Managerial Accounting (ACCO 504):
I will greatly appreciate your help!
A B C D E F G H K L M Problem 24-1A Name: Section: Score: 0%% Key Code: [Key code here] Instructions Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. 1 An asterisk (") will appear to the right of an incorrect entry. The essay answer will not be graded. 2 Enter a zero in cells you would otherwise leave blank VALOTIC TECH, INC. Budget Performance Report - Director, Consumer Products Division 16 For the Month Ended January 31 Actual Budget Over Budget Under Budget Customer service salaries Insurance and properly taxes Distribution salaries Marketing salaries Engineer salaries Warehouse wages Equipment depreciation 25 Total 26 2 [Key essay answer here] 30 31 32 33 16RED LINE RAILROAD INC. Divisional Income Statements For the Quarter Ended December 31 East West Central Revenues 19 Operating expenses Income from operations before service dept. charges Less service department charges: Customer support Legal Total Income from operations 26 Supporting schedules: East West Central Total Number of customer contacts Number of hours billed Service Cost + Output 33 Customer contact rate per contact 34 Legal billing rate per hour 35 36 37 38 Profit margin: Income from Profit 39 Operations Revenues Margin East Division West Division 42 Central Division 43 Based on profit margin, the Division has the highest performance. 45 46 47 48 3 49 [Key essay answer here] 50 51 52 53 54 55PR 24-1A Budget performance report for a cost center Valotic Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized as a cost center. The budget for the Consumer Products Division for the month ended January 31 is as follows (in thousands): Customer service salaries $ 546,840 Insurance and property taxes 114,660 Distribution salaries 872,340 Marketing salaries 1,028,370 Engineer salaries 836,850 Warehouse wages 586,110 Equipment depreciation 183,792 Total $4,168,962 During January, the costs incurred in the Consumer Products Division were as follows: Customer service salaries $ 602,350 Insurance and property taxes 110,240 Distribution salaries 861,200 Marketing salaries 1,085,230 Engineer salaries 820,008 Warehouse wages 562,632 Equipment depreciation 183,610 Total $4,225,270 Instructions 1. Prepare a budget performance report for the director of the Consumer Products Division for the month of January. 2. For which costs might the director be expected to request supplemental reports?PR 24-2A Profit center responsibility reporting for a service company Red Line Railroad Inc. has three regional divisions organized as profit centers. The chief executive officer (CEO) evaluates divisional performance, using income from operations as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31: Revenues-East $1,400,000 Revenues-West 2,000,000 Revenues-Central 3,200,000 Operating Expenses-East 800,000 Operating Expenses-West 1,350,000 Operating Expenses-Central 1,900,000 Corporate Expenses-Shareholder Relations 300,000 Corporate Expenses-Customer Support 320,000 Corporate Expenses-Legal 500,000 General Corporate Officers' Salaries 1,200,000The company operates three service departments: Shareholder Relations, Customer Support, and Legal. The Shareholder Relations Department conducts a variety of services for shareholders of the company. The shareholder Relations Department and general corporate officers' salaries are not controllable by division management. The Customer Support Department is the company's point of contact for new service, complaints, and requests for repair. The department believes that the number of customer contacts is an activity base for this work. The Legal Department provides legal services for division management. The department believes that the number of hours billed is an activity base for this work. The following additional information has been gathered: East West Central Number of customer contacts 1,500 2,800 5,700 Number of hours billed 750 1,750 1,500 Instructions 1. Prepare quarterly income statements showing income from operations for the three divisions. Use three column headings: East, West, and Central. 2. Identify the most successful division according to the profit margin. 3. Provide a recommendation to the CEO for a better method for evaluating the performance of the divisions. In your recommendation, identify the major weakness of the present method
