Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced, and overhead costs of $94,500 were estimated. An analysis of estimated overhead costs reveals the following activities.

The cost driver volume for each product was as follows.

(c)

Write a memorandum to the president of Air United explaining the benefits of activity-based costing.

On July 1, the start of its fiscal year, Lavaca County reported the following balances ($ in thousands):

Fund balance:

Committed for encumbrances $400

Unassigned $800

Total fund balance $1,300

During the year, the county ($ in thousands):

• Estimated that revenues for the year would be $13,400

• Appropriated $13,000 for operations.

• Ordered supplies estimated to cost $12,000. Of these, the county received (and paid) supplies that it had estimated would cost $11,300. Actual cost, however, was $11,800.

• Received (and paid) all goods that it had ordered in the previous year. Actual cost was only $380.

• Recognized actual revenues of $13,700 (cash received).

REQUIREMENT：

（1）Record all journal entries including the closing entries.

（2）Show how the total fund balance (including the unassigned and committed portions) would be displayed at year-end.

SV Company uses the weighted-average method of inventory costing [Which means that the stage of completion of beginning inventory is not important]

Beginning Work in Process inventory for September:

    Physical units                                                              5,000 units

    % complete for materials                                               70%
    % complete for conversion                                 25%

    Materials cost from August                                         $7,350
    Conversion cost from August                                    $3,125

   Production started and completed in September:

    Physical units                                                             40,000 units

   Ending Work in Process inventory for September:
           Physical units                                                       4,000 units

           % complete for materials                                      40%
          % complete for conversion                                 10%

New manufacturing costs for September:

    Materials                                                                 $96,975
    Conversion                        $79,470

Compute the total cost of all units that were completed and transferred to finished goods during September. Also, compute the total cost of the ending Work in Process inventory.

Hunter Industries manufactures hunting boots. The firm assigns overhead cost to products based on direct labor hours. For November, the budget reported total overhead of $ 162,000, of which $ 130,500 was fixed. Practical capacity is 4,500 direct labor hours per month to manufacture 6,000 pairs of boots. The factory used 4,600 direct labor hours to manufacture 5,700 pairs of boots. For November, actual variable overhead cost incurred was $ 31,510; actual fixed overhead cost incurred was $ 133,000.

1. What was the variable overhead efficiency variance?

2. What was the total fixed overhead cost variance?

3. What was the flexible-budget variance?

4. What was the production volume variance?

5. Was overhead over/under applied and by how much?

1.

Which of the following is not a stakeholder in a business?

2.

Which of the following does NOT describe managerial accounting?

3.

Jones company makes two products A & B. Here is some financial information about those products.

                         A    B     Combined total cost of cost drivers

Direct labor    $45,000 $35,000

Direct materials              $40,000 $30,000

Cost drivers

               Set ups 6    4 $10,000

             Inspections    4    6 $5,000

                 Test Runs 12     8 $25,000

                 Units produced    1000 1000

Using ABC Costing for overhead, what is the total cost for product A?

Assume that the market for fertilizer is perfectly competitive. Firms in the market are producing output but they are experiencing economic losses.

a.Explain how ATC, AVC and MC are related (Note: the relationship of these cost curves is same whether there is loss or profit). Explain how the price of fertilizer compares to the ATC, AVC and MC of producing fertilizer.

b. Draw two graphs side by side illustrating the present situation for the single firm and the entire market. Cleary label the diagrams and explain what you draw for both diagrams.

c. Assuming there is no change in demand curve or in cost curves, explain what will happen in the long run to the price of fertilizer, marginal cost, average total cost, the quantity supplied by each firm, and the total quantity supplied to the market. Draw a new set of diagrams to show the firm’s and market’s long-run equilibrium.

DiDonato Supplies manufactures two versions of presentation remotes: Basic and Laser. Both models go through the same assembly process and are produced in the same plant. The difference between the models is in the additional parts for the laser model as well as the cost of the parts themselves. The following data are available for the year just ended:

Required:

DiDonato uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost per unit of the Basic and Laser models for the year just ended. (Do not round intermediate calculations. Round "Unit cost" to 2 decimal places.)

A table factory requires 500 logs per year. Each time an order for logs is placed, an ordering cost of $20 is incurred. Each log costs $12 and the holding cost is $2/log/year. Assume that demand occurs at a constant rate and shortages are not allowed and the lead time is zero.

(a) If the quantity ordered is 150 units, calculate the total cost incurred (including ordering costs, purchasing costs and holding costs).

(b) What is EOQ?

(c) What is the minimum total cost?

(d) What is the number of cycles in a year, when EOQ is used as the order quantity?

(e) What is the duration of each cycle (in months)? (f) If the lead time (L) is 2 months, what will be the new reorder point? (g) If the lead time (L) is 3 months, what will be the new reorder point?

Rocky Mountain Tire Center sells 6,000 ​go-cart tires per year. The ordering cost for each order is ​$35​, and the holding cost is 40​% of the purchase price of the tires per year. The purchase price is ​$23 per tire if fewer than 200 tires are​ ordered, ​$17 per tire if 200 or​ more, but fewer than 5,000​, tires are​ ordered, and ​$14 per tire if 5,000 or more tires are ordered. ​

a) How many tires should Rocky Mountain order each time it places an​ order? Rocky​ Mountain's optimal order quantity is ____ units ​(enter your response as a whole​ number). ​

b) What is the total cost of this​ policy? The total annual cost of ordering optimal order size equals​ $ ____ ​(round your response to the nearest whole​ number).