Profit-Linked Productivity Measurement

In 2015, Choctaw Company implements a new process affecting labor and materials.

Choctaw Company provides the following information so that total productivity can be valued:

Required:

1. Calculate the cost of inputs in 2015, assuming no productivity change from 2014 to 2015. If required, round your answers to the nearest dollar.

2. Calculate the actual cost of inputs for 2015. If required, round your answers to the nearest dollar.

What is the net value of the productivity changes? If required, round your answers to the nearest dollar.
$

How much profit change is attributable to each input's productivity change? If an item is negative, use a minus (-) sign to indicate.

3. What if a manager wants to know how much of the total profit change from 2014 to 2015 is attributable to price recovery? Calculate the total profit change.
$

Calculate the price-recovery component.
$

SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 4,800 of these meals using 1,400 direct labor-hours. The company paid these direct labor workers a total of $18,200 for this work, or $13.00 per hour.

According to the standard cost card for this meal, it should require 0.30 direct labor-hours at a cost of $12.50 per hour.

   
Required:

1. According to the standards, what direct labor cost should have been incurred to prepare 4,800 meals? How much does this differ from the actual direct labor cost? (Round labor-hours per meal and labor cost per hour to 2 decimal places.)

2. Break down the difference computed in (1) above into a labor rate variance and a labor efficiency variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

LIFO Perpetual Inventory

The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period 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 3, 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.

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 June 30.
$

Profit-Linked Productivity Measurement

In 20x2, Choctaw Company implements a new process affecting labor and materials.

Choctaw Company provides the following information so that total productivity can be valued:

Required:

1. Calculate the cost of inputs in 20x2, assuming no productivity change from 20x1 to 20x2. If required, round your answers to the nearest dollar.

2. Calculate the actual cost of inputs for 20x2. If required, round your answers to the nearest dollar.

What is the net value of the productivity changes? If required, round your answers to the nearest dollar.
$

How much profit change is attributable to each input's productivity change? If an item is negative, use a minus (-) sign to indicate.

3. What if a manager wants to know how much of the total profit change from 20x1 to 20x2 is attributable to price recovery? Calculate the total profit change.
$

Calculate the price-recovery component.
$

1. Alisha Incorporated manufactures medical stents for use in heart bypass surgery. Based on past experience, Alisha has found that its total maintenance costs can be represented by the following formula: Maintenance Cost = $1,850,000 + $250X, where X = Number of Heart Stents. Last year, Alisha produced 52,000 stents. Actual maintenance costs for the year were as expected.

   Required:

   If required, round your answers to the nearest cent.

   1. What is the total maintenance cost incurred by Alisha last year?
   
   $

   2. What is the total fixed maintenance cost incurred by Alisha last year?
   
   $

   3. What is the total variable maintenance cost incurred by Alisha last year?
   
   $

   4. What is the maintenance cost per unit produced?
   
   $per unit

   5. What is the fixed maintenance cost per unit?
   
   $per unit

   6. What is the variable maintenance cost per unit?
   
   $per unit

   7. Alisha management could improve its cost function to better understand past maintenance costs and predict future maintenance costs by: Identifying Additional Drivers of Maintenance Cost

SUPER CLEAN realises that the traditional method of allocating overhead is not accurate because the gas and depreciation do not vary with direct labour. The company wants to use the activity-based-costing system to allocate the costs of the receptionist, office supplies, gas and car usage (depreciation) in order to get more accurate cost estimates. This information will help management to give more accurate quotes and improve the company’s profitability.

Break-down of costs between commercial and residential cleanings.

Commercial

Residential

The direct labour is $21/hour and the cleaning supplies (direct material) cost is $5.50 per liter. The cleaning supplies are 0.2 liter per labour hour for commercial cleaning and 0.1 liter per labour hour for residential cleaning.

During the course of the week, SUPER CLEAN worked on two jobs.

Required – Part B:

1. Estimate the total overhead costs and overhead cost per unit hour for each job.
2. Estimate the total costs (including direct labour and material) and total cost per unit for job 1 (residential) and job 2 (commercial).
3. Estimate total cost for Jobs 1 and 2 using traditional costing

Factory Overhead Cost Variance Report

Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 8,000 hours for production:

Tannin has available 12,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 7,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows:

Construct a factory overhead cost variance report for the Trim Department for July. Enter all amounts as positive numbers. If an amount box does not require an entry, leave it blank. Round your interim computations to the nearest cent, if required.

Please explain steps

1)what is accounting

2) What is difference between financial accounting and cost accounting

3) What are the parts of financial statement

4) what is the difference between income statement and balance sheet

5 ) sales 100,000 cost of goods sold 50,000 operating exp 10,000 ( compute net income for the company

6) sales return 10,000 sales discount 25,000 net sales 200,000 ( compute the gross sales )

7 ) beginning inventory 10,000 total cost of purchases 200,000 ending inventory 50,000 ( compute cost of goods sold )

8) cost of goods sold 50,000 ending inventory 10,000 total cost purchases 45,000 ( compute cost of beginning inventory )

9) net profit 20,000 operating exp 10,000 cost of goods sold 50,000 ( compute total sales )

10) cost of goods sold 50,000 operating exp 30,000 net profit 20,000 ( compute total sales )

11) cost of raw material used 20,000 direct labor 10,000 Factory over head 20,000 ( compute manufacturing cost - prime cost - conversion cost )

12 ) Manufacturing cost 100,000 cost of work in process beginning 20,000 and cost of work in process ending 30,000 ( cost of goods manufactured )

13 ) what is the difference between cost of goods manufactured and cost of goods sold

14) finished goods beginning 10,000 cost of goods manufactured 50,000 cost of finished goods ending 30,000 ( cost of goods sold )

15 ) cost of goods sold 100,000 cost of goods manufactured 70,000 cost of finished goods ending 20,000 ( cost of finished goods beginning )