Exercise 9-3 Service department expenses allocated to operating departments LO P2

Advertising department expenses of $57,800 and purchasing department expenses of $57,800 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows.
  

  
Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.

Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.

Contribution Margin, Unit Amounts, Break-Even Units

Information on four independent companies follows. Calculate the correct amount for each answer blank.

Unless otherwise instructed, round all total dollar figures (e.g., sales, total contribution margin) to the nearest dollar, breakeven or target units to the nearest unit, and unit costs and unit contribution margins to the nearest cent. Round ratios to four significant digits. Use the minus sign to indicate an operating loss.

Work in Process Account Data for Two Months; Cost of Production Reports

Pittsburgh Aluminum Company uses a process cost system to record the costs of manufacturing rolled aluminum, which consists of the smelting and rolling processes. Materials are entered from smelting at the beginning of the rolling process. The inventory of Work in Process—Rolling on September 1 and debits to the account during September were as follows:

During September, 600 units in process on September 1 were completed, and of the 14,160 units entering the department, all were completed except 1,000 units that were 90% completed. Charges to Work in Process—Rolling for October were as follows:

During October, the units in process at the beginning of the month were completed, and of the 16,300 units entering the department, all were completed except 800 units that were 60% completed.

Required:

1. Enter the balance as of September 1 in a four-column account for Work in Process—Rolling. Record the debits and the credits in the account for September. Construct a cost of production report and present computations for determining (a) equivalent units of production for materials and conversion, (b) costs per equivalent unit, (c) cost of goods finished, differentiating between units started in the prior period and units started and finished in September, and (d) work in process inventory. If an amount box does not require an entry, leave it blank.

If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent.

2. Provide the same information for October by recording the October transactions in the four-column work in process account. Construct a cost of production report, and present the October computations (a through d) listed in part (1). If an amount box does not require an entry, leave it blank.

If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent.

Hearty Soup Co. uses a process cost system to record the costs of processing soup, which requires the cooking and filling processes. Materials are entered from the cooking process at the beginning of the filling process. The inventory of Work in Process-Filling on April 1 and debits to the account during April were as follows:

During April, 700 units in process on April 1 were completed, and of the 7,400 units entering the department, all were completed except 500 units that were 90% completed.

Charges to Work in Process-Filling for May were as follows:

During May, the units in process at the beginning of the month were completed, and of the 9,500 units entering the department, all were completed except 400 units that were 35% completed.

Everywhere there is a "?", I need a formula and the answer.

At an activity level of 8,400 units in a month, Braughton Corporation’s total variable maintenance and repair cost is $697,284 and its total fixed maintenance and repair cost is $464,100. What would be the total maintenance and repair cost, both fixed and variable, at an activity level of 8,500 units in a month? Assume that this level of activity is within the relevant range. (Round intermediate calculations to 2 decimal places.)

Multiple Choice

• $1,168,297

• $1,175,210

• $1,161,384

• $1,169,685

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Wages paid to the supervisor of the warehouse where raw materials and parts are temporarily stored before being used in production is considered an example of:

Multiple Choice

• Choice D

• Choice C

• Choice A

• Choice B

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A cement manufacturer has supplied the following data:

If the company increases its unit sales volume by 4% without increasing its fixed expenses, then total net operating income should be closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

• $318,240

• $12,240

• $311,973

• $360,400

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As the level of activity increases, how will a mixed cost in total and per unit behave?

Multiple Choice

• Choice E

• Choice C

• Choice A

• Choice B

• Choice D

Since each question correlates to the other question please supply all ten questions in a spreadsheet style format :

Brad's Baskets, a manufacturing business that sells baskets, wants a master budget prepared for the first three months of this year (January, February and March).

The managers of the different departments have provided the following information: The Sales Manager has projected the following sales:

January           5,000 units

February         4,000 units

March              6,000 units

April                5,000 units

May                11,250 units

Projected selling price is $35.00/unit

*Your Production Manager gave the following information:

Ending Inventory is to be 20% of next month’s production needs

April’s Projected Sales 5,000 units

December 20X5 Ending Inventory was 1,000 units and December unit cost was $23.50.

*The Manufacturing Manager has estimated the following:

Each unit will require 4 grams of material

Material in Ending Inventory is 20% of next month’s needs

December’s Ending Material Inventory was 4,800 g

Projected cost of material: $2.50/gram

*The Personnel Manager has estimated that Direct Labor will be projected at:

0.75 hours of Direct Labor per unit

Direct Labor Cost: $8.50/hour

*The Facilities Manager has estimated that the Manufacturing Overhead will be projected at:

Variable Overhead Rate to be $8 per Direct Labor hours

Fixed Overhead Rate to be $3,000 per month

*The Accounting Department Manager has provided the following information:

Selling and Administrative Expenses are projected to be a monthly cost of:

Salaries               $6,000

Rent                     $1,500

Advertising          $1,100

Telephone              $300

Other                       $500

*Cash Receivable:

December’s Sales were $150,000

80% of sales is collected in the month in which they were made

20% of sales collected in the following month in which they were made

Bad Debts is negligible

*Accounts Payable:

80% of Payables is paid for in the current month

20% of Payables is paid for in the following month

December’s purchases were $50,000

*Federal Income Tax is estimated at 22% average.

*Brad's Baskets

has a $20,000 cash balance for the beginning of January

pays Dividends of $8,000 to be paid in March

pays projected Federal Income tax in March

depreciation on the building is $150 per month

does not carry any WIP inventory

uses FIFO inventory costing

*From the beginning Balance Sheet:

Land = $150,000

Building = $45,000

Depreciation (Building) = $11,250

Retained Earnings = $58,780

Capital Stock = $200,470

For the Master Budget, you are expected to prepare the following:

1. Sales budget plus schedule of accounts receivable collections

2. Production budget

3. Direct materials budget and schedule of cash payments for purchases

4. Direct labor budget

5. Manufacturing overhead budget

6. Cost of Goods Sold Budget (When you prepare the cost of goods sold budget, you must calculate a unit cost for each month. You must also calculate cost of goods manufactured.)

7. Selling & Administrative Expenses Budget

8. Budgeted income statements

9. Cash budget

10. Budgeted balance sheet for each month plus a beginning balance sheet

Note: there is no Work in Process inventory but you must calculate direct materials used.

Check your work figures: These are the values of some of the totals you should have to verify correct calculations

Total March sales, $210,000

Total February cash collections, $147,000 Total February units to produce, 4,400

Total March direct materials purchase, $58,900

Total February cash disbursements for raw materials, $46,400 Total January direct labor, $30,600

Total March overhead, $37,800

Total January selling & admin, $9,400 Total February cost of goods sold, $92,182 Total March cost per unit, $22.89

Total March cost of goods manufactured, $132,775 Total January 1 Assets, $269,250

Ending cash, March 31, $120,209 Net income, February, $29,849 Total Assets, March, $380,901

[The following information applies to the questions displayed below.]

The following data pertain to Lawn Master Corporation’s top-of-the-line lawn mower.

To achieve a target price of $541 per lawn mower, the markup percentage is 12.7 percent on total unit cost.

Required:

1. What is the fixed selling and administrative cost allocated to each unit of Lawn Master’s top-of-the-line mower? (Do not round your intermediate computations. Round your final answer to the nearest dollar amount.)
2. For each of the following cost bases, develop a cost-plus pricing formula that will result in a target price of $541 per mower: (Round your percentage answers to 2 decimal places (i.e., .1234 should be entered as 12.34).)

Suppose we wish to build a multiple regression model to predict the cost of rent (dollars) in a city based on population (thousands of people), and income (thousands of dollars). Use the alpha level of 0.05.

5. What are the values of the estimated slope for the variable “Population”? Interpret the value in terms of actual names of IVs and the DV.

6. Does Income significantly influence the Rent at the alpha level of 0.01? Make sure to show which values you use to make the decision.

7. Does Population significantly influence the Rent at the alpha level of 0.01? Make sure to show which values you use to make the decision.