CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
6th Edition
ISBN: 9781264445356
Author: Noreen
Publisher: MCG
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Chapter 9, Problem 9.23P
a.
To determine
Introduction:
Cost report:
A cost control report involves information about spending and expenditure on different activities of the business.
Requirement 1
To evaluate: The company’s cost control report and the reason for variances which were all unfavorable.
b.
To determine
Introduction:
Performance report:
To compare the actual performance (revenues and costs) with the budgeted performance (revenues and costs), a performance report is used by a business enterprise at several levels of activity.
Requirement 2
To evaluate: A performance report that will help W’s superiors assess how well costs were controlled in the machining department.
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Problem 9-23 (Algo) Critiquing a Cost Report; Preparing a Performance Report [LO9-1, LO9-2, LO9-
3, LO9-4]
Frank Weston, supervisor of the Freemont Corporation's Machining 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:
Freemont Corporation-Machining Department
Cost Control Report
For the Month Ended June 30
Planning
Budget
Machine-hours
Direct labor wages
Supplies
Maintenance
Utilities
Supervision
Depreciation
Total
Actual Results
42,000
$ 75,300
22,800
22,800
Machine-hours
Direct labor wages
Supplies
Maintenance
Utilities
Supervision
Depreciation
Total
21,200
20,500
19,300
44,000
73,000
$ 258,400 $ 251,600
40,000
$ 73,600
20,500
44,000
73,000
"I just can't understand all of these unfavorable variances," Weston complained to the
supervisor of another department. "When the boss called me in, I thought he was going to
give me a pat on the back because I know for a fact…
Pareto Chart and Cost of Quality Report for a Manufacturing Company
The president of Mission Inc. has been concerned about the growth in costs over the last several years. The president asked the controller to perform an activity analysis to gain a better insight into these costs. The result of the activity analysis is summarized as follows:
Activities
Activity Cost
Correcting invoice errors
$11,250
Disposing of incoming materials with poor quality
9,000
Disposing of scrap
31,500
Expediting late production
27,000
Final inspection
22,500
Inspecting incoming materials
4,500
Inspecting work in process
22,500
Preventive machine maintenance
15,750
Producing product
67,500
Responding to customer quality complaints
13,500
Total
$225,000
The production process is complicated by quality problems, requiring the production manager to expedite production and dispose of scrap.
Required:
1. On paper or in a spreadsheet program, prepare a Pareto chart for each of the…
Chapter 9 Solutions
CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
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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