Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 11, Problem 11.7BYP
At Symond Company production workers in the Painting Department are paid on the basis of productivity. The labor time standard for a unit of production is established through periodic time studies conducted by Douglas Management Consultants. In a time study the actual time required to complete a specific task by a worker is observed. Allowances are then made for preparation time, rest periods, and cleanup time. Bill Carson is one of several veterans in the Painting Department.
Bill is informed by Douglas that he will be used in the time study for the painting of a new product. The findings will be the basis for establishing the labor time standard for the next 6 months. During the test, Bill deliberately slows his normal work pace in an effort to obtain a labor time standard that will be easy to meet. Because it is a new product, the Douglas representative who conducted the test is unaware that Bill did not give the test his best effort.
Instructions
(a) Who was benefited and who was harmed by Bill's actions?
(b) Was Bill ethical in the way he performed the time study test?
(c) What measure(s) might the company take to obtain valid data for setting the labor time standard?
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Ethics Case. At Symond Company, production workers in the Painting Department are paid on the basis of productivity. The labor time standard for a unit of production is established through periodic time studies conducted by Douglas Management Consultants. In a time actual time required to complete a specific task by a worker is observed. Allowances are then made for preparation time, rest periods, and cleanup time. Bill Carson is one of several veterans in the Painting Department .Bill is informed by Douglas that he will be used in the time study for the beginning of a new product . The findings will be the basis for establishing the labor time standard of the next 6 months.During the test, Bill deliberately slows his normal work pace in an effort to obtain a labor time standard that will be easy to meet. Because it is a new product, the Douglas representatives who conducted the test is unaware that Bill did not give the test his best effort.
Whitley Construction Company is in the home remodeling business. Whitley has three teams of highly skilled employees, each of whom has multiple skills involving carpentry, painting, and other home remodeling activities. Each team is led by an experienced employee who coordinates the work done on each job. As the needs of different jobs change, some team members may be shifted to other teams for short periods of time. Whitley uses a job costing system to determine job costs and to serve as a basis for bidding and pricing the jobs. Direct materials and direct labor are easily traced to each job using Whitley’s cost tracking software. Overhead consists of the purchase and maintenance of construction equipment, some supervisory labor, the cost of bidding for new customers, and administrative costs. Whitley uses an annual overhead rate based on direct labor hours.
Whitley has recently completed work for three clients: Harrison, Barnes, and Tyler. The cost data for each of the three jobs are…
Whitley Construction Company is in the home remodeling business. Whitley has three teams of highly skilled employees, each of
whom has multiple skills involving carpentry, painting, and other home remodeling activities. Each team is led by an experienced
employee who coordinates the work done on each job. As the needs of different jobs change, some team members may be shifted to
other teams for short periods of time. Whitley uses a job costing system to determine job costs and to serve as a basis for bidding and
pricing the jobs. Direct materials and direct labor are easily traced to each job using Whitley's cost tracking software. Overhead
consists of the purchase and maintenance of construction equipment, some supervisory labor, the cost of bidding for new customers,
and administrative costs. Whitley uses an annual overhead rate based on direct labor hours.
Whitley has recently completed work for three clients: Harrison, Barnes, and Tyler. The cost data for each of the three jobs are…
Chapter 11 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 11 - (a) Standard costs are the expected total cost of...Ch. 11 - (a) Explain the similarities and differences...Ch. 11 - Standard costs facilitate management planning....Ch. 11 - Standard costs facilitate management planning....Ch. 11 - Prob. 5QCh. 11 - What factors should be considered in setting (a)...Ch. 11 - The objective in setting the direct labor quantity...Ch. 11 - How is the predetermined overhead rate determined...Ch. 11 - What is the difference between a favorable cost...Ch. 11 - In each of the following formulas, supply the...
Ch. 11 - In the direct labor variance matrix, there are...Ch. 11 - Mikan Company's standard predetermined overhead...Ch. 11 - How often should variances be reported to...Ch. 11 - What circumstances may cause the purchasing...Ch. 11 - What are the four perspectives used in the...Ch. 11 - Prob. 16QCh. 11 - What are some examples of nonfinancial measures...Ch. 11 - (a) How are variances reported in income...Ch. 11 - (a) Explain the basic features of a standard cost...Ch. 11 - If the 9 per hour overhead rate in Question 12...Ch. 11 - What is the purpose of computing the overhead...Ch. 11 - Alma Ortiz does not understand why the overhead...Ch. 11 - John Hsu is attempting to outline the important...Ch. 11 - Lopez Company uses both standards and budgets. For...Ch. 11 - Tang Company accumulates the following data...Ch. 11 - Labor data for making one gallon of finished...Ch. 11 - Simba Company's standard materials cost per unit...Ch. 11 - Mordica Company's standard labor cost per unit of...Ch. 11 - In October, Pine Company reports 21,000 actual...Ch. 11 - Prob. 11.7BECh. 11 - Journalize the following transactions for Combs...Ch. 11 - Prob. 11.9BECh. 11 - Some overhead data for Pine Company are given in...Ch. 11 - Using the data in BE11-6 and BE11-10, compute the...Ch. 11 - Larkin Company accumulated the following standard...Ch. 11 - The standard cost of product 777 includes 2 units...Ch. 11 - The standard cost of product 5252 includes 1.9...Ch. 11 - Tropic Zone Corporation experienced the following...Ch. 11 - Parsons Company is planning to produce 2,000 units...Ch. 11 - Hank Itzek manufactures and sells homemade wine,...Ch. 11 - Stefani Company has gathered the following...Ch. 11 - Monte Services, Inc. is trying to establish the...Ch. 11 - The standard cost of Product B manufactured by...Ch. 11 - Lewis Company's standard labor cost of producing...Ch. 11 - Levine Inc., which produces a single product, has...Ch. 11 - The following direct materials and direct labor...Ch. 11 - You have been given the following information...Ch. 11 - During March 2017, Toby Tool Die Company worked...Ch. 11 - Manufacturing overhead data for the production of...Ch. 11 - Byrd Company produces one product, a putter called...Ch. 11 - Ceelo Company purchased (at a cost of 10,200) and...Ch. 11 - Picard Landscaping plants grass seed as the basic...Ch. 11 - Urban Corporation prepared the following variance...Ch. 11 - Fisk Company uses a standard cost accounting...Ch. 11 - The following is a list of terms related to...Ch. 11 - Indicate which of the four perspectives in the...Ch. 11 - Indicate which of the four perspectives in the...Ch. 11 - Vista Company installed a standard cost system on...Ch. 11 - Lopez Company uses a standard cost accounting...Ch. 11 - Data for Levine Inc. are given in E11-7....Ch. 11 - The information shown below was taken from the...Ch. 11 - Prob. 11.24ECh. 11 - Seacrest Company's overhead rate was based on...Ch. 11 - Rogen Corporation manufactures a single product....Ch. 11 - Ayala Corporation accumulates the following data...Ch. 11 - Rudd Clothiers is a small company that...Ch. 11 - Kansas Company uses a standard cost accounting...Ch. 11 - Hart Labs, Inc. provides mad cow disease testing...Ch. 11 - Jorgensen Corporation uses standard costs with its...Ch. 11 - Using the information in P11-1A, compute the...Ch. 11 - Using the information in P11-2A, compute the...Ch. 11 - Using the information in P11-3A, compute the...Ch. 11 - Using the information in P11-5A, compute the...Ch. 11 - CURRENT DESIGNS The executive learn at Current...Ch. 11 - Prob. 11.1BYPCh. 11 - Ana Carillo and Associates is a medium-sized...Ch. 11 - Glassmaster Company is organized as two divisions...Ch. 11 - Prob. 11.4BYPCh. 11 - Prob. 11.5BYPCh. 11 - Prob. 11.6BYPCh. 11 - At Symond Company production workers in the...Ch. 11 - Prob. 11.9BYP
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