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Horngren's Cost Accounting: A Managerial Emphasis, 16th Edition Solution Manual

  • Accounting
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    Chapter 1. The Accountant’s Role in the Organization 1 - 1 7 a. Prod b. Dist c. Des d. R&D e. CS or Mark f. Des or R&D g. Mark h. Prod 1 - 1 8 a. Mark b. Des c. CS d. R&D e. Mark f. Prod g. Mark h. Dist 1 - 1 9 a. Prod b. Dist c. Mark d. Mark e. Mark f. Prod g. Des or R&D h. CS 1 - 20 a. Innov b. Cost & Qual c. Time d. Time & Cost e. Cost 1 - 2 1 a. Time & Cost b. Time, Quality & Cost c. Quality & Cost d. Innov & Quality e. Cost 1 - 2 2 a. Planning b. Control c. Control d. Planning e. Planning 1 - 2 3 a. Planning b. Control c. Planning d. Planning e. Control 1 - 2 4 a. OI b. MP c. I P&U d. IE&L e. MP f. MD g. OI 1 - 2 5 a. MD b. I P&U c. OI and/or MP d. OI and/or MP e. MP f. OI 1 - 2 9 1. a. CL b. PD c. CL d. PD 1 - 30 1. a. CL b. PD c. CL d. PD 1 - 3 1 1. CB 2. B-T 3. Dif 4. CB 5. B-T 6. CB 7. B-T 8. Dif 9. B-T 1 - 3 2 1. CB 2. B-T 3. Dif 4. CB or B-T 5. B-T 6. CB 7. Dif 1 - 3 3 1. CFO CFO CFO Cont Cont CFO Cont Cont 1 - 3 6 2.Unacceptable: (c) (d) and (e) Gray to acceptable area: (a), (b), (f) 1 - 3 7 1.Unacceptable: (a) (c) (f) and (i) Acceptable: (d) (e) and (g) Gray area: (b) and (h)

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    Chapter 2. An Introduction to Cost Terms and Purposes 2 - 21 1. S, $1.1856 D, $1.0213 R, $0.6 400 2. Total $527.69 2 - 22 1. rubber D/V, reinf cables D/V, other dm D/V, dep form I/F or V, dep mix I/F or V, rent I/F, ins I/F, fact util I/F and V, fin labor D/V or F, mix mgr I/F, matl hand I/F or V, cust I/F, guard I/F, mach mix I/F or V, mach maint I/F or V, maint sup I/ V, clean sup I/F , mach form I/F or V . 2. Dep. M M, MDM, MH, Mac h . Mix , Mac h .MP, MS 2 - 23 A. D/V B. I/F C. I/ F D. I/F E. I /V F. I/F G. D/V H. I/V I. I/F 2 - 24 A. D/F B. I/F C. D/V D. D/F E. I/F F. I/V G. I/F H. D/V 2 - 25 A. D/V B. I/F C. I /F D. D/V E. D/V F. I/V G. D/V H. I/F I. I/F 2 - 2 6 2. 100 mins; Plan A; 240 mins; Plan B; 540 mins; Plan C 2 - 2 7 1. VC=$2, 950 /surfer FC per month=$3 67 ,0 4 0 (0 - 100) $3 92 , 0 00 (101 - 200); $ 576,870 (201 +) 3. (a) $ 7,538 (b) $ 5,764 2 - 2 8 1. 0 to 60,0 00 jaw breakers 2. FC=$1 5 , 0 50 VC=$0. 40 per jaw breaker 3. RelR= 60 , 0 00 to 1 20 , 0 00 FC=$1 5 , 7 0 0 VC=$0. 36 per jaw breaker 2 - 2 9 1. DP, DP, M, P, D, D, CS 2 - 30 1. 1. # of Bills 2. # of Emp 3. # of Comp 4. # of Units Mfd 5. # of PO 6. # of PM 7. # of Inv 2. 1. # of Checks 2. # of Interv 3. # of CT 4. # of DL Empl 5. # of Matl Types 6. Dist Trav 7. # of Cr Sales Trans 2 - 31 2. Total=$ 31,000 ; $ 310 /attendee 3. Total=$ 41,125 ; $ 235 /attendee 2 - 32 2 . FC=$2 8 ,000 VC per flange=$1 (material) + $ 2 .80 (labor) 2. OI $(7,000) 3. OI $24,000. 2 - 33 3. a. inv b. inv c. per d. per e. inv f. per g. per h. per 2 - 34 1a.Purch $152,000 1b.COGS $145,000 2. OI $34,000 2 - 3 5 1a. Purch $5 75 ,000 1b. COGS $ 558 , 9 00 2. OI $ 34,040 2 - 3 6 1. $ 85 2. $185 3. $77 5 4. $180 5. $1,790 6. $20 2 - 3 7 1. COGM=$133,000 thousand 2. OI=$69 ,000 thousand 2 - 3 8 COGM=$8 12 ,000 thousand OI=$ 258 ,000 thousand 2 - 3 9 OI=$50 million COGM=$645 million 2 - 40 5 . DM used=$320/unit Dep=$80/unit 6 . Total DM=$384 mil Total dep=$80 mil 2 - 41 OI=$1 5 million COGM=$22 4 million 2 - 42 1. Prime costs=$15 8 m illion, Conversion costs=$10 1 million 2. Total inv costs=$21 9 million Period costs=$9 0 million 4. DM used=$ 59 per unit Dep=$ 3 per unit 5. TDMC=$ 177 million Total dep=$ 6 million 6. (a) $ 3 million (b) $ 4.5 million 2 - 43 1. ( a) $ 4,068 (b) $3 72 (c) $ 756 (d) $ 5,196 2 - 44 1. $105,000 2. $95,000 3. $42,5 00 2 - 4 5 1. $1, 610 2. 9 ,000 units 3. $5. 2 0 per unit 4. OI $ 44,170 2 - 4 7 1. $1 4 /unit 3. $ 32 ,2 00 2 - 4 8 A. $3 4,000 B. $1, 00 0 C. $ 20 , 5 00 D. $ 7,500

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    Chapter 3. Cost - Volume - Profit Analysis 3 - 21 a. $2, 4 00; $ 2 00; 75 % b. $1, 4 00; $1, 6 00 ; 4 4 % c. $ 2 00; $0; $300; 4 0 % d. $900; $1, 1 00; $ 1 00 3 - 22 1 a. $3,280,000 1b. $1,640,000 2a. $5,740,000 2b. $ 410,000 3 - 23 1a. 500 1b. 713 2a. 470 2b. 670 3a. 1,175 3b. 1,675 4a. 940 4b. 1,340 3 - 24 Or i g $ 5 00,000 1. $ 850 ,000 2. $1 50 ,000 3. $3 50 ,000 4. $ 650 ,000 5. $ 6 75 ,000 6. $ 3 25 ,000 7. $ 550 ,000 8. $ 725 ,000. 3 - 2 5 1.(a) $100,000 (b) $2,250,000 2. $(100,000) 3. $110,000 4. $190,000 5. 4,950,000 6. 3,680,000 3 - 2 6 1. 3 7 cars 2. 6 9 cars 3 - 2 7 1. $ 1,023,750 2.(a) 8 2 ,00 0 (b) 1 17 ,000 3. $ 295,680 3 - 2 8 1. 250,000 2. (a) 292,000 (b) 302,500 3. BE decreases to (a) 275,000 (b) 266,520 (c) 181,250 3 - 2 9 CM% = 60 % 2. SP = $ 40 3. MS = $ 1,900 ,000 3 - 30 1. (a) 3 9 (b) 0 2. 78 carpets or $ 7,410 ; Q> 78 , Option 1; Q< 78 , Option 2; 3. Option 1: 2.5 ; Option 2: 1.0 3 - 31 Portugal BE 38,462; $9,615,500; OI $8,100,000; Italy BE 29,412; $7,353,000; OI $8,600,000; Thailand BE 51,429; $12,857,250; OI $5,000,000 3 - 32 1. 150 ,000 2. $2,200 ,000 3. (a) 165,000 (b) 137,5 00 3 - 33 1. 91 ,000 2. $ 324 ,000 3. 94,500 3 - 34 1. 30 concerts 2. 45 concerts 3. 35 concerts 3 - 3 5 1. $1 98 ,000 2. 3 3 % 3. Incremental OI=$ 41,500 3 - 3 6 1. OI $ 2 0,000 2. 40%; BE 15,000 units; BE $ 150 ,000 revenues 3. 5,000 units 4. NI $ 2,800 3 - 3 7 1. CS: 300,000; $1 8 ,5 00,000 700,000; $ 40 ,5 00,000 PAS: 300,000; $1 9 ,5 00,000 70 0 ,000; $ 37 ,5 00,000 FAS: 300,000; $ 21 , 5 0 0,000 700,000; $ 31 , 5 0 0,000 2. CS: $ 30,050,000 ; PAS: $2 8 ,9 50 ,000; FAS: $2 6 ,7 5 0,000 3 - 3 8 1. 4 75 2. $4,2 00,000 3. $1,24 0 4. 300 3 - 3 9 1. 1 2 2. 3 9 3. $ 10 0 3 - 40 1. BE 4 00 MOS 1 00 2. (a) BE 200 MOS% 60% (b) BE 400 MOS% 30% (c) BE 350 MOS% 30% 3 - 41 1. $89,100 2. 13 ,000 3. $108,90 0 4. $490 ,000 5. $80 5,000 6. $17,25 0 3 - 42 1. $11 5,000 2. $95,000 3. $68 ,000 4. $12 0,000. 3 - 43 1. (a) 9 ,000 (b) $54 0,000 2. $(20 ,000) 3.(a) 8,5 00 (b) $51 0,000 4. (a) 10,00 0 (b) $600,0 00 5. $54 ,000 3 - 44 1. Sal $34,500; Com $20,000 2. Sal 11,500; Com 12,450 3. $25,750 3 - 4 5 1. Fixed BE = 3 0,0 00 Commission BE = zero 2. 0 - 3 7 , 5 00 Commission; >3 7 , 5 00 Fixed 3. Fixed EV = $ 5 00; Commission EV = $ 4 00 3 - 4 6 1. 360 2. 625 3. 60 0 4. 333 (rounded) 3 - 4 7 1. (a) 1, 112 (b) 1,412 2. Alt a : NI=$ 882 ,0 00 Alt b: NI=$1, 533 , 5 00 Alt c: NI=$6 55 , 8 00 3 - 4 8 1. Agents: 42%; $ 19,404,762 ; 2.23 Own sales force: 52 %; $ 22,442,308 ; 2. 76 3. $ 38,946,808 3 - 4 9 1. 150,000 2. CM $340,000; OI $85,000 3. OI $65,000; BE 159,380 units

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    3 - 50 1. F: 6 ,000; $ 54 0,000 P: 9,000; $ 99 0,000 2. F: 6, 4 00; $ 576 ,000 P: 9,600; $1, 056 ,000 3. 5,200 bundles 3 - 51 1. 135,000 Standard plus 45 ,000 Deluxe 2. (a) 225,0 00 (b) 112,5 00 3. OI=$75 0,000 BE bundles 37,500 BE 150,000 Standard plus 37,500 Deluxe 3 - 52 1. OI $(5,200) 2. OI $575 3 - 53 1. $ 5,40 0,000 2. $ 4,2 00,000 3. $ 360 ,000 3 - 54 1. P: 73,500; M: 47,200 2. $3,628,800 3. P: 120,000; M: 72,000; OI = $4,094,400

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    Chapter 4. Job Costing 4 - 21 Job costing a c e f g k l n o p q s u Process costing b d h i j m r t 4 - 22 1. B 18 0 % A 19 5 % 2. A $ 187,750 N $1 81 ,000 3. N underallocated $ 247,500 4 - 23 1. B $ 4 0 A $4 2 2 a. L $18 1,600 M $2 08,580 2b. L $18 3,540 M $21 0,580 4 - 24 1. $ 19 per mh 2. $ 3,724,000 3. overallocated $ 64 ,000 4 - 2 5 1. M $ 50 A 1 7 0% 2. $ 172,3 00 3. M $1 5 0,000 under; A $( 14 0,000) over 4 - 2 6 1. 125 % 2. 25 0% 3. TC $3 5 , 55 0 ; BP $3 9 , 5 00 4 - 2 7 1. 2Q $ 187 ; 3Q $ 337. 2. 2Q $ 201 ; 3Q $ 201 . 3. 2Q $ 241 .20; 3Q $ 241 .20 4 - 2 8 1. $2 3 per dlh 2. dr. WIP Control $4, 347 ,000 3. cr. C O GS $1 0 ,000 4 - 2 9 2. (11) dr. MOH Allocated $2,080 ; cr. MOH Control $1,950 ; cr. C O GS $130 4 - 30 8. dr. MOH Allocated $ 269,700 ; cr. MOH Control $ 261,500 ; cr. C O GS $ 8,200 4 - 31 3. dr. MOH Allocated $93; dr. CGS $1; cr. MOH Control $94 4. $115 4 - 32 1. M1 $5 92 ,000 M2 $4 48,920 2. $ 370 3. dr. FG Control $5 92 ,000 cr. WIP Control $5 92 ,000 4. $4 48,920 dr. balance 4 - 33 1. (a) $5 3 ; $4 8 (b) $5 3 ; $4 5 (c) $ 60 ; $4 5 3. (a) $18,685 (b) $18,130 (c) $19,425 4 - 34 1 a. D: $25 I: $14 1b . D: $ 25 I: $ 15 1 c. D: $ 26 I: $ 15 3a. $3,081 2b. $3,160 2c. $3,239 4 - 3 5 1. 50% 2. und er allocated $3 ,000 3 . C O GS a. $552,250 b. $551,200 c. $551,200 4 - 3 6 2. M $ 52 ; F 20 0 % 3. $ 10,400 4. $ 78 5. M $2 5 0,000 underallocated F $ 2 00,000 overallocated Total $ 5 0,000 und erallocated 4 - 3 7 2. $65 3. $55 4. R $14,400 P $19,200 4 - 3 8 1. PL $140 AL $50 2. GS $45 SS $60 3. R $18,600; P $20 ,000 4. R $4,200 undercosted; P $800 undercosted 4 - 3 9 1. $60 2. $400,000 underallocated; C O GS a. $8,400,000 b. $8,320,000 c. $8,320,000 3.(c) is theoretically preferred 4 - 40 1 a. $1,640,000 1 b. $2,560,000 2. $62 0,000 4 - 41 1 . Fab. $ 38,400 Fin. $ 36,000 2. Fab. underallocated $ 4,200 Fin. underallocated $3, 8 00 3 . C OGS $ 364,800 4 - 42 1. cr. $ 148 ,000 2. $ 380 ,000 3. $ 705 ,000 4. $ 190 ,000 5. $ 700 ,000 6. $ 45 ,000 underallocated 7.(a) C O GS $ 745 ,000 (b) C O GS $ 731,500 8. WO $(5 ,000); P $ 8,500 4 - 43 1a. dr. WIP Control $ 8,600 dr. MOH Control $ 2,800 cr. WP Control $ 11,400 1b. dr. WIP Control $ 9,460 cr. MOH Allocated $ 9,460 2a. $ 119,800 2b. $ 176,600 2c. $ 194,260 2d. $ 36,060 2e. $ 438 ,000 3. dr. MOH Allocated $ 194,260 cr. MOH Control $ 190,800 cr. COGS $ 3,460 4 - 44 1. 14 0 % of LC 2. $ 537,950 3. underallocated $ 2 ,2 00 4. C OGS a. $ 540,150 b. $ 539,992 4 - 4 5 1 a . $ 45,000 1b. $1,408,000 1c. $2,930,000 2. $ 108,000 overallocated 3. NOI $8,000 4. NOL $(10,036) 4 - 4 6 1. $ 151,000 2. $ 99,000 3. underallocated $ 5,000 4. CC J a. $ 104,000 b. $ 100,980 c. $100,385

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    Chapter 5. Activity - Based Costing and Activity - Based Management 5 - 1 8 1. a. unit - level b. batch - level c. unit - level d. batch - level e. product - sustaining f. unit - level g . facility - sustaining 5 - 1 9 1. U nit - level : a, b Batch - level: c Service - sustaining: d 2. HT $20.50 ST $12.3 3 5 - 20 1. SAD $28,132 AE $14,092 2. S AD $26,890 AE $16,090 5 - 2 1 1. $56 per mh S M $ 16,800 C M $2 07,200 JA $ 56,000 Total $ 280,000 2. $70 per dh ; $50 per eh; $44 per mh S M $ 30,200 C M $1 85,300 JA $ 64,500 Total $ 280,000 3. S M 1.80 C M 0.89 JA 1.1 5 5 - 2 2 1. Basic DC $ 110,000; Total unit cost $17.60 Deluxe DC $ 90,000; Total unit cost $28.80 2. Form Basic $ 48,000 Deluxe $ 32,000 ; Assem Basic $ 15,000 Deluxe $ 25,000 3. TC Basic $ 160,200 Deluxe $ 159,800 5 - 2 3 1. M $5. 6 0 F $3. 70 2. M $ 11.60 F $ 9.70 5 - 2 4 1. $ 2,700,000 2. Ch an $ 2,070,000 H e n $ 3,170,000 Man $ 2,860,000 3. Design Ch an 10% H e n 50% Man 40%; Engin Chan 32% Hen 32% Man 36%; Const Chan 35% Hen 33% Man 32% 5 - 2 5 1. Standard $525.83 Special $560.83 2. Standard $473.57 Special $665.36 5 - 2 6 1. I $ 97.97 E $ 144.95 2. I $ 85.10 E $ 167.82 5 - 2 7 1. BG $ 6 ,700; MFJ $ 2 00; FP $ 8,900 2. BG $ 160 ; MFJ $ 2,780 ; FP $ 12,860 5 - 2 8 1. $ 3,260 2. $( 8,410 ) 3. $ 19,965 4. $ 10,070 5 - 2 9 1. #2 20 $ 588.60 #3 30 $1, 373.40 2. #2 20 $ 969 #3 30 $9 53 5 - 30 1. L $(233.70) W $80.60 C $602.30 5 - 3 1 2 . SE $ 780,000 BI $ 520 ,0 00 5 - 3 2 1. $40 2. SE $ 669,000 BI $ 631,000 5 - 3 3 1. SE $ 621,000 BI $ 679,000 5 - 3 4 1. DMLS $291,000 OP $228,000 DS $249,000 O $132.000 2. $10,224 5 - 3 5 1. EJ $68,400 LC $562,800 LD $118,800 O $90,000 2 and 3. $35,771.40 5 - 3 6 Budg. costs per serv. 1. X - rays $58.83 U $122.93 CT $291.23 MRI $473.85 2. X - rays $46.50 U $112.64 CT $267.36 MRI $539.12 5 - 3 7 1. GSC 2.91% DC 4.76% MSS 9.09% 2. (1) $40 per order (2) $3 per line item (3) $47.973 per delivery (4)$1 per carton (5) $16 per hour 3. Activity - based cost: GSC $ 58 , 997 DC $ 71 , 510 M P SS $ 170,573 OI: GSC $49,003 DC $78,490 MSS $9,427 5 - 3 8 (1) (2) (3) DM – Purses Unit - level Number of bags $103.79 per purse DM – Backpacks Unit - level Number of bags $73.68 per backpack DL – Purses Unit - level Number of bags $32.20 per purse DL – Backpacks Unit - level Number of bags $18.30 per backpack Setup Ba tch - level Number of batches $320 per batch Shipping Ba tch - level Number of batches $365 per batch Design Product - su staining Number of designs $42,25 0 per design Plant U&A Facility - sustain ing Hours of production $52 per hour

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    4. Bu dgeted cost per bag B $133.00 P $225 .00 5 - 3 9 1. (a) MSR $2,2 00/patient - year RCMR $6 .60 /sq foot ACR $4,4 00 per patient - year LSR $44/test (b) D $1,531,000 AC $1,406,000 5 - 40 1. Setup is $210 per batch ; E&M is $4.80 per mh ; LRIU is $15 per sq ft 2. Cost of unused capacity is $42,0 00 3. B $487,200; $8.40 V $637,500; $7.50 5 - 4 1 1. 30% of DLC; $ 75 /batch; $ 8 /MH; $ 25 /sq. ft. 2. $ 62,500 3. B $ 90.90 D $ 165.50 5 - 4 2 1. Gross margin: M am $9,349,890 Max $140,910 5 - 4 3 1. OI: Clothing $ 166,700 Equip $ (32,500) Shoes $ 120,800 2. OI: Clothing $ 131,500 Equip $ 94,500 Shoes $ 29,000

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    Chapter 6. Master Budget and Responsibility Accounting 6 - 21 1. Total revenues $ 5,884,200 2. Total revenues $ 5,992,200 6 - 22 217 ,000 6 - 23 2,5 58 ,000 6 - 24 Prod budget – FG 44 ,000 units Pur budget – DM 1 24 ,000 gallons 6 - 2 5 1. 332,5 00,000 pesos 2. 91 ,000 units 3. 72 ,000,000 pesos 6 - 2 6 1. $4, 296 ,000 2. 5 , 68 0,000 3. 66 0,000 1 - gallon units 6 - 2 7 1. Wool: 7,200,000 skeins; $14,445,800 Dye: 16 0,000 gal ; $959,68 0 2. Weaving: $2.55 /DMLH Dyeing: $12 /MH 3. $1,127.30 4 a . $4 00,000,000 4 b . $ 37 0,000,000 5a. $225,505,48 0 5b. $208,595,980 6 a. GM $174,494,520 6b. GM $161,404,020 6 - 2 8 1. $1 5 . 0 0/DLH 2. $ 12 / DLH 3. $ 324 /job 4. $ 36 0,000 5. OI $ 36 ,000 6. OI $ 25 ,800 6 - 2 9 Production: Jan 1 2 ,000 Feb 8 ,500 Mar 11 ,000 DML: Jan $ 461 , 7 00 Feb $ 327,038 Mar $ 282,150 6 - 30 1. Total $13,574 Ordering $2,340 Del $3,813 SS $2,961 CS $4,460 SD $1,704 FP $8,506 PF $3,364 2. Fresh snacks (62.7 %) 3. Ordering: SD 27%, FP 46%, PF 27%; Del SD 13%, FP 67%, PF 20%; Shelf - stock SD 6%, FP 61%, PF 33%; Cust Sup SD 9%, FP 69%, PF 22% 6 - 31 1. Orderi ng $2,321 Del $3,783 SS $2,938 CS $4,424 Total $13,466 SD $1,691 FP $8,438 PF $3,337 6 - 32 1. (a) Prod. mgr. (b) Purch. mgr. 2. (a) Prod. mgr. (b) External forces 3. (a) Van 3 driver (b) Service mgr. 4. (a) Prestige ’s servi ce mgr. (b) Regency mgr. 5. (a) Service mgr. (b) Service mgr. 6. (a) Service mgr. (b) External forces 6 - 34 1. April $11,880 May $1 1,595 June $ 13,250 2. (a) $ 995 (b) $9 95 .00; $ 3.50 ; $4 45 . 0 0; Borrow $ 246.50 6 - 3 5 1. a. $ 42,700 ; $ 73,710 b. 1 5 0 ; 20 5 c. Usage $ 27,135 ; Purch $ 26,830 d. $ 45,500 e. $ 42,250 f. $ 18,149 g. $ 102,741 6 - 3 6 1. $15 0 ,000 2. $ 31,916 diff. 6 - 3 7 1. $22, 392 ,000 3. T1 74 ,000 T2 4 5 ,000 4. A 761 ,000 B 524 ,000 C 138 ,000 5. $ 15 , 051 ,000 6 . $ 7 ,8 98 ,000 7. $ 10 , 378 ,000 6 - 3 8 OI = $3,684 6 - 40 1. $178,4 00 2. C 55 0 D 21 6 3a. P 3,4 96 lbs; $ 17,132 M 4 91 lbs; $1, 901 3 b. P 3, 616 lbs; $1 8,080 M 48 6 lbs; $1,9 44 4. $27, 3 00 5. M $7,875 P $10 1,540 I $417 6. C $168.60 D $296.20 Total e nding inv $10,330 7. $15 3,795 8. $34,584 9. $( 9,979 ) 6 - 41 Total cash available $181,089 Total disb $17 2,728 Ending cash $ 6,341 6 - 42 1. $1,885,000 2. 2,6 00 3. $1,024,480 usage $1,021,600 purchases 4. $377,000 5. $172,000 6. $13.23 per hour 7. $66 per unit 8. $607.00 9. $192,120 10. $1,639,480 11. $201,020 6 - 43 1. $1,744,000 collections; $920,800 disb. for MP; $42,000 42,000 disb. for FOH; $267,700 end. cash bal. 4. $2,766,420 total assets 6 - 4 4 1. $528 ,000 2a. $0.21 05 per sales dollar 2b. $45 per delivery

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    3. C 12,6 00 units B 14,20 0 units 4a. $165 / setup hour 4 b. $ 24 per mh 4c. $0.45 per unit 5 . DM Usage Budget : P 176,600 oz., $52,956 B 227,200 bunches, $170,454 DM Pur Budget: P 176,766 oz., $53,030 B 227,652 bunches; $170,739 6. $0.225 per oz. of plastic 7. $62,460 8. MH $39,735 MS $26,895 P $41,640 I $12,06 0 9. Unit costs Ending FG inv: C $4.85 B $24.3 0 Ending Inventories Budget DM $2,233.80 FG $39,840.00 Total $42,073.80 10. $396,240 11. M ark $111,150 Dist $1,170 Total $112,320 12. OI $19,440 6 - 45 $548,700 cash avail. $567,034 cash disb. $25,666 end. cash 6 - 4 6 1. DM 790 lbs; DML 48.33 hrs; MT 39.33 hrs 6 - 47 1. 743,142 metric tons 2. $31,420 net benefit 6 - 4 8 1 a . R $240,000 D $585 ,000 1 b. R 2,15 0 units D 2,95 0 units c . DM Usage Budget: Cloth 7,2 20 yds; $ 37,922 Wood 5,900; $44,310 Total $ 82,232 DM Pur Budget: Cloth 6,996 yds; $36,729 Wood 5,395; $40,463 Total $77,192 d. 31,400 hrs; $471 ,000 e. M Setup $4,734 P rocessing $ 56,520 Insp $6,885 f . Unit costs of Ending FG inv: R $ 92.90 D $ 142.91 Ending Inventories Budget : DM $ 4,239 FG $ 122,906 g. $614,340 h. $67,875 2. Total cash available $ 812,235 Total disb $ 682,939 Ending cash $ 128,546 3. NI $125,535 Total assets $1,275,627

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    Chapter 7. Flexible Budgets, Direct - Cost Variances, and Management Control 7 - 21 1. FBV $2 0 , 5 00 U SVV $ 4 , 3 00 U SBV $2 4 , 8 00 U 7 - 22 1. FBV $ 15 , 1 00 U SVV $ 6 2,000 F SBV $4 6 , 9 00 F 7 - 23 1. SBV $17,000 U 2. FBV $19,000 F SVV $36,000 U 7 - 24 1. FBV: $15,000 U SVV: $15,000 F SBV $0 2. Actual SP $5.50 Budgeted SP $3.50 Actual VC $3.96 Budgeted VC $2.00 7 - 2 5 1. Units 1 3 ,000 F ( 2.91 %) Rev $3 4 ,000 F (1. 31 %) VMC $ 86 , 9 00 U ( 5.55 %) CM $ 52 , 9 00 U ( 5.15 %) 2. FBV $ 82 , 8 00 U SVV $ 29 , 9 00 F 3. $52, 9 00 U 7 - 2 6 1. FBV $ 16 F SVV $46U 2. PV $1,120 F EV $ 1,104 U 7 - 2 7 DM: PV $14,000 F EV $11,000 F FBV $25,000 F DML: PV $4,000 U EV $6,000 U FBV $10,000 U 7 - 2 8 1. DM: PV $1, 30 0.00 U; EV $ 3,022 . 5 0 U DML: PV $ 70 .50 U; EV $ 812 .5 0 F Total FBV $ 3,581 . 5 0 U; 9.69 % (= $ 3,581 . 5 0/$ 36,952.50 ) 7 - 2 9 1. DM: PV $15,000 U; EV $2,002 F DML: PV $7,350 U; EV $750 F 2. cr. AP Control $465,000; cr. DM Control $441,248; cr. WP Control $154,350 7 - 30 1. DM: PV $ 1,240 U EV $ 2 , 2 00 F DML: PV $18 4 F EV $1, 89 0 F 2. PV $ 1,740 U EV $ 2 , 2 00 F 7 - 31 cr. AP Control $ 35,340 ; cr. DM Control $ 34 , 1 00; cr. WP Control $ 9,844 7 - 32 1. Prov Budg VC $ 286.80 ; Amh Budg VC $ 288.43 ; Bev Budg VC $ 248.20 2. Prov DM: PV $ 111,000 U EV $ 58,000 U; DL: PV $ 18,750 U EV $5, 25 0 U Amh DM: PV $ 76,5 00 U EV $8,800 U; DL: PV $ 20,400 U EV $0 U 7 - 33 1. Static OI $2,246,000 2. Actual OI $3,195,500; FBV $137,000 U; SVV $1,086,500 3. PV $486,875 U; EV $691,875 U 7 - 34 1. Rev: FBV $1 92 ,000 F; SVV $ 1,496 ,000 U DM: FBV $ 8,7 00 U; SVV $ 176 ,000 F DML: FBV $ 9 , 6 00 F; SVV $ 407 ,000 F FC: FBV $ 23 0,000 F 2. DM: PV $1 35 , 3 00 F ; EV $1 44 , 0 00 U DML: PV $ 3 6, 6 00 F ; EV $ 2 7, 0 00 U 7 - 3 5 1. Budget: Exp 84 offices Less Exp 28 offices ; Actual Exp 120 offices Less Exp 20 offices 2. FBV : R $ 5 , 6 00 F VC $640 U OI $ 5,200 F SVV: R $3,800 F VC $570 U OI $3,230 F 3. LE V: Exp $ 720 U; Less Exp $ 36 0 F 7 - 3 6 1 . Act. OI $1,061,600 SBudg OI $1,691,000 2. Total SBB $629,400 U 3. FB OI $1,422,900 4. FBV OI $361,300 U 5. SVV OI $268,100 U 6. PV DML $1,400 U; EV DML $10,500 U 7. FBV DML $11,900 U 7 - 3 7 1. DM : PV € 4 , 3 00 F ; EV € 4 , 5 00 U DML : PV € 550 F ; EV € 1,200 U 7 - 3 8 1. PV $5,200 F; EV $27 ,000 U 7 - 3 9 1. DML: PV $ 64 , 5 00 U EV $2 41 , 8 00 F 2. 195,600 lbs 3. $ 3.30 per pound 4. PV $ 69 ,0 00 U 7 - 40 1. $ 15,000 2. PV $ 598 F ; EV $ 163 F 3. YieldV $750 U; MixV $315 F 7 - 41 1. 2, 00 0 hours 2. 1,890 hours 3. $ 21 /hour 4. 12 , 0 00 lbs 5. 12,600 lbs 6. 1 2,875 lbs 7. $ 4.27 /lb 7 - 42 1. DM Woo d : PV $ 150 F ; EV $3 00 U DML: PV $ 125 F ; EV $1 0 0 U 2. cr. AP Control $ 7,350 ; c. DM Control $ 7 , 5 00 cr. Wages Payable Control $ 2,375 7 - 43 1. Unit VC: A $28.57 B $38.50 C $25.52 D $30.61

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    2. Firm B: DM PV $0.30 U / 2.94 %; DM EV $ 0.77 F / - 6.98 % DL PV $1.50 U / 12. 00%; DL EV $3.75 U 42.86 % 7 - 44 1. $6, 0 00 2. DL: PV $0; EV $ 25 F 3. AQ 305 hrs.; BudgQ 30 0 hrs. 4. DL: Yield V $ 100 U; Mix V $ 125 F 7 - 4 5 1. $69,300 U 2 - 4. DM: Actual SP $0.05; CP $0.11; WFT $0.50 DML: Actual Setup $24.00; Fab $31.00 DM: PV $50,000 U; EV $64,300 U DML: PV $14,400 U; EV $32,800 F 7 - 4 6 1. $48,000 2. PV $318 F; EV $2,200 U; FBV $1,882 U 4. Actual Mix 68% skilled; 32% unskilled Std Mix 60% skilled; 40% unskilled 5. MixV $2,360 U; YieldV $800 F 7 - 4 7 1. Nav Syst: PV $0; EV $760 F Pol Gl: PV $500 F; EV $3,200 F Plas Cas: PV $250 F; EV $450 F DML: PV $480 U; EV $2,880 F

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    Chapter 8. Flexible Budgets, Overhead Cost Variances, and Management Control 8 - 21 1. FBV $324 U SV $2,268 F EV $2,592 U 8 - 22 1. SV $1,516 U 2. PVV $2,400 F 8 - 23 1. 6 2 ,000 hours 2. SV $1 49 , 760 U EV $5 2 ,000 F 8 - 24 1. SV $1 08 ,000 U PVV $32, 0 00 U 2. Underallocated by $ 13 8,000 8 - 2 5 1. VMOH : SV $41 7 U EV $ 1,364 F P V V Never a variance FMOH : SV $1,4 1 0 U EV Never a variance P V V $ 6,580 F 2. VMOH a. cr. AP Control, etc. $ 12,693 b. cr. VMOH Allocated $1 3,640 c. cr. VMOH Control $1 2,693 d. cr. CGS $ 947 FMOH a. cr. Salaries Payable , etc. $1 5,510 b. cr. FMOH Allocated $2 0,680 c. cr. FMOH Control $1 5,510 d. cr. CGS $ 5,170 8 - 2 6 1. V ar : (1) $ 3,5 00 U (2) $ 4,5 00 F (3) never (4) $ 1 ,0 00 F (5) $ 1 ,000 F F ixed : (1) $ 5 00 U (2) never ( 3 ) $ 8 00 U ( 4 ) $ 5 00 U ( 5 ) $ 1,3 00 U 8 - 2 7 1. VMOH: SV $17,800 U EV $16,000 U FMOH: SV $13,000 U PVV $36,000 F 2. AP Control, etc. $245,000 WIP Control dr. $211,200 VMOH Control $245,000 Wages Payable Cont, etc. cr. $373,000 WIP Cont dr. $396,000 FMOH Cont $373,000 8 - 2 8 1. VMOH: SV $7, 57 0 U EV $ 28 , 7 00 F FMOH: SV $1 0 , 101 U PVV $ 2 3, 6 00 F 2. cr. AP Control, etc. $ 537,470 ; cr. Wages Payable Control, etc. $14 6 , 101 ; Cr. FMOH Control $14 6 , 101 8 - 2 9 1. VOH: SV $1, 680 U EV $ 84 0 F 2. FOH: SV $ 2 , 8 00 U PVV $ 11 , 90 0 U 8 - 30 1. DML: PV $9, 375 F EV $ 7 , 5 00 U FBV $1, 875 F 2. Total MOH: SV $ 1 , 5 00 U EV $ 3 , 5 00 U PVV $1 6 ,0 00 F D = 8 , 8 00 dlh 8 - 31 1 and 2. SV $ 5 00 U PVV $4, 56 0 U 4. SB OI $ 9,040 FB OI $ 42,900 SVV $1 3 , 6 00 U 8 - 32 VTO: SV $ 2 00 U ; EV $1 2 0 U FTO: SV $ 3 00 F ; PVV $ 1,92 0 F 8 - 34 1. a. DM PV $12 , 4 00 U b. DM EV $ 2,0 00 F c. DML PV $1 75 , 2 00 U d. DML EV $ 95 , 2 00 F e. VMOH SV $2 2 , 6 00 U f. VMOH EV $ 1,0 00 F g. FMOH PVV $ 27,0 00 U h. FMOH SV $5 00 U 8 - 3 5 1. 1, 830 2. $19 2 .00 3. $4 2 .00 4. 1,9 2 0 5. 96 0 6. 1. 7 8 - 3 6 1. VMOH cr. AP Control, etc $ 71,808 ; cr. VMOH Alloc $ 80,640 ; Cr. VMOH Control $ 71,808 ; FMOH cr. Wages Payable, etc. $3 60,672 ; cr. FMOH Alloc $3 68,640 ; cr. FMOH Control $3 60,672 2. cr. COGS $ 16,800 8 - 3 7 2. a. VMOH: SV $75,000 U EV $7 50 ,000 U PVV Never a variance b. FMOH: SV $10 0,000 U E V Never a variance PVV $2,125 ,000 F 4. F BV : $10 0,000 U P VV : $5,750,000 U Total FMOHV $5,850,0 00 U 8 - 3 8 A: VMOH EV $ 286 F FMOH SV $3 ,625 U FMOH PVV $ 3 ,40 0 U B: VMOH Actual $ 10,511 VMOH AQ x BR $ 10,054 VMOH FB $ 10,340 FMOH SV $3, 625 U FMOH Alloc $ 19,975 Total Budg MOH $ 33,715 8 - 3 9 1 . $356,4 00 2 - 4. VMOH: SV $40,500 U; EV $19,500 F FMOH: SV $17,600 U PVV $39,200 F 8 - 40 1. 1 5,000 crates 2. 12,000 crates 3. 18,000 crates 4. 13,500 hours; $4 .00/hr. 5. PV $39,600 F; EV $162,000 U 6. SV $2,500 U; PVV $10,8 00 U 8 - 41 1. VOH: SV $ 54,500 F; EV $1 7,500 U FOH: SV $ 7,400 U; PVV $ 105,000 U

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