This is an accounting class 102 ... It is an exam that I have to have done by tomorrowI don'thave time for it ... I need someone that really knows their stuff with accounting... it deals with Budgetary Planning , Budgetary Control and Responsibility Accounting, Standard Costs and Cleansed Scorecard, And Planning for Capital Investments ... It is a 12 Problem exam everything you need is attached to this Please someone be fast with it and know their stuff as I need to pass this test with a good grade ...

ACC102 Spring 2016 Chapters 23-26 Name _________________________ 1. (8 points) The following budget information relates to Kroger Corporation unit sales: Quarter 1 2 3 4 2014 Units 80,000 60,000 50,000 70,000 Quarter 1 2015 Units 40,000 The finished goods inventory on hand on December 31, 2013 was 14,000 units. It is the company's policy to maintain a finished goods inventory at the end of each quarter equal to 18% of the next quarter's anticipated sales. Instructions Prepare a 2014 production budget for Kroger. 2. (6 points) The following budget information relates to the Amazon Corporation for its product called Prime: 2015 April May June July Prime 15,000 10,000 14,000 12,000 It takes 4 pounds of direct materials to produce the Prime product. It is the company's policy to maintain an inventory of direct materials on hand at the end of each month equal to 15% of the next month's production needs. Direct materials inventory on hand at June 30 were 20,000 pounds. The cost per pound of materials is $6 for Deluxe. Instructions For the second quarter of 2015, prepare a direct materials budget for the Prime product. 3. (5 points) The following 2015 budget information relates to Target Corporation unit production: Quarter Units 1 2 3 4 20,000 25,000 30,000 50,000 Target would like to prepare a direct labor budget. Each unit requires 1.5 hours of direct labor. The union contract provides for the wage rate to be $10 per hour for the first 2 quarters and a wage increase to $13 per hour on July 1. INSTRUCTIONS Prepare a direct labor budget for 2015. 4. (5 points) The following budget information relates to the Coca-Cola Company. For the second quarter of 2015, the following data are developed: 1. Sales: 60,000 units; unit selling price: $40 2. Variable costs per dollar of sales: Sales commissions 5% Delivery expense 1% Utilities 4% 3. Fixed costs per quarter: Office salaries $35,000 Rent 18,000 Depreciation 5,000 Insurance 2,000 Interest 1,000 Instructions For the second quarter of 2015 prepare a selling and administrative expense budget. 5. (15 points) Toyota Company has budgeted sales revenues as follows: Credit sales January February March April $250,000 $430,000 $500,000 $300,000 Past experience indicates that 65% of the credit sales will be collected in the month of sale, 25 % will be collected in the first month following the sale and the remaining 10% will be collected in the following month. Purchases of inventory are all on credit and 30% are paid in the month of purchase and 70% in the month following purchase. Budgeted inventory purchases are: February March April $300,000 $250,000 $105,000 Other cash disbursements budgeted: (a) selling and administrative expenses of $45,000 each month, (b) dividends of $80,000 will be paid in March, and (c) purchase of investments in April for $25,000 cash. The company wishes to maintain a minimum cash balance of $60,000 at the end of each month. The company borrows money from the bank at 7% interest if necessary to maintain the minimum cash balance. Borrowed money is repaid in months when there is an excess cash balance. The beginning cash balance on March 1 was $60,000. Assume that borrowed money in this case is for one month (ignore interest). Instructions (a) Prepare separate schedules for expected collections from customers and expected payments for purchases of inventory. (b) Prepare a cash budget for the months of March and April. 6. (6 points) The following budget information relates to General Motors Company. Variable manufacturing overhead costs per machine hour are as follows Expected annual operating capacity Variable overhead costs Indirect labor Indirect materials Factory supplies Total variable Fixed overhead costs Depreciation Supervision Property taxes Total fixed Total costs 120,000 Direct Labor Hours $310,000 100,000 34,000 444,000 170,000 120,000 96,000 386,000 $930,000 The relevant range for monthly activity is expected to be between 10,000 and 14,000 direct labor hours. Instructions General Motors would like a flexible manufacturing overhead budget prepared based on machine hours. Given the range of activity above, Prepare the budget using increments of 2,000 machine hours. 7. (8 points) The Consumer Division, a profit center of McKesson following data for the second quarter of 2015: Actual Sales Variable costs Controllable fixed costs Non-controllable fixed costs Average operating assets $7,000,000 4,200,000 800,000 530,000 2,350,000 Company, reported the Budget $7,300,000 4,150,000 820,000 570,000 2,400,000 Instructions (a) Prepare a responsibility report for the manager of the Consumer Division. (b) What is the best measure of the manager's performance? Why? (c) How would the responsibility report differ if the division was an investment center? Use computations to illustrate your answer. 8.(8 points) Verizon Company has two investment centers and has developed the following information: Departmental controllable margin Average operating assets Sales ROI Product Sales $120,000 ? 800,000 10% Service Sales ? $400,000 250,000 12% Instructions Answer the following questions about Product Sales and Service Sales. 1. What was the amount of Product Sales' average operating assets? $____________. 2. What was the amount of Service Sales' controllable margin? 3. If Service Sales is able to reduce its operating assets by $100,000, then the new ROI would be ____________. 4. If Product Sales able to increase its controllable margin by $60,000 as a result of reducing variable costs, then the new ROI would be _________________. $____________. 9. (14 points) Sunbeam Company manufactures blenders. It has developed the following per unit standard costs for 2015 for each blender: Manufacturing Direct Materials Direct Labor Overhead Standard Quantity 2 Pounds (steel) 1/2 hour 1/2 hour Standard Price $5.00 $12.00 $6.00 Unit Standard Cost $10.00 $6.00 $3.00 In 2015, the company planned to produce 80,000 blenders at a level of 40,000 hours of direct labor. Actual results for 2015 are presented below: 1. Direct materials purchases were 154,000 pounds of steel which cost $739,200. All of the materials were used in production. 2. Direct labor costs were $478,975 for 39,100 direct labor hours actually worked. 3. Total manufacturing overhead was $235,000. 4. Actual production was 76,000 blenders. Instructions Calculate the following variances for June for Sunbeam. (a) Total materials variance (b) Materials price variance (c) Materials quantity variance (d) Total labor variance (e) Labor price variance (f) Labor quantity variance (g) Total overhead variance 10. (6 points) University of Rochester Medical Center is considering purchasing an ultrasound machine for $1,135,000. The machine has a 10-year life and an estimated salvage value of $40,000 (assume straight-line depreciation). Installation costs and freight charges will be $24,200 and $800, respectively. The medical center estimates that the machine will be used five times a week with the average charge to the patient for ultrasound of $850. There are $10 in medical supplies and $40 of technician costs for each procedure performed using the machine. Instructions (a) Compute the payback period for the new ultrasound machine. (b) Compute the annual rate of return for the new machine. 11. (4 points) Hewlett-Packard Corporation recently purchased a new machine for its factory operations at a cost of $840,000. The investment is expected to generate $250,000 in annual cash flows for a period of five years. The required rate of return is 12%. The new machine is expected to have zero salvage value at the end of the five-year period. Instructions a. Using the internal rate of return method calculate an approximate interest yield for the project. (use tables from Appendix D) b. Should this project be accepted by Hewlett-Packard and why? 12. (8 points) The Hershey Company is planning their capital expenditure budget and has to decide which of the following two projects to invest in. Each project will last for three years and produce the following annual net income. Year 1 2 3 Thunder 6,000 9,000 14,000 $29,000 $ Lightning 9,000 9,000 9,000 $27,000 $ The equipment will have no salvage value at the end of its three-year life. Hershey Company uses straight-line depreciation. Hershey requires a minimum rate of return of 10%. Instructions (a) Assuming that each project requires an initial investment of $70,000, compute the net present value of each project. (use tables from Appendix D) (b) Which project should Hershey select? Why? Spring 2016 Name(2points) Problems 1 & 2 MAKE SURE YOU SHOW COMPUTATIONS WHERE APPROPRIATE OR NO CREDIT GIVEN Problem 1--8 points Kroger Production Budget For the Year Ending December 31, 2014 Quarter 1 2 3 4 1 2 3 4 5 6 7 8 9 10 Problem 2-6 points Amazon Corporation Direct Materials Budget For the Quarter Ending June 30, 2015 April 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1116 May June total 1116 Name Section Problems 3 & 4 Date Problem 3--5 points Target Corporation Direct Labor Budget For the Year Ending December 31, 2015 Quarter 1 2 3 1 2 3 4 5 6 7 8 9 10 Problem 4--5 points Coca-Cola Company Selling and Administrative Expense Budget For the Quarter Ending June 30, 2015 1 2 3 4 5 6 7 8 9 10 11 12 1107 4 Year Name Section Date Problem 5 15 points SHOW ALL COMPUTATIONS OR NO CREDIT GIVEN (a) 1 2 3 4 5 6 7 8 9 10 11 March April March April (1) Expected collections from customers (2) Expected payments for inventory (b) Toyota Company Cash Budget For the Two Months Ending April 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 1119 1119 1 2 3 4 5 6 7 8 9 10 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 1119 1119 Name Section Date Problem 6-6 points 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Activity level Problems 6 & 7 General Motors Company Monthly Flexible Manufacturing Overhead Budget For the Year 2015 10,000 12,000 Problem 7-8 points (a) (b) (c) 1145 14,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1145 Name Section Date Problem 8 8 points SHOW ALL COMPUTATIONS OR NO CREDIT GIVEN Place answer here 1 1 2 2 3 3 4 4 1151 Name Problem 9 Section 14 points Date SHOW ALL COMPUTATIONS OR NO CREDIT GIVEN The answer to this question could be submitted differently than what is presented here. For example-you could use the matrix approach. Do not embed the formulas in the cells-you must write out the formulas. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 (a) Total materials variance: (b) Materials price variance: (c)Materials quantity variance: (d) Total labor variance: (e) Labor price variance: (f) Labor quantity variance: (g) total overhead variance 1195 1195 Name Section Date Problems 10 & 11 Problem 10 - 6 points 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 a) b) Problem 11-4 points a) b) 1251 Problems 10 & 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1251 Name Section Date Problem 12 Problem 12 -8 points 1 a) 2 3 4 5 6 7 8 9 10 11 b) 12 13 14 15 1 2 3 4 1240 1240