Mat 116 week 5 and 6 quiz b

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This archive file includes MAT 116 Week 5 and 6 Quiz B
Business - General Business
Week 1
Ethics in Cost Control . (Exercise 1-9) Zoya Arbiser, regional
manager of Gold Medal Sports Shops, is reviewing the results
of 15 stores in her region. Store managers are moved
annually. Each store manager's income is very dependent on
the direct contribution margin of that store. For the past
year, Store 9 has been managed by a person who has
operated several other profitable stores in recent years and
is about to be promoted to a larger store. Zoya notices
several items that bother her.
Store 9 has almost no personnel training expenses relative to
other stores.
Store 9 has stopped participating in numerous community
events that gave the store significant visibility but did incur
substantial expenses.
Store 6, where this store manager worked the prior year, has
had a severe drop in profits due to higher operating
expenses.
The advertising budget was spent almost entirely in the first
four months of the year, with almost nothing spent in the last
several months.
Discuss a possible negative managerial scenario that the
regional manager may be sensing. Might the manager of
Store 9 be an exceptional manager? What are the ethical
implications of the scenario? What is the regional manager’s

2. ethical responsibility in this scenario? Explain and support
your position with evidence from the text. Your initial post
should be 200 to 250 words.
Fixed and Variable Costs . (Chapter 1 Discussion Question
9(a)) Controller, Judy Koch, in a recent speech said, "I rarely
see a real variable cost or a truly fixed cost." What did she
mean? Include in your response an explanation of the
difference in behavior of variable and fixed cost, including an
example to illustrate your explanation. Your initial post
should be 200 to 250 words.
Mendel Paper Company . Complete Case 2B (Mendel Paper
Company) in Chapter 2.
In this case, you are provided information regarding selling
prices and costs of several products offered by Mendel Paper
Company. In addition, management has concerns about sales
mix and rising costs. Address the questions (1-5) at the end of
the case. Based on the case questions, you are required to
provide a three to five double-spaced written report
addressing management’s concerns. The written report
should be properly formatted according to APA guidelines
and demonstrate research and critical thinking skills.
Conclusions and recommendations should be supported by
at least 2 scholarly sources from the Ashford Library or other
external sources, excluding the textbook.
For Questions 1 through 4, you will need to complete several
calculations – be sure to label and clearly identify your work
to demonstrate your understanding of the concept even if
you arrive at the incorrect answer. The calculations should be
included as part of your analysis and written report required
for submission.
For Question 5, fully address management’s concerns as part

3. of your written analysis using the new or the previous
calculations to support your recommendation/explanation.
As part of your written analysis, include how management
might use these calculations to make decisions. The written
analysis should be supported by at least 2 scholarly sources,
excluding the textbook.
Week 1 Written Assignment should:
Demonstrate graduate level work including appropriate
research and critical thinking skills.
Be presented as a written analysis (not a question/answer
format)
Incorporate case questions into the overall analysis.
Follow APA formatting guidelines including title page,
reference page and in-text citations
Consists of three to five double-spaced pages of content
Provide at least 2 scholarly sources, excluding the textbook.
Week 2
Product Costs . In Chapter 3, you were introduced to three
types of costs associated with a manufactured product –
direct materials, direct labor, and manufacturing overhead.
Explain how these costs are associated with the
manufactured product. Why are some of these costs
allocated to the product through costing methods such as job
order costing or process costing?
As part of your response, be sure to provide a specific
example of a company’s manufacturing costs. Your initial
post should be 200-250 words and your example should be
properly cited according to APA as outlined in the Ashford
Writing Center.
Job Order Costing vs. Process Costing . Explain the similarities
and differences between job order costing and process

4. costing. In your explanation, provide examples of when job
order costing and process costing would be most
appropriate. Your initial post should be 200 to 250 words.
Auerbach Enterprises . Complete Case 3A (Auerbach
Enterprises) in Chapter 3.
Auerbach Enterprises manufactures air conditioners for
automobiles and trucks manufactured throughout
North America. The company designs its products with
flexibility to accommodate many makes and models of
automobiles and trucks. The company’s two main products
are MaxiFlow and Alaska. MaxiFlow uses a few
complex fabricated parts, but these have been found easy to
assemble and test. On the other hand, Alaska uses
many standard parts but has a complex assembly and testing
process. MaxiFlow requires direct materials costs
which total $135 per unit, while Alaska’s direct materials
requirements total $110 per unit. Direct labor costs per
unit are $75 for MaxiFlow and $95 for Alaska.
Auerbach Enterprises uses machine hours as the cost driver
to assign overhead costs to the air conditioners.
The company has used a company-wide predetermined
overhead rate in past years, but the new controller,
Bennie Leon, is considering the use of departmental
overhead rates beginning with the next year.
The following planning information is available for the next
year for each the four manufacturing departments
within the company:
Overhead Machine
Costs Hours
Radiator parts fabrication.............. $ 80,000 10,000
Radiator assembly, weld, and test.... 100,000 20,000

5. Compressor parts fabrication.......... 120,000 5,000
Compressor assembly and test........ 180,000 45,000
Total $480,000 80,000
Normally, the air conditioners are produced in batch sizes of
20 at a time. A production batch of 20 units requires
the following number of hours in each department:
MaxiFlow Alaska
Radiator parts fabrication........... 28 16
Radiator assembly, weld, and test....... 30 74
Compressor parts fabrication......... 32 8
Compressor assembly and test......... 26 66
Total 116 164
Required:
1. Compute the departmental overhead rates using machine
hours as the cost driver.
2. Compute a company-wide overhead rate using machine
hours as the cost driver.
3. Compute the overhead costs per batch of MaxiFlow and
Alaska assuming:
(a) The company-wide rate.
(b) The departmental rates.
4. Compute the total costs per unit of MaxiFlow and Alaska
assuming:
(a) The compan...
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