1. UOP ACC 349 Week 2 Connect Problems NEW
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Week 2
• Question 1 The Hartford Symphony Guild is
planning its annual dinnerdance. The dinnerdance
committee has assembled the following expected
costs for the event:
Dinner (per person) $10
2. Favors and program (per person) $4
Band $700
Rental of ballroom $2,000 Professional
entertainment during intermission
$2,000
Tickets and advertising $700
The committee members would like to charge $41
per person for the evening's activities.
Required:
1. Compute the breakeven point for the
dinnerdance (in terms of the number of persons
who must attend).
2. Assume that last year only 200 persons
attended the dinnerdance.If the same number
attend this year, what price per ticket must be
charged in
order to break even?
3. Refer to the original data ($41 ticket price per
person). Prepare a CVP graph for the dinnerdance
from zero tickets up to 550 tickets sold.
3. • Question 2 Walsh Company manufactures and
sells one product. The following information
pertains to each of the company's first two years of
operations:
Variable costs per unit: Manufacturing:
Direct materials $ 21 Direct labor $ 11
Variable manufacturing overhead $ 4 Variable
selling and administrative $ 3 Fixed costs per year:
Fixed manufacturing overhead $ 320,000 Fixed
selling and administrative expenses $
100,000
During its first year of operations, Walsh produced
50,000 units and sold 40,000 units. During its
second
year of operations, it produced 40,000 units and
sold 50,000 units. The selling price of the
company's
product is $51 per unit.
Required:
4. 1. Assume the company uses variable costing:
a. Compute the unit product cost for year 1
and
year 2.
b. Prepare an income statement for year 1 and
year 2.
2. Assume the company uses absorption
costing:
a. Compute the unit product cost for year 1
and
year 2.
b. Prepare an income statement for year 1
and
year 2.
3. Reconcile the difference between variable
costing and absorption costing net operating
income in year 1and year 2.• Question 3 Award: 6 out of 6.00 points
Barlow Company manufactures three products:
A, B, and C. The selling price, variable costs, and
contribution margin for one unit of each product
follow:
5. Product
A B C
Selling price $240 $ 320 $ 300
Variable expenses:
Direct materials 18 72 27
Other variable expenses
174 152 228
Total variable expenses
192 224 255
Contribution margin
$ 48 $ 96 $ 45
Contribution margin ratio
20% 30% 15%
The same raw material is used in
all three products. Barlow
Company has only 4,900 pounds
of raw
material on hand and will not be
able to obtain any more of it for
several weeks due to a strike in its
supplier's plant. Management is
6. which product(s) to concentrate on next week in
filling its
backlog of orders. The material costs $9 per
pound.
Required:
1. Compute the amount of contribution margin
that will be obtained per pound of material used in
each product.
2. a. Compute the amount of contribution margin
on each product. b. Which orders would you
recommend that the company work on next week
—the orders for product A,product B, or product
C?
3. .A foreign supplier could furnish Barlow with
additional stocks of the raw material at a
substantial premium over the usual price. If there
is unfilled demand for all three products, what is
the highest price that Barlow Company should be
willing to pay for an additional pound of
materials?
7. Question 4. Award: 6 out of 6.00 points
Imperial Jewelers is considering a special order
for 24 handcrafted gold bracelets to be given as
gifts to members of a wedding party. The normal
selling price of a gold bracelet is $408.00 and its
unit product cost is $268.00 as shown below:
Direct materials $ 147
Direct labor 81
Manufacturing overhead 40
Unit product cost $ 268
Most of the manufacturing overhead is fixed and
unaffected by variations in how much jewelry is
produced in any given period. However, $11 of the
overhead is variable with respect to the number of
bracelets produced. The customer who is
interested in the special bracelet order would like
special filigree applied to the bracelets. This
filigree would require additional materials costing
$10 per bracelet and would also require
acquisition of a special tool costing $457 that
would have no other use once the special order is
8. completed. This order would have no effect on
the company's regular sales and the order could
be fulfilled using the company's existing capacity
without affecting any other order.
Required:
a. What effect would accepting this order have on
the company's net operating income if a special
price of $368.00 per bracelet is offered for this
order?
b. Should the special order be accepted at this
price?