40) = $42,000Units = ($150,000 + $42,000)/$0.80= $192,000/$0.80= 240,0002. Before-tax income = $25,200/(1 – 0.30) = $36,000Units = ($150,000 + $36,000)/$0.80= $186,000/$0.80= 232,5003. Before-tax income = $25,200/(1 – 0.50) = $50,400Units = ($150,000 + $50,400)/$0.80= $200,400/$0.80= 250,5004. 215,000 – 187,500 = 27,500 pansor$526,750 – $459,375 = $67,375A B C D Sales $ 5,000 $ 15,600* $ 16,250* $9,000 Variable costs 4,000 11,700 9,750 5,400* Contribution margin $ 1,000 $ 3,900 $ 6,500* $3,600* Fixed costs 500* 4,000 6,100* 750 Operating income (loss) $ 500 $ (100)* $ 400 $2,850 Units sold 1,000* 1,300 125 90 Price/unit $5 $12* $130 $100* Variable cost/unit $4* $9 $78* $60* Contribution margin/unit $1* $3 $52* $40* Contribution margin ratio 20%* 25%* 40% 40%* Break-even in units 500* 1,334* 118* 19* *Designates calculated amount.Note: When the calculated break-even in units includes a fractional amount, it has been rounded up to the next whole unit.16–101. Variable cost ratio = Variable costs/Sales= $399,900/$930,000= 0.43, or 43%Contribution margin ratio = (Sales – Variable costs)/Sales= ($930,000 – $399,900)/$930,000= 0.57, or 57%2. Break-even sales revenue = $307,800/0.57 = $540,0003. Margin of safety = Sales – Break-even sales= $930,000 – $540,000 = $390,0004. Contribution margin from increased sales = ($7,500)(0.57) = $4,275Cost of advertising = $5,000No, the advertising campaign is not a good idea, because the company’s o p-erating income will decrease by $725 ($4,275 – $5,000).1. Income = Revenue – Variable cost – Fixed cost0 = 1,500P – $300(1,500) – $120,0000 = 1,500P – $450,000 – $120,000$570,000 = 1,500PP = $3802. $160,000/($3.50 – Unit variable cost) = 128,000 unitsUnit variable cost = $2.2516–121. Contribution margin per unit = $5.60 – $4.20*= $1.40*Variable costs per unit:$0.70 + $0.35 + $1.85 + $0.34 + $0.76 + $0.20 = $4.20Contribution margin ratio = $1.40/$5.60 = 0.25 = 25%2. Break-even in units = ($32,300 + $12,500)/$1.40 = 32,000 boxesBreak-even in sales = 32,000 ⨯ $5.60 = $179,200or= ($32,300 + $12,500)/0.25 = $179,2003. Sales ($5.60 ⨯ 35,000) $ 196,000Variable costs ($4.20 ⨯ 35,000) 147,000Contribution margin $ 49,000Fixed costs 44,800Operating income $ 4,2004. Margin of safety = $196,000 – $179,200 = $16,8005. Break-even in units = 44,800/($6.20 – $4.20) = 22,400 boxesNew operating income = $6.20(31,500) – $4.20(31,500) – $44,800= $195,300 – $132,300 – $44,800 = $18,200 Yes, operating income will increase by $14,000 ($18,200 – $4,200).1. Variable cost ratio = $126,000/$315,000 = 0.40Contribution margin ratio = $189,000/$315,000 = 0.602. $46,000 ⨯ 0.60 = $27,6003. Break-even revenue = $63,000/0.60 = $105,000Margin of safety = $315,000 – $105,000 = $210,0004. Revenue = ($63,000 + $90,000)/0.60= $255,0005. Before-tax income = $56,000/(1 – 0.30) = $80,000Note: Tax rate = $37,800/$126,000 = 0.30Revenue = ($63,000 + $80,000)/0.60 = $238,333Sales ............................................................................... $ 238,333 Less: Variable expenses ($238,333 ⨯ 0.40) ................. 95,333 Contribution margin ...................................................... $ 143,000 Less: Fixed expenses ................................................... 63,000 Income before income taxes ........................................ $ 80,000 Income taxes ($80,000 ⨯ 0.30) ...................................... 24,000 Net income ................................................................ $ 56,0001. Operating income = Revenue(1 – Variable cost ratio) – Fixed cost(0.20)Revenue = Revenue(1 – 0.40) – $24,000(0.20)Revenue = (0.60)Revenue – $24,000(0.40)Revenue = $24,000Revenue = $60,000Sales ............................................................................... $ 60,000Variable expenses ($60,000 ⨯ 0.40) .............................. 24,000Contribution margin ...................................................... $ 36,000Fixed expenses .............................................................. 24,000 Operating income ..................................................... $ 12,000 $12,000 = $60,000 ⨯ 20%2. If revenue of $60,000 produces a profit equal to 20 percent of sales and if theprice per unit is $10, then 6,000 units must be sold. Let X equal number of units, then:Operating income = (Price – Variable cost) – Fixed cost0.20($10)X = ($10 – $4)X – $24,000$2X = $6X – $24,000$4X = $24,000X = 6,000 buckets0.25($10)X = $6X – $24,000$2.50X = $6X – $24,000$3.50X = $24,000X = 6,857 bucketsSales (6,857 ⨯ $10) ......................................................... $68,570Variable expenses (6,857 ⨯ $4) ..................................... 27,428Contribution margin ...................................................... $41,142Fixed expenses .............................................................. 24,000 Operating income ..................................................... $17,142 $17,142* = 0.25 ⨯ $68,570 as claimed*Rounded down.Note: Some may prefer to round up to 6,858 units. If this is done, the operat-ing income will be slightly different due to rounding.16–14 Concluded3. Net income = 0.20Revenue/(1 – 0.40)= 0.3333Revenue0.3333Revenue = Revenue(1 – 0.40) – $24,0000.3333Revenue = 0.60Revenue – $24,0000.2667Revenue = $24,000Revenue = $89,98916–151. Company A: $100,000/$50,000 = 2Company B: $300,000/$50,000 = 62. Company BX = $50,000/(1 – 0.80) X = $250,000/(1 – 0.40)X = $50,000/0.20 X = $250,000/0.60X = $250,000 X = $416,667Company B must sell more than Company A to break even because it must cover $200,000 more in fixed costs (it is more highly leveraged).3. Company A: 2 ⨯ 50% = 100%Company B: 6 ⨯ 50% = 300%The percentage increase in profits for Company B is much higher than Com-pany A’s increase because Company B has a higher degree of oper ating leve-rage (i.e., it has a larger amount of fixed costs in proportion to variable costs as compared to Company A). Once fixed costs are covered, additional reve-nue must cover only variable costs, and 60 percent of Company B’s revenue above break-even is profit, whereas only 20 perce nt of Company A’s revenue above break-even is profit.1. Variable Units in PackageProduct Price* –Cost = CM ⨯Mix = CM Scientific $25 $12 $13 1 $13 Business 20 9 11 5 55 Total $68 *$500,000/20,000 = $25$2,000,000/100,000 = $20X = ($1,080,000 + $145,000)/$68X = $1,225,000/$68X = 18,015 packages18,015 scientific calculators (1 ⨯ 18,015)90,075 business calculators (5 ⨯ 18,015)2. Revenue = $1,225,000/0.544* = $2,251,838*($1,360,000/$2,500,000) = 0.5441. Sales mix is 2:1 (Twice as many videos are sold as equipment sets.)2. Variable SalesP roduct Price –Cost = CM ⨯Mix = Total CM Videos $12 $4 $8 2 $16 Equipment sets 15 6 9 1 9 Total $25 Break-even packages = $70,000/$25 = 2,800Break-even videos = 2 ⨯ 2,800 = 5,600Break-even equipment sets = 1 ⨯ 2,800 = 2,8003. Switzer CompanyIncome StatementFor Last YearSales .......................................................................................... $ 195,000Less: Variable costs ................................................................. 70,000Contribution margin ................................................................. $ 125,000Less: Fixed costs ..................................................................... 70,000 Operating income ................................................................ $ 55,000 Contribution margin ratio = $125,000/$195,000 = 0.641, or 64.1%Break-even sales revenue = $70,000/0.641 = $109,2044. Margin of safety = $195,000 – $109,204 = $85,7961. Sales mix is 2:1:4 (Twice as many videos will be sold as equipment sets, andfour times as many yoga mats will be sold as equipment sets.)2. Variable SalesP roduct Price –Cost = CM ⨯Mix = Total CM Videos $12 $ 4 $8 2 $16 Equipment sets 15 6 9 1 9 Yoga mats 18 13 5 4 20 Total $45 Break-even packages = $118,350/$45 = 2,630Break-even videos = 2 ⨯ 2,630 = 5,260Break-even equipment sets = 1 ⨯ 2,630 = 2,630Break-even yoga mats = 4 ⨯ 2,630 = 10,5203. Switzer CompanyIncome StatementFor the Coming YearSales .......................................................................................... $555,000Less: Variable costs ................................................................. 330,000Contribution margin ................................................................. $225,000Less: Fixed costs ..................................................................... 118,350 Operating income ................................................................ $106,650 Contribution margin ratio = $225,000/$555,000 = 0.4054, or 40.54%Break-even revenue = $118,350/0.4054 = $291,9344. Margin of safety = $555,000 – $291,934 = $263,0661. Contribution margin/unit = $410,000/100,000 = $4.10Contribution margin ratio = $410,000/$650,000 = 0.6308Break-even units = $295,200/$4.10 = 72,000 unitsBreak-even revenue = 72,000 ⨯ $6.50 = $468,000or= $295,200/0.6308 = $467,977**Difference due to rounding error in calculating the contribution margin ratio.2. The break-even point decreases:X = $295,200/(P – V)X = $295,200/($7.15 – $2.40)X = $295,200/$4.75X = 62,147 unitsRevenue = 62,147 ⨯ $7.15 = $444,3513. The break-even point increases:X = $295,200/($6.50 – $2.75)X = $295,200/$3.75X = 78,720 unitsRevenue = 78,720 ⨯ $6.50 = $511,68016–19 Concluded4. Predictions of increases or decreases in the break-even point can be madewithout computation for price changes or for variable cost changes. If both change, then the unit contribution margin must be known before and after to predict the effect on the break-even point. Simply giving the direction of the change for each individual component is not sufficient. For our example, the unit contribution changes from $4.10 to $4.40, so the break-even point in units will decrease.Break-even units = $295,200/($7.15 – $2.75) = 67,091Now, let’s look at the break-even point in revenues. We might expect that it, too, will decrease. However, that is not the case in this particular example.Here, the contribution margin ratio decreased from about 63 percent to just over 61.5 percent. As a result, the break-even point in revenues has gone up.B reak-even revenue = 67,091 $7.15 = $479,7015. The break-even point will increase because more units will need to be sold tocover the additional fixed expenses.Break-even units = $345,200/$4.10 = 84,195 unitsRevenue = $547,26816–201.Break-even point = 2,500 units; + line is total revenue and x line is total costs.2. a. Fixed costs increase by $5,000:Break-even point = 3,750 unitsb. Unit variable cost increases to $7:Break-even point = 3,333 unitsc. Unit selling price increases to $12:Break-even point = 1,667 unitsd. Both fixed costs and unit variable cost increase:Break-even point = 5,000 units3. Original data:-$10,000$0$10,000Break-even point = 2,500 unitsa. Fixed costs increase by $5,000:-$15,000$0$15,000Break-even point = 3,750 unitsb. Unit variable cost increases to $7:-$10,000$0$10,000Break-even point = 3,333 unitsc.-$10,000$0$10,000Break-even point = 1,667 unitsd. Both fixed costs and unit variable cost increase:-$15,000$0$15,000Break-even point = 5,000 units4. The first set of graphs is more informative since these graphs reveal howcosts change as sales volume changes.1. Unit contribution margin = $1,060,000/50,000 = $21.20Break-even units = $816,412/$21.20 = 38,510 unitsOperating income = 30,000 ⨯ $21.20 = $636,0002. CM ratio = $1,060,000/$2,500,000 = 0.424 or 42.4%Break-even point = $816,412/0.424 = $1,925,500Operating income = ($200,000 ⨯ 0.424) + $243,588 = $328,3883. Margin of safety = $2,500,000 – $1,925,500 = $574,5004. $1,060,000/$243,588 = 4.352 (operating leverage)4.352 ⨯ 20% = 0.87040.8704 ⨯ $243,588 = $212,019New operating income level = $212,019 + $243,588 = $455,6075. Let X = Units0.10($50)X = $50.00X – $28.80X – $816,412$5X = $21.20X – $816,412$16.20X = $816,412X = 50,396 units6. Before-tax income = $180,000/(1 – 0.40) = $300,000X = ($816,412 + $300,000)/$21.20 = 52,661 units1. Variable Sales PackageP roduct Price –Cost = CM ⨯Mix = CM Vases $40 $30 $10 2 $20 Figurines 70 42 28 1 28 Total $48 Break-even packages = $30,000/$48 = 625Break-even vases = 2 ⨯ 625 = 1,250Break-even figurines = 6252. The new sales mix is 3 vases to 2 figurines.Variable Sales Package P roduct Price –Cost = CM ⨯Mix = CM Vases $40 $30 $10 3 $30 Figurines 70 42 28 2 56 Total $86 Break-even packages = $35,260/$86 = 410Break-even vases = 3 ⨯ 410 = 1,230Break-even figurines = 2 ⨯ 410 = 82016–231. d2. c3. a4. d5. e6. b7. cPROBLEMS16–241. Unit contribution margin = $825,000/110,000 = $7.50Break-even point = $495,000/$7.50 = 66,000 unitsCM ratio = $7.50/$25 = 0.30Break-even point = $495,000/0.30 = $1,650,000or= $25 ⨯ 66,000 = $1,650,0002. Increased CM ($400,000 ⨯ 0.30) $ 120,000Less: Increased advertising expense 40,000Increased operating income $ 80,0003. $315,000 ⨯ 0.30 = $94,5004. Before-tax income = $360,000/(1 – 0.40) = $600,000Units = ($495,000 + $600,000)/$7.50= 146,0005. Margin of safety = $2,750,000 – $1,650,000 = $1,100,000or= 110,000 units – 66,000 units = 44,000 units6. $825,000/$330,000 = 2.5 (operating leverage)20% ⨯ 2.5 = 50% (profit increase)16–251. Sales mix:Squares: $300,000/$30 = 10,000 unitsCircles: $2,500,000/$50 = 50,000 unitsSales Total Product P –V* = P – V ⨯ Mix = CM Squares $30 $10 $20 1 $ 20 Circles 50 10 40 5 200 Package $220 *$100,000/10,000 = $10$500,000/50,000 = $10Break-even packages = $1,628,000/$220 = 7,400 packagesBreak-even squares = 7,400 ⨯ 1 = 7,400Break-even circles = 7,400 ⨯ 5 = 37,0002. Contribution margin ratio = $2,200,000/$2,800,000 = 0.78570.10Revenue = 0.7857Revenue – $1,628,0000.6857Revenue = $1,628,000Revenue = $2,374,2163. New mix:Sales Total Product P –V = P – V ⨯ Mix = CM Squares $30 $10 $20 3 $ 60 Circles 50 10 40 5 200 Package $260 Break-even packages = $1,628,000/$260 = 6,262 packagesBreak-even squares = 6,262 ⨯ 3 = 18,786Break-even circles = 6,262 ⨯ 5 = 31,310CM ratio = $260/$340* = 0.7647*(3)($30) + (5)($50) = $340 revenue per package0.10Revenue = 0.7647Revenue – $1,628,0000.6647Revenue = $1,628,000Revenue = $2,449,2254. Increase in CM for squares (15,000 ⨯ $20) $ 300,000Decrease in CM for circles (5,000 ⨯ $40) (200,000)Net increase in total contribution margin $ 100,000Less: Additional fixed expenses 45,000Increase in operating income $ 55,000Gosnell would gain $55,000 by increasing advertising for the squares. This isa good strategy.16–261. Currently:Sales (830,000 ⨯ $0.36) $ 298,800Variable expenses 224,100Contribution margin $ 74,700Fixed expenses 54,000Operating income $ 20,700New contribution margin = 1.5 ⨯ $74,700 = $112,050$112,050 – promotional spending – $54,000 = 1.5 ⨯ $20,700Promotional spending = $27,0002. Here are two ways to calculate the answer to this question:a. The per-unit contribution margin needs to be the same:Let P* represent the new price and V* the new variable cost.(P – V) = (P* – V*)$0.36 – $0.27 = P* – $0.30$0.09 = P* – $0.30P* = $0.39b. Old break-even point = $54,000/($0.36 – $0.27) = 600,000New break-even point = $54,000/(P* – $0.30) = 600,000P* = $0.39The selling price should be increased by $0.03.3. Projected contribution margin (700,000 ⨯ $0.13) $91,000Present contribution margin 74,700Increase in operating income $16,300The decision was good because operating income increased by $16,300.(New quantity ⨯ $0.13) – $54,000 = $20,700New quantity = 574,615Selling 574,615 units at the new price will maintain profit at $20,700.16–271. P –V = P – V ⨯Mix = TotalResidential $540.00a$221.64c$318.36 2 $636.72 Commercial 160.00b124.52c35.48 1 35.48 Package $672.20 a$13.50 ⨯ 10 ⨯ 4b$40 ⨯ 4c Cost per acre for four applicationsCommercialChemicals $ 70.00 $ 70.00 [$40 + (3 ⨯ $10)] Labor* 80.00 18.00Operating expenses** 55.12 20.00Supplies** 16.52 16.52Total $ 221.64 $ 124.52*10/3 ⨯ $6.00 ⨯ 4; 3/4 ⨯ $6.00 ⨯ 4**The per-acre amount ⨯ 4 applicationsX = F/(P – V)= $39,708/$672.20 = 59* packagesResidential: 2 ⨯ 59 = 118 acresCommercial: 1 ⨯ 59 = 59 acresAverage number of residential customers = 118/0.10 = 1,180*Rounded2. Hours needed to service break-even volume (in packages):Residential: 10/3 ⨯ 4 ⨯ 2 = 26.67* hoursCommercial: 3/4 ⨯ 4 ⨯ 1 = 3.00 hours29.67 hours per packageTotal hours required = 29.67 ⨯ 59 = 1,751 hoursHours per employee = 8 ⨯ 140 = 1,120Employees needed = 1,751/1,120 = 1.6 laborersOne employee is not sufficient.Volume/Employee = 1,120/29.67 = 38 packages. Thus, if volume exceeds 38 composite units (76 residential and 38 commercial), a second laborer is needed (at least part time).*RoundedNote: Adding another employee could affect the costs used in the initial anal-ysis; for example: (1) another truck might be added (increasing fixed costs and the break-even point; (2) a two-man crew might be used (increasing variable costs); (3) the new employee might work evenings/weekends (no change in either fixed or variable costs). CVP used for planning is often an iterative process—the original solution may raise problems that may call for a recal-culation, altering plans further.3. The mix is redefined to be 1.2:0.8:1.0.P roduct P –V = P – V ⨯Mix = Total CM Res.-1 $135.00 $ 77.91* $ 57.09 1.2 $ 68.51 Res.-4 540.00 221.64 318.36 0.8 254.69 Comm. 160.00 124.52 35.48 1.0 35.48 Package $ 358.68 *Variable cost for one-time residential application:Chemicals $40.00Labor 20.00Operating expenses 13.78Supplies 4.13TotalX = F/(P – V) = $39,708/$358.68 = 111 packagesResidential (one application): 1.2 ⨯ 111 = 133 acresResidential (four applications): 0.8 ⨯ 111 = 89 acresCommercial: 1 ⨯ 111 = 111 acres1. Contribution margin ratio = $487,548/$840,600 = 0.582. Revenue = $250,000/0.58 = $431,0343. Operating income = CMR ⨯ Revenue – Total fixed cost0.08R/(1 – 0.34) = 0.58R – $250,0000.1212R = 0.58R – $250,0000.4588R = $250,000R = $544,9004. $840,600 ⨯ 110% = $924,660$353,052 ⨯ 110% = 388,357$536,303CMR = $536,303/$924,660 = 0.58The contribution margin ratio remains at 0.58.5. Additional variable expense = $840,600 ⨯ 0.03 = $25,218New contribution margin = $487,548 – $25,218 = $462,330New CM ratio = $462,330/$840,600 = 0.55Break-even point = $250,000/0.55 = $454,545The effect is to increase the break-even point.6. Present contribution margin $ 487,548Projected contribution margin ($920,600 ⨯ 0.55) 506,330Increase in contribution margin/profit $ 18,782Fitzgibbons should pay the commission because profit would increase by $18,782.1. Let X be a package of three Grade I cabinets and seven Grade II cabinets.Then:0.3X($3,400) + 0.7X($1,600) = $1,600,000X = 748 packagesGrade I: 0.3 ⨯ 748 = 224 unitsGrade II: 0.7 ⨯ 748 = 524 units2. P roduct P –V = P – V ⨯Mix = Total CMGrade I $3,400 $2,686 $714 3 $2,142 Grade II 1,600 1,328 272 7 1,904 Package $4,046 Direct fixed costs—Grade I $ 95,000Direct fixed costs—Grade II 95,000Common fixed costs 35,000Total fixed costs $ 225,000$225,000/$4,046 = 56 packagesGrade I: 3 ⨯ 56 = 168; Grade II: 7 ⨯ 56 = 3923. P roduct P –V = P – V ⨯Mix = Total CMGrade I $3,400 $2,444 $956 3 $2,868 Grade II 1,600 1,208 392 7 2,744 Package $5,612 P ackage CM = 3($3,400) + 7($1,600)P ackage CM = $21,400$21,400X = $1,600,000 – $600,000X = 47 packages remaining141 Grade I (3 ⨯ 47) and 329 Grade II (7 ⨯ 47)Additional contribution margin:141($956 – $714) + 329($392 – $272) $73,602Increase in fixed costs 44,000Increase in operating income $29,602Break-even: ($225,000 + $44,000)/$5,612 = 48 packages144 Grade I (3 ⨯ 48) and 336 Grade II (7 ⨯ 48)If the new break-even point is interpreted as a revised break-even for 2004, then total fixed costs must be reduced by the contribution margin already earned (through the first five months) to obtain the units that must be sold for the last seven months. These units would then be added to those sold during the first five months:CM earned = $600,000 – (83* ⨯ $2,686) – (195* ⨯ $1,328) = $118,102*224 – 141 = 83; 524 – 329 = 195X = ($225,000 + $44,000 – $118,102)/$5,612 = 27 packagesFrom the first five months, 28 packages were sold (83/3 or 195/7). Thus, the revised break-even point is 55 packages (27 + 28)—in units, 165 of Grade I and 385 of Grade II.。