Archives: Solution Manual
978-1118096895 Chapter 11 Part 6
*PROBLEM 11-7B Overhead controllable variance: Actual Overhead ($68,800 + $50,000) $118,800 – – Overhead Budgeted [($50,000 + (19,400* X $3.50)] $117,900 = $900 U Overhead volume variance: Fixed Overhead Rate 2.50/hr. X X Normal Capacity Hours (20,000 – – Standard […]
978-1118096895 Chapter 11 Part 5
PROBLEM 11-1B (a) Total materials variance: ( AQ X AP ) (20,000 X $5.95) $119,000 – – ( SQ X SP ) (19,400* X $6.00) $116,400 = $2,600 U *9,700 X 2 Materials price variance: ( AQ X AP ) […]
978-1118096895 Chapter 11 Part 4
PROBLEM 11-3A (Continued) (c) The materials price variance is more than 4% from standard. The actual price for materials of $4.15 is $.25 below the standard price of $4.40 or 5.7% ($.25 ÷ $4.40). The same result can be obtained […]
978-1118096895 Chapter 11 Part 3
EXERCISE 11-15 BURTE CORPORATION Variance Report – Purchasing Department For Week Ended January 9, 2014 Type of Materials Quantity Purchased Actual Price Standard Price Price Variance Explanation Rogue 11 Storm 17 Beast 29 25,000 lbs. 7,000 oz. 22,000 units. $5.20 […]
978-1118096895 Chapter 11 Part 2
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 11–11 SOLUTIONS TO EXERCISES EXERCISE 11-1 (a) Direct materials: (2,000 X 3) X $5 = $30,000 Direct labor: (2,000 X 1/2) X […]
978-1118096895 Chapter 11 Part 1
CHAPTER 11 Standard Costs and Balanced Scorecard ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Distinguish between a standard and a budget. 1, 2 1 1 2. Identify the advantages of standard […]
978-1118096895 Chapter 10 Part 8
BYP 10-4 REAL-WORLD FOCUS (a) The company’s costs do not increase proportionately with the revenues increase in the third and fourth quarter because the behavior of the costs is primarily fixed. (b) Static budgeting seems to be most appropriate for […]
978-1118096895 Chapter 10 Part 7
BYP 10-1 DECISION-MAKING AT CURRENT DESIGNS (a) Current Designs Rotomolded Line Manufacturing Budget For the Year Ended December 31, 2013 4,000 kayaks Units to be produced Calculation Amount budgeted Costs: Variable costs Polyethylene powder 4,000 X 54 X $1.50 $ […]
978-1118096895 Chapter 10 Part 6
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 10–51 PROBLEM 10-2B (Continued) (b) GONZALEZ COMPANY Assembly Department Manufacturing Overhead Budget Report (Flexible) For the Month Ended July 31, 2014 Difference […]
978-1118096895 Chapter 10 Part 5
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 10–41 PROBLEM 10-3A (Continued) (c) HILL COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2014 Difference Units Variable […]
978-1118096895 Chapter 10 Part 4
EXERCISE 10-18 (Continued) (b) MEMO TO: Drs. Reese Dinkle and Anita Frizell FROM: Student SUBJECT: Deficiencies in the Current Responsibility Reporting System The current reporting system has the following deficiencies: 1. It does not clearly show both budgeted goals and […]
978-1118096895 Chapter 10 Part 3
EXERCISE 10-8 (a) RENSING GROOMERS Flexible Budget Activity level Direct labor hours 550 600 700 Variable costs: Grooming supplies ($5) $ 2,750 $ 3,000 $ 3,500 Direct labor ($14) 7,700 8,400 9,800 Overhead ($1) 550 600 700 Total variable costs […]
978-1118096895 Chapter 10 Part 2
BRIEF EXERCISE 10-10 III A $300,000 ($2,000,000 X .15) increase in sales will increase contribution margin and controllable margin $210,000 ($300,000 X 70%). The new ROI is 30.2% ($1,510,000 ÷ $5,000,000). III A decrease in costs results in a corresponding […]
978-1118096895 Chapter 10 Part 1
CHAPTER 10 Budgetary Control and Responsibility Accounting ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Describe the concept of budgetary control. 1, 2 1 2. Evaluate the usefulness of static budget reports. […]
978-1118096895 Chapter 1 Part 6
BYP 1-6 COMMUNICATION ACTIVITY Ms. Shelly Phillips President Phillips Company Dear Shelly: As you requested, I corrected the income statement for October from the information you gave me. The corrected statement is enclosed and it shows that you actually earned […]
978-1118096895 Chapter 1 Part 5
BYP 1-1 (Continued) (b) Name one special-purpose management accounting report that could be designed for each manager. Include the name of the report, the information it would contain, and how frequently it should be issued. Manager Name of report Information […]
978-1118096895 Chapter 1 Part 4
PROBLEM 1-5A (Continued) (b) PHILLIPS COMPANY Income Statement For the Month Ended October 31, 2014 Sales revenue …………………………………………… $780,000 Cost of goods sold Finished goods inventory, October 1 …… $ 30,000 Cost of goods manufactured……………….. 577,800 Cost of goods available […]
978-1118096895 Chapter 1 Part 3
EXERCISE 1-14 (Continued) AIKMAN COMPANY Income Statement (Partial) For the Year Ended December 31, 2014 (b) Sales revenue ………………………………… $910,000 Cost of goods sold Finished goods, 1/1 …………………… $ 27,000 Cost of goods manufactured …….. 537,300 Cost of goods available […]
978-1118096895 Chapter 1 Part 2
DO IT! 1-3 FISHEL COMPANY Cost of Goods Manufactured Schedule For the Month Ended April 30 Work in process, April 1 ………………………….. $ 5,000 Direct materials ………………………………………. Raw materials, April 1 …………………………. $ 10,000 Raw materials purchases …………………….. 98,000 Total […]
978-1118096895 Chapter 1 Part 1
CHAPTER 1 Managerial Accounting ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems *1. Explain the distinguishing features of managerial accounting. 1, 2, 3 1 1 1 *2. Identify the three broad functions of […]
978-1118096895 Appendix A Part 2
BRIEF EXERCISE A–18 i = 5% ? $48,850 $48,850 $48,850 $48,850 $48,850 $48,850 0 1 2 3 4 9 10 Discount rate from Table 4 is 7.72173. Present value of 10 payments of $48,850 each discounted at 5% is therefore […]
978-1118096895 Appendix A Part 1
APPENDIX A Time Value of Money SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE A-1 (a) Interest = p X i X n I = $9,000 X .05 X 12 years I = $5,400 Accumulated amount = $9,000 + $5,400 = $14,400 […]
978-1111971724 Solution Manual Ch.19 Kinney 9e SM_Final Part 2
Chapter 19 519 Because accountants have managed the information flow that has facilitated de- centralization, they have extensive data on the performance of many internal man- agers. By comparing the performance of individual managers to reasonable benchmarks such as historical […]
978-1111971724 Solution Manual Ch.19 Kinney 9e SM_Final Part 1
512 accessible website, in whole or in part. CHAPTER 19 EMERGING MANAGEMENT PRACTICES QUESTIONS 1. Business process reengineering, BPR, is a method of examining processes to iden- tify and then eliminate, reduce, or replace functions and processes that add little […]
978-1111971724 Solution Manual Ch.18 Kinney 9e SM_Final Part 2
Chapter 18 503 36. EOQ (Face cream) = √ (2QO ÷ C) = √ [(2 2,000 12.00) ÷ 2.00] = √ (24,000) = 155 (rounded) EOQ (Lotion) = √ [2 1,000 40) ÷ 1.45] = √ […]
978-1111971724 Solution Manual Ch.18 Kinney 9e SM_Final Part 1
493 accessible website, in whole or in part. CHAPTER 18 INVENTORY AND PRODUCTION MANAGEMENT QUESTIONS 1. The three costs are costs of ordering, purchasing, and carrying inventory. These costs are presented in Exhibit 18.1 with examples. 2. A push system […]
978-1111971724 Solution Manual Ch.17 Kinney 9e SM_Final Part 3
Chapter 17 485 42. a. Each student will have a different answer. No solution is provided. Selected ex- cerpts from the 2008 Genentech 10-K: p. 16: Additionally, we may be unable to maintain regulatory approval for Raptiva, or we may […]
978-1111971724 Solution Manual Ch.17 Kinney 9e SM_Final Part 2
476 Chapter 17 Understanding and subscribing to this year-over-year productivity philosophy is required. This objective requires creative input from suppliers to our marketing, engineering and purchasing teams to help reduce costs on our current products, streamline manufacturing and supply chain […]
978-1111971724 Solution Manual Ch.17 Kinney 9e SM_Final Part 1
466 accessible website, in whole or in part. CHAPTER 17 IMPLEMENTING QUALITY CONCEPTS QUESTIONS 1. Quality refers to the dimensions or characteristics of a product or service that make it able to meet the stated or implied needs of the […]
978-1111971724 Solution Manual Ch.16 Kinney 9e SM_Final Part 3
Chapter 16 461 accessible website, in whole or in part. The flexible budgets presented are based on three different activity measures, none of which coincides with the actual level of performance for November. The budget must be restated to a […]
978-1111971724 Solution Manual Ch.16 Kinney 9e SM_Final Part 2
Chapter 16 455 PROBLEMS 31. a. In one sense, the company did an excellent job of controlling costs since actual costs were $700,000 below budget. However, it appears that the company con- trolled costs well that should not have been […]
978-1111971724 Solution Manual Ch.16 Kinney 9e SM_Final Part 1
445 accessible website, in whole or in part. CHAPTER 16 MANAGING COSTS AND UNCERTAINTY QUESTIONS 1. The cost control system is an integral part of the cost management system. The cost control system provides information for planning purposes and, subsequently, […]
978-1111971724 Solution Manual Ch.15 Kinney 9e SM_Final Part 2
436 Chapter 15 c. Time Cash Flow PV Factor for 8% Present Value 0 $(190,000) 1.0000 $(190,000) 1 40,000 0.9259 37,036 2 33,000 0.8573 28,291 3 33,000 0.7938 26,195 4 33,000 0.7350 24,255 5 30,000 0.6806 20,418 6 30,000 0.6302 […]
978-1111971724 Solution Manual Ch.15 Kinney 9e SM_Final Part 1
426 accessible website, in whole or in part. CHAPTER 15 CAPITAL BUDGETING QUESTIONS 1. A capital asset is a long-lived asset acquired by a firm. Capital assets provide the essential production and distributional capabilities required by all organizations. 2. Cash […]
978-1111971724 Solution Manual Ch.14 Kinney 9e SM_Final Part 3
Chapter 14 417 accessible website, in whole or in part. work days lost due to accidents percentage of appraisals completed on time percentage of positions filled from within the organization percentage of employees with personal development […]
978-1111971724 Solution Manual Ch.14 Kinney 9e SM_Final Part 2
Chapter 14 407 There would be an expectation of high process quality yield in a job shop because employees are more likely to be directly engaged in the production/service pro- cess and, thus, able to spot and correct defects as […]
978-1111971724 Solution Manual Ch.14 Kinney 9e SM_Final Part 1
397 accessible website, in whole or in part. CHAPTER 14 PERFORMANCE MEASUREMENT, BALANCED SCORECARDS, AND PERFORMANCE REWARDS QUESTIONS 1. A mission statement expresses the organization’s purposes and identifies how the organization will meet its customers’ needs through its products or […]
978-1111971724 Solution Manual Ch.13 Kinney 9e SM_Final Part 4
388 Chapter 13 accessible website, in whole or in part. Admin. L/A M/E Proc. Fin. Direct costs $ 2,130 $ 1,680 $ 2,370 $ 7,520 $ 7,200 Admin. (2,677) 134 201 1,339 1,004 Legal/Acctg. 355 (2,088) 167 689 877 Maint./Eng. […]
978-1111971724 Solution Manual Ch.13 Kinney 9e SM_Final Part 3
Chapter 13 379 accessible website, in whole or in part. Original Flexible Budget Budget Actual Variance Revenues $ 90,000 $108,000 $102,000 $ 6,000 U Variable costs: Meals $ 9,540 $ 11,340 $ 13,041 (1,701) U Lodging 23,850 28,350 28,350 (0) […]
978-1111971724 Solution Manual Ch.13 Kinney 9e SM_Final Part 2
Chapter 13 369 27. Checking: Administration (0.30 ÷ 0.80) × $540,000 $ 202,500 Human resources (0.30 ÷ 0.80) × $360,000 135,000 Accounting (0.40 ÷ 0.80) × $300,000 150,000 Direct costs 630,000 $1,117,500 Savings: Administration (0.40 ÷ 0.80) × $540,000 $270,000 […]
978-1111971724 Solution Manual Ch.13 Kinney 9e SM_Final Part 1
359 accessible website, in whole or in part. CHAPTER 13 RESPONSIBILITY ACCOUNTING, SUPPORT DEPARTMENT ALLOCATIONS, AND TRANSFER PRICING QUESTIONS 1. Four potential advantages of decentralization are: Better executed executive training and development Higher level of job satisfaction for […]
978-1111971724 Solution Manual Ch.12 Kinney 9e SM_Final Part 2
Chapter 12 353 PROBLEMS 25. a. R&D activity should not be tightly controlled by the operating budget. Be- cause it is difficult to map the relationship between dollars expended and re- search and development, expenditures in this area should be […]
978-1111971724 Solution Manual Ch.12 Kinney 9e SM_Final Part 1
347 accessible website, in whole or in part. CHAPTER 12 INTRODUCTION TO COST MANAGEMENT SYSTEMS QUESTIONS 1. The only realistic method of evaluating whether costs are being effectively man- aged is to compare the benefits generated with the costs incurred. […]
978-1111971724 Solution Manual Ch.11 Kinney 9e SM_Final Part 4
Chapter 11 341 53. a. Total joint cost: Direct material Direct labor Overhead $37,500 12,000 11,000 $60,500 Sales value of scrap ($0.45 × 3,600 lbs.) Joint cost to be allocated (1,620) $58,880 b. Robes Beach Towels Revenues $ 20.00 $ […]
978-1111971724 Solution Manual Ch.11 Kinney 9e SM_Final Part 3
Chapter 11 335 accessible website, in whole or in part. b. c. Joint Sales Add’l NRV at Joint Product Value Cost Split-Off Percent* Cost* Premium $30,000 $1,500 $28,500 73 $11,665 Good 15,000 4,200 10,800 27 4,315 $39,300 100 $15,980 *rounded […]
978-1111971724 Solution Manual Ch.11 Kinney 9e SM_Final Part 2
Chapter 11 325 accessible website, in whole or in part. d. Joint cost allocated to jackets $ 138,000 Additional costs 20,000 Total cost for 16,000 jackets $ 158,000 Sales (12,000 $16.75*) $ 201,000 Cost for 12,000 jackets (0.75 […]
978-1111971724 Solution Manual Ch.11 Kinney 9e SM_Final Part 1
315 accessible website, in whole or in part. CHAPTER 11 COST ALLOCATION FOR JOINT PRODUCTS AND BY-PRODUCT/SCRAP QUESTIONS 1. Joint processing output is classified based on the relative sales value of each type of out- put. Joint products are those […]
978-1111971724 Solution Manual Ch.10 Kinney 9e SM_Final Part 3
Chapter 10 309 accessible website, in whole or in part. Production levels: Basic (34,000 × 0.50) ÷ 10 1,700 Touring (34,000 × 0.30) ÷ 35 291 (rounded) Racing (34,000 × 0.20) ÷ 50 136 Contribution margin: Basic (1,700 × $216) […]
978-1111971724 Solution Manual Ch.10 Kinney 9e SM_Final Part 2
302 Chapter 10 accessible website, in whole or in part. fects on the various stakeholders including customers (competitor’s and Tate’s) of using the illegal workers and of not using the illegal workers. In ad- dition, there exists the legal issue […]
978-1111971724 Solution Manual Ch.10 Kinney 9e SM_Final Part 1
292 CHAPTER 10 RELEVANT INFORMATION FOR DECISION MAKING QUESTIONS 1. Relevance means that a factor should be considered in making a decision. A rele- vant cost is a cost that is applicable, pertinent, or logically related to making a de- […]