Post Midterm chapters Hilton answers (1).xlsx

8/19/2019 Post Midterm chapters Hilton answers (1).xlsx

1/180

P5-46 1. Unit manufacturing costs:

Predetermined overhead rate $ 32

Standard

Total cost $ 157

2. Activity-based overhead application rates:

Application

Activity Rate

Order processing $ 3

!achine processing $ 14

Prod"ct inspection $ #

Standard Enhanced

irect material $ 25 $ 4

irect la%or 36 4&

Activity Overhead 12 11

Total cost $ 1&1 $ 1#&

ost Activity

P5-47 !river ost for

"uantity for #roduct

Activity #roduct $ine $ine

!achine 5' $ 135'

(elated 4&' 12#'6

17' 45'#

115' $ 31'5

!aterial 4 $ 21'

)andling 4 21'

2 1'5

1 $ 52'5

P"rchasing 1 $ 25'

#6 24'14 26'

3 $ 75'

*et"p 4 $ 34'

4 34'

2 17'

1 $ &5'

+nspection 4 $ 1'


2/180

4 1'

3 7'5

1'1 $ 27'5

*hipping 5 $ 3'

4 24'

2 12'

1'1 $ 66',ngineering 25 $ 12'5

2 1'

2 1'

65 $ 32'5

acility 5' $ 25'

4&' 24'

17' &5'

115' $ 575'

.rand Total $ 1'224'

P5-4# /"rrent O) system

+nchon P"san

irect material $35 $6

irect la%or 2 2

!an"0act"ring overhead 16 12

Total cost per "nit $215 $2

nder A/ +nchon P"san

irect material $35 $6

irect la%or 2 2

1&&5 14&

Total cost per "nit $2435 $1&4&

P5-52 1. %verhead to be assigned to &itrogen #lus order:

Activity ost #ool Assigned %

!achine set"ps $ 1'

!aterial handling 2'

!an"0act"ring set"p' machineprocessing' and o"tgoingshipments


3/180

)aardo"s handling 1'

"ality control 75

Other overhead costs 5'

Total $ 45'75

2. %verhead cost per bo' of chemicals $ 4575

(. #redetermined overhead rate $ 3125

). %verhead to be assigned given a single predetermined over

a Total overhead assigned $ 15'625

% Overhead cost per %o $ 15625

P5-53 cost per "nit $ 2&25

*ee net sheet 0or 5-54

P5-55 the total contribution margin e'pected from the *! board is +

sing A/' the contri%"tion margin o0 * oard $2'557'1

P5-56 Traditional 8ona

"ll prod"ct cost $5

!ar9"p :3;< 15

*elling price $65

A/ cost $746

P5-57 see tet%oo9 0or sol"tion

P5-5#$1'31'

1% T"= *t"= "nit cost $2&

("= *t"= "nit cost $375

1 a


4/180

>

>

3 T"= *t"= "nit cost $357("= *t"= "nit cost $34#&

P5-6 see sheet 2

irect-la%or rate? $&' per 1'ho"rs

$& perho"r

Overhead rate? $35' per 1'ho"rs

$35 perho"r


5/180

Enhanced

$ 216

Activity

ost

per Unit

of #roduct

$ 27

324

45#

42

525

15

5

626

6&

&5

17

2


6/180

25

75

6

6

12

25

25

1

5

6

&5

*ee net sheet 0or 5-5

erhead ost


7/180

head rate:

,/,///.

!alaysian

$6

1&

$7&

$4&2


8/180


9/180

Pro% 5-54

Activities 0raceable costs

*oldering #42

*hipments &6

"ality control 124

P"rchase orders #54

!ach po@er 576!ach *et"p 75

4&

ost per model Royal

irect !aterial 2336

irect a%or 16&

!achine "sage 2&&

!an"0act"ring O)

*oldering 231

*hipments 1634

"ality control 34&

P"rchase orders 54##

!ach po@er 4&

!ach *et"p 35

/O.* 4431#

ProBta%ility analysis Royal*ales 456

/O.* 4431#

.ross margin 12&1

.ross margin ; 2&1;

.ross margin per "nit 3225

, 5-5

2Allocation o0 administrative cost %ased on %illa%le ho

+n0 *ys services

illings 3&75

ess ? costs

Pro0essional sta= cost 13#5

Allocation o0 Admin cost 2124


10/180

ProBt 35#6

ProBt ; #2&;

3Allocation %ased on A/

Activity /ost

*ta= *"pport 1&+n-ho"se comp"ting 1364

!isc oCce charges 256

+n0 *ys services

illings 3&75

ess ? costs

Pro0essional sta= cost 13#5

Allocation o0 Admin cost

*ta= *"pport 144+n-ho"se comp"ting &6

!isc oCce charges 124

ProBt 1316

ProBt ; 34;

/ase 5-6

Pdt .

1Target Price 2&65Act"al selling price 213

/"rrent prod"ct cost 1#1

ProBt 22

4 Percentage o0 (a@ materia Pdt .

(a@ material cost per "nit 35

Dol"me &

Total (! cost 2&

(a@ material cost ; 25;

5

Pdt .

irect material 35

irect la%or 16

!achine set"p 13

!achinery 3&2&

+nspection #&4


11/180

!aterial handling 2734

,ngineering 15&

Total 1416&

Target price %ased on ne@ 21252

/"rrent selling price 213

ProBt %ased on A/ cost 7132

P5-66 DATA INPUT

Customer-Related Activities Cost Driver Base

Sales activity *ales visits

Order taking P"rchase orders

*pecial handling nits handled

Special shipping *hipments

Customer-Related Activities Krondor

Sales activity 16

Order taking 30

*pecial handling 800

Special shipping 9

Krondor Sales revenue $ 2'

Cost of goods sold #'

General selling costs 24'

General administrative costs 1#'

SOLUTION

1 Customer-!ro"ita#ilit$ anal$sis%

Krondor Sales revenue $ 2'

Cost of goods sold #'

Gross margin $ 11'

Selling and administrative costs

General selling costs ! "#$000

General administrative costs 1#'

Customer%related costs


12/180

Sales activity &'

Order taking 3'

Special handling 4'

Special shipping #'

&otal selling and administrativ ! 103$000

Operating income ! '$000


13/180

ost driver udgeted level ost driver rat

Eoo0 solder Foints 157 6

Eoo0 shipments 2 43

Eo o0 +nspections 775 16

Eo o0 orders 1#& 5

!ach ho"rs 1#2 3Eoo0 set"ps 3 25

&ova traditional meth

(oyal

4576 Eova

3#6

316&

711

6#66

#2

45

52&

4

1131

&ova Total1#& 2436

1131 15732

&4### &62&

42#3;

3&635####1

"rs

,- comm cons"l

2375

&55

12##6


14/180

224

#2&;

Activity driver Allocation (ate

25 clients 7244 comp hrs 31

1 client transa 256

,- comm cons"l

2375

&55

3655&

1536

44&4

1&&&;

Pdt T Pdt G

25425 1432525425 2

16#5 #55

&475 145

Pdt T Pdt G

525 175

15 4

7&75 7 11375

6#; 6;

Pdt T Pdt G

525 175

12 &

11 66

4&3 7656

1575 525


15/180

425 1313

23 474

16374 21575

24561 32362

25425 2

#51 -1575

Cost Driver Rate

$ 5

1

5

1'

&eist

12

4

6

1

&eist$ 123'&

62'

1#'

15'

&eist$ 123'&

62'

$ 61'&

! 19$000

15'


16/180

6'

4'

3'

1'

! 8#$000

! (""$"00)


17/180

per *H

per shipment

per inspection

per p"rchase order

per mach hrper set"p

d O)

4

44

4&


18/180


19/180


20/180


21/180

*ee %elo@ 0or sol"tion to 14-44' 14-45 etc *ol"tions not in the same or

P 14-47 #S

Sales 3&'

3ariable costs 22&'

ontribution margin. 152'

/! (atio 4

1 4f 5all paper operation is closed .ainsIsavings

oss o0 contri%"tion 0rom GP

+ncrease in contri%"tion 0rom carpet 65

(emodeling cost

*aving in Bed cost 1&

oss o0 contri%"tion 0rom PJ*

+ncrease in Advertisement

&3

Eet gainI loss -12'&

, 14-4#

(elevant cost

P"rchased components

Assem%ly la%or

Daria%le man"0act"ring overhead

Total relevant cost

+t sho"ld p"rchase since p"rchase price 6& is less than relevant c

, 14-53

1 +ncremental cost o0 &1

irect material

irect la%or

Daria%le overhead

Total varia%le cost per "nit

P"rchase price

oss per "nit i0 p"rchasedoss per mach hr i0 p"rchased

2P"rchase price L"oted

irect material

irect la%or

Daria%le overhead


22/180

Total varia%le cost

Eet %eneBt o0 ma9ing

!ach hrs per "nit

eneBt 0rom mach hr

est se& "nits o0 T7#

!ach hrs reLd

alance hrs

Eo o0 "nits o0 &1 that can %e made

Eo o0 "nits o0 &1 to %e p"rchased

3!aim"m price 0or &1

Daria%le cost o0 ma9ing

ied costs avoida%le per "nit

, 14-55

8aytellMs o=er - special order

*ale price

ess ? (elevant cost

irect material 62

irect la%or 42

Daria%le man"0act"ring cost 21

*elling commission 252

(elevant proBt

/onverting into standard model

*ale price

ess ? (elevant cost

irect material 2&5

irect la%or 33

Daria%le man"0act"ring cost 165

*elling commission 125*ales disco"nt 125

(elevant proBt

*ell as is

*ale price

ess ? (elevant cost


23/180

*ales disco"nt

8aytellMs co"nter o=er

(elevant cost

irect material 62

irect la%or 42Daria%le man"0act"ring cost 21

*elling commission

Add?minim"m contri%"tion reL"ired

*ale price

522N125N3;>

#7; 647

66713

, 14-51

(even"e 0rom 0"rther processing o0 (EA-2?

!Q-3

Pestrol

Total reven"e 0rom 0"rther processing

ess? (even"e 0rom sale o0 (EA-2+ncremental reven"e

ess?+ncremental cost

+ncremental proBt

, 14-57

!achine ho"rs reLd ept1

!7 5

T2& 4

1# 2 Total 2#

Availa%le 3

,cessIdeBciency 1

a%o"r ho"rs reLd ept1

!7 1

T2& 4


24/180

1# 2

Total 34

Availa%le 37

,cessIdeBciency 3

!7

*elling price 1#6ess?Daria%le cost 13

/ontri%"ton P #3

/ontri%"ton per a% hr 31

in dept3

Prod"ction *ched"le "nits

T2& 4

1# 1

!7 25

/ase 14-63

-."age

nit selling price 2

nit man"0act"ring cost

irect material 31

irect a%or 4

Daria%le m0tg O) 45*hipping epenses 1

Total varia%le cost 126

/ontri%"tion 74

+ncrease in sales :"nits< 12

ecrease in sales :"nits<

+ncreaseI decrease in contri%"tion &&&

Additional cost 1*aving in cost

*egment /ontri%"tion net e=ect -112

/onti%"tion per la%or $ 1&5


25/180

Pro% 14-44 1

nit cost i0 p"rchased 0rom o"tside s"pplier

+ncremental cost i0 man"0act"red?

irect !aterial

irect a%orDaria%le overhead

$16 - $1 per ho"r Bed

$32 - :2


26/180

asic3 Total contri%"tion margin? $1'76'

ess? !ar9eting and advertising 13'

+ncome $1'63'

P 14-56

ATA +EPT

!onthly capacity

/"rrent prod"ction

Price per medal

Daria%le /osts

!an"0act"ringirect a%or

irect !aterial

!ar9eting

Total Daria%le /osts

ied /osts

!an"0act"ring

!ar9eting

Total ied /osts

Total /osts

Daria%le cost per "nit

ied cost per "nit

Average "nit cost

*pecial Order

The 0ollo@ing costs are not relevant to thedecision?

RSSSSSSS evelopment costss"n9

RSSSSSSS ied man"0act"ring overhead@ill %einc"rred regardless o0 @hich prod"ct isselected

RSSSSSSS *ales salariesidentical 0or %othprod"ctsRSSSSSSS !ar9et st"dys"n9


27/180

25 medals ordered

$1 per medal

*OT+OE

nits prod"ced*ales

Daria%le costs?

irect la%or

irect material

!ar9eting

Total Daria%le /osts

ied /osts

!an"0act"ring

!ar9eting

Total ied /osts

Total /osts

+ncome %e0ore ta

/ost per "nits

Daria%le e

ied f

Average "nit cost g

a $175 75 "nitsb $1 25 "nits

c :$375 I 75 "

d :$2625 I 75 "

e Total varia%le cost

f Total Bed cost I "

g Total cost I "nits p

P14-4&

*elling price

irect material

irect la%or

Daria%le overhead


28/180

/ontri%"tion margin per "nit

irect-la%or ho"rs reL"ired

/ontri%"tion margin per direct-la%or ho"r

(an9ing

P14-54

1 +ncremental "nit cost i0 p"rchased?

P"rchase price $15'!aterial handling $3'

Total $1&'

+ncremental "nit cost i0 man"0act"red?

irect material $U1'

!aterial handling 2

irect la%or &'

4'

Total $13'2

$U4'&

2

$4&':1 V $4'&' as comp"ted a%ove<

ess? rental reven"e 0rom idle space 25'

+ncrease in monthly cost $23'

3$52'

*avings in the cost o0 acL"iring H(63

4&'

Total varia%le cost

/ontri%"tionmargin

Daria%le man"0act"ring overhead :$12'V 1I3<

+ncrease in "nit cost i0 p"rchased :$1&' W$13'2<

+ncrease in monthly cost o0 acL"iring part H(63 i0 p"rchased

/ontri%"tion 0orgone %y not man"0act"ringalternative prod"ct

U:1 V $4'& as comp"ted in reL"irement 1


29/180

$U4'

14-62 P"rchased

Tac9le

oes

*elling price $&6

ess?

!aterial -6&

irect la%or

!an"0act"ring overhead

:4<

/ontri%"tion margin $14

irect-la%or ho"rs per "nit /ontri%"tion per ho"r

/alc"lation o0 varia%le overhead per "nit?

Tac9le %oes?

irect-la%or ho"rs

Overhead per direct-la%or ho"r

/apacity

Total overhead

Total varia%le overhead

Daria%le overhead per ho"r

Daria%le overhead per %o

*9ate%oards?

irect-la%or ho"rs

Daria%le overhead

Prod"ction plan 175 s9ate %oard

1 tac9le %oes

Eet cost o0 "sing limited capacity to prod"cepart H(63

*elling and administrative costX

X+n calc"lating the contri%"tion margin' $6 o0 Bed overhead cost per "nit 0or0rom the selling and administrative cost


30/180

+tem "antity

Total ho"rs

*9ate%oards 17'5

!a9e %oes 1'

"y %oes #'

Total contri%"tion

ess?/ontri%"tion 0rom man"0act"ring &' %oes

U :&' V $33<

+mprovement in contri%"tion margin

P14-45 Eet contri%"tion to proBt 34'5

Availa%le ho"rs 4'5

(eL"ired machine ho"rs :11' "nits 5< 5'5

P14-5 *avings i0 p"rchased $5'&

P14-52 +ncremental contri%"tion margin $42'#45

inear programming pro%lems not relevant 0or the eam

The optimal "se o0 *port@ayYs availa%ledirect-la%or ho"rs :)


31/180

der as in the %oo9 %"t n"m%ered correctly

arpet 5#

46' 14'

322' 112

13&' 2&'

3 2

ossesI additional ep

2&'

124

34

25

#5'&

Total Per "nit

11' 11

3' 3

3' 3

71' 71

ost 71

375

45

225

15

135

-3-1

T7# &1

1125 135

225 375

4 45

2 225


32/180

&25 15

3 3

25 3

12 1

2

21

7

4

15

4

145

6&4

14552

53&4&

625

13

522

52


33/180

156

544

125

3;

522

23

23

46

3214

12

2

ept2 ept3 ept4

5 1 1

4 &

2 1 12# 2 2&

31 27 33

2 7 5

ept2 ept3 ept4

15 15 5

& &


34/180

2 2 1

43 35 23

45 275 26

2 -75 3

T2& 1#

123 16773 #7

5 7

35

eptt 3

/P Total contri%"tion a% hrs reLd

5 2 nil

7 7 15

#3 2325 125

11325 275

,-."age (-."age

# 1&

17 5

2 6

3 64 1

71 1&

1#

5 iscontin"e

-#5

& 4

-15 4 13&

#5


35/180

lender ,lectric !ier

2 3&

6 11

4 #

6

12

16 32

4 6

1 2

4

3

:

lender

prod"ction

5

2

3

15

2%lenders

15miers

%lenders

13miers

ic ,nhanced

$27 $35

$452

32

35

$#4 $132

$176 $21&


36/180

,nhanced

$1'744'

2'

$1'544'

1medals per month

75medals per month

$ 175

$ 375'

$ 262'5

$ 1&7'5

$ &25'

$ 275'

$ 175'

$ 45'

$ 1'275'

$ 11

$ 6

$ 17


37/180

/"rrent !onthly Prod"ction *pecial Order m%ined Prod"cti

75 25 1 $ 1'312'5a $25' b $ 1'562'5

$ 375' $ 125' c $ 5'

$ 262'5 $ &7'5 d $ 35'

$ 1&7'5 $ - $ 1&7'5

$ &25' $ 212'5 $ 1'37'5

$ 275' $ - $ 275'

$ 175' $ - $ 175'

$ 45' $ - $ 45'

$ 1'275' $ 212'5 $ 1'4&7'5

$ 37'5 $37'5 $ 75'

$ 11 $ &5 $ 1375

$ 6 $ - $ 45

$ 17 $ &5 $ 14&75

> $13125> $25

its< 25 "nits > $125

its< 25 "nits > $&75

"nits prod"ced > varia%le incremental cost per "nit

its prod"ced > Bed cost per "nit

od"ced > average cost per "nit

)ome el"e Pro!odel !odel !odel

$5& $65 $&

16 2 1#

1 15 2

&12

16


38/180

$34$47

$55

$24

$1&

$25

)ome el"e Pro

!odel !odel !odel

$24 $1& $25

1 15 2

$24 $12 $125

1 3 2


39/180

!an"0act"red

Tac9le *9ate-

oes %oards

$&6 $45

-17 -125-1&75 -75-625 -25

-11 :3<

$33 $1#5

125 5$264 $3#

$1&75 Z $15 > 125 ho"rs

$125 Z 125 > $1

$1' W $5' > $5'

$5' Z 1' > $5

$5 V 125 > $625

$75 Z $15 > 5 ho"rs

$5 V 5 > $25

s

&' %oes V 125 > 1'ho"rs

1' ho"rs V $1 per ho"r >$1'

istri%"tion m"st %e ded"cted


40/180

) Total alance nit Total

per ) o0 /ontri- /ontri-

nit ) %"tion %"tion

1'

5 &'75 1'25 $1#5 $341'25

125 1'25 33 33'

14 126'

$5'25

264'

$236'25


41/180


42/180


43/180


44/180


45/180


46/180


47/180

on


48/180


49/180


50/180


51/180

,#-25

SOLUTION

1 Cas' collections in Octo#er%

(ont'o" Sale

H"ly

A"g"st

*eptem%er

Octo%er

Total

) Cas' collections in *t' +uarter "rom credit sales in *t' +uarter%

(ont' o" Sale

Octo%er

Eovem%er

ecem%er

Total

Total collections in 4th L"arter

0rom credit sales in 4th L"arter

,#-31 SOLUTION

1 Direct !ro"essional la#or #ud,et sc'edule "or t'e mont' o" une%

Office visits per month

Pro"essional services in une%

1%hour visits "*+

1," hour visits '*+

&otal direct professional la-or

.ourly rate for dental associates

&otal direct professional la-or cost

) Cas' collections durin, une "or !ro"essional services rendered durin, (a$ and une%


52/180

1," hour visits

/illing rate

&otal -illings for 1,"%hour visits

1%hour visits/illing rate

&otal -illings for 1%hour visits

&otal -illings during the month

ercentage of months -illings collected during 2une

Collections during 2une

&otal collections in 2une

. Over'ead and administrative e/!ense #ud,et sc'edule "or t'e mont' o" une%

atient registration and records

Other overhead and adminstrative epenses

&otal overhead and adminstrative epenses

P#-32 SOLUTION

1 Com!lete sales #ud,et sc'edule%

Sales #ud,et%

Sales (in sets)

Sales price per set

Sales revenue

) Com!lete !roduction #ud,et sc'edule%

Production #ud,et%

Sales

4dd 5esired ending invent

&otal reuirements

7ess roected -eginning i

lanned production

. Com!lete ra0-material !urc'ases sc'edule%

Ra0- material !urc'ases%

lanned production (sets)

a: material reuired per


53/180

a: material reuired for p

4dd 5esired ending invent

in -oard feet (10+ of net

&otal reuirements

7ess roected -eginning i

material$ in -oard feet (10

months reuirement)lanned purchases of ra:

Cost per -oard foot

lanned purchases of ra:

* Com!lete direct-la#or #ud,et sc'edule%

Direct-la#or #ud,et%

lanned production (sets)

5irect%la-or hours per set

5irect%la-or hours reuiredCost per hour

lanned direct%la-or cost

,#-24 Prod"ction :in "nits< reL"ired 0or the year?

*ales 0or the year 4&'

5'

&'

(eL"ired prod"ction d"ring the year 45'

2

1''

Add? esired ending inventory on ecem%er 31 45'

ed"ct? eginning inventory on Han"ary 1 35'

(eL"ired ra@-material p"rchases d"ring the year 1'1'

,#-26

1The total reL"ired prod"ction is 655'72 "nits' comp"ted as 0ollo@s?

Add? esired ending Bnished-goods inventory onecem%er 31

ed"ct? eginning Bnished-goods inventory on Han"ary 1

P"rchases o0 ra@ material :in "nits


54/180

2Total ra@-material p"rchases d"ring third L"arter $2'645'

, #-27

!onth

H"ne

H"ly

A"g"st

Total

2 inghamton ilm /orporation

,pected /ash is%"rsements

A"g"st

H"ly p"rchases to %e paid in A"g"st $54'

ess? 2; cash disco"nt 1'&

Eet $52'#2

/ash dis%"rsements 0or epenses 14'4

Total $67'32

,#-32 Prod"ction and direct-la%or %"dgets

*pi=y *hades /orporation

"dget 0or Prod"ction and irec

or the irst "arter o0 2

Han"ary

*ales :"nits< 1'

Add? ,nding inventory 16' Total needs 26'

ed"ct? eginning inventory 16'

nits to %e prod"ced 1'

irect-la%or ho"rs per "nit VU UUUU1

Total ho"rs o0 direct la%or

time needed 1'


55/180

irect-la%or costs?

$16'

Pension contri%"tions

:$5 per )< 5'

Gor9ersM compensationins"rance :$2 per )< 2'

,mployee medical ins"rance

:$& per )< &'

,mployerMs social sec"rity

:at 7;< 11'2

Total direct-la%or cost $1&6'2

1 percent o0 the Brst 0ollo@ing monthMs sales pl"s 5 percent o0 the second 0

,#-32

*pi=y *hades /orporation

!an"0act"ring Overhead "dget

or the irst "arter o0 21

Han"ary

*hipping and handling $2'

3'

Other overhead 7'

Total man"0act"ring overhead $12'

, #-34

Han"ary

Total cash collections $11'

Han"ary

Gages :$16 per )


56/180

Total cash dis%"rsements $116'

Han"ary

/ash ecess :deBciency< %e0ore Bnancing $5'

inancing?

orro@ing to maintain $2' %alance 15'

oan principal repaid

oan interest paid

,nding cash %alance $2'P#-3# Prod"ction %"dget

[are

*ales 0or 22 6'

Add? +nventory' 12I31I2

:& \ 23 sales< 5'2

Total reL"ired 65'2

ed"ct? +nventory' 12I31I1

:& \ 22 sales< 4'&

(eL"ired prod"ction in 22 6'4

/onversion cost %"dget

/onversion ho"rs reL"ired? [are :6'4 \ 7< 4'22&

arol :3#'6 \ 1< 3'#6

Eore :25'4 \ 16< 4'64

Total ho"rs 12'252

/onversion cost %"dget :12'252 \ $2< $245'4

[are :6'4 \ 1< 6'4arol :3#'6 \ 7< 27'72

Eore :25'4 \ 5< 12'7

*"%total 1'&2

1'&2

*"%total 11'#2

ed"ct? +nventory' 1I1I2 :1' \ 1< 1'

3SSSSSSSSSSSSSSSSS /ash %"dget?

"antity o0 +slin reL"ired 0or prod"ction in 22:in gallons


57/180

(eL"ired p"rchases :gallons< 1'#2

$54'51

22 prod"ction reL"irements?Philin :1'&2 \ $5 \ 12< $64'#2

+slin :1'&2 \ $5< 54'1

+ncrease in cost o0 ra@ material $1'&2

Philin :12'252 \ $2 \ #< $22'536

+slin :12'252 \ $2< 245'4

ecrease in conversion cost :$24'54<

Eet increase in prod"ction cost $76'316

P#-4

1 *ales %"dget 0or 2?

nits

ight coils 6'

)eavy coils 4'

ProFected sales

pro%lem #-4 :contin"ed<

2

ProFected sales

Add? esired inventories'

ecem%er 31' 2

Total reL"irements

ed"ct? ,pected inventories' Han"ary 1' 2Prod"ction reL"ired :"nits<

3

P"rchases %"dget :1'#2 gallons \ $5 pergallon<

/hange in material cost 0rom s"%stit"ting Philin0or +slin?

/hange in conversion cost 0rom s"%stit"tingPhilin 0or +slin?

Prod"ction %"dget :2?

(a@-material p"rch:in L"antities< 0or 2


58/180

ight coils :65' "nits proFected

to %e prod"ced<

)eavy coils :41' "nits proFected

to %e prod"ced<

Prod"ction reL"irements

Add? esired inventories' ecem%er 31' 2

Total reL"irements

ed"ct? ,pected inventories'

Han"ary 1' 2

P"rchase reL"irements :"nits<

4(a@-material p"rch

(a@ !aterial

*heet metal

/opper @ire

Plat0orms

Total

5 irect-la%or %"dget

ight coils

)eavy coils

Total

6 !an"0act"ring overhead %"dget 0or 2?


59/180

P"rchasing and material handling 725'

epreciation' "tilities' and inspection 16'

*hipping 1'.eneral man"0act"ring overhead 253'

Total man"0act"ring overhead

etailed sol"tion to P#-45 is attached as a separate Ble

/ost river"antity

a725' > 46#' N 256' :0rom reL 3<%16' > 65' N 41' :0rom reL 2<c1' > 6' N 4' :total "nits sold' 0rom pro%lem<d253' > 13' N 123' :0rom reL 5


60/180

Amount Collected in Octo#er Sales Collected Collection

$ 6' 4 2'4

7' 1 7'

&' 15 12'

#' 7 63'

&4'4

Amount Collected

Credit

Sales Octo#er Novem#er Decem#er

$ #' $ 63' $ 13'5 $ #'

1' 7' 15'

&5' 5#'5

$ 63' $ &3'5 $ &3'5

$ 23'

; #8$000 , 1"

; #$000

#$000 1 hr< ; 1$000

#$000 1," hr< ; 1$*00

"$*00

! 60

! 1*0$000


61/180

(a$

#$000 '*+ ; 3$000

! #0

1"0$000

#$000 "*+ ; 1$000! '0

! '0$000

! 190$000

10+

! 19$000

! 19$000 = ! 1'1$000 ;

#$000 visits ! ">> ! *0

! *00$000 ! 600$000 ! '*0$000

A!ril (a$ une

10$000 1"$000 1*$000

ory "$#00 3$000 3$000

1"$#00 1*$000 18$000

nventory "$000 "$#00 3$000

10$#00 1"$600 1*$000

A!ril (a$ une

10$#00 1"$600 1*$000

et (-oard feet) 0 >>> 0


62/180

roduction (-oard feet) "$080 "$*"0 3$000

ory of ra: material$

onths reuirement) "*" 300 16$000

"$33" "$8"0 19$000

nventory of ra:

of current

"08 "*" 300aterial (-oard feet) "$1"# "$*68 18$'00

! "*0>> ! "*0> 1> ! ""


63/180

inghamton ilm /orporation

,pected /ash /ollections

A"g"st

*ales Percent

$6' #; $5'4

7&' 2; 15'6

66' 7; 46'2

$67'2

a%or

1

!onth

e%r"ary !arch "arter

12' &' 3'

12'5 13'5 13'524'5 21'5 43'5

16' 12'5 16'

&'5 #' 27'5

VUUUUU1 VUU U75

&'5 6'75 25'25

,pected/ollections


64/180

$136' $1&' $44'

4'25 3'375 12'625

1'7 1'35 5'5

6'& 5'4 2'2

#'52 7'56 2&'2&

$15&'27 $125'6&5 $47'155

llo@ing monthMs sales

!onth

e%r"ary !arch "arter

$24' $16' $6'

25'5 27' &2'5

5#'5 47'25 176'75

$1#' $#'25 $31#'25

e%r"ary !arch

$16'5 $17#'

e%r"ary !arch


65/180

$121' $173'

e%r"ary !arch

$5#'5 $5'3

-15'

$44'3 $5'3

arol Eore

4' 25'

2'& 2'4

42'& 27'4

3'2 2'

3#'6 25'4

:2


66/180

Price Total

$12 $7'2'

17 6'&'

$14''

ight /oils )eavy /oils

6' 4'

25' #'

&5' 4#'

2' &'65' 41'

n "nits< 0or

ses %"dget?


67/180

(a@ !aterial

*heet /opper Gire

!etal Plat0orms

26' 13' ]]

25' 123' 41'

465' 253' 41'

36' 32' 7'

51' 2&5' 4&'

32' 2#' 6'

46#' 256' 42'

ses %"dget 0or 2?

(a@ !aterial (eL"ired :"nits< Anticipated P"rchase Price

Total

46#' $16 $7'54'

256' 1 $2'56'

42' 3 $126'

$1'1#'

0or 2?

ProFected )o"rs

Prod"ction per Total )o"rs

:"nits< nit (ate65' 2 13' $15

41' 3 123' 2


68/180

"dgeted /ost

$55 $3#&'75

$4 $424'

$1 1'$3 $75#'

$1'6&1'75

/ost river(ate


69/180

hours

hours

hours


70/180

une

3$000

! #0

1"0$000

1$000! '0

! '0$000

! 190$000

90+

! 1'1$000

! 190$000

! 8$000

1*$000

! "3$000


71/180


72/180


73/180


74/180


75/180


76/180

Total

/ost$1'#5'

2'46'

$4'41'


77/180


78/180

E' 1/-26Standard !irect labor:

"antity

(ate

Actual data:

!aterial p"rchasesPrice

Act"al costs inc"rred in the prod"ction o0?

irect la%or?

irect material?

S%$U04%&

1. !irect-material price variance

!irect-material 7uantity variance

* >

!irect-labor rate variance

A( >

!irect-labor rate variance

*) >

#1/-)2

/ontrol valves man"0act"red in Han"ary?

Actual costs:

irect la%or


79/180

irect material p"rchased

irect material "sed

Standard prime costs:

irect material

irect la%or

*tandard prime cost per "nit

S%$U04%&

18 Schedule of standard production costs, based

irect material

irect la%or

Total standard prod"ction costs

28 3ariances:

a8 !irect-material price variance

b8 !irect-material 7uantity variance

* >

c8 !irect-labor rate variance

d8 !irect-labor e=ciency variance


80/180

*) >

#1/->/

a%or /lass +++a%or /lass ++

a%or /lass +

a%or /lass +++

a%or /lass ++

a%or /lass +

S%$U04%&

18 3ariances ?U denotes unfavorable@ ; denotes f

a8 !irect-labor rate variance for each labor class:

$abor lass

+++++

+

Total

b8 !irect-labor e=ciency variance for each labor

$abor lass

+++

+++

Total

E'ercise 1/-(

.iven AprilMs o"tp"t o0 prod"ction


81/180

!irect $abor !irect <

*tandard price or rate per "nit o0 inp"t $2 p

*tandard L"antity per "nit o0 o"tp"t 4 hrs

Act"al L"antity "sed per "nit o0 o"tp"t

irect-material L"antity variance

irect-la%or rate variance $ 35'

#1/-)(

!irect


82/180

"uantity variance:

Standard 7uantity

Actual 7uantity

hours ' +C.//DDDDDDDDD

!irect-labor rate varianceDDDDDDD

E=ciency variance:

Actual hours used ' standard rate

1> hours ' +C.//DDDDDDDDD.

Standard hours allo9ed ' standard rate

!irect-labor e=ciency varianceDDDD.

2( hours ' >> clients ' applications

0otal variance

#1/-)

Prod"ction

Actual costs:

irect la%or


irect material "sed


irect materialirect la%or


S%$U04%&

irect material


83/180

irect la%or


28 3ariances:



* >



*) >

#1/-)6

Prod"ction

Actual costs:

irect la%or


irect material "sed


irect materialirect la%or


S%$U04%&

irect material


84/180

irect la%or


28 3ariances:



* >



*) >

#1/->irect-la%or rate variance

$3'76 ^ 36'5 ho"rs

irect-la%or eCciency variance

*tandard allo@ed direct-la%or ho"rs?

/ompleted "nits


85/180

Partially completed

"nits

Total standard

ho"rs allo@ed

Act"al L"antity o0 material "sed?


AQ

*tandard L"antity o0 material allo@ed?

/ompleted "nits

Partially completed

"nits

Total standard

L"antity allo@ed

d Act"al price paid per 9ilogram o0 direct material?

e irect-material and direct-la%or cost trans0erred to Bnis

0 irect-material and direct-la%or cost in Eovem%er 3 %

There0ore? $5: AQ W 51'2<

AQ W 51'2


86/180

ase 1/-2

1*tandard cost o0 lots 22' 23' and 24?

ot

22

2324

*tandard cost o0 prod"ction

*tandard material cost pl"s & percent o0 standard co

$264 N :&;


87/180

*tandard yards?

oes in lot

*tandard yards

per %o

Total standard

L"antityAct"al yards "sed

Dariance in yards

*tandard price

irect-material

L"antity variance

Parentheses denote 0avora%le variance

*tandard rate

irect-la%or

eCciency variance

Parentheses denote 0avora%le variance

irect-la%or rate variance?

Act"al ho"rs @or9ed


88/180

(ate paid in ecess o0 standard

:$15 W $147<

Dariance

+gnore the Fo"rnal entries

+nterpret the variances as 0avo"ra%le and "n0avo"ra%leo not "se MNM or M-M signs

tet%oo9s "ses the 0orm"la di=erently 0rom @hat is dis


89/180

Standard !irect material:

25 ho"r "antity 4

$ 16 per ho"r Price $ &

24' 9ilograms $ &1 per 9ilogram

5' "nits @ere as 0ollo@s?

$ 211'# 0or 13' ho"rs

$ 17'1 0or 21' 9ilograms

F #" ' ?A#

> 24' $ &1

> $ 2'4 n0avora%le

F S# ' ?A"

> $ & 21'

> $ &' n0avora%le

2' 9gs > 5' "nits

F A* ' ?AR> 13' $ 163

> $ 3'# n0avora%le

$ 211'# I $ 13' > $ 163

F SR ' ?A*

> $ 16 13'

> $ &' n0avora%le

12'5 hrs > 5' "nits

7'&

4'1 hr at $ 146


90/180

12'5 l% at $ 26

11'55 l%

2 l%s at $ 5 per l%

5 hrs at $ 15 per hr

on actual production of ,6// units:

&e9 ersey 3alve ompany

amden #lant

Schedule of Standard #roduction osts

ased on ,6// Units

;or the $ :3'< avora%le

> ?A" ' S#8 -

> 11'55 $ 5 -

> :75< avora%le

7'& "nits 2 l%s per "nit

F ?A* ' AR8 -> 4'1 $ 146 -

> :16'4< avora%le

F ?A* ' SR8 -

> 4'1 $ 15 -

> 16'5 n0avora%le


91/180

7'& "nits 5 hrs per "nit

Standard Standard

!irect-$abor !irect-$abor *ours

Rate per *our Allo9ed, Given April %utput

$ 16 514 5

1 5

Actual Actual

!irect-$abor !irect-$abor

Rate per *our *ours

$ 172 55

15 65

1& 375

avorable8:

Actual Standard !iHerence Actual Rate

Rate Rate in Rates *ours 3ariance

$ 172 $ 16 $ 12 55 $ 6615 14 1 65 $ 65

1& 1 & 375 $ 3

$ 1'61

class:

Actual Standard !iHerence Standard E=ciency

*ours *ours in *ours Rate 3ariance

55 5 5 $ 16 $ &

65 5 15 14 $ 2'1375 5 :125< 1 $ :1'25<

$ 1'65


92/180

aterial

r hr

per "nit 275 l%s per "nit

3 l%s per "nit

$2'

4nitial Unit


93/180

))//

+(,C//

)2/ avo"ra%le

16C.>

1,)6>.//

)12.>/ n0avo"ra%le

+1,)6>.//

1,C6/.//

+)C>.// avo"ra%le

$&525

#'5

2'# hr at $ 16

22'5 l% at $ 154

22'5 l%

2 l%s at $ 176 per l%26 hrs at $ 14 per hr

#'5 "nits 2 l%s $ 176


94/180

#'5 "nits 3 hrs $ 14

F ?#" ' A#8 -

> 22'5 $ 154 -> $ :4#'5< avora%le

> ?A" ' S#8 -

> 22'5 $ 176 -

> 44'&& n0avora%le

#'5 "nits 2 l%s per "nit

F ?A* ' AR8 -

> 2'# $ 16 -

> 41'& n0avora%le

F ?A* ' SR8 -

> 2'# $ 14 -

> :53'2< avora%le

#'5 "nits 3 hrs per "nit

1#'

5' hr at $ 756

16' l% at $ 1#

142'5 l%

& l%s at $ 175 per l%25 hrs at $ & per hr

1#' "nits & l%s $ 175


95/180

1#' "nits hrs $ &

F ?#" ' A#8 -

> 16' $ 1# -> $ 24' n0avora%le

> ?A" ' S#8 -

> 142'5 $ 175 -

> :16'625< avora%le

1#' "nits & l%s per "nit

F ?A* ' AR8 -

> 5' $ 756 -

> :2'2< avora%le

F ?A* ' SR8 -

> 5' $ & -

> 2' n0avora%le

1#' "nits hrs per "nit

>

> :36'5 V $&24< W :36'5 V $&2<

> $1'46 n0avora%le

>

> :36'5 V $&2< W :37'2 V $&2<

> $5'74 avora%le

5'6 "nits V 6 ho"rs per "nit 33'6 ho"rs

(AH ´ AR) W(AH ´ SR)

(AH ´ SR) W(SH ´ SR)


96/180

& "nits V 75; V 6 ho"rs per "nit

>>

>

> $1'5

> 3

>

Act"al price > $24#'25I5'

> $4#&5 per 9ilogram

hed goods?

irect-material

cost trans0erred 5'6

irect-la%or

cost trans0erred 5'6 " Total cost trans0erred

lance o0 Gor9-in-Process +nventory?

irect material & "nits V $4 per "nit

irect la%or & "nits V 75; V $4#2

3'6 ho"rs

37'2 ho"rs

(AQ ´ SP) W: AQ V $5<

$1'5n0avora%le

51'5

5'6 "nits V & 44'&

& "nits V & 6'4

51'2


97/180

Total cost in ending

Gor9-in-Process +nventory

,"ropean *tyles' +nc

*tandard /ost o0 Prod"ction

or Eovem%er

*tandard /ost per

"antity :%oes<

1'

1'71'2 #4&

t o0 la%or and overhead?

$16'4

14'5

$ U 1'#

,"ropean *tyles' +nc

irect-!aterial and irect-a%or Dariances

or Eovem%er

ot no

22 23

$165

165


98/180

1' 1'7

VUU24 VUUU24

24' 4'&24'1 4'44

1 -36

V$11 V $11

$U11 $U:3#6<

ot no

22 23

irect-la%or eCciency variance?

*tandard ho"rs?

oes in lot 1' 1'7

*tandard ho"rs

per %o VUU 3 VUU 3

Total 3' 5'1

Total standard ho"rs 3' 5'1

Act"al ho"rs @or9ed 2'#& 5'13

Dariance in ho"rs -2 3

:$2#4< $441

ot no

22 23 2

2'#& 5'13 2'

Percentage o0

completion

V 1;U U V 1;

V$147 V$147


99/180

$ $1'53# $&67

"ssed in class

V$ 3 V$ 3 V$ 3


100/180

9ilograms

per 9ilogram

- S#8

- $ &

- S"8

- 2'

4 9gs per "nit

- SR8- $ 16

- S*8

- 12'5

25 hrs per "nit

"nits


101/180

$ 75

75

$ &25

Standard

osts

> $ 5&'5

> $ 5&5'

$ 643'5

?#" ' S#812'5 $ 5

?S" ' S#8

11'7 $ 5

> 11'7 l%s

?A* ' SR8 4'1 $ 15

?S* ' SR8

3#' $ 15


102/180

> 3#' hrs


103/180

25

525


104/180

"nits

$ 36#6364

$ 7336

Standard

osts

> $ 351'12


105/180

> $ 345'&

$ 6#6'#2

?#" ' S#8

22'5 $ 176

?S" ' S#8

1#'#5 $ 176

> 1#'#5 l%s

?A* ' SR8

2'# $ 14

?S* ' SR8

24'7 $ 14

> 24'7 hrs

"nits

$ 142

$ 16

Standard

osts

> $ 266'


106/180

> $ 3&'

$ 34'

?#" ' S#8

16' $ 175

?S" ' S#8

152' $ 175

> 152' l%s

?A* ' SR8

5' $ &

?S* ' SR8

4'75 $ &

> 4'75 hrs


107/180

"nits V $4 $224'

its V $4#2 275'52$4##'52

$32'

2#'52


108/180

$61'52

o Total *tandard /ost

$16'5

1&1'51&'576

$3#6'126

24 Total


109/180

1'2 3'#

V UU24 V UU 24

2&'& #3'62&'&25 #3'365

25 -235

V$11 VU$11

$275 :$25&5<

24 Total

1'2

VUU 3

3'6

2'&& 1'#&

2' 11'

1 2

$147 $2#4

Total

11'

VU&;

V$147 V$147


110/180

$3'3

V$ 3


111/180

EB-11-2

Act"al o"tp"t

Act"al varia%le overhead :Act"al DO)<

Act"al Bed overhead :act"al O)<

Act"al machine time

*tandard varia%le-overhead rate*tandard L"antity o0 machine ho"rs

"dgeted Bed overhead :%"dgeted O)<

"dgeted o"tp"t

*OT+OE

1< Daria%le-overhead spending variance

2< Daria%le-overhead eCciency variance

3< ied-overhead %"dget variance

Act"al o"tp"t

Act"al varia%le overhead :Act"al DO)<

Act"al Bed overhead :act"al O)<

Act"al la%o"r ho"rs

*tandard varia%le-overhead rate

*tandard L"antity o0 la%o"r ho"rs

"dgeted Bed overhead :%"dgeted O)<"dgeted o"tp"t

*OT+OE


*) >


112/180



E'11-(/ *tandard machine ho"rs per "nit o0 o"tp"t

*tandard varia%le-overhead rate per machine ho"r

Act"al varia%le-overhead rate per machine ho"r

Act"al machine ho"rs per "nit o0 o"tp"t

"dgeted Bed overhead

Act"al Bed overhead

"dgeted prod"ction in "nits

Act"al prod"ction in "nits

Daria%le-overhead spending variance

Daria%le-overhead eCciency variance

ied-overhead %"dget variance

ied-overhead vol"me variance

Total act"al overhead

Total %"dgeted overhead :`ei%le %"dget<

Total %"dgeted overhead :static %"dget<

Total applied overhead

E' 11-(2 Daria%le-overhead spending variance


*) >

SH > 56' "nits V 5 ho"rs per "nit


113/180


"dgeted Bed overhead > 3' ho"rs V $12 per ho

ied-overhead vol"me variance

Applied Bed overhead > $12 per ho"r V 5 ho"rs per "n

E' 11-()

$115 > $13'5 ^ #'

*ales !argin vol"me variance is more relevant than sale

*ales !argin Dol"me variance> :Act"al *ales vol"me-

:#-1 $12' Z 1'

actual budgetedSales-price variance sales sales

price price

÷ ×

÷


114/180

*OT+OE




#11-( 1

:%"dgeted overhead per "nit at epected level o0o"tp"t


115/180

nits sold

(even"e

Daria%le cost

/ontri%"tion margin

ied overheadied general and adminstrative cost

Operating income

nit costs?

irect material

irect la%or

varia%le overhead

varia%le selling costs

Total varia%le costs?

irect material

irect la%or

Daria%le overhead

Daria%le selling epenes

*OT+OE

1< lei%le %"dget 0or the month o0 !ay' %ased on 4'&

(even"e

ed"ct? Daria%le costs?

irect material

irect la%or

Daria%le overhead Daria%le selling

Total varia%le costs

/ontri%"tion margin

ed"ct? ied costs?

ied overhead


116/180

ied general and administrative

Operating income

2< lei%le-%"dget variances are as 0ollo@s?

nits

(even"e

Daria%le costs

irect material

irect la%or

Daria%le overhead

Daria%le selling

ed"ct? Total varia%le costs

/ontri%"tion margin

ied costs?

ied overhead

ied general and administrative

ed"ct? Total Bed costsOperating income

#11-)) /ase A

2

(

C

1/

$7a per ho"r

$#5% per ho"r

$#&'5c

$2'5 d

$3' e


117/180

11

12

1(

1

1C

2/

#11-)C

/ontainers :cases< o0 0roen 0ood prod"ced

Act"al costs?

Daria%le overhead

ied overhead

Act"al la%or cost

Act"al material cost

*tandard costs per case?

irect la%or

irect material

Daria%le overhead

ied overhead

Ann"al %"dget in0ormation

Daria%le overhead

ied overheadPlanned activity 0or year

*OT+OE

irect-material price variance

$:42'< :Eegative


118/180

AP


*

irect-la%or rate variance

A(


*)




%"dgeted O)

1 *tandard machine ho"rs per "nit

2 Act"al cost o0 direct material per "nit


119/180

( *tandard direct-material cost per machine ho"r

) *tandard direct-la%or cost per "nit

> *tandard varia%le-overhead rate per machine ho"r

Total %"dgeted overhead at 3' ho"rs

Total %"dgeted Bed overhead

*tandard Bed-overhead rate per machine ho"r

irst' comp"te act"al varia%le overhead as 0ollo@s?

Total act"al overhead

Total Bed overhead :given<

Total varia%le overhead


6 Daria%le-overhead eCciency variance

irst' contin"e "sing the high-lo@ method to determinetotal %"dgeted Bed overhead as 0ollo@s?

Total %"dgeted varia%le overhead at 3' ho"rs:3' V $11<

2,30,000-32,000

$627,000-$647,200=


120/180

C ied-overhead %"dget variance

EB11->2 *ales price variance

Act"al sales price > $24'I5'

2 *ales vol"me variance

>

>

*ales !argin vol"me variance

>

>

E'11->(

*ales-Price

Dariance

"siness

(esidential

Total

*tandard allo@ed machine ho"rs > 6'2 "nits V 5

X"dgeted sales price > $3'I6'


121/180

*ales-Dol"me

Dariance

"siness

(esidential Total

ase 11->)

1 Planned prod"ction > 5' "nits

The reasoning is as 0ollo@s?

:a<

:%<

2 Act"al prod"ction

( Act"al Bed overhead

ied overhead

%"dget variance

$3'25

There0ore' planned direct-la%or ho"rs (X) eL"als 1'

There0ore' act"al Bed overhead (X) eL"als $43'25


122/180

4 Total standard allo@ed direct-la%or ho"rs

5 Act"al direct-la%or rate


$&'&

6 *tandard varia%le-overhead rate


7 Act"al varia%le-overhead rate

$2'64

& *tandardirect-material L"antity variance

$6'

SQ


# standard Bed-overhead rate V standard allo@ed ho"rs

1 Applied Bed overhead

There0ore' AVR > $63 per hr


123/180

11 ied-overhead vol"me variance

ase 11->> !aterial Price variance

Type o0 !aterial

/oo9ie mi

!il9 chocolate

Almonds

Total

!aterial L"antity variance

Type o0 !aterial

/oo9ie mi

!il9 chocolate

Almonds

Total

a%o"r rate variance

a%o"r eCciency variance Type o0 a%or

!iing

a9ing

Total

Daria%le-overhead spending varianceact"al varia%le overhead - :A) V *D(<

> $75' - :1'25'I6< V $324b

> $75'


Total act"al minutes o0 direct la%or


124/180

> $324

> $54'

*ales-price variance

> :$7# - $&< V 45'

> $45'

Act"al sales price > $3'5

*"mmary o0 variances?







*ales-price variance Total

> SVR: AH - SH<

SH > :3 min"tes per "nit' or po"nd V 45' "nits' or

1, 250, 000 3 450, 000

60 60

÷


125/180

#'

$ 45'

$ 122'

4'5

$ #4

$ 12'

1'

> act"al DO) -

> $ 45' -

> $ 4'5 n0avora%le

> *D(

> $ #

> $ 4'5 n0avora%le

36' hrs > #'

> act"al O) -

> $ 122' -

> $ 2' n0avora%le

2'

$ 32'

$ ##'

5'

$ 61

2

$ 1'25'

> act"al DO) -

> $ 32' -

> $ 15' n0avora%le


126/180

> *D(

> $ 61

> $ 61' n0avora%le

4' hrs > 2'

> act"al O) -

> $ ##' -

> $ :1'< avora%le

4 ho"rs

$&

U$5' U

25'

$72'U

$1#2'U

$15'U

$713'

$&16'

>

>

>

>

>

>

$#%

3d

$65'a

24'c

$2'g:positive<

$&1&'e

$&5'0


127/180

> act"al Bed overhead W %"dget

> $3'75' W $3'6'

> $15'

r

> %"dgeted Bed overhead W app

> $3'6' W $3'36'

>

it V 56' "nits

act"al salesvol"me

vol"me varince

dgeted *ales vol"me< %"dgeted c/ontri%"tion

7 "n0avo"ara%le

&'

$ 511'5

$ &6'

165'

$ 3

2

$ #'

#'

$24' :positive


128/180

> act"al DO) -

> $ 511'5 -

> $ 16'5 n0avora%le

> *D( > $ 3

> $ 15' n0avora%le

16' hrs > &'

> act"al O) -

> $ &6' -

> $ :4'< avora%le

66'

$3#6'

a@nmate /ompa

Operating (es"lts

or the !onth o0 !

U ×$6

$ UUUU15

6' U

&'&5UU

1&'3X


129/180

!aster "dget Act"al

5' 4'&

$ 1'2' $ 1'152'

76' 7&'

$ 44' $ 372'

1&' 14' 135'

$ 12' $ 57'

$ 6

$ 44

$ 36

$ 12

$ 7&'

$ 32'

$ 1#2'

$ 176'

$ #2'

"nits' sho@ing separate varia%le cost %"dget is as 0ol

a@nmate /ompany

lei%ile "dget

or the !onth o0 !ay

4'& $ 1'2'

4'&

4'&

4'& 4'&


130/180

a@nmate /ompanylei%le-"dget Dariances

or the !onth o0 !ay

lei%le

Act"al "dget

4'& 4'&

$ 1'152' $ 1'152'

$ 32' $ 2&&'

1#2' 211'2

176' 172'&

#2' 57'6

$ 7&' $ 72#'6

$ 372' $ 422'4

$ 1&' $ 1&'

135' 14'

$ 315' $ 32'$ 57' $ 12'4

1

2

4

5

6


131/180

7

12

13

14

16

1#

2

&' direct-la%or h

3' po"nds p"rch

5 ho"rs at $ 1&

2 po"nds at $ 2

5 ho"rs at $ 15

5 ho"rs at $ 3

> P

> 3'

> $ 6' n0avora%le


132/180

> $ 66' I

> *P

> $ 2

> $ 2' n0avora%le

> 1'45

> A)

> &'

> $ 7'2 n0avora%le

> $ 151'2 I

> *(

> $ 1&

> $ 13'5 n0avora%le

> 1'45 "nits

> act"al DO) -

> $ 11' -

> $ :1'< avora%le

> *D( > $ 15

> $ 1'125 n0avora%le

> act"al O) -

> $ 26' -

> $ 1' n0avora%le

> $ 3' I

>

> 5 ho"rs per "n

>

> $56#4 per "ni

probudgeted

machbudgeted


133/180

>

> $11 per machi

>

>

>

$627'

33'

$324'

>

> $1& per ho"r

>

>

>

$11 permachine ho"r

hours00

20,200

hours30,000

$324,000


134/180

>

>

> act"al Bed overhead W %"dget

>

> :Act"al sales p

>

:Act"al sales vol"me W %"dgeted sales vol"me< V %"d

:5' W 6'< V $5 > $5' n0avora%le

:Act"al sales vol"me W %"dgeted sales vol"me< V %"d

:5' W 6'< V $2 > $2' n0avora%le

Act"al "dgeted

*ales *ales Price

Price Price i=erence

$115 $12 $5

5# 6 1

(AH × *D(< W :*)× *D(<

:32' V

$324' W

:$4& W $5X< V


135/180

Act"al "dgeted

*ales *ales Dol"me

Dol"me Dol"me i=erence

74' &' 6'

&6' 12' 34'

ied-overhead rate p>

$4 per hr >

ed direct-la%or ho"rs > planned prod"

1' hr >

> planned prod"ction W 5 "nits

> 5' "nits W 5 "nits

> 4'5 "nits

> $43'25

>

>

o"rs

X V 2 hr per "

There0ore' planned prod"ction (X) eL"als 5' "nits

X W $4'

direcplanned

i!budgeted

X

$40,000


136/180

4'5 "nits prod"ced V 2 hr pe

#' hr

>

>

>

> $6 per direct-la%or ho"r

$1'2 >

>


$63 per dire

> AH(AVR – SVR)

>

irect-material L"antity per "nit

> SP(AQ – SQ)

>

> 13'5 9g

> PQ(AP – SP)

14':$135 W $12<

$21'

$4 per hr V #' hr

$36'

>

>

> %"dgeted Bed overhead W app

There0ore' AR > $15

There0ore' SVR > $6 per hr

&'&: AVR W $6<

$12:14' W SQ


137/180

$4' W $36'

> $4' :Positive


138/180

5' ^ 45' "nits sold

$133'

7#'5

3'

75'

54'

o"nds< ^ 6 min"tes

45' $24&'5

actual budgetedsales price sales price


139/180

cases

machine ho"rs

per machine ho"rho"rs per case o0 marshmallo@s

per month

cases per month

:A) *D(<

4'5 $ #

:A) - *)<

4'5 - 36'

cases 4 hrs per case

%"dgeted O)

$ 12'

"nits

la% ho"rs

per ho"r

ho"rs per "nit

"nits

:A) *D(<

5' $ 61


140/180

:A) - *)<

5' - 4'


%"dgeted O)

$ 1'

$2'34' W :275' V $&<

$14'

SVR (AH – SH)

$& :275' W 2&'<

$4'

act"al varia%le overhead W (AH ´ SVR)


141/180

ed Bed overhead

lied Bed overhead

%"dge

> :#' W 1'< V $12 > $12' n0avora%le

argin

"nits

la% ho"rs

per ho"r

ho"rs per "nit

"nits

×

volume

sales

budgeted

volume

sales

actual

variancevolume-Sales


142/180

:A) *D(<

165' $ 3

:A) - *)< 165' - 16'


%"dgeted O)

$ #'

y

y


143/180

Dariance

2

$ 4&'

:2'<

$ 6&'

-5'

$ 63'

lo@s?

I 5' >

$ 6 > $ 2&&'

$ 44 > 211'2

$ 36 > 172'&$ 12 > 57'6

1&'


144/180

14'

lei%le-"dget

Dariance

-

$ -

$ 32'

:1#'2<

3'2

34'4

$ 5'4

$ :5'4<

$ -

:5'<

$ :5'< $ :45'4<

/ase

$4a per ho"r

$#% per ho"r

$6'4c

$1&'d

$&'e


145/180

1'45

$ 11'

26'

"rs 151'2

sed and "sed 66'

$ #

4

75

15

$ 1525

$ 15'

$ 3'1' direct-la%or ho"rs

:AP - *P<

$ 22 - $ 2

$1#'&0

$1'6 "nderappliedg

$4'6& "nderappliedh

1' "nitsi

& "nits F

$6'49

$14'4l


146/180

3' > $ 22

:A - *<

3' - 2#'

2 l%s per "nit > 2#'

:A( - *(<

$ 1&# - $ 1&

&' > $ 1&#

:A) - *)<

&' - 7'25

5 hrs per "nit > 7'25

:A) *D(<

&' $ 15

:A) - *)< &' - 7'25

%"dgeted O)

$ 25'

12 > $ 25'

it

t :ro"nded<

uction

hoursne6,00030,000


147/180


148/180

ed Bed overhead

rice W %"dgeted sales price< V act"al sales vol"me

geted sales price

3

geted contri%"tion margin

Act"al *ales-

*ales Price

Dol"me Dariance

74'$37'

&6'

5' > $1' n0avora%le

&6'

$456'


149/180

*ales-

"dgeted *ales Price Dol"me

Dariance

$12 $ 72'

6

tion V standard ho"rs per "nit

act"al Bed overhead W %"dgeted Bed overhead

2'4' $2'76'

it

hourslabor-

overheadd


150/180

r "nit

$15 per ho"r

AH(AR – SR)

SVR(AH – SH)

t-la%or ho"r

lied Bed overhead

&'&: AR W $14<

SVR:&'& W #'


151/180


152/180

actualsales volume


153/180


154/180


155/180

ted sales price


156/180


157/180


158/180

32'

$ 12'4


159/180


160/180


161/180

000

$7",000+


162/180


163/180


164/180

>

>

> 3 9g

unitsinproductionactualal%uatit&material-directstandardtotal

units4,500

'(g#13,500


165/180


166/180


167/180


168/180


169/180


170/180


171/180


172/180


173/180


174/180


175/180


176/180


177/180


178/180

lo$ed


179/180


180/180

Documents

Post Midterm chapters Hilton answers (1).xlsx