For more course tutorials visit www.newtonhelp.com Please complete the following 8 exercises below in either Excel or a word document (but must be single document).

1. ACC 206 Week 4 Assignment Chapter Six and Seven
Problems (New)
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www.newtonhelp.com
Please complete the following 8 exercises below in either Excel or a
word document (but must be single document). You must show your
work where appropriate (leaving the calculations within Excel cells is
acceptable). Save the document, and submit it in the appropriate week
using the Assignment Submission button.
Chapter 6 Exercise 2
2. Schedule of cash collections
Sugarland Company sells a single product and anticipates opening a new
facility in Charlotte on May 1 of the current year. Expected sales during
the first three months of activity are: May, $60,000; June, $80,000; and
July, $85,000. Thirty percent of all sales are for cash; the remaining 70%
are on account. Credit sales have the following collection pattern:
Chapter 6 Exercise 4
4. Production and cash-outlay computations

2. RPR, Inc., anticipates that 120,000 units of product K will be sold
during May. Each unit of product K requires four units of raw material
A. Actual inventories as of May 1 and budgeted inventories as of May
31 follow.
Chapter 6 Exercise 5
5. Abbreviated cash budget; financing emphasis
An abbreviated cash budget for Big Chuck Enterprises follows.
Chapter 6 Problem 3
3. Comprehensive budgeting
The balance sheet of Watson Company as of December 31, 20X1,
follows.
Chapter 7 Exercise 3
3. Variances for direct materials and direct labor
Banner Company manufactures flags of various countries. Each flag has
a standard of eight square feet of fabric and three hours of direct labor
time. Information about recent production activity follows.
Chapter 7 Exercise 5
5. Overhead variances
Nova Manufacturing applies factory overhead to products on the basis of
direct labor hours. At the beginning of the current year, the company's
accountant made the following estimates for the forthcoming period:
· Estimated variable overhead: $500,000

3. · Estimated fixed overhead: $400,000
· Estimated direct labor hours: 40,000
It is now 12 months later. Actual total overhead incurred in the
manufacture of 7,900 units amounted to $895,100.Actual labor hours
totaled 39,800. Assuming a direct labor standard of five hours per
finished unit, calculate the following:
a. Variable overhead efficiency variance
b. Fixed overhead volume variance
c. Overhead spending variance
Chapter 7 Problem 1
1. P26-A1 Basic flexible budgeting (L.O. 2)
Centron, Inc., has the following budgeted production costs:
Direct materials
$0.40 per unit
Direct labor
1.80 per unit
Variable factory overhead
2.20 per unit
Fixed factory overhead

4. Supervision
$24,000
Maintenance
18,000
Other
12,000
The company normally manufactures between 20,000 and 25,000 units
each quarter. Should output exceed 25,000 units, maintenance and other
fixed costs are expected to increase by $6,000 and $4,500, respectively.
During the recent quarter ended March 31, Centron produced 25,500
units and incurred the following costs:
Direct Materials
$10,710
Direct Labor
47,175
Variable factory overhead
51,940
Fixed factory overhead
Supervision
24,500
Maintenance

5. 23,700
Other
16,800
Total production costs
$174,825
Instructions:
a. Prepare a flexible budget for 20,000, 22,500, and 25,000 units of
activity.
b. Was Centron's experience in the quarter cited better or worse than
anticipated? Prepare an appropriate performance report and explain your
answer.
c. Explain the benefit of using flexible budgets (as opposed to static
budgets) in the measurement of performance.
Chapter 7 Problem 5
5. P26-B3 Straightforward variance analysis (L.O. 5)

6. Arrow Enterprises uses a standard costing system. The standard cost
sheet for product no. 549 follows.
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ACC 206 Week 4 DQ 2 Flexible Budgets (New)
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Flexible budgets provide different information than static budgets.
Discuss some of these differences. Is a flexible budget always better?
Are there times when you’d recommend using a static budget over a
flexible budget?
Guided Response:
Review your peers’ posts and respond to at least two of your classmates.
Discuss whether you agree or disagree with the uses of a flexible budget
and why.
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ACC 206 Week 5 Assignment Chapter Eight Problems
(New)
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7. www.newtonhelp.com
Please complete the following 5 exercises below in either Excel or a
word document (but must be single document). You must show your
work where appropriate (leaving the calculations within Excel cells is
acceptable). Save the document, and submit it in the appropriate week
using the Assignment Submission button.
Chapter 8 Exercise 1:
1. Basic present value calculations
Calculate the present value of the following cash flows, rounding to the
nearest dollar:
a. A single cash inflow of $12,000 in five years, discounted at a 12%
rate of return.
b. An annual receipt of $16,000 over the next 12 years, discounted at
a 12% rate of return.

8. c. A single receipt of $15,000 at the end of Year 1 followed by a
single receipt of $10,000 at the end of Year 3. The company has a 10%
rate of return.
d. An annual receipt of $8,000 for three years followed by a single
receipt of $10,000 at the end of Year 4. The company has a 12% rate of
return.
Chapter 8 Exercise 4:
4. Cash flow calculationsand net present value
On January 2, 20X1, Bruce Greene invested $10,000 in the stock market
and purchased 500 shares of Heartland Development, Inc. Heartland
paid cash dividends of $2.60 per share in 20X1 and 20X2; the dividend
was raised to $3.10 per share in 20X3. On December 31, 20X3, Greene
sold his holdings and generated proceeds of $13,000. Greene uses the
net-present- value method and desires a 16% return on investments.
a. Prepare a chronological list of the investment's cash flows. Note:
Greene is entitled to the 20X3 dividend.
b. Compute the investment's net present value, rounding calculations
to the nearest dollar.

9. c. Given the results of part (b), should Greene have acquired the
Heartland stock? Briefly explain.
Chapter 8 exercise 5:
5. Straightforwardnet present value and internal rate of return
The City of Bedford is studying a 600-acre site on Route 356 for a new
landfill. The startup cost has been calculated as follows:
Purchase cost: $450 per acre
Site preparation: $175,000
The site can be used for 20 years before it reaches capacity. Bedford,
which shares a facility in Bath Township with other municipalities,
estimates that the new location will save $40,000 in annual operating
costs.
a. Should the landfill be acquired if Bedford desires an 8% return on
its investment? Use the net-present-value method to determine your
answer.
Chapter 8 Problem 1:

10. 1. Straightforward net-present-value and payback computations
STL Entertainment is considering the acquisition of a sight-seeing boat
for summer tours along the Mississippi River. The following
information is available:
Cost of boat
$500,000
Service life
10 summer seasons
Disposal value at the end of 10 seasons
$100,000
Capacity per trip
300 passengers

11. Fixed operating costs per season (including straight-line depreciation)
$160,000
Variable operating costs per trip
$1,000
Ticket price
$5 per passenger
All operating costs, except depreciation, require cash outlays. On the
basis of similar operations in other parts of the country, management
anticipates that each trip will be sold out and that 120,000 passengers
will be carried each season. Ignore income taxes.
Instructions:
By using the net-present-value method, determine whether STL
Entertainment should acquire the boat. Assume a 14% desired return on
all investments,- round calculations to the nearest dollar.
Chapter 8 Problem 4:

12. 4. Equipment replacement decision
Columbia Enterprises is studying the replacement of some equipment
that originally cost $74,000. The equipment is expected to provide six
more years of service if $8,700 of major repairs are performed in two
years. Annual cash operating costs total $27,200. Columbia can sell the
equipment now for $36,000;the estimated residual value in six years is
$5,000.
New equipment is available that will reduce annual cash operating costs
to $21,000. The equipment costs $103,000, has a service life of six
years, and has an estimated residual value of $13,000. Company sales
will total $430,000 per year with either the existing or the new
equipment. Columbia has a minimum desired return of 12% and
depreciates all equipment by the straight-line method.
Instructions:
a. By using the net-present-value method, determine whether
Columbia should keep its present equipment or acquire the new
equipment. Round all calculations to the nearest dollar, and ignore
income taxes.
b. Columbia's management feels that the time value of money should
be considered in all long-term decisions. Briefly discuss the rationale
that underlies management's belief.
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13. ACC 206 Week 5 DQ 1 Long-term Decision Making (New)
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List a few of the issues and considerations businesses should have when
it comes to the selection of long-term investments and how those issues
impact the various financial statements.
Guided Response:
Review your peer’s posts. Respond to at least two of your peers
describing how these issues can be overcome by the tools discussed in
this chapter and why (i.e., looking at IRR, NPV, cash flow).
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ACC 206 Week 5 DQ 2 Responsibilities in Management
Accounting (New)
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14. Review the rights and responsibilities of Certified Management
Accountants:
What are some of the ethical responsibilities and obligations that
management accountants have within an organization? Provide some
examples. Are these responsibilities different than the obligations for
financial accountants?
Guided Response:
Review your peer’s posts. Respond to at least two of your peers
outlining the responsibilities that you feel are the most important to
management accountants.
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