here is a problem in managerial accounting I need help with....see attached
Name: Karrie Schaeffer 2013 Winter MBA642 Take home exam covers chapters 10 and 11 Due Saturday, March 1st by 11:59 Central Time and is worth total of 30 pts. Part 1--Take the multiple choice part of the exam in the blackboard class by Sat. March 1st 11:59 CT This part is worth 15 pts. And will open on Wednesday. Part 2-Complete this problem template and submit by Sat. March 1st 11:59 CT This part is worth 15 pts. This is a take home exam and you should not discuss this exam with anyone. You should post generic questions to the office discussion forum or you can e-mail me with specific questions and I can decide what to answer. I do not pregrade submissions. There are 2 problems on the exam, which are set up on separate worksheets within this workbook. Please use this workbook as your exam template and prepare your solution on the specific problem worksheet. one sentence response. You need to make sure your response is answering my question. Problem 1 worth 8.5 pts and covers material from chapters 10 and 11. Problem 2 Worth 6.5 pts. And covers Chapter 11 material your solution in step 2 of this assignment. You must show your work to earn any credit, so just typing in the answer will not be acceptable and you will not earn credit. ptable. I would not wait until the last day to try to complete this exam. Save your file using the first initial and last name and the assignment name. Remember it is your responsibility to take the time to verify that your file has uploaded correctly. If there are problems, please contact me immediately. Please make sure you review my honesty policy that is shown below and also set out in the syllabus. Academic Honesty Policy: Each student is assumed to be a mature and responsible adult with high academic and moral standards. There is no place in the business profession or the classroom for dishonesty. Therefore, any student found cheating or presentin g material in a dishonest fashion would be dismissed from the course and given a course grade of \"F.\" You should not exchange files or discuss turn in problems or take home exams outside the discussion board . It is unfair to your classmates to discuss turn-in problems and take home exams via e -mail or to send files with the solution to any member of the class. I always have a discussion thread set up for students to ask questions, so this is the place you should ask questions on these assignments and exams. Remember, it does not matter what type of assignment it is, if you are found cheating you will receive an F for the course and the College of Business will be informed of your actions for further proceedings. Problem 1 Please make sure you review chapter 10 and 11, and my demonstration from chapter 10. Worth 8.5 pts. Foster Corporation uses a standard cost system. There is no beginning or ending work in process, and finished goods inventory balances. The following information was provided concerning the one product produced by this company for the period that just ended: This company used Direct labor hours as the cost driver for the application of overhead. Actual price per kilogram $3.00 Actual kilograms of material used 31,000 Actual kilograms of material purchased 32,000 Actual hourly labor rate $18.00 Actual hours of production 4,900 labor hrs. Standard price per kilogram $2.96 Standard kilograms per completed unit 6.30 Standard hourly labor rate $17.90 Standard time per completed unit 1 Hour Actual Variable factory overhead $18,000.00 Actual Fixed factory overhead $18,200.00 Standard fixed factory overhead rate $4.00 per labor hour Standard variable factory overhead rate $3.80 per labor hour Budgeted fixed overhead $18,100.00 Units completed during the period 4,950 units You have just been hired by a local plastic pool manufacturer to determine if they are controlling their costs. You have decided to use your recent knowledge of variance analysis from chapters 10 and 11 to assist you in this endeavor. You will analyze the variances as stated in the requirements below. Grading Rubric Each Variance worth 0.75 pts. Each U or F designation 0.25 pts. 1 pt. each for variance Comments 0.5 Total pts. Possible 8.5 pts. Required: Make sure you do not forget to label the variances U or F. You need to show your work either by cell reference or showing your calculation to the side. 1. Calculate the direct materials price and quantity variance. Material price variances should be based on material purchased, since you want to isolate the variance as soon as possible. Material Quantity variance should be based on materials used, since this is monitoring the production efficiency. See page 413 Direct Material Price variance Direct Material Quantity variance 2. Calculate the direct labor rate and efficiency variances. Direct Labor rate variance Direct Labor Efficiency variance 3. Variable manufacturing overhead spending and efficiency variances. Variable overhead spending variance Variable overhead efficiency variance 4. Fixed manufacturing overhead budget and volume variances. Fixed Manufacturing overhead budget variance Fixed overhead volume variance- I want you to designate this variance U or F just like you did for the other variances. 5. Pick out the two variances that you computed above that you think should be further investigated. Explain why you picked these 2 variances and what might be the possible cause of the variances. Problem 2 Worth 6.5 pts. Several years ago the Cookie Company developed a comprehensive budgeting system for profit planning and control purposes. The line supervisors have been very happy with the system and with the reports being prepared on their performance, but both middle and upper management have expressed considerable dissatisfaction with the information being generated by the system. The following is the overhead performance report for the Baking department. Grading Rubric: Each number in budget U or F designation #2 Comments Total points possible Cookie Company Overhead performance report-Baking department For the quarter ended March 31 Units Actual Budget Variance 33,000 36,000 3,000 U Variable Overhead Indirect materials Rework time Utilities Machine setup Total variable overhead cost 35000 8500 70000 17500 131000 36000 9000 72,000 18000 135000 1000 F 500 F 2000 F 500 F 4000 F Fixed overhead Costs Maintenance Depreciation Inspection Total fixed overhead cost Total overhead cost 79200 10000 60200 149400 280400 80000 9900 60000 149900 284900 800 F 100 U 200 U 500 F 4500 F After receiving a copy of this overhead performance report, the supervisor of the baking department stated, "These reports are super. It makes me feel really good to see how well things are going in my department. I can't understand why those people upstairs complain so much." Required: Hint: Look at problem 11-43 and 11-45 #4 and #5 and make sure you have viewed my narrated PowerPoint for chapter 11 The company's vice president has hired you as a consultant to develop a new overhead performance report for the quarter for the Baking department. After you have developed this new performance report, explain to the supervisor of the baking department the reasons for your changes and discuss the issue of controlling costs. Prepare the revised flexible performance report below. The categorization of variable and fixed are correct, so do not adjust this information. Please use the template I have set out below to complete this Performance report. Solution: You need to show your work either by cell reference or showing your calculation to the side. Cookie Company Overhead performance report-Baking department For the quarter ended March 31 Actual Budget Variance Units Variable Overhead Indirect materials Rework time Utilities Machine setup Total variable overhead cost Fixed overhead Costs Maintenance Depreciation Inspection Total fixed overhead cost Total overhead cost Explain to the supervisor of the baking department the reasons for your changes and discuss the issue of controlling costs. 0.1 pt. each 0.25 pt. each 0.5 6.5
