MANAGERIAL ACCOUNTING
17th Edition
ISBN: 9781264151455
Author: Garrison
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter P, Problem 2E
Assume that you work for an airline unloading luggage from airplanes. Your boss has said that, on average, each airplane contains 100 pieces of luggage. Furthermore, your boss has stated that you should be able to unload 100 pieces of luggage from an airplane in 10 minutes. Today an airplane arrived with 150 pieces of luggage and you unloaded all of it in 13 minutes. After finishing with the 150 pieces of luggage, your boss yelled at you for exceeding the 10 minute allowance for unloading luggage from an airplane.
Required:
How would you feel about being yelled at for taking 13 minutes to unload 150 pieces of luggage? How does this scenario relate to the larger issue of how companies design
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Suppose that you operate a business that produces widgets. What's
a widget?
A widget is a hypothetical product with no particular attributes or
features to confuse us. Just widgets.
In the course of a month, you produce 5,000 widgets.
You only have three inputs when producing widgets; 1) factory
space; 2) labor; and 3) raw materials.
You pay rent of $3,000 per month.
Your use of labor and raw materials depends on how many widgets
you produce. When you produce 5,000 widgets, your labor costs
are $4,000 and your raw material costs are $1,500.
• What is your average cost (or average total cost) of producing
5,000 widgets?
(Enter your answer without a dollars sign ($) in the following
form:
(i.e., dollars and cents)
-'--
The direct cost of each hotel guest at Seaview hotel is $15 per night. The hotel manager has estimated that the average overhead cost per guest is $10 per night, based on 100 guest nights per week. The room price is $50 per night.
A large group of 50 people have asked to spend one night at the hotel during a week when only 30 other guests are booked. The group of 50 has offered to pay a price of $20 each. Discuss whether the manager should accept the offer.
A car repair shop has two hoists where cars can be lifted for repair work. Currently customers come in at the rate of 4 per hour and are processed at a similar rate. On average 8 cars are waiting to be processed, 4 needing routine repairs and 4 needing major repairs. People are served on a first come first serve basis.
The repair shop owner feels that he is losing many customers needing routine repair because of the long wait. He dedicates one hoist for routine repair and one for major repairs. A study indicates that routine repairs are processed at the rate of 3 per hour and major repairs at the rate of 1 per hour. There are now 5 people waiting on average for routine repairs and 3 waiting on average for major repairs. How long does each type of customer now wait before being served?
(i) With the new system, we have Inventory, I = ___________cars. *
(ii) With the new system, we have Throughput, R = ___________cars per hour. *
(iii) Cars wait an average of ______hours before being…
Chapter P Solutions
MANAGERIAL ACCOUNTING
Ch. P - Prob. 1QCh. P - Pick any major television network and describe...Ch. P - If you had to decide whether to continue making a...Ch. P - Why do companies prepare budgets?Ch. P - Why is managerial accounting relevant to business...Ch. P - Why is managerial accounting relevant to...Ch. P - Pick any large company and describe its strategy...Ch. P - Why do management accountants need to understand...Ch. P - Prob. 9QCh. P - Prob. 10Q
Ch. P - Prob. 11QCh. P - Locate the website of any company that publishes a...Ch. P - Why do companies that implement Lean Production...Ch. P - Why are leadership skillsimportant to managers?Ch. P - Prob. 15QCh. P - Prob. 16QCh. P - Prob. 17QCh. P - What internal controls would you implement to help...Ch. P - Why do companies take a physical count of their...Ch. P - Why do companies use sequential prenumbering for...Ch. P - Prob. 1ECh. P - Assume that you work for an airline unloading...Ch. P - Prob. 3ECh. P - EXERCISE P-4 Ethics and the Manager Richmond,...Ch. P - Prob. 5ECh. P - Prob. 6ECh. P - Prob. 7ECh. P - Prob. 8ECh. P - Prob. 9ECh. P - Prob. 10ECh. P - Prob. 11ECh. P - EXERCISE P-12 Cognitive Bias and Decision Making...Ch. P - Prob. 13E
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
- An executive receives an annual salary of P600,000 and his secretary a salary of P180,000. A certain task can be performed by the executive working alone in four hours. If he delegates the task to his secretary it will require him 30 minutes to explain the work and another 45 minutes to check the finished work. Due to the unfamiliarity of the secretary to do the task, it takes her an additional time of 6 hours after being instructed. considering salary cost only, determine the cost of performing the task by working alone and by working with his sectary, if the secretary works P2,400 hours a year and the executive 3,000 hours a year.arrow_forwardOne of the operations in the Wonderland Post Office is a mechanical mail sorting operation. In this operation, letter mail is sorted at a rate of one letter per second. The letter is mechanically sorted from a three-digit code input by an operator sitting at a keyboard. The manager of the mechanical sorting operation wants to determine the number of temporary employees to hire for December. The manager estimates that there will be an additional 32,364,000 pieces of mail in December, due to the upcoming holiday season. Assume that the sorting operators are temporary employees. The union contract requires that temporary employees be hired for one month at a time. Each temporary employee is hired to work 145 hours in the month. a. How many temporary employees should the manager hire for December?fill in the blank 1 employees b. If each temporary employee earns a standard $20 per hour, what would be the labor time variance if the actual number of additional letters sorted in December was…arrow_forwardOne of the operations in the Wonderland Post Office is a mechanical mail sorting operation. In this operation, letter mail is sorted at a rate of one letter per second. The letter is mechanically sorted from a three-digit code input by an operator sitting at a keyboard. The manager of the mechanical sorting operation wants to determine the number of temporary employees to hire for December. The manager estimates that there will be an additional 23,850,000 pieces of mail in December, due to the upcoming holiday season. Assume that the sorting operators are temporary employees. The union contract requires that temporary employees be hired for one month at a time. Each temporary employee is hired to work 125 hours in the month.arrow_forward
- An executive receives an annual salary of P400,000 and his secretary a salary P100,000 a year. A certain task can be performed by the executive, working alone, in 4 hours. If he delegates the task to his secretary t will require him 30 minutes to explain the work and another 45 minutes to check the finished work. Due to the unfamiliarity of the secretary to do the Task it takes her an additional time of 6 hours after being instructed. Considering salary cost only, determine the cost of performing the task by each method, if the secretary works 2,400 hours a year and the executive 3,000 hours a year. step by steparrow_forwardSuppose that a delivery company currently uses one employee per vehicle to deliver packages. Each driver delivers 50 packages per day, and the firm charges $20 per package for delivery. a. What is the MRP per driver per day? b. Now suppose that a union forces the company to place a supervisor in each vehicle at a cost of $300 per supervisor per day. The presence of the supervisor causes the number of packages delivered per vehicle per day to rise to 60 packages per day. What is the MRP per supervisor per day? By how much per vehicle per day do firm profits fall after supervisors are introduced? c. How many packages per day would each vehicle have to deliver in order to maintain the firm’s profit per vehicle after supervisors are introduced? d. Suppose that the number of packages delivered per day cannot be increased but that the price per delivery might potentially be raised. What price would the firm have to charge for each delivery in order to maintain the firm’s profit per vehicle…arrow_forwardYou are the manager of accounting for a company that sells computer software packages. You have just received word from the comptroller that there has been a change in the expense allowances for employees using their own cars on business. Previously one rate was applied to all employees, but now there will be different allowance rates for regular and nonregular drivers Effective immediately, regular drivers will receive $1.00 per mile for the first 650 miles driven per month, and 25¢ for each additional mile; nonregular drivers will receive 80¢ per mile for the first 150 miles per month, and 25¢ for each additional mile Regular drivers are those who use their own cars frequently on the job to drive to their sales territories. Nonregular drivers are those employees-such as home-office personnel-who only occasionally use their cars on business. To ensure that these categories are used properly, you have requested that the manager of each department notify Accounts Payable, in writing,…arrow_forward
- 1. An executive receives an annual salary of P600,000 and his secretary a salary of P180,000. A certain task can be performed by the executive working alone in 4 hours. If he delegates the task to his secretary it will require him 30 minutes to explain the work and another 45 minutes to check the finished work. Due to the unfamiliarity of the secretary to the task, it takes her an additional time of 6 hours after being instructed. Considering salary costs only, determine the cost of performing the task by each method, if the secretary works 2,400 hours a year and the executive 3,000 hours a year. Solution: If the executive works alone: P800.00 If the executive delegates the work to his secretary: P737.50arrow_forwardA manufacturing firm just received a shipment of 20 assembly parts, of slightly varied sizes, from a vendor. The manager knows that there are only 15 parts in the shipment that would be suitable. He examines these parts one at a time.a. Find the probability that the first part is suitable. (Round your answer to 2 decimal places.) b. If the first part is suitable, find the probability that the second part is also suitable. (Round your answer to 4 decimal places.) c. If the first part is suitable, find the probability that the second part is not suitable. (Round your answer to 4 decimal places.)arrow_forwardReggie Wilmore has just started a new business—building and installing custom garage organization systems. Reggie builds the cabinets and work benches in his workshop, then installs them in clients’ garages. Reggie figures his overhead for the coming year will be $12,000. Since his business is labor intensive, he plans to use direct labor hours as his overhead driver. For thecoming year, he expects to complete 100 jobs, averaging 25 direct labor hours each. However,he has the capacity to complete 125 jobs averaging 25 direct labor hours each.Required:1. Four measures of activity level were mentioned in the text. Which two measures is Reggie onsidering in computing a predetermined overhead rate?2. Compute the predetermined overhead rates using each of the measures in your answer toRequirement 1.3. Which one would you recommend that Reggie use? Why?arrow_forward
- PLEASE SHOW YOUR SOLUTIONS PLEASE. THANK YOU! 2. An executive receives an annual salary of P600,000 and his secretary a salary of P180,000. A certain task can be performed by the executive working alone in four hours. If he delegates the task to his secretary it will require him 30 minutes to explain the work and another 45 minutes to check the finished work. Due to the unfamiliarity of the secretary to do the task, it takes her an additional time of 6 hours after being instructed. considering salary cost only, determine the cost of performing the task by each method, if the secretary works P2,400 hours a year and the executive 3,000 hours a year.arrow_forwardStuart Studio, an art studio, prepared a new catalog for the National School of Heavy Equipment, a school run by Gilbert and Donald Shaw. When the artwork was virtually finished, Gilbert Shaw requested Stuart Studio to purchase and supervise the printing of twenty-five thousand catalogs. Shaw told the art studio that payment of the printing costs would be made within ten days after billing and that if the “National School would not pay the full total, he would stand good for the entire bill.” Shaw was chairman of the board of directors of the school, and he owned 100 percent of its voting stock and 49 percent of its nonvoting stock. The school became bankrupt, and Stuart Studio was unable to recover the sum from the school. Stuart Studio then brought an action against Shaw on the basis of his promise to pay the bill. a. What are the arguments that Shaw is not liable on his promise? b. WhataretheargumentsthatShawisliableonhispromise? c. Is Shaw obligated to pay the debt in question?…arrow_forwardA manger receives an annual salary of Php600,000 and his secretary salary of Php180,000. A certain task can be performed by the executive working alone in 4 hours. If he delegates the task to his secretary it will require him 30 minutes to explain the work and another 45 minutes to check the finished work. Due to the unfamiliarity of the secretary to do the task, it takes her an additional time of 6 hours after being instructed. Considering salary cost only, determine the cost of performing the task by each method, If the secretary works 2400 hours a year and the executive 3,000 hours a year.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Property, Plant and Equipment (PP&E) - Introduction to PPE; Author: Gleim Accounting;https://www.youtube.com/watch?v=e_Hx-e-h9M4;License: Standard Youtube License