1WIP, Ending$3,000Cost Sheet:Job 1Job 2DM$500$300DL$400$600Total Manufacturing Overhead$1,200Total DL$1,000Predetermined Overhead Rate120%
2Rice CompanyBEP $$480,000CMR40%Desired Profit$84,000Fixed Expenses$192,000Sales to Achieve Targeted Profit$690,000
3Williams CompanyDL25%of Conversion CostsMOH$45,000DM$25,000Conversion Costs$60,000Direct Labor Cost$15,000
4Grading CompanyDecrease in Cash Account$16,000Increase in Marketable Securities$22,000Cash Provided by Operating Activities$24,000Cash Used by Financing Activities$20,000Cash Flow from Investing Activities$2,000Increase
5Gladstone Footwear CorporationVC$2.82Unfavorable Spending Variance$8,140Units Produced21,250Budgeted Activity20,900Actual Supplies$68,065Actual Cost per Unit$3.20
6Lyons Company Division ADivision BCM$60,000CMR30%Sales$240,000Net Operating Income$22,000Traceable Fixed Expenses$45,000DivisionsTotal CompanyA%B%Sales$200,000VCCM$120,000$60,000$60,00030%Traceable FC$45,000Segment Margin$75,000Common FC$53,000Net Operating Income$22,000
7Atlantic Company Net Operating Income (Absorption Costing)$7,800Net Operating Income (Variable Costing)$10,500Unit Cost (Absorption Costing)$24Unit Cost (Variable Costing)$15Desired Ending Inventory1,460FMOH$9Change in Inventorty300Beginning Inventory1,760
8Black Company Ending WIP6,000Materials75%Labor & OH50%Total Dollar Value of Inventory$80,000Cost per EU (Labor & OH)$6EU for Materials4500EU for Conversion3000Ending Inv. Dollar Value$80,000Cost per EU for Materials$14
9Overland CompanyActual Maintenance Costs$9,800Rate Variance$200UnfavorableActual Machine Hours8,000AH$1.23Budgeted Maintenance Cost pr MH$1.20
10COGS$650,000Fixed Selling & Administrative Expenses$115,000Variable Selling & Administrative Expenses$420,000CM$590,000Sales$1,660,000VCOGS$650,000V S & A Expenses$420,000$1,070,000CM$590,000
11Denny Corporation Cost of New Machine$600,000Useful Life10Annual Operating Costs$20,000Annual Savings$125,000Scrap Value of Old Machine$50,000Simple Rate of Return8.18%
12Lounsberry IncStock375Price$2,700Sales Price/Litre as Surplus Material$6.35Price/Litre as Surplus Material$7.20Lots of 1,000Relevant Cost of the 900 litres$6,480
13Harwichport Company Current Ratio3Acid-Test Ratio2.8Current Assets$210,000Prepaid Expenses$5,000Current Liabilities$70,000Inventory$9,000
14Tolla Company MonthJanuaryFebruaryMarchAprilMayJuneSales$350,000$300,000$320,000$410,000$450,000$470,000Collections:In the Month of Sales70%In the Month following Sales25%Uncollectible5%Discount 2%Collections from April Sales$281,260Collections from March Sales$80,000Total April Collections$361,260
15Trauscht Corporation
Activity Cost PoolTotal CostTotal ActivityActivity RateAssembly$704,88044,000machine hours$16.02Procesing Orders$91,4281,900orders$48.12Inspection$117,5461,950inspection hours$60.28Units of P23F360Required MH725Number of Orders85Inspection Hours45DM Cost per Unit$42.30DL Cost per Unit$14.55Price$132.10Calcualtion of OH Costs:Activity Cost PoolActivity RateTotal ActivityABC CostAssembly$16.02725$11,614.50Procesing Orders$48.1285$4,090.20Inspection$60.2845$2,712.60Sales$47,556.00Costs:DM$15,228.00DL$5,238.00Assembly$11,614.50Procesing Orders$4,090.20Inspection$2,712.60$38,883.30Product Margin$8,672.70
16Williams CompanyDL Cost30%MOH$59,500DM Cost$37,000Conversion Costs$85,000Direct Labor Cost$25,500
17Units Produced13,000Labor Efficiency Variance$23,000FavorableLH40,000Standard Wage Rate$13SH Allowed for Output41,769SH per Unit3.21
18White CompanyWIP, Beginning$15,000WIP, Ending$18,000DL Cost$30,000RM Requisitioned$25,000Sum of Debits to MOH$28,000Sum of Credits to MOH$30,000WIP InventoryBalance$15,000$82,000Transferred to FGDL$30,000DM$25,000MOH$30,000Ending Balance$18,000
FG has been credited by$30,000
19Sales4,000unitsSales Price$80per unitVC$50per unitFixed Costs$30,000Increase in Dollar CM10%Decrease in Fixed Costs15%CMU$30Proposed Increase in CMU$3
Total Increase in CM$12,000Reduction in FC$4,500Total Increase in Net Operating Income$16,500
20Paxman Company Acyual MOH Incurred$175,000MOH$9,000overappliedPredetermined OH Rate$8per DLHApplied MOH$184,000Actual DLH23,000
