Use the Internet to research one (1) company that is focusing on sustainable development.
You have learned that there are a lot of amazing companies throughout the world that are leading the charge in CSR and Global Citizenship. From the e-Activity, examine the most important ways in which the company that you have researched is implementing sustainable development. Evaluate the extent to which the sustainable development program contributes to profitability for the company in question. Provide at least two (2) examples of the profits the company has made to support your response. Provide a rationale for your suggestions
PAGE
4
ACC512 Managerial Accounting
Name ______________________________________
Quiz: Chapters 12, 13
You may fill in this Word Document, adding space as you need it, and/or move any of the questions to a spreadsheet file. When you have completed the quiz, please upload your file(s) to the Week 4 Quiz in Moodle.
Please show your calculations. I have removed most of the space for solutions, so expand this document as much as you need to for your answers.
You may use your book, notes, or any other material, but you must complete thison your own.
There is no time limit.
The following lists the types of problems and their expected point values:
ProblemPoints PossiblePoints Earned
I.
Classifications
30
_________
II.
Solve for Unknowns
32
_________
III.
Cost-Volume-Profit Analysis Problems
46
_________
IV.
Applying Overhead
24
_________
V.
Activity Based Costing
18
_________
------
------------------
TOTAL
150
_________
This page can be omitted from your submission.
Name ________________________________
(Please include your name in the file.)
I. Classifications (30 points total)
Part A: Classifications (2 points each – 22 points total)
Determine the classification for each cost item based on 2 different schemes. First, determine cost behavior: whether the cost is variable or fixed (relative to the number of units produced); check the appropriate space. Then, determine whether the cost is a product or a period cost; check the appropriate space. Be sure your final answers are lined up under the right column before submitting your quiz.
BehaviorFunctional Area
Cost ItemVariableFixedProductPeriod
Paper towels used in the office building restrooms
_____
_____
_____
_____
Cost of natural gas to run the manufacturing equipment _____
_____
_____
_____
Salaries of the sales managers
_____
_____
_____
_____
Insurance paid on the headquarters building
_____
_____
_____
_____
Hourly wages of the assembly workers
_____
_____
_____
_____
Cost of fabric to make polo shirts
_____
_____
_____
_____
Commissions paid to salespeople at $4 per unit
_____
_____
_____
_____
Production supervisors’ salaries
_ ...
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Use the Internet to research one (1) company that is focusing on.docx
1. Use the Internet to research one (1) company that is focusing on
sustainable development.
You have learned that there are a lot of amazing companies
throughout the world that are leading the charge in CSR and
Global Citizenship. From the e-Activity, examine the most
important ways in which the company that you have researched
is implementing sustainable development. Evaluate the extent to
which the sustainable development program contributes to
profitability for the company in question. Provide at least two
(2) examples of the profits the company has made to support
your response. Provide a rationale for your suggestions
PAGE
4
ACC512 Managerial Accounting
Name ______________________________________
Quiz: Chapters 12, 13
You may fill in this Word Document, adding space as you need
it, and/or move any of the questions to a spreadsheet file. When
you have completed the quiz, please upload your file(s) to the
Week 4 Quiz in Moodle.
Please show your calculations. I have removed most of the
space for solutions, so expand this document as much as you
need to for your answers.
You may use your book, notes, or any other material, but you
2. must complete thison your own.
There is no time limit.
The following lists the types of problems and their expected
point values:
ProblemPoints PossiblePoints Earned
I.
Classifications
30
_________
II.
Solve for Unknowns
32
_________
III.
Cost-Volume-Profit Analysis Problems
46
_________
IV.
4. 150
_________
This page can be omitted from your submission.
Name ________________________________
(Please include your name in the file.)
I. Classifications (30 points total)
Part A: Classifications (2 points each – 22 points total)
Determine the classification for each cost item based on 2
different schemes. First, determine cost behavior: whether the
cost is variable or fixed (relative to the number of units
produced); check the appropriate space. Then, determine
whether the cost is a product or a period cost; check the
appropriate space. Be sure your final answers are lined up
under the right column before submitting your quiz.
BehaviorFunctional Area
Cost ItemVariableFixedProductPeriod
Paper towels used in the office building restrooms
_____
_____
_____
_____
Cost of natural gas to run the manufacturing equipment
_____
_____
_____
_____
Salaries of the sales managers
5. _____
_____
_____
_____
Insurance paid on the headquarters building
_____
_____
_____
_____
Hourly wages of the assembly workers
_____
_____
_____
_____
Cost of fabric to make polo shirts
_____
_____
_____
_____
Commissions paid to salespeople at $4 per unit
_____
_____
_____
_____
Production supervisors’ salaries
6. _____
_____
_____
_____
Cost of newspaper advertising
_____
_____
_____
_____
Property taxes paid on the factory building
_____
_____
_____
_____
Cost of forms for ordering raw materials
_____
_____
_____
_____
(purchase orders)
Part B: Identification of cost types (2 pts each – 8 point total)
Select from the list above (in Part A) and list below two items
that would be classified as:
1. Manufacturing overhead costs
7. 2. Selling (or marketing) costs
II. Solving for Unknowns (4 pts each – 32 points total)
For each case solve for the unknown amounts. Use the space
below each set of information to show your calculations.
Units
Selling
Variable
Total Contrib.
Fixed
Operating
SoldPriceCosts / Unit Margin
CostsIncome (Loss)
3,000
$ 25.00
(a)_________
$ 57,000
$ 45,000
(b)__________
Unit
Selling
Variable
Total Contrib.
Fixed
8. Operating
SoldPriceCosts / Unit Margin
CostsIncome (Loss)
(c)_________
$ 10.00
$ 7.50
$ 20,500
(d)__________
($ 4,750)
Units
Selling
Variable
Total Contrib.
Fixed
Operating
SoldPriceCosts / Unit Margin
CostsIncome (Loss)
4,280
(e)___________
$ 9.20
$ 33,384
$ 44,500
(f)___________
Units
Selling
Variable
9. Total Contrib.
Fixed
Operating
SoldPriceCosts / Unit Margin
CostsIncome (Loss)
2,100
$ 20.00 (g)_________ (h)___________
$ 12,300
$ 4,500
III. Cost-Volume-Profit Analysis Problems (46 points total)
The following cost information is available for a single product
manufactured and sold by Dreamer Corp.:
Variable costs:
Direct materials
$ 10
Fixed costs (in total):
(Per unit)
Direct labor
12
Fixed overhead
$ 540,000
10. Variable overhead
3
Fixed selling
360,000
Variable selling
2
Units sell for $36 each, and the firm is currently manufacturing
and selling 120,000 units.
1. (6 pts) Determine the contribution margin per unit and the
contribution margin ratio (percentage).
2. (6 pts) Calculate the firm’s breakeven point in units.
3. (6 pts) Calculate the firm’s breakeven point in sales dollars
(revenues).
4. (6 pts) Calculate income at their current operating level of
120,000 units.
5. (6 pts) Suppose a change in manufacturing technology would
allow the firm to reduce direct labor costs to $6 per unit, but
would increase fixed overhead costs by $150,000. Compute the
breakeven point (in units) considering these changes to the cost
structure.
6. (8 pts) Return to the original information (ignore changes in
part 5). Suppose the firm can add a second product that would
sell for $20 per unit, have unit variable costs of $13, and would
increase total fixed costs by $320,000. Determine the firm’s
11. total income if they continue making and selling 120,000 units
of the original product and make and sell 80,000 units of the
second product.
7. (8 pts) Continuing with the 2 products, suppose the sales
mix changes so they make and sell 100,000 units of each
product (making the same total of 200,000 units). Determine
the firm’s total income with this mix of the two products.
IV. Applying Overhead (24 points total)
Dane Co. applies manufacturing overhead to jobs based on
machine hours used. At the beginning of the year, the company
estimated that overhead costs would total $86,000 for the year,
and that the machine would run for 4,000 hours during the year.
1. (6 pts) Determine the pre-determinedoverhead rate for the
year. (This will be used to assign overhead to the jobs in parts
2 and 3.)
2. (6 pts) One job that ran during the month of March used 120
machine hours. The job also incurred materials costs of $750
and direct labor cost of $300 (20 hours at a labor rate of $15 per
hour). The job consisted of 120 units. Determine the total
manufacturing costfor the job, and the total cost per unit for
items produced in this job.
3. (6 pts) A second job that ran during the month used 180
machine hours, incurred $980 of direct materials cost, and
direct labor cost of $540 (36 hours at $15 per labor hour). The
job consisted of 175 units. Determine the total manufacturing
costfor the job, and the total cost per unit for items produced in
this job.
4. (6 pts) Assume the jobs described in parts 2 and 3 were the
only jobs worked on during the entire month of March. (The
overhead was applied to these 2 jobs is the only applied
overhead for the month.) Actual overhead costs for the month
totaled $8,000. Determine the amount of under- or over-applied
12. overhead for the month AND label it as over- or under-applied.
V. Activity-Based Costing (18 points total)
The purchasing department of a manufacturing firm has decided
to apply its costs to jobs using an activity based costing system.
Its costs of $490,000 are split among the three major activities:
ActivityCostAllocation MeasureTotal Activity
Finding suppliers
$ 300,000
Number of telephone calls
200,000 calls
Issuing purchase orders
$ 100,000
Number of purchase orders
25,000 orders
Reviewing receiving reports
$ 90,000
Number of receiving reports
20,000 reports
1. 12 pts) From the information provided, determine the three
allocation rates (one for each cost pool) to be used by an
activity based costing system.
2. (6 pts) For one job that was produced by the firm, the
following purchasing department activities were completed:
200 phone calls were made, 50 purchase orders were issued, and
40 separate incoming orders (receiving reports) were received.
What amount of purchasing department cost would be assigned