This document contains summaries of assignments for 12 weeks of an accounting course. It lists various exercises, problems, and cases related to topics like cost behavior, budgeting, variance analysis, and decision-making. The assignments are from an accounting textbook and include calculation questions and written analyses. Students are directed to a website for additional course materials and information.
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1. ACG 3341 Week 1 Individual Work
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1-18 Value chain and classification of costs, fast food restaurant. Burger
King, a hamburger fast food restaurant, incurs the following costs.
1-20 Planning and control decisions. Conner Company makes and sells
brooms and mops. It takes the following actions, not necessarily in the
order given. For each action (a–e) state whether it is a planning decision
or a control decision.
1-22 Five-step decision-making process, service firm. Brite Exteriors is
a firm that provides house painting services. Robert Brite, the owner, is
trying to find new ways to increase revenues. Mr. Brite performs the
following actions, not in the order listed.
1-25 Strategic decisions and management accounting. A series of
independent situations in which a firm is about to make a strategic
decision follow.
1-27 Role of controller, role of chief financial officer. George Perez is
the controller at Allied Electronics, a manufacturer of devices for the
computer industry. He is being considered for a promotion to chief
financial officer.
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ACG 3341 Week 2 Individual Work
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E2-20
E2-21
E2-24
Problem 2-31
Problem 2-34
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ACG 3341 Week 3 Individual Work
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Chapter 3 Exercises 3-16, 3-24, and 3-31
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ACG 3341 Week 4 Individual Work
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E4-19 (Budgeted Manufacturing Overhead Rate, Allocated
Manufacturing Overhead, pages 127-128)(Horngren, Datar, & Rajan,
2012) Gammaro Company uses normal costing. It allocates
manufacturing overhead costs using a budgeted rate per machine-hour.
The following data are available for 2011:
Budgeted manufacturing overhead costs
Budgeted machine-hours
Actual manufacturing overhead costs
Actual machine-hours
4. $4,200,000
175,000
$4,050,000
170,000
Required
Calculate the budgeted manufacturing overhead rate.
Calculate the manufacturing overhead allocated during 2011.
Calculate the under- or overallocated manufacturing overhead.
E4-23 (Accounting for Manufacturing Overhead, page 129)Consider the
following selected cost data for the Pittsburgh Forging Company for
2011.
Budgeted manufacturing overhead costs
Budgeted machine-hours
Actual manufacturing overhead costs
Actual machine-hours
$7,500,000
250,000
$7,300,000
245,000
The company uses normal costing. Its job-costing system has a single
manufacturing overhead cost pool. Costs are allocated to jobs using a
5. budgeted machine-hour rate. Any amount of under- or overallocation is
written off to Cost of Goods Sold.
Required
Compute the budgeted manufacturing overhead rate.
Prepare the journal entries to record the allocation of manufacturing
overhead.
Compute the amount of under- or overallocation of manufacturing
overhead. Is the amount material? Prepare a journal entry to dispose of
this amount.
E4-24 (Job Costing, Journal Entries, pages 129-130)The University of
Chicago Press is wholly owned by the university. It performs the bulk of
its work for other university departments, which pay as though the press
were an outside business enterprise. The press also publishes and
maintains a stock of books for general sale. The press uses normal
costing to cost each job. Its job-costing system has two direct-cost
categories (direct materials and direct manufacturing labor) and one
indirect-cost pool (manufacturing overhead, allocated on the basis of
direct manufacturing labor costs).
The following data (in thousands) pertain to 2011:
Direct materials and supplies purchased on credit
Direct materials used
Indirect materials issued to various production departments
Direct manufacturing labor
Indirect manufacturing labor incurred by various production departments
6. Depreciation on building and manufacturing equipment
Miscellaneous manufacturing overhead incurred by various production
departments (ordinarily would be detailed as repairs, photocopying,
utilities, etc.)
Manufacturing overhead allocated at 160% of direct manufacturing
labor costs
Cost of goods manufactured
Revenues
Cost of goods sold (before adjustment for under- or overallocated
manufacturing overhead)
Inventories, December 31, 2010 (not 2011):
Materials Control
Work-in-Process Control
Finished Goods Control
$800
710
100
1,300
900
400
550
?
7. 4,120
8,000
4,020
100
60
500
Required
Prepare an overview diagram of the job-costing system at the University
of Chicago Press.
Prepare journal entries to summarize the 2011 transactions. As your final
entry, dispose of the year-end under- or overallocated manufacturing
overhead as a write-off to Cost of Goods Sold. Number your entries.
Explanations for each entry may be omitted.
Show posted T-accounts for all inventories, Cost of Goods Sold,
Manufacturing Overhead Control, and Manufacturing Overhead
Allocated.
E4-29 (Job-order Costing: Actual, Normal, and Variation from Normal
Costing, pages 131-132) Braden Brothers, Inc., is an architecture firm
specializing in high-rise buildings. Its job-costing system has a single
direct-cost category (architectural labor) and a single indirect-cost pool,
which contains all costs of supporting the office. Support costs are
allocated to individual jobs using architect labor-hours. Braden Brothers
employs 15 architects.
Budgeted and actual amounts for 2010 are as follows:
Required
8. Compute the direct-cost rate and the indirect-cost rate per architectural
labor-hour for 2010 under (a) actual costing, (b) normal costing, and (c)
the variation from normal costing that uses budgeted rates for direct
costs.
Braden Brother’s architectural sketches for Champ Tower in Houston
was budgeted to take 275 hours of architectural labor time. The actual
architectural labor time spent on the job was 250 hours. Compute the
cost of the Champ Tower sketches using (a) actual costing, (b) normal
costing, and (c) the variation from normal costing that uses budgeted
rates for direct costs.
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ACG 3341 Week 5 Individual Work
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Section 5-19
Section 5-25
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9. ACG 3341 Week 6 Individual Work
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Exercise 6-17: Sales and production budget
Exercise 6-18: Direct materials budget
Exercise 6-24: Activity-based budgeting
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ACG 3341 Week 7 Individual Work
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10. E7-16 (Flexible Budget) Brabham Enterprises manufactures tires for the
Formula I motor racing circuit. For August 2014, it budgeted to
manufacture and sell 3,000 tires at a variable cost of $74 per tire and
total fixed
costs of $54,000. The budgeted selling price was $110 per tire. Actual
results in August 2014 were 2,800 tires manufactured and sold at a
selling price of $112 per tire. The actual total variable costs were
$229,600,
and the actual total fixed costs were $50,000.
1) Prepare a performance report that uses a flexible budget and a static
budget.
2) Comment on the results in requirement 1.
E7-20 (Flexible-Budget and Sales Volume Variances) Luster, Inc.,
produces the basic fillings used in many popular frozen desserts and
treats - vanilla and chocolate ice creams, puddings, meringues, and
fudge.
Luster uses standard costing and carries over no inventory from one
month to the next. The ice-cream product group's results for June 2014
were as follows:
11. Performance Report, June 2014
Actual
Static
Results
Budget
Units (pounds)
350 000
335 000
Revenues
$2 012 500
$1 976 500
12. Variable manufacturing costs
1 137 500
1 038 500
Contribution margin
$875 000
$938 000
Sam Adler, the business manager for ice-cream products, is pleased that
more pounds of ice cream were sold than budgeted and that revenues
were up. Unfortunately, variable manufacturing costs went up, too.
The bottom line is that contribution margin declined by $63,000, which
is less than 3% of the budgeted revenues of $1,976,500. Overall, Adler
feels that the business is running fine.
1) Calculate the static-budget variance in units, revenues, variable
manufacturing costs, and conribution margin. What percentage is each
static-budget variance relative to its static-budget amount?
2) Break down each static-budget variance into a flexible-budget
variance and a sales-volume variance.
13. 3) Calculate the selling-price variance.
4) Assume the role of management accountant at Luster. How would
you present the results to Sam Adler? Should he be more concerned? If
so, why?
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ACG 3341 Week 8 Individual Work
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7-22 Materials and manufacturing labor variances. Consider the
following data collected for Great Homes, Inc.
7-23 Direct materials and direct manufacturing labor
variances.GloriaDee, Inc. designs and manufactures T-shirts to brand-
name clothes retailers in lots of one dozen. GloriaDee’s May 2011 static
budget and actual results for direct inputs are as follows:
14. 7-16 Flexible budget. Brabham Enterprises manufactures tires for the
Formula I motor racing circuit. For August 2012, it budgeted to
manufacture and sell 3,000 tires at a variable cost of $74 per tire and
total fixed costs of $54,000. The budgeted selling price was $110 per
tire. Actual results in August 2012 were 2,800 tires manufactured and
sold at a selling price of $112 per tire. The actual total variable costs
were $229,600, and the actual total fixed costs were $50,000.
7-20 Flexible-budget and sales volume variances, market-share and
market-size variances. Marron, Inc., produces the basic fillings used in
many popular frozen desserts and treats—vanilla and chocolate ice
creams, puddings, meringues, and fudge. Marron uses standard costing
and carries over no inventory from one month to the next. The ice-cream
product group’s results for June 2012 were as follows:
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ACG 3341 Week 9 Individual Work
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Exercise 8-18, page 291: Variable manufacturing overhead variance
analysis.
15. Exercise 8-20, page 291: Manufacturing overhead, variance analysis.
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ACG 3341 Week 10 Individual Work
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E8-26 (Overhead variances, missing information; page 293) (Horngren,
Datar, & Rajan, 2012) Dvent budgets 18,000 machine-hours for the
production of computer chips in August 2011. The budget variable
overhead rate is $6 per machine-hour. At the end of August, there is a
$375 favorable spending variance for variable overhead and a $1,575
unfavorable spending variance for fixed overhead. For the computer
chips produced, 14,850 machine-hours are budgeted and 15,000
machine-hours are actually used. Total actual overhead costs are
$120,000.
Required
Compute efficiency and flexible-budget variances for Dvent’s variable
overhead in August 2011. Will variable overhead be over- or
underallocated? By how much?
16. Compute production-volume and flexible-budget variances for Dvent’s
fixed overhead in August 2011. Will fixed overhead be over- or
underallocated? By how much?
E8-27 (Identifying favorable and unfavorable variances; page 293)
Purdue, Inc. manufactures tires for large auto companies. It uses
standard costing and allocates variable and fixed manufacturing
overhead based on machine-hours. For each independent scenario given,
indicate whether each of the manufacturing variances will be favorable
or unfavorable or, in case of insufficient information, indicate “CBD”
(cannot be determined).
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ACG 3341 Week 11 Individual Work
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Exercise 9-21
Exercise 9-24
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17. ACG 3341 Week 12 Individual Work
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Exercise 9-25
Exercise 9-27
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