Description of this paper

Acct 281 Extra Credit Problems

Description

solution


Question

Question;Chapter 22 - Responsibility Accounting and Transfer PricingCHAPTER 22NAME10-MINUTE QUIZ A#SECTIONIndicate the best answer for each question in the space provided.1 Which of the following costs is traceable to an individual sales department in adepartment store such as Sears?a Salary of the store manager.b Depreciation on the store building.c Salaries of store security guards.d The corporate plane.2 The Sports Arena location of Burgerheaven reports monthly sales of $140,000,variable costs of $63,000, and traceable fixed costs of $54,000. The contributionmargin ratio of this business unit is:a 70%.b 45%.c 55%.d 30%.3 In deciding which responsibility centers can benefit most from short-termmarketing efforts, such as advertising specific products, management should givegreatest consideration to the relationship between a center?s sales and:a Traceable fixed costs.b Income from operations.c Contribution margin.d Responsibility margin.4 From a long-term perspective, when evaluating the contribution of a particularprofit center to the overall profitability of the company, management should bemost interested in the center?s:a Traceable fixed costs.b Income from operations.c Contribution margin.d Responsibility margin.5 The Molding Department of Acadia Corporation is a cost center. The transfer priceused to transfer goods from the Molding Department to the Assembly Departmentwould most likely be based upon:a The cost of the units transferred.b The market value of the units transferred.c A negotiated amount set by the department managers.d The average fixed cost per unit transferred.22-10Chapter 23 - Operational BudgetingCHAPTER 23NAME10-MINUTE QUIZ C#SECTIONThe cost accountant for Sherman?s Co. prepared the following monthly performance reportrelating to the Production Department.BudgetedProduction(10,000 Units)Direct materials used.........................................................Direct labor.....................................................................Variable manufacturing overhead.....................................Fixed manufacturing overhead..........................................1ActualProduction(11,000 Units)$240,000$100,000$60,000$160,000$260,000$101,000$65,000$164,000Refer to the above data. Compute the amounts that should be included for each of thefollowing in a flexible budget prepared at an 11,000-unit level of production:a Direct materials: $____________b Direct labor: $____________c Fixed manufacturing overhead: $____________2Refer to the above data. Assume that a revised performance report is prepared for the11,000-unit level of production using a flexible budget approach. Compute the cost variances foreach of the following. Indicate whether each variance is favorable (F) or unfavorable (U).a Direct materials variance from flexible budget: $____________b Direct labor variance from flexible budget: $____________c Total manufacturing overhead variance from flexible budget: $____________23-14Chapter 25 - Rewarding Business PerformanceCHAPTER 25NAME10-MINUTE QUIZ B#SECTIONThe following information regarding Baron Company is available:Sales.........................................................................................................................Cost of sales.............................................................................................................Operating expense....................................................................................................Operating earnings...................................................................................................Average invested capital..........................................................................................ROI...........................................................................................................................Return on sales.........................................................................................................Capital turnover........................................................................................................Compute the answers for items A?D.ABCD25-10$264,000$99,000A$66,000$660,000BCDChapter 26 - Capital BudgetingCHAPTER 26NAME10-MINUTE QUIZ C# _________________________SECTIONPort Pharmacy is considering the purchase of a copying machine, which it will make available tocustomers at a per-copy charge. The copying machine has an initial cost of $8,500, an estimateduseful life of five years, and an estimated salvage value of $2,500. The estimated annual revenueand expenses relating to operation of the machine are as follows:Revenue......................................................................................................................................Expenses other than depreciation..............................................................................................$9,000$5,500All revenue will be received in cash, expenses other than depreciation will be paid in cash.Depreciation will be computed by the straight-line method.Compute for this proposal the expected:aAnnual increase in Port?s net income: $____________bAnnual net cash flow: $____________cPayback period: ____________ yearsdReturn on average investment: ___________ %eNet present value (round to the nearest dollar) of the proposed investment, discounted at anannual rate of 15% (Tables show that the present value of $1 to be received in five periods,discounted at 15%, is 0.497 and that the present value of a five-year annuity of $1, discountedat 15%, is 3.352): $____________26-11

 

Paper#42774 | Written in 18-Jul-2015

Price : $22
SiteLock