EBK ACCOUNTING PRINCIPLES
EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
Question
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Chapter 25, Problem 5PSA

a.

To determine

Responsibility Report: The responsibility report represents the preparation of statements reflecting costs and revenues related to the responsibility areas. For example, responsibility report of the production department, packaging and finishing department, and many more. It basically represents the statement of controllable costs related to a particular unit or division.

To prepare: The responsibility report for the H division.

b.

To determine

Introduction: The responsibility report is prepared by the management at each level of the organization which is stated as a responsibility performance analysis. It facilitates determining efficiency in cost control as well as revenue generation.

The manager’s performance and the items to be investigated by top management

c.

To determine

Introduction: Return on Investment is the formula used by investors to evaluate the profitability of their earnings with respect to the value of investment made by them. It is determined by dividing the controllable margin or net income by the average operating assets.

To calculate: The expected ROI for 2020.

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Middler Corporation, a manufacturer of electronics and communications systems, uses a service department charge system to charge profit centers with Computing and Communications Services (CCS) service department costs. The following table identifies an abbreviated list of service categories and activity bases used by the CCS department. The table also includes some assumed cost and activity base quantity information for each service for October. CCS ServiceCategory Activity Base Budgeted Cost Budgeted ActivityBase Quantity Help desk Number of calls $55,660   2,200   Network center Number of devices monitored 668,100   10,200   Electronic mail Number of user accounts 57,500   5,750   Handheld technology support Number of handheld devices issued 153,600   9,600   One of the profit centers for Middler Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector: The sector has 1,000 employees, of whom 50% are office employees.…
Middler Corporation, a manufacturer of electronics and communications systems, uses a service department charge system to charge profit centers with Computing and Communications Services (CCS) service department costs. The following table identifies an abbreviated list of service categories and activity bases used by the CCS department. The table also includes some assumed cost and activity base quantity information for each service for October. CCS ServiceCategory Activity Base Budgeted Cost Budgeted ActivityBase Quantity Help desk Number of calls $160,000   3,200   Network center Number of devices monitored 735,000   9,800   Electronic mail Number of user accounts 100,000   10,000   Handheld Technology support Number of handheld devices issued 124,600   8,900   One of the profit centers for Middler Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector: The sector has 5,200 employees, of whom 25% are office…
Middler Corporation, a manufacturer of electronics and communications systems, uses a service department charge system to charge profit centers with Computing and Communications Services (CCS) service department costs. The following table identifies an abbreviated list of service categories and activity bases used by the CCS department. The table also includes some assumed cost and activity base quantity information for each service for October. CCS ServiceCategory Activity Base Budgeted Cost Budgeted ActivityBase Quantity Help desk Number of calls $82,350   2,700   Network center Number of devices monitored 631,125   9,350   Electronic mail Number of user accounts 63,500   6,350   Handheld technology support Number of handheld devices issued 140,800   8,800   One of the profit centers for Middler Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector: The sector has 1,000 employees, of whom 30% are office employees.…

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EBK ACCOUNTING PRINCIPLES

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