MANGERIAL ACC.(LOOSE)W/CONNECT CUST.>IC
16th Edition
ISBN: 9781260636864
Author: Garrison
Publisher: MCG CUSTOM
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Chapter IE, Problem 12IE
INTEGRATION EXERCISE 12 Cost-Volume-Profit Relationships, Variable Costing LO1-4, LO5-1, LO5-5,LO5-7, LO5-8, L06-1, LO6-2, LO6-3
Refer to the information pertaining to Endless Mountain Company that is provided in Integration Exercise 9. In addition to the budget schedules that you prepared in Integration Exercise 9, insert two new tabs in your Microsoft Excel worksheet titled “CVP Analysis”and “Variable Costing.”
Required(For all questions, be sure to use formulas that link to the other tabs in your Microsoft Excel worksheet when performing your calculations):
- Calculate the following budgeted figures for 2017:
- The total fixed cost.
- The variable cost per unit sold.
- The contribution margin per unit sold
- The break-even point in unit sales and dollar sales.
- The margin of safety.
- The degree of operating leverage
- Calculate the following budgeted figures for 2017:
- A variable costing income statement. Stop your computations at net operating income.
- A reconciliation that explains the difference in the absorption costing and variable costing net operating incomes.
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1. Assign Overhead Costs to Activity Cost Pools
国日
First-Stage Allocation to Activity Cost Pools - Excel
Sign In
FILE
HOME
INSERT
PAGE LAYOUT
FORMULAS
DATA
REVIEW
VIEW
Calibri
-A A
10
Paste
BIU
- A -
Alignment Number
Conditional Format as
Cell
Cells
Formatting - Table - Styles -
Clipboard
Font
Styles
A1
fx
A
C
E
F
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1
==
2 Total costs and distribution of resource consumption across activity cost pools:
3
4
Activity Cost Pools
Customer
Product
Customer
Total Cost
Orders
Development
Relations
Other
Total
6 Production Department:
7
Indirect factory wages
$
400,000
50%
30%
15%
5% 100%
Factory equipment depreciation
Factory utilities
10 Factory property taxes and insurance
8
150,000
55%
30%
0%
15% 100%
9
120,000
59%
34%
0%
7%
100%
75,000
57%
33%
0%
10%
100%
11
12 General Administrative Department:
Administrative wages and salaries
Office equipment depreciation
13
275,000
20%
10%
40%
30% 100%
14
40,000
32%
16%
15%
37%
100%
15
Administrative property taxes and insurance
60,000
0%
0%
0%
100%…
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Homework: Cost Management and Allocation Assignment
Question 7- Homework: Cost Management and Allocation Assignment- Connect
Homework: Cost Management and Allocation Assignm... i
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State Financial Corp. has three service departments (Administration, Communications, and Facilities), and two production departments
(Deposits and Loans). A summary of costs and other data for each department prior to allocation of service department costs for the
year ended December 31 follows.
4.
points
Administration Communications
Facilities
Deposits
$8,320,000 $4,600,000
447, 000
Loans
Direct costs
$200,000
24,000
$290,000
31,000
$253,000
20,500
Employee hours
Number of employees
Square footage occupied
Skipped
360,000
8.
14
6.
230
130
4,600
13,800
5,100
244, 100
203,300
The costs of the service departments are allocated on the following bases: Administration, employee-hours; Communications, number
of employees; and Facilities, square…
ABSORPTION COSTING VERSUS THROUGHPUT COSTING
The book The Goal illustrates the concept of throughput costing. For the problem below
prepare all journal entries and determine the impact on the income statement of the
differences between absorption costing (normal accounting) and throughput costing.
HINT: pay very careful attention to definitions of throughput, inventory and operating
expense from the book
BUDGETED MANUFACTURING COSTS
DIRECT MATERIAL
$20
PER UNIT
DIRECT LABOR
$2
PER UNIT
VARIABLE OVERHEAD
$10
PER UNIT
FIXED OVERHEAD
$150,000
YEAR 1
NO BEGINNING INVENTORY
ACTUAL COSTS OF PRODUCTION EQUALS ABOVE MANUFACTURING COSTS
PURCHASE DIRECT MATERAILS OF
$200,000
INCUR SELLING AND ADMIN COSTS OF
$80,000
#UNITS PRODUCED
10,000
# UNITS SOLD
9,000
SALES PRICE OF UNITS SOLD
$100
YEAR 2
THERE…
Chapter IE Solutions
MANGERIAL ACC.(LOOSE)W/CONNECT CUST.>IC
Ch. IE - Prob. 10IECh. IE -
INTEGRATION EXERCISE 11 Financial Statement Ratio...Ch. IE - INTEGRATION EXERCISE 12 Cost-Volume-Profit...Ch. IE - INTEGRATION EXERCISE 13 Master Budgeting,...Ch. IE - Prob. 1IECh. IE - Prob. 2IECh. IE - INTEGRATION EXERCISE 3 Absorption Costing....Ch. IE - Prob. 4IECh. IE - Prob. 5IECh. IE - Prob. 6IE
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