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ACC 349 Discussion 4
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What are the differences between variable and absorption costing?
Why is variable costing not allowed for GAAP reporting? Which
method is more useful for internal decision making? Why? As a
manager, which would you prefer? Why?
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For what is cost-volume-profit (CVP) analysis used? What are some
main underlying assumptions that make CVP analysis useful for
decision makers? Why might decision makers use CVP analysis?
What is contribution margin? What is break even point? How are
these used?
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What are some main differences between financial and managerial
accounting? How do these differences affect the type of information
that must be gathered and reported? What different types of decisions
must users of financial accounting information make? What different
types of decisions must users of managerial accounting information
make? How does managerial accounting apply to your career? What
is the code of conduct for managerial accountants?
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What are the cost classifications for assigning cost to cost objects?
What are the cost classifications for manufacturing companies?
What are cost classifications for preparing financial statements?
What are cost classifications for predicting cost behavior? What are
mixed cost?
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What is a master budget? What are some underlying budgets that
form the master budget?
What are the advantages of budgeting? What is the budgeting process
at your organization? Is it effective? Why or why not?
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What are the characteristics of a flexible budget?
How does a flexible budget work?
Do you have experience with this type of budgeting?
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What are some of the potential problems with standard cost? Please
explain your thoughts
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ACC 349 Entire Course
ACC 349 Week 1 Individual Assignment BYP 1-7, E1-7
ACC 349 Week 1 Discussion Question 1
ACC 349 Week 2 Individual Assignment Assignments CH 2 & 3
ACC 349 Week 2 Team Assignment Problems Ch. 2 & 3
ACC 349 Week 2 Team Assignment Case Study BYP 2-2
ACC 349 Week 3 Individual Assignment Article Analysis Summary
ACC 349 Week 3 Individual Assignment Assignments Ch. 4
ACC 349 Week 3 Team Assignment Problems Ch. 4
ACC 349 Week 3 Team Assignment Case Study Ch. 4
ACC 349 Week 4 Individual Assignment Ch. 5 & 6

ACC 349 Week 4 Team Assignment Problems Ch. 7
ACC 349 Week 4 Team Assignment Case Study Ch. 6
ACC 349 Week 5 Individual Assignment Ch. 8, 9, & 11
ACC 349 Week 5 Team Assignment Problems Ch. 8 & 11
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ACC 349 Final Exam Guide (New 2019 with
Excel sheet)
Excel Sheet can be used for any change in values, it automatically
gives correct answers
1.
The following costs were incurred in September:
Direct materials $42,700
Direct labor $29,400

Manufacturing overhead $27,300
Selling expenses $23,600
Administrative expenses $33,700
Conversion costs during the month totaled:
2.
A soft drink bottler incurred the following factory utility cost: $3,861
for 950 cases bottled and $3,922 for 1,200 cases bottled. Factory
utility cost is a mixed cost containing both fixed and variable
components. The variable factory utility cost per case bottled is
closest to:
3

The following cost data pertain to the operations of Swestka
Department Stores, Inc., for the month of July.
Corporate headquarters building lease $87,600
Cosmetics Department sales commissions--Northridge Store
$5,230
Corporate legal office salaries $60,500
Store manager's salary-Northridge Store $17,200
Heating-Northridge Store $20,200
Cosmetics Department cost of sales--Northridge Store $37,400
Central warehouse lease cost $11,100
Store security-Northridge Store $18,900
Cosmetics Department manager's salary--Northridge Store $4,150
The Northridge Store is just one of many stores owned and operated
by the company. The Cosmetics Department is one of many
departments at the Northridge Store. The central warehouse serves all
of the company's stores.
What is the total amount of the costs listed above that are direct costs
of the Cosmetics Department?

4
Erkkila Inc. reports that at an activity level of 6,400 machine-hours in
a month, its total variable inspection cost is $425,930 and its total
fixed inspection cost is $179,493.
What would be the average fixed inspection cost per unit at an
activity level of 6,700 machine-hours in a month? Assume that this
level of activity is within the relevant range.
5.
Nikkel Corporation, a merchandising company, reported the
following results for July:
Sales $407,000
Cost of goods sold (all variable) $173,400
Total variable selling expense $20,400
Total fixed selling expense $22,200
Total variable administrative expense $14,800
Total fixed administrative expense $39,700

The contribution margin for July is:
6
Job 593 was recently completed. The following data have been
recorded on its job cost sheet:
Direct labor-hours 74 labor-hours
Direct labor wage rate $ 21 per labor-hour
Machine-hours 137 machine-hours
The Corporation applies manufacturing overhead on the basis of
machine-hours. The predetermined overhead rate is $22 per machine-
hour. The total cost that would be recorded on the job cost sheet for
Job 593 would be:

7
The Assembly Department started the month with 19,500 units in its
beginning work in process inventory. An additional 285,000 units
were transferred in from the prior department during the month to
begin processing in the Assembly Department. There were 45,250
units in the ending work in process inventory of the Assembly
Department.
How many units were transferred to the next processing department
during the month?
8
Lasseter Corporation has provided its contribution format income
statement for August. The company produces and sells a single
product.

If the company sells 5,200 units, its total contribution margin should
be closest to:
9
Olds Inc., which produces a single product, has provided the
following data for its most recent month of operations:
Number of units produced 5,400
Variable costs per unit:
Direct materials $88
Direct labor $79
Variable manufacturing overhead $7
Variable selling and administrative expense $13
Fixed costs:
Fixed manufacturing overhead $210,600
Fixed selling and administrative expense $388,800

There were no beginning or ending inventories. The absorption
costing unit product cost was:
10
Zurasky Corporation is considering two alternatives: A and B. Costs
associated with the alternatives are listed below:
Alternative A Alternative B
Materials costs $22,000 $52,000
Processing costs $28,000 $28,000
Equipment rental $10,100 $28,200
Occupancy costs $10,500 $22,000
What is the differential cost of Alternative B over Alternative A,
including all of the relevant costs?

11
Bossie Corporation uses an activity-based costing system with three
activity cost pools. The company has provided the following data
concerning its costs and its activity based costing system:
Costs:
Wages and salaries $284,000
Depreciation 268,000
Utilities 221,000
Total $773,000
Distribution of resource consumption:
Activity Cost Pools
Assembly Setting up Other Total
Wages and salaries 45% 35% 20% 100%
Depreciation 30% 10% 60% 100%
Utilities 15% 65% 20% 100%

How much cost, in total, would be allocated in the first-stage
allocation to the Assembly activity cost pool?
12
The cash budget is usually prepared after the budgeted income
statement.
True
False
13
Cadavieco Detailing's cost formula for its materials and supplies is
$2,090 per month plus $15 per vehicle. For the month of November,
the company planned for activity of 89 vehicles, but the actual level
of activity was 49 vehicles. The actual materials and supplies for the
month was $2,660.
The materials and supplies in the planning budget for November
would be closest to:

Q-14
Aide Industries is a division of a major corporation. Data concerning
the most recent year appears below:
Sales $18,120,000
Net operating income $1,177,800
Average operating assets $4,450,000
The division's return on investment (ROI) is closest to: (Round your
answer to 2 decimal places.)
Q-15

Blue Corporation's standards call for 5,800 direct labor-hours to
produce 1,450 units of product. During May 1,050 units were
produced and the company worked 1,350 direct labor-hours. The
standard hours allowed for May production would be:
Q-16
The following standards for variable manufacturing overhead have
been established for a company that makes only one product:
Standard hours per unit of output 6.0 hours
Standard variable overhead rate $12.40 per hour
The following data pertain to operations for the last month:
Actual hours 2,600 hours
Actual total variable manufacturing overhead cost $32,870
Actual output 250 units

What is the variable overhead efficiency variance for the month?
What is the variable overhead efficiency variance for the month?
17
Wyly Inc. produces and sells a single product. The selling price of the
product is $240.00 per unit and its variable cost is $88.80 per unit.
The fixed expense is $374,598 per month.
The break-even in monthly dollar sales is closest to: (Round your
intermediate calculations to 2 decimal places.)
Use excel sheet for any change in values
18
Part O43 is used in one of Scheetz Corporation's products. The
company's Accounting Department reports the following costs of
producing the 16,400 units of the part that are needed every year.

An outside supplier has offered to make the part and sell it to the
company for $32.00 each. If this offer is accepted, the supervisor's
salary and all of the variable costs, including direct labor, can be
avoided. The special equipment used to make the part was purchased
many years ago and has no salvage value or other use. The allocated
general overhead represents fixed costs of the entire company. If the
outside supplier's offer were accepted, only $22,400 of these allocated
general overhead costs would be avoided.
Required:
a.
Prepare a report that shows the effect on the company's total net
operating income of buying part O43 from the supplier rather than
continuing to make it inside the company. (Input the amount as a
positive value. Omit the "$" sign in your response.)
Net operating income would decrease be by $ .
Make
19

Activity rates from Quattrone Corporation's activity-based costing
system are listed below. The company uses the activity rates to assign
overhead costs to products:
Activity Cost Pools Activity Rate
Processing customer orders $94.07 per customer order
Assembling products $2.87 per assembly hour
Setting up batches $62.33 per batch
Last year, Product F76D involved 3 customer orders, 464 assembly
hours, and 21 batches. How much overhead cost would be assigned to
Product F76D using the activity-based costing system?
20
The Gasson Company uses the weighted-average method in its
process costing system. The company's ending work in process
inventory consists of 12,000 units, The ending work in process
inventory is 100% complete with respect to materials and 70%
complete with respect to labor and overhead. If the costs per
equivalent unit for the period $4.10 for the materials and $1.30 for

labor and overhead, whatis the balance of the ending work in process
inventory account would be: (Do not round Cost per equivalent unit)
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ACC 349 Final Exam Guide
1) What does cost accounting measure, record, and report?
2) What is the best way to handle manufacturing overhead costs in
order to get the most timely job cost information?
3) At the end of the year, manufacturing overhead has been
overapplied. What occurred to create this situation?
4) Which of the following would be accounted for using a job order
cost system?
5) In a job order cost accounting system, the Work in Process account
is
6) Which one of the following is an important feature of a job order
cost system?
7) Which one of the following is indirect labor considered?

8) Which of the following is an element of manufacturing overhead?
9) Which one of the following costs would be included in
manufacturing overhead of a lawn mower manufacturer?
10) A well-designed activity-based costing system starts with
11) An activity that has a direct cause-effect relationship with the
resources consumed is a(n)
12) In traditional costing systems, overhead is generally applied based
on
13) All of the following statements are correct EXCEPT that
14) Which of the following is a value-added activity?
15) Which of the following is a nonvalue-added activity?
16) Poodle Company manufactures two products, Mini A and Maxi
B. Poodle's overhead costs consist of setting up machines, $800,000;
machining, $1,800,000; and inspecting, $600,000. Information on the
two products is:
Mini A Maxi B
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000

Inspections 800 700
Overhead applied to Mini A using activity-based costing is
17) Poodle Company manufactures two products, Mini A and Maxi
B. Poodle's overhead costs consist of setting up machines, $800,000;
machining, $1,800,000; and inspecting, $600,000. Information on the
two products is:
Mini A Maxi B
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead applied to Mini A using traditional costing using direct
labor hours is
18) Which of the following factors would suggest a switch to activity-
based costing?
19) Rosen, Inc. has 10,000 obsolete calculators, which are carried in
inventory at a cost of $20,000. If the calculators are scrapped, they
can be sold for $1.10 each (for parts). If they are repackaged, at a cost
of $15,000, they could be sold to toy stores for $2.50 per unit. What
alternative should be chosen, and why?
20) Walton, Inc. is unsure of whether to sell its product assembled or
unassembled. The unit cost of the unassembled product is $16, while
the cost of assembling each unit is estimated at $17. Unassembled

units can be sold for $55, while assembled units could be sold for $71
per unit. What decision should Walton make?
21) The cost to produce Part A was $10 per unit in 2005. During
2006, it has increased to $11 per unit. In 2006, Supplier Company has
offered to supply Part A for $9 per unit. For the make-or-buy
decision,
22) Hess, Inc. sells a single product with a contribution margin of $12
per unit and fixed costs of $74,400 and sales for the current year of
$100,000. How much is Hess’s break-even point?
23) Hartley, Inc. has one product with a selling price per unit of $200,
the unit variable cost is $75, and the total monthly fixed costs are
$300,000. How much is Hartley’s contribution margin ratio?
24) H55 Company sells two products, beer and wine. Beer has a 10
percent profit margin and wine has a 12 percent profit margin. Beer
has a 27 percent contribution margin and wine has a 25 percent
contribution margin. If other factors are equal, which product should
H55 push to customers?
25) Which cost is charged to the product under variable costing?
26) Which cost is NOT charged to the product under variable costing?
27) Variable costing
28) If a company is concerned with the potential negative effects of
establishing standards, they should
29) The difference between a budget and a standard is that

30) A standard cost is
31) The per-unit standards for direct labor are 2 direct labor hours at
$12 per hour. If in producing 2,400 units, the actual direct labor cost
was $51,200 for 4,000 direct labor hours worked, the total direct labor
variance is
32) The total variance is $10,000. The total materials variance is
$4,000. The total labor variance is twice the total overhead variance.
What is the total overhead variance?
33) The per-unit standards for direct materials are 2 gallons at $4 per
gallon. Last month, 11,200 gallons of direct materials that actually
cost $42,400 were used to produce 6,000 units of product. The direct
materials quantity variance for last month was
34) If the standard hours allowed are less than the standard hours at
normal capacity,
35) Manufacturing overhead costs are applied to work in process on
the basis of
36) The overhead volume variance relates only to
37) At January 1, 2004, Barry, Inc. has beginning inventory of 4,000
widgets. Barry estimates it will sell 35,000 units during the first
quarter of 2004 with a 10% increase in sales each quarter. Barry’s
policy is to maintain an ending inventory equal to 25% of the next
quarter’s sales. Each widget costs $1 and is sold for $1.50. How much
is budgeted sales revenue for the third quarter of 2004?

38) Lewis Hats is planning to sell 600 straw hats. Each hat requires a
half pound of straw and a quarter hour of direct labor. Straw costs
$0.20 per pound and employees of the company are paid $22 per
hour. Lewis has 80 pounds of straw and 40 hats in beginning
inventory and wants to have 50 pounds of straw and 60 hats in ending
inventory. How many units should Lewis Hats produce in April?
39) Gottberg Mugs is planning to sell 2,000 mugs and produce 2,200
mugs during April. Each mug requires 2 pounds of resin and a half
hour of direct labor. Resin costs $1 per pound and employees of the
company are paid $12.50 per hour. Manufacturing overhead is applied
at a rate of 120% of direct labor costs. Gottberg has 2,000 pounds of
resin in beginning inventory and wants to have 2,400 pounds in
ending inventory. How much is the total amount of budgeted direct
labor for April?
40) The cost-plus pricing approach's major advantage is
41) A company must price its product to cover its costs and earn a
reasonable profit in
42) Prices are set by the competitive market when
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What are some of the key differences between financial and
managerial accounting? How do these differences impact the type of
information that must be gathered and reported? What are the
different types of decisions that users of financial accounting
information must make? What are the different types of decisions that
users of managerial accounting information must make?
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What are the differences between a direct cost and an indirect cost?
Which is the more difficult cost to track? Why? How do indirect costs
affect the cost of a product? Should indirect costs be included in
product cost? Why or why not?
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ACC 349 Week 1 Individual Assignment BYP 1-
7, E1-7

Prepare written responses to the following assignments from Ch. 1 of
Managerial Accounting: Tools for Business Decision Making:
Exercise E1-7 exercise #7 only
Ethics Case BYP 1-7 case #7 only
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ACC 349 Week 1 Lab Problems
Week 1
• Question 1 Segregation of duties
is a preventive control
is a detective control
separates responsibilities for authorizing transactions, recording
transactions, and maintaining custody of the related assets
• Question 2 The following cost and inventory data are taken from
the accounting records of Mason Company for the year just
completed:
Costs incurred:
Direct labor cost $ 87,000
Purchases of raw materials $ 131,000
Manufacturing overhead $ 208,000
Advertising expense $ 46,000
Sales salaries $ 102,000

Depreciation, office equipment $ 228,000
Beginning End of
of the Year the year
Inventories:
Raw materials $ 8,900 $10,100
Work in process $ 5,400 $21,000
Finished goods $76,000 $25,800
Required:
Prepare a schedule of cost of goods manufactured.
Prepare the cost of goods sold section of Mason Company’s income
statement for the year.
• Question 3 Award: 10 out of 10.00 points Arden Company
reported the following costs and expenses for the most recent month:
Direct labor $45,000
Manufacturing overhead $22,000
Selling expenses $25,000
Administrative expenses $38,000
Required:
What is the total amount of product costs?
What is the total amount of period costs?
What is the total amount of conversion costs?
What is the total amount of prime costs?
• Question 4 6 Mickley Company’s predetermined overhead
rate is $23.00 per direct laborhour and its direct labor wage rate is
$13.00 per hour. The following information pertains to Job A500:
Required:
1. What is the total manufacturing cost assigned to Job A500?
2. If Job A500 consists of 40 units, what is the average cost assigned
to each unit included in the job?
• Question 5 Helix Corporation produces prefabricated flooring in a
series of steps carried out in production departments. All of the
material that is used in the first production department is added at the

beginning of processing in that department. Data for May for the first
production department follow:
Percent Complete
Units Materials Conversion
Work in process inventory, May 1
74,000 65% 30%
Work in process inventory, May 31
54,000 40% 20%
Materials cost in work in process inventory, May 1
$ 58,800
Conversion cost in work in process inventory, May 1
$ 17,500
Units started into production
262,400
Units transferred to the next production department
282,400
Materials cost added during May
$ 400,240
Conversion Cost Added During May
$ 252,244
Required:
1. Assume that the company uses the weightedaverage method of
accounting for units and costs.Determine the equivalent units for May
for the first process.
2. Compute the costs per equivalent unit for May for the first process.

3. Determine the total cost of ending work in process inventory and
the total cost of units transferred to the next process in May.
• Question 6 Financial accounting focuses on decisions affecting the
future.
False
True
• Question 7 Managerial Accounting creates reports for managers
within the organization while financial accounting creates reports
outside the organization.
True
False
• Question 8 The IMA Statement of Ethical Professional Practice
standards include all of the following EXCEPT:
Honesty
Credibility
Confidence
Competence
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ACC 349 Week 2 Connect Problems (with Excel
Sheet)

This Tutorial contains Excel Sheet which can be used for any values
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
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.
• Question 2 Walsh Company manufactures and sells one product.
The following information pertains to each of the company’s first two
years of operations:
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:
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:

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:
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 trying to decide 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?
• 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 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 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?
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What is activity-based costing? What are some of the key elements of
activity-based costing? How does this method differ from a more
traditional costing method?

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What are value-added processes? How do you determine if a process
adds value? How does identification of value-added processes help a
company run more efficiently and effectively?
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ACC 349 Week 2 Individual Assignment
Assignments CH 2, 3
Prepare written responses to the following assignments from
Ch. 2 – Exercises E-2-6 and E2-9
Ch. 3 – Exercises E3-5 and E3-9
Ch. 3 – Questions 2 and 3

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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
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.
• Question 2 Walsh Company manufactures and sells one
product. The following information pertains to each of the company’s
first two years of operations:
Manufacturing:
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:
1. Assume the company uses variable costing:

2. Assume the company uses absorption costing:
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:
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 trying to decide 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?
• 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 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 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:
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?
Should the special order be accepted at this price?
********************************************************
*
ACC 349 Week 2 Team Assignment Case Study
BYP 2-2

Prepare written responses to the following case study from Ch. 2 of
Managerial Analysis BYP 2-2
********************************************************
*
ACC 349 Week 2 Team Assignment Problems
Ch 2 and 3
Prepare written responses to the following problems from Managerial
Accounting: Tools for Business Decision Making:
Ch. 2 – Problem P2-4A
********************************************************
*
ACC 349 Week 3 Connect Problems (with Excel
Sheet)

This Tutorial contains Excel Sheet which can be used for any values
Q-1
Lehner Corporation has provided the following data from its activity-
based costing accounting system:
Indirect factory wages $552,000
Factory equipment depreciation $332,000
Distribution of Resource Consumption across Activity Cost Pools:
The "Other" activity cost pool consists of the costs of idle capacity
and organization-sustaining costs that are
not assigned to products.
How much indirect factory wages and factory equipment depreciation
cost would NOT be assigned to
products using the activity-based costing system?
Q-2
For years, Worley believed that the 6% markup covered its selling
and administrative expenses and
provided a reasonable profit. However, in the face of declining profits
Worley decided to implement an
activity based costing system to help improve its understanding of
customer profitability. The company
broke its selling and administrative expenses into five activities as
shown below:
Activity Cost Pool (Activity Measure)
Customer deliveries (Number of deliveries)

Manual order processing (Number of manual orders)
Electronic order processing (Number of electronic orders)
Line item picking (Number of line items picked)
Other organizationsustaining costs (None)
Total selling and administrative expenses
Worley gathered the data below for two of the many hospitals that it
serves—University and Memorial
(both hospitals purchased a total quantity of medical supplies that had
cost Worley $36,000 to buy from its manufacturers):
Q-3
SecuriCorp operates a fleet of armored cars that make scheduled
pickups and deliveries in the Los
Angeles area. The company is implementing an activitybased
costing system that has four activity cost
pools: Travel, Pickup and Delivery, Customer Service, and Other. The
activity measures are miles for the
Travel cost pool, number of pickups and deliveries for the Pickup and
Delivery cost pool, and number of
customers for the Customer Service cost pool. The Other cost pool
has no activity measure because it is
an organization sustaining
activity. The following costs will be assigned using the activitybased
Costing
system:
Driver and guard wages
Vehicle operating expense
Vehicle depreciation
Customer representative salaries and expenses
Office expenses
Administrative expenses
Total cost
Q-4
Reasons a company may decide not to use ABC include

ABC tends to be more expensive to implement and maintain than the
traditional method.
ABC does not conform to external reporting requirements.
Some arbitrary allocations will still occur and managers who are not
knowledgeable in the limitations of an ABC system may make
mistakes in pricing and other critical decisions.
When a company shifts from a traditional cost system in which
manufacturing overhead is applied based on direct labor-hours to an
activitybased
costing system with batch-level and product-level costs, the unit
product costs of low volume products typically decrease whereas the
unit product costs of high volume products typically increase.
in traditional costing some manufacturing cost may be excluded from
product cost
Q-5
Which of the following would probably be the most accurate measure
of activity to use for allocating the costs associated with a factory's
Machine-hours
Direct labor-hours
Number of orders processed
Cost of materials purchased
********************************************************
*

For what is cost-volume-profit (CVP) analysis used? What are some
of the key underlying assumptions that make CVP analysis useful for
decision makers? Why might decision makers use CVP analysis?
********************************************************
*
What are the differences between variable and absorption costing? Why is variable costing
not allowed for GAAP reporting? Which method is more useful for internal decision-making?
Why? As a manager, which would you prefer? Why?
*********************************************************
ACC 349 Week 3 Individual Assignment Article
Analysis Summary
Use the Internet or other credible resources to find an article relevant
to activity-based costing (ABC), job costing, or process costing.
Write a 125-word summary of the article.
Summarize the major topics of the article, and explain what you
learned as a result of your reading.

Format your summary consistent with APA guidelines.
********************************************************
*
ACC 349 Week 3 Individual Assignment
Assignments Ch. 4
Prepare written responses to the following assignments from Ch. 4 of
Exercises E4-10 and E4-11
Questions 13 and 14
********************************************************
*
Ch. 4

********************************************************
*
ACC 349 Week 3 Team Assignment Part 1
(Jeemp Farms)
Read the following scenario below:
Leighton Beridon owns "Jeemp Farms", located near Weimar, TX.
The farm produces pecan trees and sod. He has so many orders from
the Houston metropolitan area that he is able to sell all his inventory
each year, but he is not netting as much as he has in past years. His
daughter, LieslBeridon, came home from college over Thanksgiving
and mentioned ABC costing, which she learned about in her cost
accounting class. Mr.Beridon does not really know what ABC costing
is and is skeptical as to whether it would be right for his business. He
has hired your company to educate him about ABC and whether or
not he should use an ABC system. Over the next few weeks, you will
work towards helping Mr.Beridon decide what is the best route for his
company to take.
Shortly after you get started, Mr.Beridon sends you an email stating
that he feels he needs to discontinue the sod portion of his business
and focus on his tree sector, as he can charge more per tree than he
can charge for a foot of sod. He sends you an email stating, "I can
charge so much more for a tree than a foot of grass. Therefore, I am
planning on discontinuing the sod portion of the business immediately

as I make so much more on the trees! I am going to plant all my sod
acres with trees".
Write a 700- to 1,050-word paper plan for your boss explaining how
you will analyzeJeemp Farms.
Include the following:
• Prepare an argument convincing him to hold off on his decision
and see the results of your analysis first. As you have not had
time to do any analysis yet, you need to convince Mr.Beridon to
wait on whether to discontinue his sod business.
• Project potential benefits Mr.Beridon could gain from using an
ABC system.
• Explain how ABC creates these benefits.
Your team is planning on conducting an analysis of whether ABC
would be beneficial to Mr.Beridon. Create a process for conducting
this analysis.
1. How could you apply the data in the company's general ledger?
2. Determine questions to ask Mr.Beridon.
3. Determine other information to gather.
4. Explain how this additional information could help you in your
analysis?
5. Explain how you would decide on a final recommendation.
Format your assignment to APA standards.
Click the Assignment Files tab to submit as a Microsoft® Word
document.
********************************************************
*
Ch. 4

Prepare written responses to the following problems from Ch. 4 of
Problems P4-3A and P4-4A
********************************************************
*
ACC 349 Week 4 Connect Problems (with
Excel Sheet)
This Tutorial contains Excel Sheet which can be used for any
values
Q-1
Puget Sound Divers is a company that provides diving services such
as underwater ship repairs to clients in the Puget Sound area. The
company’s planning budget for May appears below:
During May, the company’s activity was actually 340 diving-hours.
Complete the following flexible budget for that level of activity.
Q-2

Flight Café is a company that prepares in-flight meals for airlines in
its kitchen located next to the local airport. The company’s planning
budget for July appears below:
In July, 22,000 meals were actually served. The company’s flexible
budget for this level of activity appears below:
1
.
Compute the company’s activity variances for
July.
Q-3
QuilceneOysteria farms and sells oysters in the Pacific Northwest.
The company harvested and sold 7,300 pounds of oysters in August.
The company’s flexible budget for August appears below:
Compute the company’s revenue and spending variances for August.
Q-4
Selected operating data for two divisions of Outback Brewing, Ltd.,
of Australia are given below:
1. Compute the rate of return for each division using the return on
investment (ROI) formula stated in terms of margin and
turnover.
2
.
Which divisional manager seems to be doing
the better job?
Q-5
A planning budget is prepared before the period begins and is valid
for whatever the actual level of activity turns out to be.
True
False
Q-5 (Set 2)
In business, a budget is a method for putting a limit on spending.

True
False
Q-6
Fixed costs should be included in a flexible budget even though they
do not change when the level of activity changes.
True
False
Q-6 (Set 2)
A flexible budget can be used to estimate what revenues and costs
should have been, given the actual
level of activity for the period.
True
False
Q-7
A balanced scorecard consists of an integrated set of performance
measures that are derived from and support a company’s strategy.
True
False
Q-7 (Set 2)
A balanced scorecard should not contain any performance measures
concerning customer satisfaction since the extent to which customers
are satisfied is beyond the control of any manager in the company.
True
False
********************************************************
*

What are some of the advantages and disadvantages of standard
costs? How do managers determine what the standard cost should be?
Describe the effect of inaccurate standard costs on financial reporting.
********************************************************
*
When should variances be investigated? Who should be responsible
for correcting a negative variance? Why? What are some factors that
can lead to variances? How can variances be corrected?
********************************************************
*
ACC 349 Week 4 Individual Assignment Ch. 5
and 6

********************************************************
*
Week 4
• Question 1
Puget Sound Divers is a company that provides diving services such
as underwater ship repairs to clients in the Puget Sound area. The
company’s planning budget for May appears below:
Puget Sound Divers
Planning Budget
For the Month Ended May 31
Budgeted diving-hours (q) 300
Revenue ($410.00q) $ 123,000

Expenses:
Wages and salaries ($12,000 + $126.00q) 49,800
Supplies ($6.00q) 1,800
Equipment rental ($2,300 + $21.00q) 8,600
Insurance ($4,100) 4,100
Miscellaneous ($530 + $1.48q) 974
Total expense 65,274
Net operating income $ 57,726
Required:
1. During May, the company’s activity was actually 290 diving
hours. Complete the following flexible budget for that level of
activity.
• Question 2 Flight Café is a company that prepares inflight meals
for airlines in its kitchen located next to the local airport. The
company’s planning budget for July appears below:
Flight Café
Planning Budget
For the Month Ended July 31
Budgeted meals (q) 27,000
Revenue ($4.30q) $ 116,100
Expenses:
Raw materials ($2.00q) 54,000
Utilities ($2,000 + $0.05q) 3,350
Facility rent ($3,400) 3,400
Insurance ($2,700) 2,700
Miscellaneous ($900 + $0.10q) 3,600

In July, 28,000 meals were actually served. The company’s flexible
budget for this level of activity appears below:
Flight Café
Flexible Budget
For the Month Ended July 31
Budgeted meals (q) 28,000
Revenue ($4.30q) $ 120,400
Expenses:
Raw materials ($2.00q) 56,000
Utilities ($2,000 + $0.05q) 3,400
Facility rent ($3,400) 3,400
Insurance ($2,700) 2,700
Miscellaneous ($900 + $0.10q) 3,700
Required:
Compute the company’s activity variances for July.
• Question 3 QuilceneOysteria farms and sells oysters in the
Pacific Northwest. The company harvested and sold 7,900 pounds of
oysters in August. The company’s flexible budget for August appears
below:
QuilceneOysteria
Flexible Budget
For the Month Ended August 31
Actual pounds (q) 7,900
Revenue ($4.20q) $ 33,180
Expenses:
Packing supplies ($0.25q) 1,975

Oyster bed maintenance ($3,200) 3,200
Shipping ($0.65q) 5,135
Utilities ($1,280) 1,280
Other ($460 + $0.01q) 539
The actual results for August appear below:
QuilceneOysteria
Income Statement
For the Month Ended August 31
Actual pounds 7,900
Revenue $ 26,600
Expenses:
Packing supplies 2,145
Oyster bed maintenance 3,060
Wages and salaries 6,065
Shipping
4,865
Utilities
1,090
Other
1,159
Net operating income $
8,216
Required:
Compute the company’s revenue and spending variances for August.

• Question 4 Selected operating data for two divisions of Outback
Brewing, Ltd., of Australia are given below:
Division
New South
Queensland
Wales
Sales $969,000
$3,024,000
Average operating assets $510,000
$ 540,000
$ 181,440
Property, plant, and equipment (net) $267,000
$ 217,000
Required:
Compute the rate of return for each division using the return on
investment (ROI) formula stated in terms of margin and turnover.
Which divisional manager seems to be doing the better job?
• Question 5 In business, a budget is a method for putting a limit on
spending.
False
True
• Question 6 A flexible budget can be used to estimate what
revenues and costs should have been, given the actual level of activity
for the period.
True

False
• Question 7 A balanced scorecard should not contain any
performance measures concerning customer satisfaction since the
extent to which customers are satisfied is beyond the control of any
manager in the company.
False
True
********************************************************
*
Ch. 6
********************************************************
*
ACC 349 Week 4 Team Assignment Part 2
(Jeemp Farms)

Mr.Beridon received your requests for information and returned data
which you have compiled in an Microsoft® Excel® spreadsheet (see
document template). He also said, "We grow sod and trees at Jeemp
Farms. We sell the sod mainly to home builders in the area, although
we sell to some individuals who are purchasing square footages to re-
sod their yard. Many home builders will purchase to sod an entire
subdivision. They then may come back to us to purchase trees for the
yards. It really is a package deal. For builders like that, we are a one-
stop-shop. In most cases, however, we sell the trees to orchards and
some individuals. The purchaser is responsible for all shipping costs
related to their product.
"Our production process is different for each product. For sod, we
plant the seed, irrigate, cut, and roll the sod and then transport it. For
the trees, we plant the root stock, graft the tree, water until a particular
maturity and then dig it up and sell it. We inspect the plants as needed
to make sure we are producing a quality product that is disease-free.
"We have delayed purchasing some machinery that reduces time
for the planting of the trees because it is a large up-front cost and we
don't want to have a huge outlay of cash if our profits keep going
down".
"The grass does not require as much irrigation as the trees, as it is
at a lower elevation than the tree acres and is closer to the creek; it
gets a lot of the run off".
"Historically, we have always been able to sell everything we
produce. Hopefully, that will continue since Houston is expanding
rapidly".
Compute the product costs for the sod and trees under traditional and
ABC costing using the Microsoft® Excel® spreadsheet.
Write a 700- to 1,050-word paper analyzingJeemp Farms and what
data and information you will consider.

• Describe any factors that could skew your results. In other
words, explain if there is one method of costing that could make
a product look more favorable than it really is.
• Justify whether Mr.Beridon should cut the sod portion of his
company.
• Justify whether Mr.Beridon should cut the tree portion of his
company instead.
• Describe other methods of analysis you could use to help you
come to a decision.
• Describe any other qualitative or quantitative factors or changes
to Mr.Beridon's business that might be relevant to Jeemp Farms
as they make the decision as to whether to use ABC and whether
to cut sectors.
• Determine any additional information you would need to have
before making a recommendation.
Click the Assignment Files tab to submit your assignment as a
Microsoft® Word document.
********************************************************
*
Ch. 7
Prepare written responses to the following problems from Ch. 7 of
Problem P7-1A

********************************************************
*
ACC 349 Week 5 Connect Problems (With
Excel Sheet)
This Tutorial contains Excel Sheet which can be used for any
change in values, get your 100% score with our sheet
Week 5
• Question 1 Huron Company produces a commercial cleaning
compound known as Zoom. The direct materials and direct labor
standards for one unit of Zoom are given below:
Standard
During the most recent month, the following activity was recorded:
a. Twelve thousand four hundred pounds of material were purchased
at a cost of $2.90 per pound.
b. The company produced only 1,240 units, using 11,160 pounds of
material. (The rest of the material
purchased remained in raw materials inventory.)
c. Five hundred and ninety six hours of direct labor time were
recorded at a total labor cost of $7,152.
Required:
Compute the materials price and quantity variances for the month.

• Question 2 SkyChefs, Inc., prepares inflight meals for a number
of major airlines. One of the company’s products is grilled salmon in
dill sauce with baby new potatoes and spring vegetables. During the
most recent week,the company prepared 6,500 of these meals using
3,200 direct laborhours.The company paid these directlabor workers a
total of $36,800 for this work, or $11.50 per hour.
According to the standard cost card for this meal, it
should require 0.50 direct laborhours at a cost of $11.00 per hour.
Required:
1. According to the standards, what direct labor cost should have
been incurred to prepare 6,500 meals? How much does this
differ from the actual direct labor cost?
2. Break down the difference computed in (1) above into a labor
rate variance and a labor efficiency variance.
• Question 3 Dawson Toys, Ltd., produces a toy called the Maze.
The company has recently established a standard cost system to help
control costs and has established the following standards for the Maze
toy:
Direct materials: 6 microns per toy at $0.31 per micron
Direct labor: 1.3 hours per toy at $7.30 per hour
During July, the company produced 5,000 Maze toys. Production data
for the month on the toy follow:
Direct materials: 70,000 microns were purchased at a cost of $0.28
per micron. 32,500 of these microns were still in inventory at the end
of the month.
Direct labor: 7,000 direct laborhours were worked at a cost of
$55,300.
Required:
1. Compute the following variances for July:
a. The materials price and quantity variances.
b. The labor rate and efficiency variances.
• Question 4 Logistics Solutions provides order fulfilment services
for dot.com merchants. The company maintains warehouses that stock
items carried by its dot.com clients. When a client receives an order

from a customer, the order is forwarded to Logistics Solutions, which
pulls the item from storage, packs it, and ships it to the customer. The
company uses a predetermined variable overhead rate based on direct
labor-hours.
In the most recent month, 165,000 items were
shipped to customers using 6,800 direct labor-hours. The company
incurred a total of $22,100 in variable overhead costs.
According to the company’s standards, 0.04 direct
labor-hours are required to fulfill an order for one item and the
variable overhead rate is $3.30 per direct labor-hour.
Required:
1. According to the standards, what variable overhead cost should
have been incurred to fill the orders for the 165,000 items? How
much does this differ from the actual variable overhead cost?
2. Break down the difference computed in (1) above into a variable
overhead rate variance and a variable overhead efficiency
variance.
• Question 5 An unfavorablelabor rate variance can occur if
workers with high hourly wage rates are assigned to work on products
with standards that assume workers have low hourly wage rates.
True
False
********************************************************
*

What is a master budget? What are some of the underlying budgets
that form the master budget? What is the budgeting process at your
organization? Is it effective? Why or why not?
********************************************************
*
What is the difference between external and internal pricing? What
factors must be considered when setting internal transfer pricing
between divisions of a company? What are the different methods of
setting internal transfer pricing? Which is the most effective? Why?
********************************************************
*
ACC 349 Week 5 Individual Assignment Ch. 8, 9
and 11

Ch. 8 – Exercises E8-11
Ch. 9 – Brief Exercises BE9-6 and BE9-8
Ch. 11 – Questions 2 and 11
Ch. 11 – Exercise E11-6
********************************************************
*
Week 5
• Question 1 Huron Company produces a commercial cleaning
compound known as Zoom. The direct materials and direct labor
standards for one unit of Zoom are given below:
Standard
Quantity or Standard Price
Standard
Hours or Rate
Cost
Direct materials 6.4 pounds $ 3.00 per
pound $19.20
Direct labor 0.4 hours $11.00 per
hour $ 4.40
________________________________________________________
____________________
During the most recent month, the following activity was recorded:

a. Twelve thousand four hundred pounds of material were purchased
at a cost of $2.90 per pound.
b. The company produced only 1,240 units, using 11,160 pounds of
material. (The rest of the material
purchased remained in raw materials inventory.)
c. Five hundred and ninety six hours of direct labor time were
recorded at a total labor cost of $7,152.
Required:
Compute the materials price and quantity variances for the month.
• Question 2 SkyChefs, Inc., prepares inflight meals for a number of
major airlines. One of the company’s products is grilled salmon in dill
sauce with baby new potatoes and spring vegetables. During the most
recent week,the company prepared 6,500 of these meals using 3,200
direct laborhours.The company paid these directlabor workers a total
of $36,800 for this work, or $11.50 per hour.
According to the standard cost card for this meal, it
should require 0.50 direct laborhours at a cost of $11.00 per hour.
Required:
According to the standards, what direct labor cost should have been
incurred to prepare 6,500 meals? How much does this differ from the
actual direct labor cost?
Break down the difference computed in (1) above into a labor rate
variance and a labor efficiency variance.
• Question 3 Dawson Toys, Ltd., produces a toy called the Maze.
The company has recently established a standard cost system to help
control costs and has established the following standards for the Maze
toy:
Direct materials: 6 microns per toy at $0.31 per micron
Direct labor: 1.3 hours per toy at $7.30 per hour
During July, the company produced 5,000 Maze toys. Production data
for the month on the toy follow:

Direct materials: 70,000 microns were purchased at a cost of $0.28
per micron. 32,500 of these microns were still in inventory at the end
of the month.
Direct labor: 7,000 direct laborhours were worked at a cost of
$55,300.
Required:
Compute the following variances for July:
The materials price and quantity variances.
The labor rate and efficiency variances.
• Question 4 Logistics Solutions provides order fulfilment services
for dot.com merchants. The company maintains warehouses that stock
items carried by its dot.com clients. When a client receives an order
from a customer, the order is forwarded to Logistics Solutions, which
pulls the item from storage, packs it, and ships it to the customer. The
company uses a predetermined variable overhead rate based on direct
labor-hours.
In the most recent month, 165,000 items were
shipped to customers using 6,800 direct labor-hours. The company
incurred a total of $22,100 in variable overhead costs.
According to the company’s standards, 0.04 direct
labor-hours are required to fulfill an order for one item and the
variable overhead rate is $3.30 per direct labor-hour.
Required:
According to the standards, what variable overhead cost should have
been incurred to fill the orders for the 165,000 items? How much does
this differ from the actual variable overhead cost?
Break down the difference computed in (1) above into a variable
overhead rate variance and a variable overhead efficiency variance.
• Question 5 An unfavorablelabor rate variance can occur if workers
with high hourly wage rates are assigned to work on products with
standards that assume workers have low hourly wage rates.
True
False

********************************************************
*
ACC 349 Week 5 Signature Assignment Ethics
on the Job (2 Papers)
This Tutorial contains 2 Papers
About Your Signature Assignment
Signature/Benchmark Assignments are designed to align with specific
program student learning outcome(s) in your program. Program
Student Learning Outcomes are broad statements that describe what
students should know and be able to do upon completion of their
degree. Signature/Benchmark Assignments are graded with a grading
guide or an automated rubric that allows the University to collect data
that can be aggregated across a location or college/school and used for
course/program improvements.
Submit your assignment to the Assignment Files tab as a Microsoft®
Word document.
Identify a specific job within a specific company that you might be
interested in applying for after you graduate from the University of
Phoenix.
Research the job and the field in general, as well as ethical issues
managerial accountants have faced that would pertain to that field.
Also, educate yourself on the basics of operations within the job and
company you have selected.
Write a 700- to 1,050-word paper to include the following:
• Summarize the main duties of the job.

• Describe a specific ethical issue you might face in that position
using 2 credible sources to support your description.
• Summarize the IMA's standards of ethical practice and conflict
resolution guide.
• Analyze how the IMA's standards of ethical practice and
conflict resolution guide applies to the ethical issue.
• Predict how you would handle the ethical issue.
• Hypothesize what would happen if no one in the company
followed the IMA's standards of ethical practice.
• Assess why it is important to follow the IMA's standards of
ethical practice.
• Design or name any methods of internal controls you think
could prevent or detect the unethical behavior in the future.
Click the Assignment Files tab to submit your assignment as a
Microsoft® Word document.
********************************************************
*
Ch. 8 and 11
Prepare written responses to the following problems from Managerial
Accounting: Tools for Business Decision Making:
*********************************************************

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