GEN COMBO FUNDAMENTALS OF COST ACCOUNTING; CONNECT 1S ACCESS CARD
5th Edition
ISBN: 9781259911651
Author: William N. Lanen Professor
Publisher: McGraw-Hill Education
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Chapter 10, Problem 39E
a.
To determine
Prepare a traditional income statement.
b.
To determine
Prepare an activity-based income statement.
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1
viyalization-sustaining activity. The following COSTS will be assigned using the activity-based Costing system.
Driver and guard wages
Vehicle operating expense
Vehicle depreciation
Customer representative salaries
and expenses
oints
Office expenses
Administrative expenses
Total cost
$ 920,000
350,000
230,000
260,000
120,000
420,000
$2,300,000
eBook
The distribution of resource consumption across the activity cost pools is as follows:
Hint
Pickup
and
Travel
Delivery
Customer
Service
Other
Totals
Driver and guard wages
50%
35%
10%
5%
100%
Print
Vehicle operating expense
70%
5%
0%
25%
100%
Vehicle depreciation
60%
15%
0%
25%
100%
Customer representative salaries and
0%
0%
90%
10%
100%
expenses
Office expenses
0%
20%
30%
50%
100%
Administrative expenses
0%
5%
60%
35%
100%
Mc
Graw
Hill
Required:
Complete the first stage allocations of costs to activity cost pools.
Driver and guard wages
Vehicle operating expense
Vehicle depreciation
Customer representative salaries and expenses
Office…
Investment Center
Sales.
Net income
Average invested assets
Profit margin
Investment turnover
Return on investment
Profit Margin:
Investment
Center
A
B
Investment Turnover:
Investment
Center
A
B
Choose Numerator:
Investment
Center
Use the information in the table above to compute each department's contribution to overhead (both in dollars and as a percent).
(Round your final answers to 2 decimal places.)
Return on investment:
A
B
Choose Numerator:
Choose Numerator:
1
A
1
$
$ 584,600
$1,580,000
?
1
10%
?
?%
B
$12,200,000
$
$
1 Choose Denominator:
Choose Denominator:
1 Choose Denominator:
?
?
?%
1.3
13%
=
Profit Margin
Profit margin
10.00 %
%
= Investment Turnover
= Investment turnover
1.30
Return on
investment
= Return on investment
%
13.00 %
Deuk Seon have the following investment centers. Several items are missing from the following table of rate of return on investment and residual income. Determine the missing items, identifying each item by the appropriate letter.
Department
Invested
Assets
Income
from
Operations
Rate of
Return
on Investment
Min.
Rate of
Return
Min. Amt.
of Income
from
Operations
Residual
Income
Taek
(a)
(b)
(c)
16%
P128,000
P10,000
Jung Hwan
P850,000
P153,000
(d)
12%
(e)
(f)
Sun woo
P825,000
(g)
20%
(h)
(i)
P24,000
Dong Ryong
(j)
P129,000
24%
(k)
P60,000
(l)
(a)
Determine the missing items, identifying each by number.
(b)
Which division is most profitable in terms of income from operations?
(c)
Which division is most profitable in terms of rate of return on investment?
Chapter 10 Solutions
GEN COMBO FUNDAMENTALS OF COST ACCOUNTING; CONNECT 1S ACCESS CARD
Ch. 10 - How are activity-based costing and activity-based...Ch. 10 - Can activity-based management be implemented...Ch. 10 - Prob. 3RQCh. 10 - What are some ways in which customers affect a...Ch. 10 - How is computing the cost of customers the same as...Ch. 10 - Prob. 6RQCh. 10 - Prob. 7RQCh. 10 - Under what conditions should the cost of excess...Ch. 10 - In what ways does quality affect cost?Ch. 10 - What are the four categories in a cost of quality...
Ch. 10 - Prob. 11CADQCh. 10 - Prob. 12CADQCh. 10 - Consider a library that spends 25,000 to move most...Ch. 10 - Prob. 14CADQCh. 10 - Prob. 15CADQCh. 10 - You can get the cost of customers by first...Ch. 10 - Prob. 17CADQCh. 10 - Prob. 18CADQCh. 10 - Prob. 19CADQCh. 10 - Prob. 20CADQCh. 10 - Many if not most schools in the United States have...Ch. 10 - Prob. 22CADQCh. 10 - Prob. 23CADQCh. 10 - Prob. 24ECh. 10 - Prob. 25ECh. 10 - Cost Hierarchy for a Not-for-Profit Below are...Ch. 10 - Prob. 27ECh. 10 - Driver Identification Below are various activities...Ch. 10 - Activity-Based Costing of Customers Marvins...Ch. 10 - Activity-Based Costing of Customers Rock Solid...Ch. 10 - Activity-Based Costing of Customers Refer to the...Ch. 10 - Activity-Based Costing of Customers: Ethical...Ch. 10 - Prob. 33ECh. 10 - Activity-Based Costing of Suppliers Hult Games...Ch. 10 - Prob. 35ECh. 10 - Activity-Based Costing of Suppliers Kinnear...Ch. 10 - Activity-Based Costing of Suppliers Refer to the...Ch. 10 - Resources Used versus Resources Supplied Tri-State...Ch. 10 - Prob. 39ECh. 10 - Resources Used versus Resources Supplied Conlon...Ch. 10 - Prob. 41ECh. 10 - Prob. 42ECh. 10 - Assigning Cost of Capacity Mimis Fixtures...Ch. 10 - Assigning Cost of Capacity Curts Casting...Ch. 10 - Prob. 45ECh. 10 - Costs of Quality The following represents the...Ch. 10 - Trading-Off Costs of Quality Using the costs...Ch. 10 - Costs of Quality Nuke-It-Now manufactures...Ch. 10 - Prob. 49ECh. 10 - Cost of Quality: Environmental Issues Many...Ch. 10 - Prob. 51ECh. 10 - Prob. 52PCh. 10 - Activity-Based Reporting: Service Organization...Ch. 10 - Prob. 54PCh. 10 - Customer Profitability Carmel Company has a...Ch. 10 - Activity-Based Costing of Suppliers JFI Foods...Ch. 10 - Activity-Based Costing of Suppliers Consider the...Ch. 10 - Activity-Based Reporting: Manufacturing...Ch. 10 - Assigning Capacity Costs Cathy and Toms Specialty...Ch. 10 - Prob. 60PCh. 10 - Prob. 61PCh. 10 - Assigning Capacity Costs Mercia Chocolates...Ch. 10 - Prob. 63PCh. 10 - Prob. 64PCh. 10 - Prob. 65P
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