MANAGERIAL ACCOUNTING F/MGRS.
6th Edition
ISBN: 9781264100590
Author: Noreen
Publisher: RENT MCG
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Chapter 9, Problem 9.22P
a.
To determine
Introduction:
Cost report:
A cost report involves information about spending and expenditure on different activities of the business.
Requirement 1
To evaluate: The usefulness of cost reports to the company.
b.
To determine
Introduction:
Cost report:
A cost report involves information about spending and expenditure on different activities of the business.
Requirement 2
To evaluate: The changes that need to be made in reports to provide better insight into how well departmental supervisors control the costs.
c.
To determine
Introduction:
Performance report:
A performance report represents the performance or results of the business enterprise by considering its all expenses and revenues.
Requirement 3
To evaluate: A new performance report for the quarter and incorporate a suggested change.
d.
To determine
Introduction:
Cost report:
A cost report involves information about spending and expenditure on different activities of the business.
Requirement 4
To evaluate: The ways through which the costs were well controlled in the Assembly Department in the month of March.
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Question #2
Sunshine Goods Ltd is a revenue maximizing firm that engages in the analysis of variances to provide useful information to management. The company manufactures and sells three (3) products, RG, KC and MG. During July 2019 the following budgeted and actual results were presented to you the management accountant for analysis:
Budgeted Results
Product
Total Sales $
Volume/units
Price $
Contribution margin per unit $
Total contribution margin $
RG
585,000
900
650
820
738,000
KC
500,000
500
1,000
850
425,000
MG
300,000
600
500
720
432,000
Total
2,000
1,595,000
Actual Results
Product
Total Sales $
Volume/units
Price $
Contribution margin per unit $
Total contribution margin $
RG
500,000
500
1,000
800
400,000
KC
270,000
300
900
`900
270,000
MG
105,000
350
300
700
245,000
Total
1,150
915,000
Required
Total sales…
Critiquing a Cost Report; Preparing a Performance Report
Frank Weston, supervisor of the Freemont Corporation’s matching department, was visibly upset after being reprimanded for his department’s poor performance over the prior month. The department’s cost control report is given below:
“I just can’t understand all of these unfavorable variances,” Weston complained to the supervisor of another department. “When the boss called me in, 1 thought he was going to give me a pat on the back because 1 know for a fact that my department worked more efficiently last month than it has ever worked before. Instead, he tore me apart. I thought for a minute that it might be over the supplies that were stolen out of our warehouse last month. But they only amounted to a couple of hundred dollars, and just look at this report. Everything is unfavorable.”
Direct labor wages and supplies are variable costs; supervision and depreciation are fixed costs; and maintenance and utilities are mixed costs. The…
1
Book
References
Problem 9-18 (Algo) Activity and Spending Variances (LO9-1, LO9-2, LO9-3)
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has
asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing
overhead costs" You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be
an excellent first step in overhead planning and control.
After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March:
Utilities
Maintenance
Supplies
Indirect labor
Depreciation
Cost Formula
$16,500 $0.12 per nachine-hour
$30,000+ 81.40 per machine-hour
50.70 per machine-hour
$94,100 $1.70 per machine-hour
$67,800
Actual Cost
in March
$ 21,180
$ 66,200
$ 16,600
$ 135,800
$ 69,500
During March, the company worked 22,000 machine-hours and produced…
Chapter 9 Solutions
MANAGERIAL ACCOUNTING F/MGRS.
Ch. 9 - Prob. 9.1QCh. 9 - Prob. 9.2QCh. 9 - Prob. 9.3QCh. 9 - Prob. 9.4QCh. 9 - Prob. 9.5QCh. 9 - Prob. 9.6QCh. 9 - Prob. 9.7QCh. 9 - Prob. 9.8QCh. 9 - Prob. 9.9QCh. 9 - Prob. 9.10Q
Ch. 9 - The Excel worksheet form on the next page is to be...Ch. 9 - Prob. 1TF15Ch. 9 - Prob. 9.1ECh. 9 - Prob. 9.2ECh. 9 - Prob. 9.3ECh. 9 - Prob. 9.4ECh. 9 - Prob. 9.5ECh. 9 - Prob. 9.6ECh. 9 - Prob. 9.7ECh. 9 - Prob. 9.8ECh. 9 - Prob. 9.9ECh. 9 - Prob. 9.10ECh. 9 - Prob. 9.11ECh. 9 - Prob. 9.12ECh. 9 - Prob. 9.13ECh. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17PCh. 9 - Prob. 9.18PCh. 9 - Prob. 9.19PCh. 9 - Prob. 9.20PCh. 9 - Prob. 9.21PCh. 9 - Prob. 9.22PCh. 9 - Prob. 9.23PCh. 9 - Prob. 9.24CCh. 9 - Prob. 9.25CCh. 9 - Prob. 9.26C
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