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Appendix 11A The Concept of Present Value Answer Key True / False Questions 1. TRUE AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 11-05 (Appendix 11A) Understand the present value concepts and

170. Tullius Corporation has received a request for a special order of 8,000 units of product C64 for $50.00 each. The normal selling price of this product is $53.25 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product C64

Essay [QUESTION] 154. Nicklin Corporation is considering two alternatives that are code-named M and N. Costs associated with the alternatives are listed below: Alternative M Alternative N Supplies costs .......... $32,000 $58,000 Assembly costs ........ $47,000 $47,000 Power

121. Suppose the special order is for 6,000 haks this month and thus some regular sales would have to be given up. If this offer is accepted by Molis, the company's operating income for the month will: A) increase by $6,000 B) increase by $7,500 C) increase by $5,000 D)

Nesmith Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below: 88. Are the materials costs and processing costs relevant in the choice between alternatives A and B? (Ignore the equipment rental and occupancy costs in this question.) A) Both materials costs and

Feedback: Product H58S Sales ..................................................................... $490,000 Variable expenses ................................................ 221,000 Contribution margin .............................................. 269,000 58. Part S00 is used in one of Morsey Corporation's products. The company makes 6,000 units of this part each year. The company's Accounting Department

8-72 Essay Questions Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 8-73 48. Albert Manufacturing Company manufactures a single product. The standard cost of one unit of this product is: Direct materials:

Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 31. A. Raw materials $2,000, Debit; materials price variance $250, Credit B. Raw materials $1,750, Debit; materials price variance $250, Credit C. Raw

Appendix 8B Journal Entries to Record Variances Answer Key True / False Questions 1. FALSE AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-08 (Appendix 8B) Prepare journal entries to record standard

App8A-207 102. Cajun Corporation manufactures a labor-intensive product. The cost standards developed by Cajun appear below. Manufacturing overhead at Cajun is applied to production on the basis of standard direct labor-hours: Standard quantity per unit Standard cost per ounce or hour Standard cost

App8A-167 Topic Area: Appendix 8A: Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System 72. A manufacturer of playground equipment uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are

App8A-147 SH = 13,000 units × 1.4 machine-hours per unit = 18,200 machine-hours SR = ($10,000) ÷ 20,000 machine-hours = $0.50 per machine-hour Variable overhead efficiency variance = (AH - SH) × SR = (17,000 machine-hours - 18,200 machine-hours) × $0.50 per machine-hour = (-1,200 machine-hours) × $0.50 per machine-hour

Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Blooms: Apply Learning Objective: 08-03 Prepare a flexible budget with more than one cost driver. Learning Objective: 08-07 (Appendix 8A) Compute and interpret the fixed overhead budget and volume variances.

App8A-107 29. Semaan Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the month appear below: Original Budget Actual Costs Variable overhead costs: Supplies $11,340 $12,850

Appendix 8A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System Answer Key True / False Questions 1. TRUE AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-07 (Appendix

9-158 107. Faas Wares is a division of a major corporation. The following data are for the latest year of operations: Sales $24,480,000 Net operating income $1,738,080 Average operating assets $6,000,000 The company's minimum required rate of return 16% a. ROI = Net operating

Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 99. The following data pertain to operations at Quick Incorporated: Throughput time 4 hours Delivery cycle time 8 hours Process time 1 hour Queue time 2

Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 79. Brandon Inc., has provided the following data for last year's operations: Sales $100,000 Net operating income $6,000 Average operating assets $40,000 Stockholders' equity

9-106 Blooms: Apply Learning Objective: 09-01 Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI. Level of Difficulty: 3 Hard Topic Area: Evaluating Investment Center Performance - Return on Investment Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or

Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 40. Last year a company had sales of $400,000, a turnover of 2.4, and a return on investment of 36%. The company's net operating income for the year was:

Chapter 09 Performance Measurement in Decentralized Organizations Answer Key True / False Questions 1. TRUE AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-01 Compute return on investment (ROI) and show

8-1072 416. The following labor standards have been established for a particular product: Standard labor hours per unit of output 2.8 hours Standard labor rate $11.50 per hour The following data pertain to operations concerning the product for the last month:

8-1061 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 8-1062 411. Kowaleski Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Expenses: Faculty wages ($2,400q2) 331,200 Course supplies ($69q1 +$46q2) 103,638 Administrative expenses

8-1021 Occupancy expenses ($9,500 + $2.40q) 14,470 14,300 170 U Administrative expenses ($3,800 + $0.10q) 3,960 4,000 40 F Total

8-1001 383. Halm Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for August was based on 3,000 meals. The diner's director has provided the following cost data to use in the budget: groceries, $3.85 per meal; kitchen operations,

8-981 Level of Difficulty: 1 Easy Topic Area: Flexible Budgets 373. Oshell Clinic Flexible Budget For the Month Ended February 28 Actual patient-visits (q) 3,200 Revenue ($28.80q) $92,160 Expenses: Personnel expenses ($22,500 + $9.90q) 54,180 Medical supplies

8-961 359. Sinopoli Corporation bases its budgets on machine-hours. The company's static planning budget for September appears below: Budgeted number of machine-hours 8,500 Budgeted variable costs: Supplies (@ $1.50 per machine-hour) $12,750 Power (@ $3.30 per

8-941 345. A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours. Standard hours per unit of output 8.1 machine- hours Standard variable overhead rate $14.30 per machine- hour

8-921 A. $316 F B. $294 F C. $316 U D. $294 U Variable overhead rate variance = AH × (AR − SR) = 3,160 hours × ($5.10 per hour − $5.00 per hour) = 3,160 hours

8-901 AICPA: BB Critical Thinking AICPA: FN Measurement Blooms: Apply Learning Objective: 08-04 Compute the direct materials price and quantity variances and explain their significance. Level of Difficulty: 2 Medium Topic Area: Using Standard Costs - Direct Materials Variances Copyright © 2014 McGraw-Hill Education. All rights reserved.

8-881 Blooms: Apply Learning Objective: 08-05 Compute the direct labor rate and efficiency variances and explain their significance. Level of Difficulty: 1 Easy Topic Area: Using Standard Costs - Direct Labor Variances 306. Epley Corporation makes a product with the following standard costs:

8-861 293. Galla Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 8.2 pounds $7.00 per pound $57.40 Direct labor 0.4 hours $20.00 per hour $8.00 Variable overhead 0.4

8-841 = $1,000 U AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Blooms: Apply Learning Objective: 08-04 Compute the direct materials price and quantity variances and explain their significance. Level of Difficulty: 1 Easy Topic Area: Using Standard Costs - Direct Materials Variances

8-821 AICPA: FN Measurement Blooms: Apply Learning Objective: 08-05 Compute the direct labor rate and efficiency variances and explain their significance. Level of Difficulty: 1 Easy Topic Area: Using Standard Costs - Direct Labor Variances Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 259. A. $22,960 Unfavorable B. $22,400 Unfavorable C. $9,600 Unfavorable D. $9,840 Unfavorable SQ = 6,000 units × 4.0 gallons

8-781 243. Canevari Corporation makes a product that uses a material with the following standards: Standard quantity 3.0 kilos per unit Standard price $2.00 per kilo Standard cost $6.00 per unit A. $360 F B. $410 U C. $410

8-761 228. Hagel Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,300 client-visits, but its actual level of activity was 2,320 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July:

8-741 218. Smithj Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During February, the kennel budgeted for 3,500 tenant-days, but its actual level of activity was 3,490 tenant-days. The kennel has provided the following

8-721 208. Wesolick Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 2,900 client-visits, but its actual level of activity was 2,870 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August:

8-701 198. Perla Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During March, the kennel budgeted for 2,200 tenant-days, but its actual level of activity was 2,160 tenant-days. The kennel has provided the following

8-681 188. Linscott Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 5,400 units, but its actual level of activity was 5,380 units. The company has provided the following

8-661 178. Juenemann Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During December, the kennel budgeted for 3,800 tenant-days, but its actual level of activity was 3,770 tenant-days. The kennel has provided the following

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. A. $22,144 B. $21,104 C. $22,140 D. $21,049 Cost = Fixed cost + (Variable cost per unit × q) =

8-621 151. Letts Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 7,000 units, but its actual level of activity was 6,970 units. The company has provided the following

8-601 141. Chirico Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,550 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:

8-581 AICPA: BB Critical Thinking AICPA: FN Measurement Blooms: Apply Learning Objective: 08-01 Prepare a flexible budget. Level of Difficulty: 2 Medium Topic Area: Flexible Budgets Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

8-561 Learning Objective: 08-01 Prepare a flexible budget. Level of Difficulty: 1 Easy Topic Area: Flexible Budgets Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 8-562 120. Hettinger Hospital bases its budgets on

8-541 AICPA: BB Critical Thinking AICPA: FN Measurement Blooms: Apply Learning Objective: 08-01 Prepare a flexible budget. Level of Difficulty: 2 Medium Topic Area: Flexible Budgets Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

8-521 99. Vanderhyde Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During May, the kennel budgeted for 3,300 tenant-days, but its actual level of activity was 3,340 tenant-days. The kennel has provided the following