er Term B) AC 306-8 > Assignments > Unit 6 Assignment - Managerial Reporting Unit 6 Assignment - Man- agerial Reporting Submit Assignment Due Sunday by 11:59pm Points 80 Submitting a file upload Instructions Variable costing is a costing system where we consider taking on additional work to help fill our production capacity. Variable costing is used for short term decisions and excludes fixed overhead costs. In this assignment, we will explore how variable costing can help us determine how to select special orders. Download the AC 306 Unit 6 Assignment template a [Excel] and complete the problems on each tab. In this assignment Problem 1 - Absorption vs variable costing Problem 2 - ROI and Residual income Problem 3 - Calculating Cost of Goods Sold Assignment Objectives Demonstrate Describe managerial and internal uses of cost accounting data. Deliverables When you have finished, rename the file using your first initial, last name. course number and assignment number (for example UDoc_AC306 A6.xlsx) W ON T W INGOW help 75% Wed 5:54 PM AC306 Unit 6 Assignment template Queens Home . Paste Formulas Data A- A = . .A. E Review = View . General Insert Page Layout Calibri (Body) - 16 B I U . X v fx 12. 5 Wrap Text Margo & Contor. Insert . Delete. Format . - 2. $ . % ) * Conditional Format Formatting as Table Styles Cell sort 1 Enter numbers in blue cells 2 Enter formulas in the yellow cells 3 Enter your narrative analysis in the green cells Kitty Hawk manufactures and distributes high end drones. The following costs are available for the rear end. The company had no beginning Inventory. Last year they produced 1,800 units and but only sold 1,600 units. The unit selling price was $4,300 and expenses were: 6 Variable Cost per Unit Direct Materials Direct Labor Variable Mfg Over Head 10 Variable selling and admin 900 750 Units Produced Units Sold Units Remaining Unit selling price 1,800 1,600 200 4,300 1 12 Annual Foxed Costs 13 Mfg overhead fbed 14 Fbed Selling and admin Expenses 950,000 87,500 17 1. Compute the cost of manufacturing one unit for both variable and absorption costing fixed cost per unit 19 Fixed Overhead 20 Units produced Variable Absorption Determine the product cost for each 22 method Problem 1 Problem 2 Problem 3 + Ready MacBook Pro Home View Insert Page Layout Formulas * Calibri (Body) - 14 . A- A BIU A x fx Less Period Costs Data Review = = = E33 Paste Wrap Text Merge & Conter. 3 General $ % ) Conditional Form F39 17 1. Compute the cost of manufacturing one unit for both variable and absorption costing 17 1.Compute the cost 19 Fixed Overhead 20 Units produced fixed cost per unit Variable Absorption Determine the product cost for each 22 method 23 Direct Materials 24 Direct Labor Variable Mfg OverHead 26 Variable selling and admin Fixed Cost per unit Total Cost per unit Per unit Absorption 1,600 2. Prepare an income statement for both variable and absorption costing 34 Income Stmt Per unit Variable 35 Units sold 1,600 36 Sales 37 Variable Prod Costs VCOGS Less Variable selling expense MFG Margin Problem 1 Problem 2 Problem 3 + Sales COGS Gross Profit Less Period Costs Variable selling Ready $ ExcelFile Edit View Insert Format Tools Data Window Help AC306 Unit 6 Assignment template View 14 Home Insert Page Layout * Calibri (Body) Paste B IV B F56 x V fx Formulas Data Review A A = = 2 O A E 33 19 Eo wrap Text Morge & Center General $ % ) Conditional Format Formatting as Table Per unit Absorption 1,600 . 33 2. Prepare an income statement for both variable and absorption costing 34 Income Stmt Per unit Variable 35 Units sold 1,600 36 Sales 37 Variable Prod Costs VCOGS Less Variable selling expense MFG Margin 41 Less Fixed Costs 42 Fixed Mfg Ohead Sales COGS Gross Profit Less Period Costs Variable selling Fixed Selling Total period costs 44 Total Fixed Costs Difference 46 Net Income Net Income LI Proof Ending Inventory Per unit Difference Ending inventory Per unit Total Ending Inventory Total ending inventory Problem 1 Problem 2 Problem 3 + Ready A - = = ay 16 MA BIU. V fx Wrap Text Merge & Center General $ . % Paste E35 ) ET BE Conditional Format Formatting as Table Call Styles x 18 2. Assume a target income of 12% of average invested assets. Compute the residual income for each division Coffee/Expresso Coffee machine.. Basic Coffee maker w/ grinder 12% Net Income Less target net Income Residual Income coffee/Expresso machine Coffee machine w/ grinder Basic Coffee maker Profit Margin Net income Sales Investment Turnover Inv ctr sales Ave assets ROI 3. If you were the Vice President over the Coffee Machine Division what is your analysis of the three products? Problem 1 Problem 2 Problem 3 + Ready Financial performance measures profit margin Return on investment = net income = net income ave assets sales inv turnover inv center sales ave assets Residual income = net income-target income INSTRUCTIONS: Enter numbers in blue cells Enter formulas in the yellow cells Enter your narrative analysis in the green cells 1. Compute the return on Assets for each division below Investment Center Sales Net income Ave assets Return on Investment 41,250,000 $4,550,000 $22,500,000 Coffee/Expresso machine Coffee machine w/ grinder Basic Coffee maker 16,975,000 10,400,000 $1,975,000 875,000 10,950,000 7,500,000 2. Assume a target income of 12% of average invested assets. Compute the residual income for each division Coffee machine Coffee/Expresso machine Problem 3 Basic Coffee maker salarindar Problem 1 Problem 2 Ready Excel File Edit View Insert Format Tools Data Window Help AC306 Unit 6 Assignment template View . Insert Page Layout Formulas Data Calibri (Body! 16 . AA = B I U . . A. E Review = = Be Wrap Text Marge & Carter. General $. % ) Conditional Format Cole E54 Inv ctr sales Ave assets ROI 3. If you were the Vice President over the Coffee Machine Division what is your analysis of the three products? Are there products where sales is a concern? If so, what three steps would you take to perform further analysis as to whether or not you should discontinue the product? Problem 1 Problem 2 Problem 3 + Ready May Acme Labs has four separate labs: chemical, blo, mechanical and electrical. The four labs all share the support functions of Admin, Utilities and insurance. Acme spreads the cost of these three departments to the labs based on the allocation below. Allocation base Expenses Administralve expense 104,950 number of employees Utilities 72,600 square feet per lab Insurance 36,000 value of assets in use. 213,550 Square feet Department Employees Chem Lab Bio Lab Mechanical Lab Electrical Lab Totals INSTRUCTIONS: Enter numbers in blue cells Enter formulas in the yellow cells Enter your narrative analysis in the green cells 10,000 55,500 29,800 18,500 113,800 Asset values 47,950 88,250 31,500 98,500 266,200 % allocation base Cost Allocation Base #employees W ww Administrative Expenses Department Chem Labs Bio Lab Mechanical Lab Electrical Lab Totals Problem 1 Problem 2 Problem 3 Ready Merge & Center B57 Ax B Cost Allocation Base % allocation base Sqaure feet occupied Utilities Department Chem Lab Bio Lab Mechanical Lab Electrical Lab Totals Insurance Allocation Base % allocation base Cost Department Value of Assets in use Chem Lab A MATRAMARILLA S MAKSAA OMANIKANISA LARANIWAKAN MONAS Bio Lab AMAT MALAYALAM MA AMAN ANG KATAWA KANI SA LARAWAKIANA NA MAMA Mechanical Lab RAMAI L ALANGAN KATA KATIKA MAKAN Electrical Lab Totals Utilities Insurance Total Summary Admin Chem Lab Bio Lab Mechanical Lab ALLA AURAMAAN LAMA MARAMING Electrical Lab Totals MMA MA MA MAILL MAL AMAN KARANGAN E