Archives: Solution Manual
978-0078025525 Chapter 17 Solution Manual Part 3
Chapter 17 – Additional Topics in Variance Analysis 17–21 17–33. (30 min.) Nonmanufacturing Cost Variances: Springfield Bank. Incidental office costs comprise the variable costs. Salaries and the fixed office costs are all fixed. Variance analysis for the two classes of […]
978-0078025525 Chapter 17 Solution Manual Part 2
Chapter 17 – Additional Topics in Variance Analysis 17–11 17–24. (35 min.) Labor Mix and Yield Variance: Matt’s Eat ‘N Run. a. and b. Efficiency Variance Actual (AP x AQ) Purchase Price Variance (SP x AQ) Mix Variance (SP x […]
978-0078025525 Chapter 17 Solution Manual Part 1
Chapter 17 – Additional Topics in Variance Analysis 17-1 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, […]
978-0078025525 Chapter 16 Solution Manual Part 6
Chapter 16 – Fundamentals of Variance Analysis 16–50 16-59. (continued) b. Overhead: Actual Costs Applied $72,000 + $3,000 = $75,000 $3 x 24,000* units = $72,000 $3,000 U* * Given © 2014 by McGraw-Hill Education. This is proprietary material solely […]
978-0078025525 Chapter 16 Solution Manual Part 5
Chapter 16 – Fundamentals of Variance Analysis 16–41 16–50. (15 min.) Direct Materials: Clearwater Company. Actual Costs Price Variance Actual Inputs at Standard Price AP x 900 $20 x 900 = $18,000 $7,200 F 900 x AP = $18,000 – […]
978-0078025525 Chapter 16 Solution Manual Part 4
Chapter 16 – Fundamentals of Variance Analysis 16–31 16–41. (continued) (a) 1,500 units from actual column. (b) $1,500 U = $40,500 – $39,000. (c), (d) Budgeted sales price per unit = $40,500 ÷ 1,500 units = $27. Master budget = […]
978-0078025525 Chapter 16 Solution Manual Part 3
Chapter 16 – Fundamentals of Variance Analysis © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, […]
978-0078025525 Chapter 16 Solution Manual Part 2
Chapter 16 – Fundamentals of Variance Analysis 16–11 16–24. (45 min.) Sales Activity Variance: Data-2-Go. Flexible Budget (based on actual of 750,000 units) Sales Activity Variance Master Budget (based on budgeted 800,000 units) Sales revenue …………………………………..……….. $2,812,500 $187,500 U $3,000,000 […]
978-0078025525 Chapter 16 Solution Manual Part 1
Chapter 16 – Fundamentals of Variance Analysis 16-1 Chapter 16 Fundamentals of Variance Analysis Solutions to Review Questions 16–1. For performance evaluation purposes, the costing format should identify the actual costs for comparison with expected costs during the relevant period. […]
978-0078025525 Chapter 15 Solution Manual Part 3
Chapter 15 – Transfer Pricing 15–21 15–36. (40 min.) Evaluate transfer price system: Western States Supply. a. Northwest division management’s attitude at the present time should be positive to each of these prices in decreasing order (obviously preferring a higher […]
978-0078025525 Chapter 15 Solution Manual Part 2
Chapter 15 – Transfer Pricing 15–11 Solutions to Problems 15–29. (30 min.) Transfer Pricing With Imperfect Markets—ROI Evaluation, Normal Costing: Athena Company. a. ROI for Spartan Division. Income: [450,000 x ($28 – $8)] – [$14 x 500,000] = $2,000,000 ROI […]
978-0078025525 Chapter 15 Solution Manual Part 1
Chapter 15 – Transfer Pricing 15-1 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or […]
978-0078025525 Chapter 14 Solution Manual Part 4
Chapter 14 – Business Unit Performance Measurement 14–30 14–46. (35 min.) Economic Value Added: Biddle Company. After-tax income ……………………………………………………… $400,000 Add back advertising expense for year 3 ……………………. 240,000 $640,000 Less amortization of advertising: Year 1 advertising: 10% x $100,000 […]
978-0078025525 Chapter 14 Solution Manual Part 3
Chapter 14 – Business Unit Performance Measurement 14–21 14–39. (30 min.) Economic Value Added: Pitt, Inc. (In thousands of dollars) a. Residual Income $3,750 – 0.12 x ($4,000 + $5,000 – $1,500 – $1,250) = $3,000 b. ($3,750 – $3,500a) […]
978-0078025525 Chapter 14 Solution Manual Part 2
Chapter 14 – Business Unit Performance Measurement 14–11 14–30. (25 min.) Compare Historical Cost, Net Book Value To Gross Book Value: Caribbean Division. a. Net Book Value b. Gross Book Value Year 1 ($15,000,000 – $6,000,000) ($15,000,000 – $6,000,000) ($60,000,000 […]
978-0078025525 Chapter 14 Solution Manual Part 1
Chapter 14 – Business Unit Performance Measurement 14-1 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, […]
978-0078025525 Chapter 13 Solution Manual Part 4
Chapter 13 – Planning and Budgeting © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or […]
978-0078025525 Chapter 13 Solution Manual Part 3
Chapter 13 – Planning and Budgeting 13–21 Solutions to Problems 13–40. (30 min.) Prepare Budgeted Financial Statements: Dancer Components. Dancer Components Budgeted Income Statement For Year 2 Calculations Sales revenue ……………………………………..…….. $6,389,700a $5,700,000 x 1.18 x .95 Manufacturing costs: Materials […]
978-0078025525 Chapter 13 Solution Manual Part 2
Chapter 13 – Planning and Budgeting 13–11 13–28. (15 min.) Estimate Cash Collections: Duluth Company. Duluth Company Schedule of Cash Collections For the Month Ended December 31 Collections in December for sales prior to November ……. $ 24,000 November sales […]
978-0078025525 Chapter 13 Solution Manual Part 1
Chapter 13 – Planning and Budgeting 13-1 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, […]
978-0078025525 Chapter 12 Solution Manual Part 3
Chapter 12 – Fundamentals of Management Control Systems 12–17 12–35. (40 min.) Cost Allocations—Comparison of Dual and Single Rates: Pacific Hotels. a. Allocations based on time usage: (1) Department Proportion of Total Time Allocated Cost Luxury …………………………..………………………….. .15a $180,000b Resort […]
978-0078025525 Chapter 12 Solution Manual Part 2
Chapter 12 – Fundamentals of Management Control Systems 12–11 The NBC Dateline report included about one minute of crash footage that showed how the gas tanks of certain old GM trucks could catch fire in a sideways collision. After hiring […]
978-0078025525 Chapter 12 Solution Manual Part 1
Chapter 12 – Fundamentals of Management Control Systems 12-1 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, […]
978-0078025525 Chapter 11 Solution Manual Part 6
Chapter 11 – Service Department and Joint Cost Allocation 11-51 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, […]
978-0078025525 Chapter 11 Solution Manual Part 5
Chapter 11 – Service Department and Joint Cost Allocation © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, […]
978-0078025525 Chapter 11 Solution Manual Part 4
Chapter 11 – Service Department and Joint Cost Allocation © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, […]
978-0078025525 Chapter 11 Solution Manual Part 3
Chapter 11 – Service Department and Joint Cost Allocation © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, […]
978-0078025525 Chapter 11 Solution Manual Part 2
Chapter 11 – Service Department and Joint Cost Allocation 11-11 11–27. (20 min.) Cost Allocation—Step Method: University Printers Maintenance Personnel Printing Developing Service department costs ….………………………. $ 15,000 $36,000 NA NA Maintenancea ………………….………. (15,000) 3,000 $3,000 $ 9,000 Personnelb ……………………..…… […]
978-0078025525 Chapter 11 Solution Manual Part 1
Chapter 11 – Service Department and Joint Cost Allocation 11-1 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, […]
978-0078025525 Chapter 10 Solution Manual Part 4
Chapter 10 – Fundamentals of Cost Management 10–55. (30 min.) Assigning Capacity Costs: Cathy and Tom’s Specialty Ice Cream Company. Cathy and Tom’s Specialty Ice Cream Company illustrates in a very simple way the issues of cost system design when […]
978-0078025525 Chapter 10 Solution Manual Part 3
Chapter 10 – Fundamentals of Cost Management 10–45. (30 min.) Trading-off Costs of Quality: Nuke-It-Now. Nuke-It-Now Corporation Cost of Quality Report Year 1 % Year 2 % Sales revenue ………………………….. $3,500,000 $3,800,000 Prevention: Redesign process ………………………….. $ 29,000 $ 37,000 […]
978-0078025525 Chapter 10 Solution Manual Part 2
Chapter 10 – Fundamentals of Cost Management 10–27. (15 min.) Activity-Based Costing of Customers: Rock Solid Bank & Trust. a. RSB&T can use this information to change the way banking services are priced. Managers at the bank may want to […]
978-0078025525 Chapter 10 Solution Manual Part 1
Chapter 10 – Fundamentals of Cost Management © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, […]
978-0078025525 Chapter 9 Solution Manual Part 6
Chapter 09 – Activity-Based Costing 9-50 9-51. (continued) d. Creamy Crunch Direct labor cost per hour ………………………….. $6.00 Direct labor hours per case ………………………..… 1 Total cases produced ……………………………….… 3,000 Labor hours per product ……………………………… 3,000 Total labor hours: 3,000 […]
978-0078025525 Chapter 9 Solution Manual Part 5
Chapter 09 – Activity-Based Costing 9-41 9-48. (40 min.) Choosing an Activity-Based Costing System: MTI. a. Total overhead to allocate is $8,700,000 (= $2,400,000 + $1,800,000 + $2,400,000 + $1,200,000 + $900,000). The overhead rate is $348 per machine-hour (= […]
978-0078025525 Chapter 9 Solution Manual Part 4
Chapter 09 – Activity-Based Costing 9-31 9-42. (40 min.) Choosing an Activity-Based Costing System: Pickle Motorcycles, Inc. a. Pickle Motorcycles Income Statement Route 66 Main Street Alley Cat Total Sales revenue ………………………….. $7,600,000 $11,200,000 $9,500,000 $28,300,000 Direct costs: Direct material […]
978-0078025525 Chapter 9 Solution Manual Part 3
Chapter 09 – Activity-Based Costing 9-21 9-35. (20 min.) Activity-Based Costing for an Administrative Service: LastCall Enterprises. a. Rate LaidBack StressedOut Total Allocated costsa ………………………….. $1,100 $220,000 b $55,000 c $275,000 a $1,100 per employee = $275,000 Personnel cost ÷ […]
978-0078025525 Chapter 9 Solution Manual Part 2
Chapter 09 – Activity-Based Costing 9-11 9-28. (35 min.) Activity-Based versus Traditional Costing: Rodent Corporation. a. Rate Wired Wireless Total Direct labora ………………………….. $290,100 $ 109,900 $400,000 Direct materialsb ……..…………………… $187,500 $ 171,000 $358,500 Overhead costs Prod. runs ………………………….. $6,600 […]
978-0078025525 Chapter 9 Part 1
Chapter 09 – Activity-Based Costing 9-1 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or […]
978-0078025525 Chapter 8 Solution Manual Part 8
Chapter 08 – Process Costing 8-67 8-53. (continued) c. The costs assigned to units transferred out has decreased from $541,621 to $443,294, or $98,327. Because all the units transferred out will be sold before the end of March, profits will […]
978-0078025525 Chapter 8 Solution Manual Part 7
Chapter 08 – Process Costing 8-61 8-52. (continued) Cost of units transferred to finished goods: Product Unit Material Cost Stitching Department Unit Cost Customizing Department Unit Cost Unit Cost Rookie …… $30 + $ 42 + $ –0– = $ […]
978-0078025525 Chapter 8 Solution Manual Part 6
Chapter 08 – Process Costing 8-51 8-48. (30 min.) Determine Degree of Completion—FIFO method: Saline Solutions. c. The ending work in process is at least 60% complete with respect to conversion costs. This is a problem that requires relatively few […]
978-0078025525 Chapter 8 Solution Manual Part 5
Chapter 08 – Process Costing © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted […]
978-0078025525 Chapter 8 Solution Manual Part 4
Chapter 08 – Process Costing 8-31 8-39. (continued) b. Total Gag-Gift (5,000 units) Commuter (10,000 units) Sport (13,000 units) Retirement (2,000 units) Materials ………………… $ 321,000 $15,000 $90,000 $156,000 $60,000 Conversion Assemblya ………….. $120,000 $20,000 $40,000 $52,000 $ 8,000 Polishingb […]
978-0078025525 Chapter 8 Solution Manual Part 3
Chapter 08 – Process Costing 8-21 8-33. (20 min.) Assign Costs to Goods Transferred Out and Ending Inventory— FIFO Method: Pacific Ink. Physical Units Equivalent Units Materials Eq. units Conversion Costs Eq. units Flow of units: Units to be accounted […]
978-0078025525 Chapter 8 Solution Manual Part 2
Chapter 08 – Process Costing 8-11 8-24. (20 min.) Compute Equivalent Units—FIFO method: Santiago Company. Physical Units Conversion Eq. Units Flow of units: Units to be accounted for: Beginning WIP inventory ………………………………………. 22,500 Units started this period ………………………………………… 255,000 Total […]
978-0078025525 Chapter 8 Solution Manual Part 1
Chapter 08 – Process Costing 8-1 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or […]
978-0078025525 Chapter 7 Solution Manual Part 5
Chapter 07 – Job Costing 7-41 7-49. (continued) (e) Overhead applied = Ending manufacturing overhead – beginning manufacturing overhead + overapplied overhead = $434,000a – $369,800a + $2,400a = $66,600 (f) Loss = $172,400a + $140,628 + $135,400 + $66,600 […]
978-0078025525 Chapter 7 Solution Manual Part 4
Chapter 07 – Job Costing 7-31 7-46. (55 min.) Tracing Costs In A Job Company: Dungan Cabinetry a. (1) Materials Inventory ………………………………………………. 53,700 Accounts Payable …………………………………………….. 53,700 (2) Manufacturing Overhead ………………………………………. 1,500 Materials Inventory ……………………………………………. 1,500 (3) Accounts Payable ………………………………………………… […]
978-0078025525 Chapter 7 Solution Manual Part 3
Chapter 07 – Job Costing 7-21 7-39. (50 min.) Assigning Costs—Missing Data. Materials Inventory Balance 11/1 45,400 (a) 86,200 Direct materials Purchases 113,600 (a) 16,400 Indirect materials Balance 11/30 56,400 Work-in-Process Inventory Balance 11/1 32,600 (given) Direct materials 86,200 (b) […]