(TCO 1) How does managerial accounting assist managers with fulfilling their primary responsibilities of planning, directing, and controlling? Please define planning, directing, and controlling and state at least one managerial accounting report that can assist with planning, one managerial accounting report that can assist with directing, and one managerial accounting report that can assist with controlling.(Points : 25)

Question 2.2.(TCO 10) (a) What is participative budgeting (5 points)? (b) Please state at least two advantages of participative budgeting (10 points). (c) Please state at least two disadvantages of participative budgeting (10 points).(Points : 25)

Question 3.3.(TCO 2) James Inc. estimates that its employees will utilize 400,000 machine hours during the coming year. Total overhead costs are estimated to be $8,800,000 and direct labor hours are estimated to be 200,000. Actual machine hours are 420,000. Actual labor hours are 225,000. IfJames Inc. allocates overhead based on machine hours, what is the predetermined manufacturing overhead rate?(Points : 25)

Question 4.4.(TCO 4) Stevens Company produces and sells a single product whose selling price is $60.00 per unit and whose variable expense is $40.00 per unit. The company's fixed expense is $880,000 per month. (a) What is the CM ratio (express your answer as a percentage to two decimal places)? (5 points) (b) How many units must be sold to break-even for the month? (10 points) (c) How many units do we need to sell to earn a profit of $140,000 for the month? (10 points)(Points : 25)

TCO 5) ABC Company manufactures and sells one product. Sales and production information is contained below. Selling price per unit $62 Variable manufacturing costs per unit produced (DM, DL, and variable MOH) $42 Variable operating expenses per unit sold $9 Fixed manufacturing overhead (MOH) in total for the year $112,000 Fixed operating expenses in total for the year $40,000 Units produced during the year 14,000 Units sold during the year 15,000 (a) Prepare the income statement using variable costing. (10 points) (b) Prepare the income statement using absorption costing. (10 points) (c) Please explain the difference in operating income between the two methods. (5 points)(Points : 25)

Question 2.2.(TCO 8) Hampton Company manufactures and sells medals for winners of athletic events. The company normally charges $33 per medal. The average costs for a medal is shown below. Direct materials: $12 Direct labor: 8 Variable manufacturing overhead: 6 Variable marketing expenses: 2 Fixed manufacturing overhead: 10($500,000 fixed manufacturing overhead/50,000 medals) Total costs: $38 Hampton Company has enough idle capacity to accept a one-time only special order for 5,000 medals at $25 per medal. Hampton Company will not incur any variable marketing expenses for this order and no additional fixed costs. Required Should the company accept this special order? Please state your decision and provide numerical support for your decision.(Points : 25)

Question 3.3.(TCO 7) Lee Company makes 30,000 units per year of Part X for use in one of its products. Lee Company incurred the following manufacturing costs when producing the 30,000 units of Part X. Direct materials $800,000 Direct labor 450,500 Variable manufacturing overhead 95,000 Fixed manufacturing overhead110,000 Total$1,455,500 Required Assume Lee Company has no alternative use for the facilities presently devoted to production of Part X and that none of the fixed costs are avoidable. If the outside supplier offers to sell Part X for $45.00 each, should Lee Company accept the offer? Please clearly state your answer and support your answer with appropriate calculations.(Points : 25)

Question 4.

4.(TCO 9) Jordan Company buys equipment for $50,000 that will last for 4 years. The equipment will generate cash flows of $18,000 per year and will have no salvage value at the end of its life. Ignore taxes. Use 10% required rate of return. Required: (a) What is the present value (PV) of this investment at 10%? (5 points) (b) What is the net present value (NPV) of this investment? Should Jordan Company buy the equipment based on NPV? Justify your decision. (10 points) (c) What is the internal rate of return (IRR) of this investment? (5 points) (d) What is the payback period? (5 points)(Points : 25)

Question 5.

5.(TCO 3) ABC Company uses process costing to track its costs in two sequential production departments: Forming and Finishing. The following information is provided regarding the Forming department. Forming Department Month Ended July 31 Unit information Beginning work in process, July 1 --- 10,000 Started into production during July --- 21,000 Completed and transferred to Finishing department during July --- 19,000 Ending work in process, July 31 (40% complete as to direct materials and 45% complete as to conversion costs) --- 12,000 Cost information Beginning work in process as of July 1 consists of $13,000 of direct materials costs and $6,500 of conversion costs) --- $19,500 Direct materials used in July --- $34,000 Conversion costs incurred in July --- $14,850 Required: (a) Calculate the equivalent units for direct materials. (Show your work) (b) Calculate the cost per equivalent unit for direct materials. (Show your work)(Points : 25)