ACC 560 Effective Communication - tutorialrank.com

1. ACC 560 Week 1 Homework Chapter 1 (E1-5, E1-9, E1-10 and E1-2A) For more course tutorials visit www.tutorialrank.com ACC 560 Week 1 Homework Chapter 1 (E1-5, E1-9, E1-10 and E1-2A) E1-5 E1-5 Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows. 1. Property taxes on the factory building. 2. Production superintendents’ salaries. 3. Memory boards and chips used in assembling computers. 4. Depreciation on the factory equipment. 5. Salaries for assembly-line quality control inspectors. 6. Sales commissions paid to sell laptop computers. 7. Electrical components used in assembling computers. 8. Wages of workers assembling laptop computers. 9. Soldering materials used on factory assembly lines. 10. Salaries for the night security guards for the factory building.

2. The company intends to classify these costs and expenses into the following categories: (a) Direct materials, (b) Direct labor, (c) Manufacturing overhead, (d) Period costs. List the items (1) through (10). For each item, indicate the cost category to which it belongs. E1-9 E1-9 An incomplete cost of goods manufactured schedule is presented below. Complete the cost of goods manufactured schedule for Hobbit Company. E1-10 E1-10 Manufacturing cost data for Copa Company arc presented below. Case A Case B Case C Direct materials used $ (a) $68,400 $130,000 Direct labor 57,000 86,000 (g) Manufacturing overhead 46,500 81,600 102,000 Total manufacturing costs 195,650 (d) 253,700 Work in process 1/1/17 (b) 16,500 (h) Total cost of work in proems 221,500 (c) 337,000 Work in process 12/31/17 (c) 11,000 70,000

3. Cost of goods manufactured 185,275 (f) (i) Instructions Indicate the missing amount for each letter (a) through (i). E1-2A E1, 2A Bell Company, a manufacturer of audio systems, started its production in October, 2017. For the preceding 3 years, Bell had been a retailer of audio systems. After a thorough survey of audio system markets, Bell decided to turn its retail store into an audio equipment factory. Raw materials cast for an audio system will total $74 per unit. Workers on the production lines are on average paid $12 per hour. An audio system usually takes 5 hours to complete. In addition, the rent on the equipment used to assemble audio systems amount to $4,900 per month. Indirect materials cost $5 per system. A supervisor was hired to oversee production; her monthly salary is $3,000. Factory janitorial casts arc $1,300 monthly. Advertising costs for the audio system will be $9,500 per month. The factory building depreciation expense is $7,800 per year. Property taxes on the factory building will be $9,000 per year. Instructions (a) Prepare an answer sheet with the following column headings. Assuming that Bell manufactures, on average, 1,500 audio systems per month, enter each cost item on your answer sheet, placing the dollar amount per month under the appropriate headings. Total the dollar amounts in each of the columns. (b) Compute the cost to produce one audio system.

4. ******************************************* ACC 560 Week 1-11 All Homework, Quizzes, Assignments For more course tutorials visit www.tutorialrank.com Please check the details below (details of each Assignment could be checked under each product on our category page) ACC 560 Week 1 Homework Chapter 1 (E1-5, E1-9, E1-10 and E1-2A) ACC 560 Week 2 Homework Chapter 2 and Chapter 3 (E2-5, E2-7, E2- 13, P2-4A, E3-3, E3-7, E3-8, E3-2A) ACC 560 Week 3 Homework Chapter 4 (BE 4-7, BE 4-12, E4-1, E4-6, E4-14) ACC 560 Week 4 Homework Chapter 5 and Chapter 6 (E5-6, E5-9, E5- 13, E6-2, E6-7, E6-12) ACC 560 Week 5 Homework Chapter 7 and chapter 8 (E7-3, E7-7, E7- 11, P7-3A, E8-2, E8-6, E8-9, P8-5A) ACC 560 Week 6 Homework Chapter 9 and Chapter 10 (E9-3, E9-8, E9-15, P9-5A, E10-3, E10-5, E10-17, P10-5A) ACC 560 Week 7 Homework Chapter 11 (E11-3, E11-6, E11-12, P11- 2A) ACC 560 Week 8 Homework Chapter 12 (E12-3, E12-5, E12-8)

5. ACC 560 Week 9 Homework Chapter 13 (E13-4, E13-6, E13-7 and P13-1A) ACC 560 Week 10 Homework Chapter 14 (E14-4, E14-7, E14-11) ACC 560 Week 2 Quiz 1 (Chapter 1) ACC 560 Week 4 Quiz 2 (Chapter 4) ACC 560 Week 5 Quiz 3 (Chapters 5 and 6) ACC 560 Week 6 Quiz 4 (Chapters 7 and 8) ACC 560 Week 7 Quiz 5 (Chapter 9 and Chapter 10) ACC 560 Week 8 Quiz 6 (Chapter 11) ACC 560 Week 10 Quiz (Chapter 13) ACC 560 Week 11 Quiz 8 (Chapter 14) ACC 560 Week 3 Assignment 1 Activity-based Costing (ABC) in Service Industries (2 Papers) ACC 560 Week 9 Assignment 2 Johnson Controls Capital Investments (2 Papers) ******************************************* ACC 560 Week 2 DQ labor and Material Cost For more course tutorials visit www.tutorialrank.com

6. "Labor and Materials Costs" Please respond to the following: Use the Internet and/or Strayer Learning Resource Center to research a U.S.-based company that manufactures technology products. Recommend one (1) approach that your selected company can take in order to lower the direct labor costs of technology products while remaining competitive with global markets. Provide a rationale for your recommended approach. Imagine that you are a Chief Financial Officer (CFO) of a company. Recommend two (2) actions that you could take regarding the company’s supply chain to reduce manufacturing costs of direct materials. ******************************************* ACC 560 Week 2 Homework Chapter 2 and Chapter 3 (E2-5, E2-7, E2-13, P2-4A, E3-3, E3-7, E3-8, E3-2A) For more course tutorials visit www.tutorialrank.com ACC 560 Week 2 Homework Chapter 2 and Chapter 3 (E2-5, E2-7, E2-13, P2-4A, E3-3, E3-7, E3-8, E3-2A) Chapter 2: Job Order Costing and Chapter 3: Process Costing

7. E2-5 Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $300,000 for the year, and machine usage is estimated at 125,000 hours. For the year, $322,000 of overhead costs are incurred and 130,000 hours are used. Instructions (a) Compute the manufacturing overhead rate for the year (b) What is the amount of under- or over applied overhead at December 31? (c) Prepare the adjusting entry to assign the under- or over applied overhead for the year to cost of goods sold. E2-7 Crawford Corporation incurred the following transactions. 1. purchased raw materials on account $46,300. 2. Raw materials of $36.000 were requisitioned to the factory. An analysis of the materials 3. Factory labor costs incurred were $59,900, of which $51,000 pertained to factory wages payable and $8,900 pertained to employer payroll taxes payable. 4. Time tickets indicated that $54,000 was direct labor and $5,900 was indirect labor. 5. Manufacturing overhead costs incurred on account were $80,500. 6. Depreciation on the company's office building was $8,100.

8. 7. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 8. Goods costing $88,000 were completed and transferred to finished goods. 9. Finished goods costing $75,000 to manufacture were sold on account for $103,000. Instructions Journalize the transactions. E2-13 Tombert Decorating uses a job order cost system to collect the costs of its interior decorating business. Each client's consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed below are data for the current year. Estimated overhead $960,000 Actual overhead $982,800 Estimated decorator hours 40,000 Actual decorator hours 40,500 The company uses Operating Overhead in place of Manufacturing Overhead. Instructions (a) Compute the predetermined overhead rate. (b) Prepare the entry to apply the overhead for the year. (c) Determine whether the overhead was under- or over applied and by how much. P2-4A

9. Agassi Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct lab(); cost in Department D, direct labor hours in Department E, and machine hours in Department K. In establishing the predetermined overhead rates for 2017, the following estimates were made for the year. During January, the job cost sheets showed the following costs and production data. Instructions (a) Compute the predetermined overhead rate for each department. (b) Compute the total manufacturing costs assigned to jobs in January in each department. (c) Compute the under- or over applied overhead for each department at January 31. E3-3 the ledger of American Company has the following work in process account. Production records show that there were 400 units in the beginning inventory, 30% complete, 1,600 units started, and 1,700 units transferred out. The beginning work in process had materials cost of $2,040 and conversion costs of $1,550. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. Instructions (a) How many units are in process at May 31? (b) What is the unit materials cost for May?

10. (c) What is the unit conversion cost for May? (d) What is the total cost of units transferred out in May? (e) What is the cost of the May 31 inventory? E3-7 The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation. Production: 7,000 units finished and transferred out; 3,000 units started that arc 100% complete as to materials and 20% complete as to conversion costs. Manufacturing costs: Materials $33,000; labor $21,000; and overhead $36,000. Instructions Prepare a production cost report. E3-8 The Blending Department of Luongo Company has the following cost and produc-tion data for the month of April. Costs: Work in process, April 1 Direct materials: 100% complete $100,000 Conversion costs: 20% complete 70,000 Cost of work in process, April 1 $170,000 Costs incurred during production in April Direct materials $ 800,000 Conversion costs 365,000 Costs incurred in April $1,165,000 Units transferred out totaled 17,000. Ending work in process was 1,000 units that are 100% complete as to materials and 40% complete as to conversion costs.

11. Instructions (a) Compute the equivalent units of production for (1) materials and (2) conversion costs for the month of April. (b) Compute the unit costs for the month. (c) Determine the costs to be assigned to the units transferred out and in ending work in process. P3-2A Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the begin-ning of each process. Labor and manufacturing overhead are incurred uniformly through-out each process. Production and cost data for the Molding Department during June 2017 are presented below. Instructions (a) Prepare a schedule showing physical units of production. (b) Determine the equivalent units of production for materials and conversion costs. (c) Compute the unit costs of production. (d) Transferred out 5340,000 WIP 24,400 (d) Determine the costs to be assigned to the units transferred out and in process for June. (e) Prepare a production cost report for the Molding Department for the month of June.

12. ******************************************* ACC 560 Week 2 Quiz 1 (Chapter 1) For more course tutorials visit www.tutorialrank.com ACC 560 Week 2 Quiz 1 (Chapter 1) Question 1 A manufacturing company calculates cost of goods sold as follows: Question 2 Dolan Company's accounting records reflect the following inventories: Dec. 31, 2017 Dec. 31, 2016 Raw materials inventory $310,000 $260,000 Work in process inventory 300,000 160,000 Finished goods inventory 190,000 150,000 During 2017, $800,000 of raw materials were purchased, direct labor costs amounted to $670,000, and manufacturing overhead incurred was $640,000.

13. The total raw materials available for use during 2017 for Dolan Company is Question 3 Product costs are also called Question 4 As current technology changes manufacturing processes, it is likely that direct Question 5 Sales commissions are classified as Question 6 Dolan Company's accounting records reflect the following inventories: Dec. 31, 2017 Dec. 31, 2016 Raw materials inventory $310,000 $260,000 Work in process inventory 300,000 160,000 Finished goods inventory 190,000 150,000 During 2017, $800,000 of raw materials were purchased, direct labor costs amounted to $670,000, and manufacturing overhead incurred was $640,000. If Dolan Company's cost of goods manufactured for 2017 amounted to $1,890,000, its cost of goods sold for the year is Question 7 Property taxes on a manufacturing plant are an element of a

14. Product Cost Period Cost Question 8 Benson Inc.'s accounting records reflect the following inventories: Dec. 31, 2016Dec. 31, 2017 Raw materials inventory $ 80,000 $ 64,000 Work in process inventory 104,000 116,000 Finished goods inventory 100,000 92,000 During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. Assume Benson’s cost of goods manufactured for 2017 amounted to $1,660,000. How much would it report as cost of goods sold for the year? Question 9 On the costs of goods manufactured schedule, the item raw materials inventory (ending) appears as a(n) Question 10 For a manufacturing firm, cost of goods available for sale is computed by adding the beginning finished goods inventory ******************************************* ACC 560 Week 3 Assignment 1 Activity-based Costing (ABC) in Service Industries (2 Papers)

15. For more course tutorials visit www.tutorialrank.com This Tutorial contains 2 Different Papers ACC 560 Week 3 Assignment 1 Activity-based Costing (ABC) in Service Industries Research a U.S. company in the service industry with e-commerce activities. Write a five to six (5-6) page paper in which you: 1. Describe the company you researched in one to two (1-2) paragraphs. 2. Discuss how a time driven ABC cost system can be implemented in the company you researched and the benefits that the use will yield to the business performance. 3. Assess how using an ABC system can provide a competitive advantage to the company in the market space it operates and the resulting impact to the business performance. 4. Examine the potential impact of time-driven ABC costing on services provided online with those provided through traditional channels, considering how this knowledge will impact decisions made by management about these services. 5. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources.

16. Your assignment must follow these formatting requirements: Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.· Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.· ******************************************* ACC 560 Week 3 DQ Time-Driven Activity-Based Costing (ABC) For more course tutorials visit www.tutorialrank.com Time-Driven Activity-Based Costing (ABC)" Please respond to the following: · Analyze the major benefits and major weaknesses of traditional Activity-Based Costing (ABC) in determining accurate overhead costs over a time-driven ABC system. Provide a rationale for your response. · Suggest the manner in which a business can achieve a competitive advantage in the marketplace through the use of ABC. Provide two (2)

17. reasons to convince senior management that they should implement an ABC system. ******************************************* ACC 560 Week 3 Homework Chapter 4 (BE 4-7, BE 4-12, E4-1, E4-6, E4-14) For more course tutorials visit www.tutorialrank.com ACC 560 Week 3 Homework Chapter 4 (BE 4-7, BE 4-12, E4-1, E4- 6, E4-14) Chapter 4: Activity-Based Costing ACC 560 WEEK 3 Chapter 4 Brief Exercises 7 and 12; Exercises 1, 6, and 14 BE4-7 Spud, Inc. a manufacturer of gourmet potato chips, employs activity- based costing. The budgeted data for each of the activity cost pools is provided below for the year 2017. Activity Cost Pools Expected Use of Cost Drivers per Activity Estimated Overhead

18. Ordering and receiving 12,000 orders $84,000 Food processing 60,000 machine hours 480,000 Packaging 440,000 labor hours 1,760,000 For 2017, the company had 11,000 orders and used 50,000 machine hours, and labor hours totaled 500,000. What is the total overhead applied? BE4-12 Spin Cycle Architecture uses three activity pools to apply overhead to its projects. Each activity has a cost driver used to allocate the overhead costs to the projects. The activities and related overhead costs are as follows: initial concept formation $40,000, design $300,000, and construction oversight $100,000. The cost drivers and expected use are as follows. Activities Use of Cost Drivers per Activity Cost Drivers Expected Initial concept formation 20 Number of project changes Design 150,000 Square feet Construction oversight 100 Number of months (a) Compute the predetermined overhead rate for each activity.

19. (b) Classify each of these activities as unit-level, batch-level, product- level, or facility-level. E4-1 Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a plant wide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations. Standard Custom Direct labor costs $50,000 $100,000 Machine hours 1,000 1,000 Setup hours 100 400 Total estimated overhead costs are $240,000. Overhead cost allocated to the machining activity cost pool is $140,000, and $100,000 is allocated to the machine setup activity cost pool. Instructions: a. Compute the overhead rate using the traditional (plant wide) approach. b. Compute the overhead rates using the activity-based costing approach. c. Determine the difference in allocation between the two approaches. E4-6 Santana Corporation manufactures snowmobiles in its Blue Mountain, Wisconsin, plant. The following costs are budgeted for the first quarter's operations.

20. Machine setup, indirect materials 4,000 Inspections 16,000 Tests 4,000 Insurance, plant 110,000 Engineering design 140,000 Depreciation, machinery 520,000 Machine setup, indirect labor 20,000 Property taxes 29,000 Oil, heating 19,000 Electricity, plant lighting 21,000 Engineering prototypes 60,000 Depreciation, plant 210,000 Electricity, machinery 36,000 Machine maintenance wages 19,000 Instructions Classify the above costs of Santana Corporation into activity cost pools using the following: engineering, machinery, machine setup, quality control, factory utilities, and maintenance. Next, identify a cost driver that may be used to assign each cost pool to each line of snowmobiles. E4-14

21. Venus Creations sells window treatments (shades, blinds, and awnings) to both commercial and residential customers. The following information relates to its budgeted operations for the current year. The controller, Peggy Kingman, is concerned about the residential product line. She cannot understand why this line is not more profitable given that the installations of window coverings are less complex for residential customers. In addition, the residential client base resides in close proximity to the company office, so travel costs are not as expensive on a per client visit for residential customers. As a result, she has decided to take a closer look at the overhead costs assigned to the two product lines to determine whether a more accurate product costing model can be developed. Here are the three activity cost pools and related information she developed: Activity Cost Pools Drivers Estimated Overhead Cost Scheduling and travel Hours of travel $85,000 Setup time setups 90,000 Number of Supervision cost 60,000 Direct labor Expected Use of Cost Drivers per Product Commercial Residential Scheduling and travel 500 750 Setup time 350 250

22. Instructions a. Compute the activity-based overhead rates for each of the three cost pools, and determine the overhead cost assigned to each product line. b. Compute the operating income for each product line, using the activity-based overhead rates. c. What do you believe Peggy Kingman should do? ******************************************* ACC 560 Week 4 DQ The Cost of Complexity For more course tutorials visit www.tutorialrank.com "The Cost of Complexity" Please respond to the following: · Read the article titled, “The Missing Metrics: Managing the Cost of Complexity” l Next, in a globalized economy with many business complexities, speculate the major ways that these complexities might impact a business and suggest two (2) actions that a business can take in order to minimize these consequences. From the previous discussion, recommend one (1) approach that an accountant could take in order to measure the types of complexity you identified for a specific business or industry and determine the insight that the measure will provide in relation to business performance.

23. ******************************************* ACC 560 Week 4 Homework Chapter 5 and Chapter 6 (E5-6, E5-9, E5-13, E6-2, E6-7, E6-12) For more course tutorials visit www.tutorialrank.com ACC 560 Week 4 Homework Chapter 5 and Chapter 6 (E5-6, E5-9, E5-13, E6-2, E6-7, E6-12) Chapter 5: Cost-Volume-Profit and Chapter 6: CVP Analysis Additional Issues ACC 560 Week 4 Chapter 5: Exercises 6, 9, and 13; Problem 2; Chapter 6: Exercises 2, 7, and 12; E5-6 PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,000 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $300 and $200, respectively. Instructions

24. A. Identify the above costs as variable, fixed, or mixed. B. Calculate the expected costs when production is 5,000 units. E5-9 The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $60 a night. Operating costs are as follows. Salaries $5,900 per month FIXED COST Utilities $1,100 per month FIXED COST Depreciation $1,000 per month FIXED COST Maintenance $100 per month FIXED COST Maid service $14 per room VARIABLE Other costs $28 per room VARIABLE Instructions: Determine the inn's break-even point in (a) number of rented rooms per month and (b) dollars. E5-13 Billings Company has the following information available for September 2017. Unit selling price of video game consoles $ 400 Unit variable costs $ 280 Total fixed costs $54,000 Units sold 600

25. Instructions A. Compute the unit contribution margin. B. Prepare a CVP income statement that shows both total and per unit amounts. C. Compute Billings' break-even point in units. D. Prepare a CVP income statement for the break-even point that shows both total and per unit amounts. E6-2 In the month of June, Jose Hebert's Beauty Salon gave 4,000 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $16,800 and variable costs were 75% of sales. Instructions A. Determine the contribution margin in dollars, per unit and as a ratio. B. Using the contribution margin technique, compute the break-even point in dollars and in units. C. Compute the margin of safety in dollars and as a ratio. E6-7 PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil change–related services represent 70% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 30% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $15,600,000 (that is, $78,000 per service outlet). Instructions

26. A. Calculate the dollar amount of each type of service that the company must provide in order B. The company has a desired net income of $52,000 per service outlet. What is the dollar amount of each type of service that must be performed by each service outlet to meet its target net income per outlet? E6-12 Dalton Inc. produces and sells three products. Unit data concerning each product is shown below. Product D E F Selling price $200 $300 $250 Direct labor costs 30 80 35 Other variable costs 95 80 145 The company has 2,000 hours of labor available to build inventory in anticipation of the company's peak season. Management is trying to decide which product should be produced. The direct labor hourly rate is $10. Instructions A. Determine the number of direct labor hours per unit. B. Determine the contribution margin per direct labor hour. C. Determine which product should be produced and the total contribution margin for that product. *******************************************

27. ACC 560 Week 4 Quiz 2 (Chapter 4) For more course tutorials visit www.tutorialrank.com ACC 560 Week 4 Quiz 2 (Chapter 4) Question 1 Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso’s total overhead costs consist of assembly costs and inspection costs. The following information is available: Cost Titanium Aluminum Total Cost Assembly 500 mach. hours 500 mach. hours $60,000 Inspections 350 150 $100,000 2,100 labor hours 1,900 labor hours Reynoso is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, how much assembly cost is assigned to titanium racquets Question 2

28. Boswell Company manufactures two products, Regular and Supreme. Boswell’s overhead costs consist of machining, $3,000,000; and assembling, $1,500,000. Information on the two products is: Regular Supreme Direct labor hours 10,000 15,000 Machine hours 10,000 30,000 Number of parts 90,000 160,000 Overhead applied to Regular using activity-based costing is Question 3 Which best describes the flow of overhead costs in an activity-based costing system? Question 4 An activity-based overhead rate is computed as follows: Question 5 Estimated costs for activity cost pools and other item(s) are as follows: Machining $500,000 Assembling 200,000 Advertising 450,000 Inspecting and testing 175,000 Total estimated overhead is Question 6

29. The presence of any of the following factors would suggest a switch to ABC except when Question 7 Use of activity-based costing will result in the development of Question 8 An example of an activity cost pool is Question 9 Direct labor is sometimes the appropriate basis for assigning overhead cost to products. It is appropriate to use direct labor when which of the following is true? (1) Direct labor constitutes a significant part of total product cost. (2) A high correlation exists between direct labor and changes in the amount of overhead costs. Question 10 An activity that has a direct cause-effect relationship with the resources consumed is a(n) ******************************************* ACC 560 Week 5 DQ Transfer Pricing For more course tutorials visit www.tutorialrank.com

30. "Transfer Pricing" Please respond to the following: · Read the article titled, “What Manufacturers Need to Know about Transfer Pricing”. Next, assess the major potential problems that a multinational firm could encounter when using negotiated transfer pricing instead of market-basedtransfer pricing. Provide one (1) recommendation to the firm on how to avoid these problems. · Evaluate the validity of the accounting ethics of creating, initiating, or adjusting transactions to repatriate excess cash for multinational firms in transfer pricing ******************************************* ACC 560 Week 5 Homework Chapter 7 and chapter 8 (E7-3, E7-7, E7-11, P7-3A, E8-2, E8-6, E8-9, P8-5A) For more course tutorials visit www.tutorialrank.com ACC 560 Week 5 Homework Chapter 7 and chapter 8 (E7-3, E7-7, E7-11, P7-3A, E8-2, E8-6, E8-9, P8-5A) Chapter 7: Incremental Analysis and Chapter 8: Pricing

31. Chapter 7: Exercises 3, 7, and 11, P7-3A Chapter 8: Exercises 2, 6, and 9, P8-3A E7-3 Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity: Sales (350,000 units) $4,375,000 Cost of goods sold 2,600,000 Gross profit 1,775,000 Operating expenses 840,000 Net income $ 935,000 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Moonbeam receives a special order for 15,000 toasters at $7.60 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed costs. Instructions Prepare an incremental analysis for the special order. Should Moonbeam accept the special order? Why or why not? E7-7 Riggs Company purchases sails and produces sailboats. It currently produces 1,200 sailboats per year, operating at normal capacity, which is

32. about 80% of full capacity. Riggs purchases sails at $250 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $100 for direct materials, $80 for direct labor, and $90 for overhead. The $90 overhead is based on $78,000 of annual fixed overhead that is allocated using normal capacity. The president of Riggs has come to you for advice. “It would cost me $270 to make the sails,” she says, “but only $250 to buy them. Should I continue buying them, or have I missed something?” Instructions a. Prepare a per unit analysis of the differential costs. Briefly explain whether Riggs should make or buy the sails. b. If Riggs suddenly finds an opportunity to rent out the unused capacity of its factory for $77,000 per year, would your answer to part (a) change? Briefly explain. E7-11 Kirk Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and Sulu. Each of these products can be sold as is, or each can be processed further and sold for a higher price. The company incurs joint costs of $180,000 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available for one batch of each product. Sales Value at Sales Value of

33. Split-Off Point Allocated Joint Costs Cost to Process Further Processed Product Spock $300,000 $210,000 $40,000 $110,000 Uhura 400,000 300,000 60,000 85,000 Sulu 800,000 455,000 80,000 250,000 Instructions a. Determine whether each of the three joint products should be sold as is, or processed further. P7-3A Thompson Industrial Products Inc. (TIPI) is a diversified industrial- cleaner processing company. The company's Dargan plant produces two products: a table cleaner and a floor cleaner from a common set of chemical inputs (CDG). Each week, 900,000 ounces of chemical input are processed at a cost of $210,000 into 600,000 ounces of floor cleaner and 300,000 ounces of table cleaner. The floor cleaner has no market value until it is converted into a polish with the trade name Floor Shine. The additional processing costs for this conversion amount to $240,000. Floor Shine sells at $20 per 30-ounce bottle. The table cleaner can be sold for $17 per 25-ounce bottle. However, the table cleaner can be converted into two other products by adding 300,000 ounces of another compound (TCP) to the 300,000 ounces of table cleaner. This joint process will yield 300,000 ounces each of table stain remover (TSR) and

34. table polish (TP). The additional processing costs for this process amount to $100,000. Both table products can be sold for $14 per 25- ounce bottle. The company decided not to process the table cleaner into TSR and TP based on the following analysis. Instructions 1. process the table cleaner further by doing the following. Determine if management made the correct decision to not 1. table cleaner is not processed further. Calculate the company's total weekly gross profit assuming the 2. table cleaner is processed further. Calculate the company's total weekly gross profit assuming the (2) Gross profit $186,000 3. decision. Compare the resulting net incomes and comment on management's 2. should be processed further. using incremental analysis, determine if the table cleaner E8-2 Eckert Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure yardages on the golf course. One small laser gun, called Little Laser, appears to have a very large potential market. Because of competition, Eckert does not believe that it can charge more than $90 for Little Laser. At this price, Eckert believes it can sell 100,000 of these laser guns. Eckert will require an investment of $8,000,000 to manufacture, and the company wants an ROI of 20%.

35. Instructions a. Determine the target cost for one Little Laser. E8-6 Alma's Recording Studio rents studio time to musicians in 2-hour blocks. Each session includes the use of the studio facilities, a digital recording of the performance, and a professional music producer/mixer. Anticipated annual volume is 1,000 sessions. The company has invested $2,352,000 in the studio and expects a return on investment (ROI) of 20%. Budgeted costs for the coming year are as follows. a. Determine the total cost per session b. Determine the desired ROI per session c. Calculate the markup percentage on the total cost per session. d. Calculate the target price per session. E8-9 Rey Custom Electronics (RCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time and material pricing. The following budgeted cost data are available. Time Charges Material Loading Charges Technicians' wages and benefits $150,000

36. Parts manager's salary and benefits $34,000 — Office employee's salary and benefits 15,000 30,000 Other overhead 42,000 15,000 Total budgeted costs $91,000 $195,000 The company has budgeted for 6,250 hours of technician time during the coming year. It desires a $38 profit margin per hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2017 will be $700,000. Instructions a. Compute the rate charged per hour of labor. b. Compute the material loading percentage. c. RCE has just received a request for a bid from Buil Builders on a $1,200,000 new home. The company estimates that it would require 80 hours of labor and $40,000 of parts. Compute the total estimated bill. P8-5A Gutierrez Company makes various electronic products. The company is divided into a number of autonomous divisions that can either sell to internal units or sell externally. All divisions are located in buildings on the same piece of property. The Board Division has offered the Chip Division $21 per unit to supply it with chips for 40,000 boards. It has been purchasing these chips for $22 per unit from outside suppliers. The Chip Division receives $22.50 per unit for sales made to outside

37. customers on this type of chip. The variable cost of chips sold externally by the Chip Division is $14.50. It estimates that it will save $4.50 per chip of selling expenses on units sold internally to the Board Division. The Chip Division has no excess capacity. Instructions 1. accept. Discuss whether it is in the Chip Division's best interest to accept the offer. Calculate the minimum transfer price that the Chip Division should 2. are the financial implications for each division, and for the company as a whole, of this decision? Suppose that the Chip Division decides to reject the offer. What ******************************************* ACC 560 Week 5 Quiz 3 (Chapters 5 and 6) For more course tutorials visit www.tutorialrank.com ACC 560 Week 5 Quiz 3 (Chapters 5 and 6) Question 1 A company with a higher contribution margin ratio is Question 2

38. The contribution margin ratio is Question 3 In 2016, Teller Company sold 3,000 units at $600 each. Variable expenses were $420 per unit, and fixed expenses were $270,000. The same selling price, variable expenses, and fixed expenses are expected for 2017. What is Teller’s break-even point in sales dollars for 2017? Question 4 Sales mix is Question 5 The margin of safety ratio Question 6 To which function of management is CVP analysis most applicable? Question 7 Frazier Manufacturing Company collected the following production data for the past month: Units Produced Total Cost 1,600 $66,000 1,300 57,000 1,500 67,500 1,100 49,500 If the high-low method is used, what is the monthly total cost equation? Question 8

39. Weather spoon Company has a product with a selling price per unit of $200, the unit variable cost is $110, and the total monthly fixed costs are $300,000. How much is Weatherspoon’s contribution margin ratio? Question 9 Two costs at Bradshaw Company appear below for specific months of operation. Month Amount Units Produced Delivery costs September $ 40,000 40,000 October 55,000 60,000 Utilities September $ 84,000 40,000 October 126,000 60,000 Which type of costs are these? Question 10 The equation which reflects a CVP income statement ******************************************* ACC 560 Week 6 DQ Flexible Budget For more course tutorials visit www.tutorialrank.com

40. Use the Internet and/or Strayer Learning Resource Center to research folling forecasts as an alternative to budgets. Next, take a position at to whether or not a flexible budget approach dilutes the value of a budget process in the organization. Provide a rationale for your position Evaluate the impact to a business when compensation, such as sales commissions and bonuses, are tied to achieving budgeted expectations. Suggest two (2) actions that management can take in order to prevent employees from manipulating results. ******************************************* ACC 560 Week 6 Homework Chapter 9 and Chapter 10 (E9-3, E9-8, E9-15, P9-5A, E10-3, E10-5, E10-17, P10-5A) For more course tutorials visit www.tutorialrank.com ACC 560 Week 6 Homework Chapter 9 and Chapter 10 (E9-3, E9-8, E9-15, P9-5A, E10-3, E10-5, E10-17, P10-5A) Chapter 9: Budgetary Planning and Chapter 10: Budgetary Control and Responsibility Accounting E9-3

41. Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2017). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below. Department Quarter 1 Quarter 2 Quarter 3 Quarter 4 Auditing 2,300 1,600 2,000 2,400 Tax 3,000 2,200 2,000 2,500 Consulting 1,500 1,500

42. 1,500 1,500 Average hourly billing rates are auditing $80, tax $90, and consulting $110. Instructions Prepare the service revenue (sales) budget for 2017 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue. Prepare quarterly production budgets. E9-8 Fuqua Company's sales budget projects unit sales of part 198Z of 10,000 units in January, 12,000 units in February, and 13,000 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $2 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2016. Instructions 1. Prepare a production budget for January and February 2017. 2. Prepare a direct materials budget for January 2017. Prepare a direct labor budget. E9-15 Deitz Corporation is projecting a cash balance of $30,000 in its December 31, 2016, balance sheet. Deitz's schedule of expected

43. collections from customers for the first quarter of 2017 shows total collections of $185,000. The schedule of expected payments for direct materials for the first quarter of 2017 shows total payments of $43,000. Other information gathered for the first quarter of 2017 is sale of equipment $3,000, direct labor $70,000, manufacturing overhead $35,000, selling and administrative expenses $45,000, and purchase of securities $14,000. Deitz wants to maintain a balance of at least $25,000 cash at the end of each quarter. Instructions Prepare a cash budget for the first quarter. Prepare cash budget for a month. P9-5A the budget committee of Suppar Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2017. 1. are expected to be 5% higher than the preceding month. Sales for May are expected to be $800,000. Sales in June and July 2. Cost of goods sold is expected to be 75% of sales. 3. 10% of the following month's cost of goods sold. Company policy is to maintain ending merchandise inventory at 4. Operating expenses are estimated to be as follows: Question 5 Interest expense is $2,000 per month. Income taxes are estimated to be 30% of income before income taxes. Instructions

44. 1. in columnar form. Prepare the merchandise purchases budget for each month 2. month in columnar form. Show in the statements the details of cost of goods sold. Prepare budgeted multiple-step income statements for each Prepare budgeted cost of goods sold, income statement, retained earnings, and balance sheet. E10-3 Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.00 Indirect materials 0.70 Utilities 0.40 Fixed overhead costs per month are supervision $4,000, depreciation $1,200, and property taxes $800. The company believes it will normally operate in a range of 7,000–10,000 direct labor hours per month. Instructions Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using increments of 1,000 direct labor hours.

45. Prepare flexible budget reports for manufacturing overhead costs, and comment on findings. E10-5 Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $170,000 to $200,000. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 4%, traveling 3%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,000, depreciation on delivery equipment $7,000, and insurance on delivery equipment $1,000. Instructions Prepare a monthly flexible budget for each $10,000 increment of sales within the relevant range for the year ending December 31, 2017. Prepare flexible budget reports for selling expenses. E10-17 The South Division of Wiig Company reported the following data for the current year. Sales $3,000,000 Variable costs 1,950,000 Controllable fixed costs 600,000 Average operating assets

46. 5,000,000 Top management is unhappy with the investment center's return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action. 1. margin percentage. Increase sales by $300,000 with no change in the contribution 2. Reduce variable costs by $150,000. 3. Reduce average operating assets by 4%. Instructions 1. Compute the return on investment (ROI) for the current year. 2. proposed courses of action. (Round to one decimal.) Using the ROI formula, compute the ROI under each of the Prepare a responsibility report for an investment center. P10-5A Optimus Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2017, and relevant budget data are as follows. Actual Comparison with Budget Sales $1,400,000

47. $100,000 favorable Variable cost of goods sold 665,000 45,000 unfavorable Variable selling and administrative expenses 125,000 25,000 unfavorable Controllable fixed cost of goods sold 170,000 On target Controllable fixed selling and administrative expenses 80,000 On target Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount. Instructions 1. the Home Division. Prepare a responsibility report (in thousands of dollars) for 2. likely be investigated by top management? Evaluate the manager's performance. Which items will 3. assuming the following independent changes to actual data. Compute the expected ROI in 2017 for the Home Division,

48. 1. Variable cost of goods sold is decreased by 5%. 2. Average operating assets are decreased by 10%. 3. increase contribution margin by $80,000. Sales are increased by $200,000, and this increase is expected to Prepare reports for cost centers under responsibility accounting, and comment on performance of managers. ******************************************* ACC 560 Week 6 Quiz 4 (Chapters 7 and 8) For more course tutorials visit www.tutorialrank.com ACC 560 Week 6 Quiz 4 (Chapters 7 and 8) Question 1 In March 2016, Wheels ‘N Spokes repairs a bicycle that takes two hours to repair and uses parts of $240. The bill for this repair would be Question 2 In cost-plus pricing, the target selling price is computed as Question 3

49. The labor charge per hour in time-and-material pricing includes all of the following Question 4 A company that is a price taker would most likely use which of the following methods? Question 5 The desired ROI per unit is calculated by Question 6 A company is contemplating the acceptance of a special order. The order would not affect regular sales and could be filled without exceeding plant capacity. However, a new stamping machine would have to be purchased in order to stamp the customer’s name on the product. Which of the following is likely? Question 7 Which statement is true concerning the decision rule on whether to make or buy? Question 8 The opportunity cost of an alternate course of action that is relevant to a make-or-buy decision is Question 9 Martin Company incurred the following costs for 70,000 units: Variable costs $420,000 Fixed costs 392,000

50. Martin has received a special order from a foreign company for 3,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6,300 for shipping. If Martin wants to earn $6,000 on the order, what should the unit price be? Question 10 Incremental analysis is most useful ******************************************* ACC 560 Week 7 DQ Variance Analysis and Balanced Scorecards For more course tutorials visit www.tutorialrank.com Week 6 details: Variance Analysis and Balanced Scorecards" Please respond to the following:  Use the Internet and/or Strayer Learning Resource Center to research a company that has implemented a balanced scorecard system for evaluating performance. Suggest at least two (2) variance measures the identified company can employ in a balanced scorecard performance evaluation system, and examine how the company can use these variances to improve performance.