I've attached 6 problems for managerial accounting (ACCT 4302). Please "SHOW ALL CALCULATIONS".

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QUESTION 1 A distraught employee, Fang W. Arson, put a torch to a manufacturing plant on a blustery February 26. The resulting blaze destroyed the plant and its contents. Fortunately, certain accounting records were kept in another building. They reveal the following for the period from January 1, 2009, to February 26, 2009: Direct materials purchased $160,000 Work-in-process inventory, 1/1/2009 $34,000 Direct materials inventory, 1/1/2009 $16,000 Finished goods inventory, 1/1/2009 $30,000 Manufacturing overhead costs 40% of conversion costs Revenues $500,000 Direct manufacturing labor $180,000 Prime costs $294,000 Gross margin percentage based on revenues 20% Cost of goods available for sale $450,000 The loss is fully covered by insurance. The insurance company wants to know the historical cost of the inventories as a basis for negotiating a settlement, although the settlement is actually to be based on replacement cost, not historical cost. REQUIRED Calculate the cost of: l. Finished goods inventory, 2/26/2009 2. Work-in-process inventory, 2/26/2009 3. Direct materials inventory, 2/26/2009 QUESTION 2 Debbie's Delight, Inc., operates a chain of cookie stores. Budgeted and actual operating data of its three Chicago stores for August 2006 are as follows: Budget for August 2006 Chocolate chip Oatmeal raisin Coconut White chocolate Macadamia nut Selling Price Variable Cost per Pound per Pound $4.50 $2.50 5.00 2.70 5.50 2.90 6.00 3.00 6.50 3.40 Contribution Sales Volume Margin per Pound in Pounds $2.00 45,000 2.30 25,000 2.60 10,000 3.00 5,000 3.10 15,000 100,000 Actual for August 2006 Selling Price Variable Cost per Pound per Pound $4.50 $2.60 5.20 2.90 5.50 2.80 6.00 3.40 7.00 4.00 Contribution Sales Volume Margin per Pound in Pounds Chocolate chip $1.90 57,600 Oatmeal raisin 2.30 18,000 Coconut 2.70 9,600 White chocolate 2.60 13,200 Macadamia nut 3.00 21,600 120,000 Debbie's Delight focuses on contribution margin in its variance analysis. REQUIRED 1. Compute the total sales-volume variance for August 2006. 2. Compute the total sales-mix variance for August 2006. 3. Compute the total sales-quantity variance for August 2006. 4. Comment on your results in requirements 1, 2, and 3. 5. Debbie's Delight attains a 10% market share based on total sales of the Chicago market. The total Chicago market is expected to be 1,000,000 pounds in sales volume for August 2006. The actual total Chicago market for August 2006 was 960,000 pounds in sales volume. Compute the market-share and market-size variances for Debbie's Delight in August 2006. Calculate all variances in contribution-margin terms. Comment on the results. QUESTION 3 The Mancusco Company uses a flexible budget and standard costs to aid planning and control of its machining manufacturing operations. Its costing system for manufacturing has two directcost categories (direct materials and direct manufacturing laborboth variable) and two overhead-cost categories (variable manufacturing overhead and fixed manufacturing overhead, both allocated using direct manufacturing labor-hours). At the 40,000 budgeted direct manufacturing labor-hour level for August, budgeted direct manufacturing labor is $800,000, budgeted variable manufacturing overhead is $480,000, and budgeted fixed manufacturing overhead is $640,000. The following actual results are for August: Direct materials price variance (based on purchases) Direct materials efficiency variance Direct manufacturing labor costs incurred Variable manufacturing overhead flexible-budget variance Variable manufacturing overhead efficiency variance Fixed manufacturing overhead incurred Fixed manufacturing overhead spending variance $ $176,000 F 69,000 U 522,750 10,350 U 18,000 U 597,460 42,540 F The standard cost per pound of direct materials is $11.50. The standard allowance is three pounds of direct materials for each unit of product. During August, 30,000 units of product were produced. There was no beginning inventory of direct materials. There was no beginning or ending work in process. In August, the direct materials price variance was $1.10 per pound. In July, labor unrest caused a major slowdown in the pace of production, resulting in an unfavorable direct manufacturing labor efficiency variance of $45,000. There was no direct manufacturing labor price variance. Labor unrest persisted into August. Some workers quit. Their replacements had to be hired at higher wage rates, which had to be extended to all workers. The actual average wage rate in August exceeded the standard average wage rate by $0.50 per hour. REQUIRED 1. Compute the following for August: a. Total pounds of direct materials purchased b. Total number of pounds of excess direct materials used c. Variable manufacturing overhead spending variance d. Total number of actual direct manufacturing labor-hours used e. Total number of standard direct manufacturing labor-hours allowed for the units produced f. Production-volume variance 2. Describe how Mancusco's control of variable manufacturing overhead items differs from its control of fixed manufacturing overhead items. QUESTION 4 Europa, Inc., has two divisions, A and B, which manufacture expensive bicycles. Division A produces the bicycle frame, and Division B assembles the rest of the bicycle onto the frame. There is a market for both the subassembly and the final product. Each division has been designated as a profit center. The transfer price for the subassembly has been set at the long-run average market price. The following data are available for each division: Selling price for final product Long-run average selling price for intermediate product Incremental cost per unit for completion in Division B Incremental cost per unit in Division A The manager of Division B has made the following calculation: Selling price for final product Transferred-in cost per unit (market) $200 Incremental cost per unit for completion 150 Contribution (loss) on product $300 200 150 120 $300 350 $(50) REQUIRED 1. Should transfers be made to Division B if there is no unused capacity in Division A? Is the market price the correct transfer price? Show your computations. 2. Assume that Division A's maximum capacity for this product is 1,000 units per month and sales to the intermediate market are now 800 units. Should 200 units be transferred to Division B? At what transfer price? Assume that for a variety of reasons, Division A will maintain the $200 selling price indefinitely. That is, Division A is not considering lowering the price to outsiders even if idle capacity exists. 3. Suppose Division A quoted a transfer price of $150 for up to 200 units. What would be the contribution to the company as a whole if a transfer were made? As manager of Division B, would you be inclined to buy at $150? Explain. 4. Suppose the manager of Division A has the option of (a) cutting the external price to $195, with the certainty that sales will rise to 1,000 units, or (b) maintaining the external price of $200 for the 800 units and transferring the 200 units to Division B at a price that would produce the same operating income for Division A. What transfer price would produce the same operating income for Division A? Is that price consistent with that recommended by the general guideline so that the desirable decision for the company as a whole would result? 5. Suppose that if the selling price for the intermediate product were dropped to $195, sales to external parties could be increased to 900 units. Division B wants to acquire as many as 200 units if the transfer price is acceptable. For simplicity, assume that there is no external market for the final 100 units of Division A's capacity. a. Using the general guideline, what is (are) the minimum transfer price(s) that should lead to the correct economic decision? Ignore performance-evaluation considerations. b. Compare the total contributions under the alternatives to show why the transfer price(s) recommended lead(s) to the optimal economic decision. QUESTION 5 Peach Computer Corporation is the largest personal computer company in the world. The CEO of Peach is retiring, and the board of directors is considering external candidates to fill the position. The board's top two choices are CEOs Peter Diamond (current CEO of NetPro) and Norma Provan (current CEO of On Point). As a board member on the search committee, you collect the following information (in millions): A 1 2 3 Revenues 4 Costs 5 R&D 6 Production 7 Marketing and distribution 8 Customer service 9 Total costs 10 Operating income 11 Total assets B NetPro 2005 $600.0 C D On Point 2005 $300.0 E 2006 $480.0 71.2 132.6 173.2 65.5 442.5 $157.5 40.2 145.6 193.7 40.0 419.5 $60.5 35.9 107.6 96.4 30.4 270.3 $29.7 76.1 128.2 153.8 67.6 425.7 $99.3 $540.0 $510.0 $240.0 $360.0 2006 $525.0 In early 2007, a leading computer magazine gave On Point's main product five stars, its highest rating. NetPro's main product received three stars, down from five stars a year earlier. In the same article, On Point's new products received praise; NetPro's new products were judged as \"mediocre.\" REQUIRED 1. Use the DuPont method to calculate NetPro's and On Point's ROIs in 2005 and 2006. Comment on the results. What can you tell from the DuPont analysis that you might have missed from calculating ROI itself? 2. Compute the percentage of costs in each of the four business-function cost categories for NetPro and On Point in 2005 and 2006. Comment on the results. 3. Relate the results of requirements 1 and 2 to the comments made by the computer magazine. Of Diamond and Provan, whom would you suggest to be the new CEO of Peach? QUESTION 6 Savannah Products, a small integrated wood and lumber products company with substantial timber holdings, has two divisions: Forest and Lumber. Forest Division manages the timber holdings, maintains the land, and plants and harvests trees. It acquired its various forests over the last 50 years; its total asset value as stated on Savannah's balance sheet is $2.2 billion. Most of the timber the Forest Division harvests is sold internally to the Lumber Division. Any harvested timber not sold to the Lumber Division can be sold externally. Last year, the Forest Division sold 200 million board feet of timber to external customers at $4.50 per board foot. A board foot is a standard unit of measure in the timber business. Forest Division sold another 800 million board feet of timber to the Lumber Division. The Forest Division's operating expenses last year totaled $2 billion. The Lumber Division only purchases timber from the Forest Division. The purchase price is computed as Lumber's share of Forest's operating expenses where the share is based on Lumber's fraction of Forest's total board feet harvested. Lumber takes the timber from Forest, cuts it into lumber, and sells it to distributors. Lumber's total revenues, other operating expenses, and assets are $7.6 billion, $3.5 billion, and $2.7 billion, respectively. Lumber's operating expenses of $3.5 billion do not include its pro rata share of Forest's operating expenses. Savannah Products uses Residual Income to evaluate and reward the performance of the senior managers in the two divisions. The risk-adjusted weighted-average cost of capital for the Forest and Lumber Divisions are 15 percent and 20 percent, respectively. REQUIRED 1. Calculate the Residual Income of the Forest and Lumber Divisions. 2. Based on your calculations in (l) identify the most profitable division. 3. Do the calculations in (1) correctly identify the most profitable division? Explain why or why not. Please be comprehensive in your response, using any calculations necessary to support your argument. 4. What changes, if any, would you recommend Savannah Products make in its performance measurement scheme