Bandar Industries Berhad of Malaysia manufactures sports equipment. One of the company's products, a football helmet for the US market requires a special plastic. In the quarter that ended on June 30, the company manufactured 35,000 helmets with 22500 kilos of plastic. The plastic costs the company $ 171,000. According to the standard cost sheet, each helmet must carry 0.6 kilos of plastic, at a cost of eight units per kilo. Question 1a. Determine the cost that must have been incurred to manufacture 35,000 helmets (TOTAL STANDARD COST). Question 1b. Determine how much higher or lower the total standard cost is than the actual cost incurred (TOTAL VARIATION). Question 2. Breakdown total variation of materials between the price change of materials and variation in the amount of materials

Heartland Watches Case

Imagine that you have just started working at Heartland Watches, a manufacturer of women's wristwatches, Following is the income statement of Heartland Watches for the last fiscal year.

Heartland Watches had manufactured 2 million watches, which had been sold to various department stores. At the start of 2017, Jodie Velasquez became the new president. She knew very little about accounting and manufacturing. Jodie has several questions, including inquiries about pricing of special orders.

A: To prepare better answers, you decide to convert the traditional income statement shown into a Contribution Format Income Statement. Total variable manufacturing cost was $18 million. Total variable selling and administrative expenses were $9 million. Prepare the revised Contribution Format Income Statement.

B: Complete the following table for Jodie, including your calculations:

C: Jodie says, "Near the end of 2016, I brought in a special order from Target for 100,000 watches at $16 each. I said I'd accept a flat $20,000 sales commission instead of the usual 6% of selling price, but my sister refused the order. She usually upheld a relatively rigid pricing policy, saying that it was bad business to accept orders that did not at least generate full manufacturing cost plus 80% of full manufacturing cost. That policy bothered me. We had idle capacity. The way I figured, our manufacturing costs would go up by 100,000 x $11 = $1,100,000, but our selling and administrative expenses would go up by only $20,000. That would mean additional operating income of 100,000 x ($16-$11) minus $20,000, or $500,000 minus $20,000, $480,000. That's too much money to give up just to maintain a general pricing policy. Was my analysis of the impact on operating income correct? If not, please show me the correct additional operating income."

Prepare a memo for Jodie summarizing your response. Answers must include supporting calculations.

D: After receiving the explanations offered in B and C, Jodie said, "Forget the Target order. I had an even bigger order from Lands' End. It was for 500,000 units and would have filled the plant completely. I told my sister I'd settle for no commission. There would have been no selling and administrative costs whatsoever because Lands' End would pay for the shipping and would not get any advertising allowances.

Lands' End offered $8.70 per unit. Our fixed manufacturing costs would have been spread over 2.5 million instead of 2 million units, Wouldn't it have been advantageous to accept the order? Our old fixed manufacturing costs were $2.00 per unit. The added volume would reduce the cost more than our loss on our variable costs per unit. Am I correct? What would have been the impact on total operating income if we had accepted the order?"

Prepare a memo for Jodie summarizing your response. Answers must include supporting calculations.

1. High-Low Method

   Luisa Crimini has been operating a beauty shop in a college town for the past 10 years. Recently, Luisa rented space next to her shop and opened a tanning salon. She anticipated that the costs for the tanning service would primarily be fixed, but found that tanning salon costs increased with the number of appointments. Costs for this service over the past 8 months are as follows:

   		Tanning
   Month		Appointments			Total Cost
   January		800			$1,758
   February		2,100			$2,150
   March		3,200			$2,790
   April		2,500			$2,500
   May		1,600			$1,800
   June		2,200			$2,255
   July		2,150			$2,300
   August		3,000			$2,640

   Required:

   1. Which month represents the high point? The low point?

   High point
   Low point

   In your calculations, round per unit costs to the nearest cent.

   2. Using the high-low method, compute the variable rate for tanning. Compute the fixed cost per month. Round the variable rate per tanning appointment to the nearest cent and use it in your further calculations. Round the fixed cost per month to the nearest dollar and use it in your further calculations.

   Variable rate for tanning	$ per tanning appointment
   Fixed cost per month	$

   3. Using the variable rate and fixed cost, what is the cost formula for tanning services?
   
   

   4. Calculate the total predicted cost of tanning services for September for 2,500 appointments using the formula found in Requirement 3. Of that total cost, how much is the total fixed cost for September? How much is the total predicted variable cost for September? If required, round the final answers to the nearest dollar.

   Total predicted cost for September	$
   Total fixed cost for September	$
   Total predicted variable cost for September	$

   5. Which of the following statements is correct when luisa uses the high-low method to estimate the costs?

Hiram’s Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified three major activities and then completed the first-stage allocations of costs to the activity cost pools. The results appear below.

The above costs include all of the costs of the restaurant except for organization-sustaining costs such as rent, property taxes, and top-management salaries.

Some costs, such as the cost of cleaning the linens that cover the restaurant's tables, vary with the number of parties served. Other costs, such as washing plates and glasses, depend on the number of diners served or the number of drinks served.

Prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. She knew that the total cost for the month (including organization-sustaining costs) was $180,000 and that 12,000 diners had been served. Therefore, the average cost per diner was $15.

Required:

1&2. According to the activity-based costing system, what is the total cost and average cost per diner for serving each of the following parties of dinners? (Round your intermediate calculations to 2 decimal places. Round your Total Cost final answers to 2 decimal places and your Average Cost final answers to 3 decimal places.)

1. A party with 3 diners and 4 drinks: total cost? avg per diner?

2. A party with 2 diners: total cost? avg per diner?

3. A party with 1 diners and 3 drinks: total cost? avg per diner?

LIFO Perpetual Inventory

The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:

Required:

1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Round unit cost to two decimal places, if necessary.

2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.

3. Determine the ending inventory cost as of March 31.
$

Please answer in exact places in order for me to know what I'm checking, if its answer in different table formats, areas etc it would be wrong

thanks

Organic Dairy produces an organic butter that is sold by the pound. The production of the butter begins in the Churning Department.

Requirement 1. Prepare a production cost report for

JanuaryJanuary

for the Churning Department.

Prepare a production cost report for the Churning​ Department, one section at a time. ​(For entries with a​ $0 balance, make sure to enter​ "0" in the appropriate​ cell(s). Round cost per equivalent unit amounts to the nearest​ cent, $X.XX.)

Requirement 2. How much did it cost to make one pound of butter in the Churning​ Department? ​(Round all amounts to the nearest​ cent, $X.XX.)

Requirement 3. How much did it cost to make a partially completed pound of butter in the Churning​ Department? Does this make​ sense? Why or why​ not?

How much did it cost to make a partially completed pound of butter in the Churning​ Department? ​(Round all amounts to the nearest​ cent, $X.XX.)

Does this make​ sense? Why or why​ not?

An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume.

In the Microsoft Excel Online file below you will find a sample of production volumes and total cost data for a manufacturing operation. Conduct a regression analysis to explore the relationship between total cost and production volume and then answer the questions that follow.

1. Compute b₁ and b₀ (to 1 decimal).

   b₁

   b₀

   Complete the estimated regression equation (to 1 decimal).

   =  + x

2. According to this model, what is the change in cost (in dollars) for every unit produced (to 1 decimal)?

3. Compute the coefficient of determination (to 3 decimals). Note: report r² between 0 and 1.

   r² =

   What percentage of the variation in total cost can be explained by the production volume (to 1 decimal)?

   %

4. The company's production schedule shows 500 units must be produced next month. What is the estimated total cost for this operation (to the nearest whole number)?

   $

Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the process. During November, the company transferred 755,000 units of product to finished goods. At the end of November, the work in process inventory consists of 199,000 units that are 50% complete with respect to conversion. Beginning inventory had $558,090 of direct materials and $128,175 of conversion cost. The direct material cost added in November is $3,734,910, and the conversion cost added is $2,435,325. Beginning work in process consisted of 67,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 67,000 were from beginning work in process and 688,000 units were started and completed during the period.

3. Compute the direct material cost and the conversion cost assigned to units completed and transferred out and ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.)

Maglie Company manufactures two video game consoles: handheld and home. The handheld consoles are smaller and less expensive than the home consoles. The company only recently began producing the home model. Since the introduction of the new product, profits have been steadily declining. Management believes that the accounting system is not accurately allocating costs to products, particularly because sales of the new product have been increasing.

Management has asked you to investigate the cost allocation problem. You find that manufacturing overhead is currently assigned to products based on their direct labor costs. For your investigation, you have data from last year. Manufacturing overhead was $1,254,000 based on production of 350,000 handheld consoles and 107,000 home consoles. Direct labor and direct materials costs were as follows:

Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year are as follows:

Required:

a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product? (Round "Total cost per unit" to 2 decimal places.)

b. How much overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product? (Do not round intermediate calculations. Round "Total cost per unit" to 2 decimal places.)

Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company’s two versions of a special reel used for river fishing. The two models are the M-008, a basic reel, and the M-123, a new and improved version. Cost accountants at company headquarters have prepared costs for the two reels for the most recent period. The plant manager is concerned. The cost report does not coincide with her intuition about the relative costs of the two models. She has asked you to review the cost accounting and help her prepare a response to headquarters.

Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $244,000. During that time, the company produced 10,000 units of the M-008 and 2,100 units of the M-123. The direct costs of production were as follows.

Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows.

Required:

a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product?

b. How much of the overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product?

a. M-008 M-123

Total Overhead

Total Unit Cost

b. M-008 M-123

Total Overhead

Total Unit Cost