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1. The following defined-benefit pension data of D...

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1. The following defined-benefit pension data of Doreen Corp. apply to year 2008. Projected benefit obligation, January 1, 2008 (before amendment) - $560,000 Plan assets, January 1,2008 - 546,200 Pension liability - 13,800 On January 1, 2008, Doreen Corp. through plan amendment, grants prior service benefits having a present value of settlement rate 100,000 Settlement rate - 9% Annual pension service-cost - 58,000 Contribution (funding) ? 55,000 Actual return on plan assets - 52,280 Benefits paid to retirees - 40,000 Prior service cost of amortization for 2008 - 17,000 For 2008, prepare a pension worksheet for Doreen Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts. Doreen Corp. Pension Worksheet?2008 General Journal Entries Memo Record Items Annual Pension Expense Cash OCI?Prior Service Cost Pension Asset/ Liability Projected Benefit Obligation Plan Assets Balance, Dec. 31, 2007 Prior service cost Balance, Jan. 1, 2008 Service cost Interest cost Actual return Amortization of PSC Contributions Benefits Journal entry for 2008 Accumulated OCI, Dec. 31, 2007 Balance, Dec. 31, 2008 2. Freeman and Lueke, attorneys-at-law, provided legal representation to Murphy Equipment Inc. in a product liability suit. Twenty partner hours and 65 associate hours were worked in defending the company. The cost of each partner hour is $325, which includes partner wages plus overhead, based on direct labor cost. The cost of each associate hour is $145, which also includes wages and overhead. Other costs that can be directly identified with the job are travel ($2,800) and telephone/fax/copying charges ($1,740). The date Murphy contracted with Freeman and Lueke was May 8, 2013, and the defense was successfully completed on December 21, 2013. The engagement number is 525. Required: Prepare a job order cost sheet, in good form, for Murphy Equipment Inc. 3. Hornick and Sena, the systems consultants in P9-3, budgeted overhead and other expenses as follows for the year ended December 31, 2013: Overhead: Depreciation?equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ?? $ 60,000 Depreciation?building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ?.135,000 Fringe benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385,000 Photocopying . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,000 Secretarial support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465,000 Telephone/fax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115,000 Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193,000 Other direct expenses: Travel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $123,000 Meals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,000 Required: 1. Prepare an overhead budget. 2. Prepare an other expenses budget. 4. The partners of Franklin and Silva, a security services firm, decide to implement an activity based costing system. They identify the following three cost pools and budgeted amounts for each for the coming year: fringe benefits, $400,000; technology support, $20,000; and litigation support, $300,000. It is determined that the best cost driver for fringe benefits is professional labor dollars ($2,000,000); technology support is partner labor hours (2,000); and research support is professional labor hours (25,000). Required: Compute the budgeted overhead rate for each of the three cost pools. 5. Swoosh Athletics manufactures sporting goods that are then sold to retailers. It is a very competitive industry, where quality and price are important to gain space on retailers' shelves. Swoosh's strategy is to produce defect free athletic equipment that can be sold at moderate prices. Required: Prepare a balanced scorecard, without numbers, for Swoosh Athletics that will help them to achieve their strategy and to maximize long-term shareholder value. 6. Using the information for Hornick and Sena, the systems consultants in P9-3 and P9-4, prepare a budgeted income statement for the year ended December 31, 2013. In p9-3 Hornick and Sena, partners in a systems consulting firm, budgeted the following professional labor hours for the year ended December 31, 2013: Partners. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000 Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000 Staff. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,000 Partners have a billing rate of $225 per hour and actually earn $110 per hour. Associates bill out at $140 per hour and earn $85 per hour. Staff bill out at a rate of $75 per hour and earn $35 per hour. In P9-4

 

Paper#3242 | Written in 18-Jul-2015

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