Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
6th Edition
ISBN: 9780134486857
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 24, Problem 11E
To determine
Identify the type of responsibility center held by each manager.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only thing to be changed. (Productivity remains the same.) (Hint: Each worker works 160 hours per month.)
If the bakery currently makes 1,500 loaves per month with a labor productivity of 2.344 loaves per labor hour, then Lackey will need to add __ worker(s) to meet the increased demand (recall that each worker works 160 hours per month and round your response up to the next whole number).
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.15 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:
Activity Cost Pool
Activity Measure
Activity for the Year
Cleaning carpets
Square feet cleaned (00s)
15,000
hundred square feet
Travel to jobs
Miles driven
184,000
miles
Job support
Number of jobs
1,800
jobs
Other (organization-sustaining costs and idle…
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.10 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:
Activity Cost Pool
Activity Measure
Activity for the Year
Cleaning carpets
Square feet cleaned (00s)
8,000
hundred square feet
Travel to jobs
Miles driven
131,500
miles
Job support
Number of jobs
2,100
jobs
Other (organization-sustaining costs and idle…
Chapter 24 Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Ch. 24 - Prob. 1TICh. 24 - Fill in the blanks with the phrase that best...Ch. 24 - Prob. 3TICh. 24 - Fill in the blanks with the phrase that best...Ch. 24 - Prob. 5TICh. 24 - Fill in the blanks with the phrase that best...Ch. 24 - Prob. 7TICh. 24 - Prob. 8TICh. 24 - Prob. 9TICh. 24 - Prob. 10TI
Ch. 24 - Prob. 11TICh. 24 - Prob. 12TICh. 24 - Prob. 13TICh. 24 - Match the responsibility center to the correct...Ch. 24 - Prob. 15TICh. 24 - Prob. 16TICh. 24 - Prob. 17TICh. 24 - Prob. 18TICh. 24 - Prob. 19TICh. 24 - Prob. 20TICh. 24 - Sheffield Company manufactures power tools. The...Ch. 24 - Prob. 22TICh. 24 - Which is not one of the potential advantages of...Ch. 24 - The Quaker Foods division of PepsiCo is most...Ch. 24 - Which of the following is not a goal of...Ch. 24 - Which of the following balanced scorecard...Ch. 24 - The performance evaluation of a cost center is...Ch. 24 - Assume the Residential Division of Kipper Faucets...Ch. 24 - Assume the Residential Division of Kipper Faucets...Ch. 24 - Assume the Residential Division of Kipper Faucets...Ch. 24 - Assume the Residential Division of Kipper Faucets...Ch. 24 - Penn Company has a division that manufactures a...Ch. 24 - Explain the difference between a centralized...Ch. 24 - Prob. 2RQCh. 24 - List the disadvantages of decentralization.Ch. 24 - What is goal congruence?Ch. 24 - Prob. 5RQCh. 24 - What is the purpose of a responsibility accounting...Ch. 24 - Prob. 7RQCh. 24 - Prob. 8RQCh. 24 - Prob. 9RQCh. 24 - What are the goals of a performance evaluation...Ch. 24 - Prob. 11RQCh. 24 - How is the use of a balanced scorecard as a...Ch. 24 - What is a key performance indicator?Ch. 24 - What are the four perspectives of the balanced...Ch. 24 - Explain the difference between a controllable and...Ch. 24 - Prob. 16RQCh. 24 - What are two key performance indicators used to...Ch. 24 - Prob. 18RQCh. 24 - Prob. 19RQCh. 24 - Prob. 20RQCh. 24 - Prob. 21RQCh. 24 - Prob. 22RQCh. 24 - What is the biggest advantage of using RI to...Ch. 24 - What are some limitations of financial performance...Ch. 24 - Prob. 25RQCh. 24 - Prob. 26RQCh. 24 - Prob. 27RQCh. 24 - Prob. 1SECh. 24 - Prob. 2SECh. 24 - Well-designed performance evaluation systems...Ch. 24 - Consider the following key performance indicators,...Ch. 24 - Management by exception is a term often used in...Ch. 24 - Consider the following data, and determine which...Ch. 24 - XTreme Sports Company makes snowboards, downhill...Ch. 24 - Prob. 8SECh. 24 - Using ROI and RI to evaluate investment centers...Ch. 24 - Henderson Company manufactures electronics. The...Ch. 24 - Prob. 11ECh. 24 - Prob. 12ECh. 24 - Well-designed performance evaluation systems...Ch. 24 - Consider the following key performance indicators,...Ch. 24 - One subunit of Harris Sports Company had the...Ch. 24 - The accountant for a subunit of Speed Sports...Ch. 24 - Zims, a national manufacturer of lawn-mowing and...Ch. 24 - Refer to the data in Exercise E24-17. Calculate...Ch. 24 - Prob. 19ECh. 24 - One subunit of Racer Sports Company had the...Ch. 24 - Consider the following condensed financial...Ch. 24 - Prob. 22APCh. 24 - The Harris Company is decentralized, and divisions...Ch. 24 - One subunit of Track Sports Company had the...Ch. 24 - Consider the following condensed financial...Ch. 24 - Prob. 26BPCh. 24 - The Hernandez Company is decentralized, and...Ch. 24 - Prob. 28PCh. 24 - This problem continues the Piedmont Computer...Ch. 24 - The Trolley Toy Company manufactures toy building...Ch. 24 - Dixie Irwin is the department manager for...Ch. 24 - Prob. 1FCCh. 24 - In 150 words or fewer, list each of the four...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Eat-n-Run Inc. owns and operates 10 food trucks (mobile kitchens) throughout metropolitan Los Angeles. Each food truck has a different food theme, such as Irish-Mexican fusion, traditional Mexican street food, Ethiopian cuisine, and Lebanese-Italian fusion. The company was founded three years ago by Juanita OBrien when she opened a single food truck with a unique menu. As her business has grown, she has become concerned about her ability to manage and control the business. OBrien describes how the company was built, its key success factors, and its recent growth: I built the company from the ground up. In the beginning, it was just me. I drove the truck, set the menu, bought the ingredients, prepared the meals, served the meals, cleaned the kitchen, and maintained the equipment. I made unique meals from quality ingredients and didnt serve anything that wasnt perfect. I changed my location daily and notified customers of my location via Twitter. As my customer base grew, I hired employees to help me in the truck. Then one day I realized that I had a formula that could be expanded to multiple trucks. Before I knew it, I had 10 trucks and was hiring people to do everything that I used to do by myself. Now, I work with my team to build the menu, set daily locations for the trucks, and manage the operations of the business. My business model is based on providing the highest-quality street food and charging more for it than other trucks. You wont get the cheapest meal at one of my trucks, but you will get the best. The superior quality allows me to price my meals a little bit higher than the other trucks. My employees are critical to my success. I pay them a better wage than they could make on other food trucks, and I expect more from them. I rely on them to maintain the quality that I established when I opened my first truck. Things are going great, but Im feeling overwhelmed. So far, the growth in sales has led to a growth in profitabilitybut Im getting nervous. If quality starts to fall off, my brand value erodes, and that could affect the prices that I charge for my meals and the success of my business. Create balanced scorecard metrics for Eat-n-Run Inc. Identify whether these measures best fit the learning and growth, internal processes, customer, or financial performance perspective of the balanced scorecard.arrow_forwardGallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.45 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 12,000 hundred square feet Travel to jobs Miles driven 404,000 miles Job support Number of jobs 2,000 jobs Other (organization-sustaining costs and idle…arrow_forwardGallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.40 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 10,500 hundred square feet Travel to jobs Miles driven 96,500 miles Job support Number of jobs 1,700 jobs Other (costs of idle…arrow_forward
- Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.30 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 9,500 hundred square feet Travel to jobs Miles driven 292,000 miles Job support Number of jobs 2,000 jobs Other (organization-sustaining costs and idle…arrow_forwardGallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.30 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 9,500 hundred square feet Travel to jobs Miles driven 292,000 miles Job support Number of jobs 2,000 jobs Other (organization-sustaining costs and idle…arrow_forwardBecky Knauer recently resigned from her position as controller for Shamalay Automotive, a small, struggling foreign car dealer in Upper Saddle River, New Jersey. Becky has just started a new job as controller for Mueller Imports, a much larger dealer for the same car manufacturer. Demand for this particular make of car is exploding, and the manufacturer cannot produce enough to satisfy demand. The manufacturer’s regional sales managers are each given a certain number of cars. Each sales manager then decides how to divide the cars among the independently owned dealerships in the region. Because of high demand for these cars, dealerships all want to receive as many cars as they can from the regional sales manager. Becky’s former employer, Shamalay Automotive, receives only about 25 cars each month. Consequently, Shamalay is not very profitable. Becky is surprised to learn that her new employer, Mueller Imports, receives more than 200 cars each month. Becky soon gets another surprise.…arrow_forward
- Mirabel Manufacturing is a small but growing company that manufactures and sells marine sonar equipment. They employ a national sales force and their primary customers are marine retailers and boat dealerships. The company has expanded over the last 5 years and Paul Mirabel, the founder, and CEO has become concerned that he no longer has a clear picture of their cost structure. He calls his CFO, Mary Jane Montgomery in for a meeting. “Mary Jane, I am concerned that I am not current on our cost structure and how that is impacting our bottom line,” Paul begins. “Well, Paul, the company has grown considerably over the past 5 years, so I’m not surprised that you feel a little disconnected with how things are going,” Mary Jane replied. She continued “In fact, I’ve been meaning to talk to you about a couple of big items such as increasing the sales commission to 15%. We’ve lost two of our best account managers in the last 9 months. It seems like we are behind the curve paying only 12% on…arrow_forwardMuscat Tubes Manufacturing LLC is a manufacturer of television picture tubes. The company must keep various types of materials on hand for the manufacturing process. The store manager is having difficulty keeping track of all the inventory. When compared to last year, the amount of material lost has increased, which is a source of concern for the store manager. He wishes to employ an effective tool for controlling material loss. While exploring, he came across the concept of ABC analysis, which is used by many MNCs around the world. Because he has no background in costing, he is unable to grasp the concept. He asked you to explain the following because you are the company's cost accounting executive: Working/Application of ABC analysis?arrow_forwardJohn is the manager of a small computer sales and support chain. He has stores located throughout the state of California and is in strong competition with all of the major computer providers within that state. John’s company is known for providing quick support and friendly service. In the process of selling goods to customers, John’s company will often offer deals that include free service or low-priced service for the products being purchased. John’s competitors offer the same types of deals to their customers, but because of the small mobile size of John’s company, he is better able to provide quick service to his customers. John is the president of his company and has raised funding through issuing stock. He has not used external loan funding much in the past. John has approximately 50 stores located in California and is in the process of obtaining business locations outside of the state. John’s main goal is to be successful in the computer business because of the quick customer…arrow_forward
- John is the manager of a small computer sales and support chain. He has stores located throughout the state of California and is in strong competition with all of the major computer providers within that state. John’s company is known for providing quick support and friendly service. In the process of selling goods to customers, John’s company will often offer deals that include free service or low-priced service for the products being purchased. John’s competitors offer the same types of deals to their customers, but because of the small mobile size of John’s company, he is better able to provide quick service to his customers. John is the president of his company and has raised funding through issuing stock. He has not used external loan funding much in the past. John has approximately 50 stores located in California and is in the process of obtaining business locations outside of the state. John’s main goal is to be successful in the computer business because of the quick customer…arrow_forwardIdentifying responsibility centers after decentralization Grandpa Jim’s Cookie Company sells homemade cookies made with organic ingredients. His sales are strictly Web based. The business is taking off more than Grandpa Jim ever expected, with orders coming from across the country from both consumers and corporate event planners. Grandpa decides to decentralize and hires a full-time baker who will manage production and product costs and a Web site designer/sales manager who will focus on increasing sales through the Web site. Grandpa Jim can no longer handle the business on his own, so he hires a business manager to work with the other employees to ensure the company is best utilizing its assets to produce profit. Grandpa will then have time to focus on new product development. Now that Grandpa Jim’s Cookie Company has decentralized, identify the type of responsibility center that each manager is managing.arrow_forwardElla Maksimov is CEO of her own marketing firm. The firm recently moved from a strip mall in the suburbs to an office space in a downtown building, in order to make the firms employees more accessible to clients. Two new clients are interested in using Ellas advertising services but both clients are in the same line of business, meaning that Ellas company can represent only one of the clients. Pampered Pooches wants to hire Ellas firm for a one-year contract for web, newspaper, radio, and direct mail advertising. Pampered will pay $126,000 for these services. Ella estimates the cost of the services requested by Pampered Pooches to be $83,000. Delightful Dogs is interested in hiring Ella to produce mass mailings and web ads. Delightful will pay Ella $94,000 for these services and Ella estimates the cost of these services to be $47,000. Identify any relevant costs, relevant revenues, sunk costs, and opportunity costs that Ella Graham has to consider in making the decision whether to represent Pampered Pooches or Delightful Dogs.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeBusiness Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:CengageManagerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Business Its Legal Ethical & Global Environment
Accounting
ISBN:9781305224414
Author:JENNINGS
Publisher:Cengage
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Revenue recognition explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=816Q6pOaGv4;License: Standard Youtube License