Ex 12-13 Name:
Enter the appropriate numbers in the shaded cells in columns B, D, F, H, K, and M.
1) Fixed activity rate = SP
SP = Cost
Capacity, orders
SP = =
Enter the appropriate numbers in the shaded cells in columns B, D, F, H, K, and M.
SQ xSP AQ xSP AU xSP
x18.00$ x x
Volume Variance Unused Capacity Variance
2) Value-added costs:
# valued-added inspections x SP
x =
Nonvalue-added costs:
# nonvalued-added inspections x SP
x =
Therefore, a value-added cost report would be as follows:
Value- Nonvalue-
Added Added Total
Inspections
Ex 12-13 Name:
Enter the appropriate numbers in the shaded cells in columns B, D, F, H, K, and M.
1) Fixed activity rate = SP
SP = Cost
Capacity, orders
SQ xSP AQ xSP AU xSP
2,000 x 18.00$ 28,000 x 18.00$ 26,200 x 18.00$
36,000$ 504,000$ 471,600$
2) Value-added costs:
# valued-added inspections x SP
2,000 x 18.00$ = 36,000$
SOLUTION
Ex 12-14 Name:
Enter the appropriate amounts in the shaded cells in columns F, H, and J.
Activities Activity Driver SQ AQ SP
Purchasing parts Purchase orders
Receiving parts Receiving orders
Moving parts Number of moves
Setting up equipment Setup hours
1)
Value-Added Nonvalue-Added Actual
Purchasing parts $0
Receiving parts 0
Moving parts 0
Setting up equipment 0
$0 $0 $0
Sanford, Inc.
Value- and Nonvalue-Added Cost Report
For the Year Ended December 31, 2010
Ex 12-14 Name:
Enter the appropriate amounts in the shaded cells in columns F, H, and J.
Activities Activity Driver SQ AQ SP
Purchasing parts Purchase orders 2,600 3,640 $300
1)
Value-Added Nonvalue-Added Actual
Purchasing parts $780,000 $312,000 $1,092,000
Receiving parts 1,014,000 507,000 1,521,000
Sanford, Inc.
Value- and Nonvalue-Added Cost Report
For the Year Ended December 31, 2010
SOLUTION
Prob 12-27 Name:
Enter the appropriate numbers in the shaded cells in columns F and H.
1) Nonvalue-added usage and costs (2013) Molding Engineering
Standard price (SP)
Actual quantity (AQ)
Standard quantity (SQ)
Nonvalue-added usage (AQ – SQ)
Nonvalue-added cost [(AQ – SQ)SP]
Enter the appropriate numbers in the shaded cells in columns B, D, F, and H.
SP xAQ SP xAU
x x
Enter the appropriate numbers in the shaded cells in columns D, F, and I.
2)
SQ for 2013 + (
1 – reduction %)
+ (
pounds
SQ for 2013 + ( 1 – reduction %)
+ (
engineering hours
3) AU SQ AU – SQ U/F
Molding
Engineering
) x
SP(AU – SQ)
) x
) x
(AQ – SQ)
Unused Capacity Variance
Kaizen standards for 2014:
) x
(AQ – SQ)
Prob 12-27 Name:
Unused Capacity Variance
Enter the appropriate numbers in the shaded cells in columns F and H.
1) Nonvalue-added usage and costs (2013) Molding Engineering
Standard price (SP) $15 $35
Actual quantity (AQ) 2,700,000 144,000
SP xAQ SP xAU
$35 x144,000 $35 x138,000
2)
SQ for 2013 + (
1 – reduction %)
1 – reduction %)
) x
) x
(AQ – SQ)
2,160,000 + ( 0.70
3) AU SQ AU – SQ U/F
Molding 2,600,000 2,538,000 62,000 U
(AQ – SQ)
SOLUTION
$5,040,000
$4,830,000
) x
540,000
Kaizen standards for 2014:
SP(AU – SQ)
$930,000
) x
Prob 12-28 Name:
Enter the appropriate amounts in the shaded cells in columns C, E, G, and I.
1)
Actual Costs Units
Current cost per unit = / =
Price per unit –Cost per unit
Current profit per unit = – =
Suggested price –Target cost Current profit
Target cost (C) = –C =
C =
2) Nonvalue-added costs
SQ AQ Actual cost Cost per unit
Materials
Labor
Setups
Material handling
Warranties
Nonvalue-
(AQ –SQ) x Cost per unit added costs
Materials
Labor
Setups
Material handling
Warranties
Divided by units produced and sold
Current cost
Less: Nonvalue-added cost
Target cost
Prob 12-28 Name:
Enter the appropriate amounts in the shaded cells in columns C, E, G, and I.
1)
Actual Costs Units
Current cost per unit = $28,800,000 /20,000 =$1,440
2) Nonvalue-added costs
SQ AQ Actual cost Cost per unit
Materials 855,000 900,000 $18,900,000 $21.00
Labor 205,200 216,000 2,700,000 12.50
Nonvalue-
(AQ –SQ) x Cost per unit added costs
Materials 900,000 855,000 $21.00 $945,000
Labor 216,000 205,200 12.50 135,000
Setups 14,400 75.00 1,080,000
Target cost
SOLUTION