Archives: Solution Manual

9-21 3. 2014 operating income under absorption costing is greater than the operating income under variable costing because in 2014 inventory increased by 500 units. As a result, under absorption costing, a portion of the fixed overhead remained in the […]

9-1 CHAPTER 9 INVENTORY COSTING AND CAPACITY ANALYSIS 9-1 No. Differences in operating income between variable costing and absorption costing are due to accounting for fixed manufacturing costs. Under variable costing, only variable manufacturing costs are included as inventoriable costs. […]

8-57 2. Describe how Gallo’s control of variable manufacturing overhead items differs from its control of fixed manufacturing overhead items. SOLUTION 1. Solution Exhibit 8-38 outlines the Chapter 7 and 8 framework underlying this solution. a. Pounds of direct materials […]

8-41 2. (a) Variable Manufacturing Overhead Variance Analysis for Best Around, Inc. for 2014 Actual Costs Incurred (1) Actual Input Qty. × Budgeted Rate (2) Flexible Budget: Budgeted Input Qty. Allowed for Actual Output × Budgeted Rate (3) Allocated: Budgeted […]

8-21 SOLUTION EXHIBIT 8-23 Actual Costs Incurred (1) Actual Input × Budgeted Rate (2) Flexible Budget: Budgeted Input Allowed for Actual Output × Budgeted Rate (3) Allocated: Budgeted Input Allowed for Actual Output × Budgeted Rate (4) Variable Manufacturing Overhead […]

8-1 CHAPTER 8 FLEXIBLE BUDGETS, OVERHEAD COST VARIANCES, AND MANAGEMENT CONTROL 8-1 Effective planning of variable overhead costs involves: 1. Planning to undertake only those variable overhead activities that add value for customers using the product or service, and 2. […]

7-55 7-39 (35 min.) Direct labor variances: price, efficiency, mix and yield. Trevor Joseph employs two workers in his guitar-making business. The first worker, George, has been making guitars for 20 years and is paid $30 per hour. The second […]

7-41 SOLUTION 1. Materials Variances Actual Costs Incurred (Actual Input Qty. × Actual Price) Actual Input Qty. × Budgeted Price Flexible Budget (Budgeted Input Qty. Allowed for Actual Output × Budgeted Price) Direct Materials (5,200 × $17a) $88,400 Purchases Usage […]

7-21 7-26 (15−25 min.) Journal entries and T-accounts (continuation of 7-25). Prepare journal entries and post them to T-accounts for all transactions in Exercise 7-25, including requirement 2. Summarize how these journal entries differ from the normal-costing entries described in […]

7-1 CHAPTER 7 FLEXIBLE BUDGETS, DIRECT-COST VARIANCES, AND MANAGEMENT CONTROL 7-1 Management by exception is the practice of concentrating on areas not operating as expected and giving less attention to areas operating as expected. Variance analysis helps managers identify areas […]

6-59 Hazlett uses a FIFO cost flow assumption for finished goods inventory. Combs are manufactured in batches of 200, and brushes are manufactured in batches of 100. It takes 20 minutes to set up for a batch of combs and […]

6-41 Animal Gear uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, and Inspection. Activity rates for these activities are $105 per setup– hour, $10 per machine-hour, and $15 per inspection-hour, respectively. Other information follows: […]

6-21 6-28 (15 min.) Responsibility, controllability, and stretch targets. Consider each of the following independent situations for Happy Tours, a company owned by Jason Haslett that sells motor coach tours to schools and other groups. Happy Tours owns a fleet […]

6-1 CHAPTER 6 MASTER BUDGET AND RESPONSIBILITY ACCOUNTING 6-1 The budgeting cycle includes the following elements: a. Planning the performance of the company as a whole as well as planning the performance of its subunits. Management agrees on what is […]

5-57 5-38 (40 min.) ABC, health care. Crosstown Health Center runs two programs: drug addict rehabilitation and aftercare (counseling and support of patients after release from a mental hospital). The center’s budget for 2014 follows. 3. Direct materials—purses $319,155 ÷ […]

5-41 5-32 (30 min.) Job costing with multiple direct-cost categories, multiple indirect-cost pools, law firm (continuation of 5-30 and 5-31). Bradley has two classifications of professional staff: partners and associates. Harrington asks his assistant to examine the relative use of […]

5-21 Required: 1. Calculate the cost of a standard job and a special job under the simple costing system. 2. Calculate the cost of a standard job and a special job under the activity-based costing system. 3. Compare the costs […]

4-41 3. Richardson Punch Direct costs: Professional partners, $140  48 hr.; $140  32 hr. Professional associates, $50  72 hr.; $50  128 hr. Direct costs Indirect costs: General support, $45  120 hr.; $45  160 hr. […]

4-21 viii. Manufacturing Overhead Allocated 215,800 Manufacturing Overhead Control ($54,000 + $148,900) 202,900 Cost of Goods Sold 12,900 Source Document: Prior Journal Entries ix. Administrative Expenses 7,900 Marketing Expenses 127,000 Salaries Payable Control 33,000 Accounts Payable Control 94,000 Accumulated Depreciation, […]

4-1 CHAPTER 4 JOB COSTING 4-1 Cost pool––a grouping of individual indirect cost items. Cost tracing––the assigning of direct costs to the chosen cost object. Cost allocation––the assigning of indirect costs to the chosen cost object. Cost-allocation base––a factor that […]

3-54 3-45 (40 min.) Multi-product CVP and decision making. Crystal Clear Products produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The other is a pitcher-cum-filter that only purifies […]

3-41 b. Breakeven revenues (Breakeven units  SP = 9,000 units  $60 per unit) $540,000 2. Pairs sold 8,000 Revenues, 8,000  $60 $480,000 Total cost of shoes, 8,000  $37 296,000 Total sales commissions, 8,000  $3 24,000 […]

3-21 3-28 (15–25 min.) Sales mix, three products. The Janowski Company has three product lines of mugs—A, B, and C— with contribution margins of $5, $4, and $3, respectively. The president foresees sales of 168,000 units in the coming period, […]

3-1 CHAPTER 3 COST–VOLUME–PROFIT ANALYSIS NOTATION USED IN CHAPTER 3 SOLUTIONS SP: Selling price VCU: Variable cost per unit CMU: Contribution margin per unit FC: Fixed costs TOI: Target operating income 3-1 Cost-volume-profit (CVP) analysis examines the behavior of total […]

2-33 2-36 (25–30 min.) Income statement and schedule of cost of goods manufactured. The following items (in millions) pertain to Chester Corporation: Chester’s manufacturing costing system uses a three-part classification of direct materials, direct manufacturing labor, and manufacturing overhead costs. […]

2-21 2-29 (20 min.) Computing cost of goods purchased and cost of goods sold. The following data are for Marvin Department Store. The account balances (in thousands) are for 2014. Marketing, distribution, and customer-service costs $ 37,000 Merchandise inventory, January […]

2-1 CHAPTER 2 AN INTRODUCTION TO COST TERMS AND PURPOSES 2-1 A cost object is anything for which a separate measurement of costs is desired. Examples include a product, a service, a project, a customer, a brand category, an activity, […]

1-14 check themselves in. This technology will reduce the number of desk clerks required inside the airport. d. A local florist is considering hiring a horticulture specialist to help customers with gardening questions. Required: 1. For each decision, state whether […]

a. Discuss the prevalence of world hunger, populations at risk, and political and environmental causes of hunger. 20.3 Describe the consequences of nutrient and energy inadequacies. a. Describe kwashiorkor and marasmus and measures used to rehabilitate malnourished people. b. Discuss […]

19.2 Explain how to minimize nutrient losses in the kitchen. a. Discuss the regulation, risks, and benefits of common additives in the food supply. b. Differentiate between intentional and indirect food additives. • Worksheet 19-1: Foodborne Illness Trends (Internet Exercise) […]

18.2 List the leading nutrition-related causes of death in the United States. a. Discuss the role of nutrition and lifestyle in the development of chronic disease. a. Describe cardiovascular diseases and risk factors in the development of each. b. Discuss […]

in aging. a. Describe physiological aging and lifestyle factors which can modify the process. 17.3 Explain why the needs for some nutrients increase or decrease during aging. a. Describe the energy and nutritional needs of older adults. 17.5 Instruct an […]

Introductory/whole chapter resources: PL figure JPEGs; Test Bank; IM WS 16-3 1 Worksheets 16-1 and 16-2 contributed by Daryle Wane. 2 Contributed by Carrie King. 3 Contributed by Melissa Langone. 281 Chapter 16 – Life Cycle Nutrition: Infancy, Childhood, and […]

critical periods. a. Describe placental development and the importance of critical periods. b. Explain the risk factors for the development of neural tube defects. and physical activity can support maternal health and infant growth. a. Describe the expected weight gain […]

a. Describe the energy systems of physical activity, including ATP and CP. b. Describe the use of glucose and glycogen as body fuels during exercise. c. Describe a diet to minimize glucose depletion during exercise. d. Explain the principle of […]

a. Discuss factors that affect the absorption of trace minerals from foods. b. Explain how trace minerals are transported, recycled, and metabolized in the body. c. Identify the appropriate uses and potential risks of trace mineral supplements. • Worksheet 13-1: […]

219 5. d 6. a 7. Major minerals are those essential mineral nutrients that the human body requires in relatively large amounts (greater than 100 milligrams per day), whereas trace minerals are those that the human body requires in relatively […]

208 Chapter 12 – Water and the Major Minerals Learning Objectives After completing Chapter 12, the student will be able to: 12.1 Explain how the body regulates fluid balance. a. List the uses of water in the body. 12.2 List […]

195 Chapter 11 – The Fat-Soluble Vitamins: A, D, E, and K Learning Objectives After completing Chapter 11, the student will be able to: 11.1 Identify the main roles, deficiency symptoms, and food sources for vitamin A. 11.2 Identify the […]

184 Study Card 10 Answer Key 1. c 2. a 4. The body can make niacin from the amino acid tryptophan once protein synthesis needs have been met. Approximately 60 mg of dietary tryptophan are needed to make 1 mg […]

172 Chapter 10 – The Water-Soluble Vitamins: B Vitamins and Vitamin C Learning Objectives After completing Chapter 10, the student will be able to: 10.2 Identify the main roles, deficiency symptoms, and food sources for each of the B vitamins. […]

159 Worksheet 9-3: Learn to “Shape Up” (Internet Exercise) 1. The use of salad dressing contributes to weight loss. a. True b. False 2. Research indicates that the body perceives calories associated with fluid intake differently than those associated with […]

145 Chapter 9 – Weight Management: Overweight, Obesity, and Underweight Learning Objectives After completing Chapter 9, the student will be able to: 9.1 Describe how body fat develops and why it can be difficult to maintain weight gains and losses. […]

a. Define healthy body weight. b. Explain the methods used to assess body composition, including BMI and waist circumference. a. Identify the health risks for underweight. b. Discuss the health risks for overweight, including heart disease, diabetes, and cancer. 131 […]

b. Explain the process of glycolysis. c. Explain the process of deamination and the synthesis of non-essential amino acids. d. Discuss the TCA cycle and the electron transport chain. 7.3 Explain how an excess of any of the three energy-yielding […]

6.2 Summarize protein digestion and absorption. a. Trace the digestion of protein and list the enzymes needed to complete the process. b. List the major functions of protein in the body. c. Describe nitrogen balance and provide examples of positive […]

Worksheet 5-2: Do You Know Your Fats? All 10 statements are false. Worksheet 5-3: Check Your Lipid Choices – Answers will vary. Worksheet 5-4: Chapter 5 Crossword Puzzle 2. hydrogenation 3. polyunsaturated 5. lipoproteins 6. olive oil 8. emulsification 9. […]

64 Worksheet 4-2: Glycemic Index and Glycemic Load Glycemic Index Factors Glycemic Load A method of classifying foods according to their potential for raising blood glucose as determined by the rate of their absorption. Definition A method of using the […]

75 Chapter 5 – The Lipids: Triglycerides, Phospholipids, and Sterols Learning Objectives After completing Chapter 5, the student will be able to: 5.1 Recognize the chemistry of fatty acids and triglycerides and differences between saturated and unsaturated fats. 5.2 Describe […]

53 Chapter 4 – The Carbohydrates: Sugars, Starches, and Fibers Learning Objectives After completing Chapter 4, the student will be able to: 4.1 Identify the monosaccharides, disaccharides, and polysaccharides common in nutrition by their chemical structures and major food sources. […]