Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you please help with the attached homework? I have to answer 6 out of the 8 questions. However, please include I-18.03 in your selection.

Can you please help with the attached homework? I have to answer 6 out of the 8 questions.However, please include I-18.03 in your selection.

image text in transcribed B-18.02 Fixed and variable cost calculations True Flight Golf manufacturers a popular shaft for golf clubs. Its trade secret is a unique process for weaving high-tension wire into the center of the shaft such that energy is accumulated during the swing and released at impact. A specialized machine costing $3,000,000 is utilized in the manufacturing process. The machine has a 3-year life and no salvage value. True Flight uses straight-line depreciation. During the year, 25,000 shafts were produced, and the company was operating at full capacity. $700,000 of wire was used during the year. (a) Is machinery depreciation fixed or variable? Is wire fixed or variable? (b) For the two noted cost items, how much was total variable cost and total fixed cost? (c) For the two noted cost items, how much was variable cost per unit and how much was fixed cost per unit? B-19.01 Review of foundational cost flow concepts Alaska Launch, a private-sector aerospace company, provided the following aggregated data for satellite construction jobs during a recent period: Direct materials Direct labor Applied (and actual) factory overhead (a) $13,442,769 21,889,554 8,223,454 Beginning work in process 14,550,098 Ending work in process 17,559,000 How much is cost of goods manufactured? Is this necessarily the same as cost of goods sold? Why or why not? B-19.04 Determining and evaluating applied overhead Ekpro Products manufactures containment chambers for environmentally friendly incinerators. Each chamber is built to customer specifications. Most of the direct labor time is spent on welding activities. Following is the job cost sheet for an incinerator manufactured for Benzate Corporation: Ekpro Job: Job Cost Sheet Benzate Direct Labor Hours Rate Total Direct Material Qty. Unit Cost Total Applied Overhead Qty. Rate Total Total May 8, 20X7 Rod Burner 9 $25 $225 $225 Sandy Sharp 1 $12 $12 $12 Steel 10 $80 $800 $800 May 9, 20X7 Sandy Sharp 2 $12 $24 $24 Applied Overhead ? 12.00 (b) $261 $800 ? $360 $360 $360 $1,421 Ekpro is considering installation of a robotic machine that will do all welding operations. How might this decision impact the total overhead and the application method? B-20.07 Critical thinking about process cost flows Barksdale Corporation produces hair care products. ShineOnOne is a one-step shampoo and conditioner that is produced in a three-step process. The three phases of production consist of mixing, blending, and bottling. Below is a partial schedule of June's costs for each phase of production. Complete the schedule and respond to the questions that follow. Mixing Beginning Balance June Costs Cost Transfers $288,100 $1,444,424 $(1,019,087) Blending 316,700 ? Bottling 454,900 954,000 $ ? $4,709,991 Ending Balance $ ? ? ? ? (a) Which department experienced a decrease in work in process during June? (b) How much was transferred to finished goods inventory? ? (3,378,909) $(4,155,676) ? $ ? x B-20.08 Basic activity-based costing concepts Four of the following eight statements are patently false. Find the four false statements. The other statements are true. For the false statements, mark the words that make the statement false. 1. A simplified explanation of ABC is that it attempts to divide production into its core activities, define the costs for those activities, and then allocate those costs to products based on how much of a particular activity is needed to produce a product. 2. ABC maintains the traditional division between product and period costs. 3. ABC charges products with the costs of manufacturing and nonmanufacturing activities, and some manufacturing costs are not attached to products. 4. Under ABC, idle capacity is typically isolated and allocated to products and services. 5. ABC is suitable for public reporting. 6. With ABC, the "cost objects" are broadened to include not only products/services, but other objects like customers, markets, and so on. 7. The first step in implementing ABC is a detailed study of all business processes and costs. 8. The normal steps in an ABC implementation are (1) study processes and costs, (2) identify activities, (3) identify traceable costs, (4) assign remaining costs to activities, (5) apply costs to objects, and (6) determine per-activity allocation rates. B-21.02 Scheduling anticipated cash collections Logan Township acquired its water system from a private company on June 1. No receivables were acquired with the purchase. Therefore, total accounts receivable on June 1 had a zero balance. Logan plans to bill customers in the month following the month of sale, and 70% of the resulting billings will be collected during the billing month. In the next following month, 90% of the remaining balance should be collectable. The remaining uncollectible amounts will relate to citizens who have moved away. Such amounts are never expected to be collected and will be written off. Water sales during June are estimated at $3,000,000, and expected to increase 30% in July. August sales will be 10% less than July sales. (a) For each dollar of sales, how much is expected to be collected? (b) Estimate the monthly cash collections for June, July, August, and September. B-21.08 Budgeting for SG&A and volume fluctuation Review the following SG&A budget that was prepared at the beginning of the current year. The economy appears to be slowing, and sales are now expected to run only 90% of plan. How much can now be expected to result for total SG&A? The only fixed cost that can be reduced relates to the advertising campaign. What are the possible impacts of attempting to save money by cutting a portion of the advertising budget? Spreadsheet fx A B C D E F G 1 2 Selling, General, and Administrative Budget 3 For the Year Ending December 31, 20X5 4 5 Estimated units sold 6 X Per unit variable SG&A $4.00 7 Total variable SG&A $200,000 8 Fixed SG&A Salaries 9 10 Office 11 Advertising 12 Other 50,000 $275,000 60,000 175,000 25,000 13 Total fixed SG&A $535,000 14 Total budgeted SG&A $735,000 15 Sales Production Materials Labor Factory Overhead Finished Goods SG&A Cash Income I-18.03 Break-even and related analysis Anderson Metals manufactures and sells #3 steel rebar that is used in the construction of slabs and driveways. The steel bar not only strengthens the finished concrete product, but it also has unique properties such that its temperature related expansion and contraction matches that of concrete. The product is manufactured and sold in 20' long "sticks." The product is generally produced and sold to match customer demand, and there is not a significant amount of finished goods inventory at any point in time. Summary information for 20X6 is as follows: Sales were $20,000,000, consisting of 5,000,000 sticks. Total variable costs were $11,000,000. Total fixed costs were $8,000,000. Net income was $1,000,000. The general economic conditions appear to be deteriorating heading into 20X7, and there is some concern about a reduction in sales volume. The following questions should each be answered independent of one another. (a) What is the company's break-even point in "sticks?" Can the company sustain a 30% reduction in total volume, and remain profitable? (b) The company's sole shareholder, Doug Anderson, generally lives off of dividends paid by the business. The business typically declares and pays a dividend equal to 25% of net income. If Doug needs to receive $100,000 in dividends for normal living expenses, what total revenues must Anderson Metals produce in 20X7

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: Late RC Sekhar, AV Rajagopalan

1st Edition

195683609, 978-0195683608

More Books

Students also viewed these Accounting questions

Question

Where does the person work?

Answered: 1 week ago

Question

1. Why do we trust one type of information more than another?

Answered: 1 week ago