For Chapter 8 Standard Costing Variances Questions: Unit Standards: DM 10.0 ft @ $26.00 foot $ 260.00 DL 18.5 hours @ $ 20.00 hour 370.00 VOH 18.5 hours @ $ 8.00 hour 148.00 FOH 18.5 hours $ 12.00 hour 222.00 $ 1,000.00 Flexible Budget: 14,000 DM (70%) 140,000.0 ft 259,000.0 hours @ $26.00 foot 3,640,000.00 5,180,000.00 DL @ $ 20.00 hour VOH $ 8.00 hour 259,000.0 hours 259,000.0 hours 2,072,000.00 3,108,000.00 FOH @ $ 12.00 hour @ 16,000 DM $ 26.00 foot 4,160,000.00 (80%) 160,000.0 ft 296,000.0 hours 296,000.0 hours DL $ 20.00 hour 5,920,000.00 2,368,000.00 VOH @ $ 8.00 hour FOH 3,108,000.00 @ 18,000 (90%) 180,000.0 ft DM @ $26.00 foot 4,680,000.00 DL 333,000.0 hours @ $ 20.00 hour 6,660,000.00 2,664,000.00 VOH 333,000.0 hours $ 8.00 hour FOH 3,108,000.00 Actuals: @ 16,000 DM 172,800.0 ft $ 25.00 foot 4,320,000.00 DL 288,000.0 hours $19.50 hour VOH 5,616,000.00 2,160,000.00 3,744,000.00 FOH i) Planned operation was at 70% of the productive capacity of 20,000 units. ii) Prepare DM, DL, VOH and FOH variance analyses. For Chapter 9 Performance Measurement (Allocations) Questions: Suppose a company has three profit centers with the following statistics: Division D sq. feet occupied total sales headcount 16,721 360,336 21 Division E sq. feet occupied total sales headcount 17,252 429,616 24 Division F sq. feet occupied total sales headcount 16,027 510,048 15 Corporate costs are allocated to the divisions as follows: Headquarters Rent Expense is allocated based on square feet occupied Corporate Marketing Expense is allocated based on sales Human Resources Expense is allocated based on headcount Allocate the following costs according to the conventions shown above. Round percentages to the nearest tenth of a percent (for example, 33.5%) and round answers to the nearest whole dollar. Headquarters Rent Expense Corporate Marketing Expense Human Resources Expense 330,000 410,000 250,000 Finally, figure total amount allocated to each division. For Chapter 10 (Relevant Costing - Sales Mix) Questions: Sales Price/unit Direct Material/unit Direct Labor/unit Variable OH/unit Product Q 15.00 5.50 4.20 3.30 Product R 18.00 6.70 5.50 4.00 MH/unit 2.00 1.00 For Chapter 10 (Relevant Costing - Make vs. Buy) Questions: Historical Costs DM DL OH selling expense admin expense total expense unit 6.70 7.30 8.40 3.00 2.60 28.00 Q 30,000 201,000 219,000 252,000 90,000 78,000 840,000 Assume OH is 75% variable and 25% fixed Assume Selling Expense is 2/3 variable and 1/3 fixed Assume Admin Expense if 50% variable and 50% fixed For Chapter 11 (Capital Budgeting) Questions: Assume initial investment is $98,000 for all three projects: Project X Project Z Project Y Cash Flows Year Cash Flows Cash Flows 1 35,000 30,000 15,000 25,000 2 40,000 35,000 3 20,000 20,000 30,000 35,000 4 15,000 10,000 20,000 20,000 5 20,000 Also assume that cost of capital is 9.0% for all three projects