Business Exam Solutions
-
Upload
clement-donovan -
Category
Documents
-
view
135 -
download
0
description
Transcript of Business Exam Solutions
-
5/21/2018 Business Exam Solutions
1/15
J MES
COOK
UNIVERSITyr
AUSTRALIA
STUDY PERIOD
1
2011 EXAMINATION
Cairns
and Townsville
CAMPUS
STUDENT NAME:
STUDENT NUMBER:
SUBJECT CODE: 8X2012:03
SUBJECT NAME:
Cost and Management Accounting
EXAMINER:
Dr. Rafiuddin Ahmed
Number of pages, in
and any attachments
Paper must be hande
0 Yes
Release to the Libra
0 Yes
WORK
PHONE NO
MOBILE/AFTER HO
CONTACT PERSON
FOR
ENQUIRIES ON THE DAY OF THE EXAMS
Ifdifferent
Dr. Rafiuddin Ahmed
PHONE NO
DURATION OF EXAMINATION
hours):
PERUSAL TIME
minutes):
TOTAL
NUMBER OF QUESTIONS:
INSTRUCTIONS TO STUDENTS:
- Answer all questions
-Value of each question is shown
in
parenthesis
- Total weight of this exam is 60 (60 marks)
Two (2) Hours
Ten (10) Minutes
Four (4)
-
5/21/2018 Business Exam Solutions
2/15
BX2012:03
QUESTION ONE
Aunt Ethel s Fancy Cookie Company manufactures and sells three flav
Macaroon, Sugar, and Buttercream. The batch size for the cookies is li
cookies based on the size of the ovens and cookie molds owned
y
the
budgetary projections, the information listed below is available:
Macaroon
Sugar
Butt
Projected sales in units
500,000 800,000 600,0
PER UNIT data:
Selling price 0.80 0.75 0
Direct materials
0.20
0.15 0.
Direct labor
0.04
0.02
0.
Hours per 1 unit batch:
Direct labor hours
2
1
Oven hours 1 1
Packaging hours
0.5
0.5
Total overhead costs and activity levels for the year are estimated as fo
Activity
Direct labor
Oven
Packaging
Required:
Overhead costs
210,000
150,000
360,000
Activity levels
2,400 hours
1,900 oven hours
950 packaging hours
(a) Determine the activity-cost-driver rates packaging and oven costs.
(b) Using the ABC system, for the sugar cookie:
i
compute the estimated overhead costs per thousand coo
ii compute the estimated operating profit per thousand coo
(c) Using a traditional system (with direct labor hours as the overhead
-
5/21/2018 Business Exam Solutions
3/15
BX2012:03
QU ST ON TWO
Jordana Woolens sa manufacturer of wool cloth. The information for M
follows:
Beginning work process
,
Units started
Units completed
Beginning work-in-process direct materials
Beginning work-in-process conversion
Direct materials added during month
Direct manufacturinq labor durinq month
Factory overhead
Beginning work process was 40 completed as to labor and overhe
are added at the beginning of the process. All conversion costs are inc
throughout the process. Ending work process was 75 complete. Th
weighted average costing method to calculate cost
of
its products.
Required:
(a) How many units were processed during March?
(b) How many units were completed and transferred to finished goo
how many units remained incomplete at the end of March?
(c) What s the total cost of the units processed (work-in-process) d
(d) What sthe cost per equivalent unit of direct materials and conv
(e) Calculate the total costs assigned to finished goods inventory, a
process inventory.
-
5/21/2018 Business Exam Solutions
4/15
BX2012:03
QUESTION THREE
Tessmer Manufacturing Company produces inventory in a highly autom
n
Olathe, Kansas. The automated system
s n
its first year of operation
still unsure
of
the best way
to
estimate the overhead costs of operations
purposes. For the first six months
of
operations, the following data were
January
February
March
April
May
June
Required:
Machine hours
3,800
3,650
3,900
3,300
3,250
3,100
Kilowatt hours
4,520,000
4,340,000
4,500,000
4,290,000
4,200,000
4,120,000
Tota
a) Use the high-low method to determine the estimating cost functio
hours as the cost driver.
b) Use the high-low method to determine the estimating cost functi
hours as the cost driver.
c) For July, the company
r n
the machines for 3,000 hours and use
kilowatt-hours of power. The overhead costs totaled 114,000. W
the best predictor for July? Why?
Total m
-
5/21/2018 Business Exam Solutions
5/15
BX2012:03
QUESTION FOUR
Part A
Duffy Corporation has prepared the following sales budget. Collections
of sale, 45
in
the month following the sale, and 10 two months follo
remaining
5
is expected to be uncollectible.
Month ash Sales redit Sales
May 16,000 68,000
June 20,000 80,000
July 18,000 74,000
August 24,000 92,000
September 22,000 76,000
Required:
Prepare a schedule o cash collections for July through Septem
Part
Wilson's Winter Woolens manufactures jackets and other wool clothing
ski parka requires the following:
Direct materials standard 2 square yards t 13.50 per
Direct manufacturing labor standard 1.5 hours at 20.00 per hour
During the third quarter, the company made 1,500 parkas and used 3,1
fabric costing 39,375. Direct labor totaled 2,100 hours or 45,150.
Required:
(a) Compute the direct materials price and efficiency variances for
-
5/21/2018 Business Exam Solutions
6/15
Question Paper 2011
Aunt Ethel's Fancy Cookie Company manufactures and sells three flavorMacaroon, Sugar, and Buttercream. The batch size for the cookies is limi
based on the size of the ovens and cookie molds owned by the company. projections, the information listed below is available:
Macaroon Sugar Butte
Projected sales in units 500,000 800,000 600,00
PER UNIT data:Selling price $0.80 $0.75 $0.6
Direct materials $0.20 $0.15 $0.Direct labor $0.04 $0.02 $0.0
Hours per 1000-unit batch:
Direct labor hours 2 1 Oven hours 1 1 Packaging hours 0.5 0.5 0
Total overhead costs and activity levels for the year are estimated as follo
Activity Overhead costs Activity levels
Direct labor 2,400 hoursOven $210,000 1,900 oven hoursPackaging $150,000 950 packaging hours
$360,000
Required:
a. Determine the activity-cost-driver rate for packaging costs.
b. Using the ABC system, for the sugar cookie:1. compute the estimated overhead costs per thousand cookies.2. compute the estimated operating profit per thousand cookies.
c. Using a traditional system (with direct labor hours as the overhead althe sugar cookie:.
-
5/21/2018 Business Exam Solutions
7/15
Answer:a.
activity-cost-driver rate = packaging overhead / packaging hours= $150,000 / 950 hours= $157.89 per packaging hour
b.1. To compute the estimated overhead costs for a batch of sugar cook
system), first calculate the activity-cost-driver rate for the oven activity.
activity-cost-driver rate = oven overhead / oven hours= $210,000 / 1,900 hours= $110.53 per oven hour
Then calculate the overhead for a 1,000 cookie batch by multiplying activity hours per batch by the appropriate activity-cost-driver rate for eaoverhead activities and sum to get the total overhead for the batch.
(1 x $110.53) + (.5 x $157.89) = $189.48
2. To compute the estimated operating profit for a batch of sugar cooksystem), subtract the costs from the revenues:
Revenue = 1,000 * $0.75 = $ 750.00Direct Material = 1,000 * $.015 = ($150.00)Direct Labor = 1,000 * $.02 = ($ 20.00)
Overhead = ($189.48)
Operating Profit = $ 390.52
c. 1. To compute the estimated overhead costs for a batch of sugar cooktraditional system), first calculate the overhead rate per direct labor hour.
Overhead per direct labor hour = Total Overhead / Total Direct Lab= $ 360,000 / 2,400 hours= $ 150.00 per direct labor h
Since it takes 1 direct labor hour per 1,000 sugar cookies, the overhea
-
5/21/2018 Business Exam Solutions
8/15
d. Traditional system: Operating profit per batch of sugar cookiesABC system: Operating profit per batch of sugar cookies is $390
Because the products do not all require the same proportionate sharesresources, the allocation of the total overhead on that basis is not as accurABC system. The ABC system allocates the overhead based on activity lcategories as well as activity usage by the product lines.
Diff: 2Terms: activity-based costing (ABC)
Objective: 1, 3, 5, 6AACSB: Analytical skills
-
5/21/2018 Business Exam Solutions
9/15
-
5/21/2018 Business Exam Solutions
10/15
-
5/21/2018 Business Exam Solutions
11/15
-
5/21/2018 Business Exam Solutions
12/15
-
5/21/2018 Business Exam Solutions
13/15
-
5/21/2018 Business Exam Solutions
14/15
-
5/21/2018 Business Exam Solutions
15/15