MANAGERIAL ACCOUNTING FOR MANAGERS
6th Edition
ISBN: 9781265365615
Author: Noreen
Publisher: MCG
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Chapter 9, Problem 9.24C
To determine
Introduction: A cost report involves information about spending and expenditure on different activities of the business. Through this cost report, it is easy to inform the client and disclose the projected and actual costs of the project. And, it is useful to get information about the profitability of the project.
Given Information: Person T got agreed to go along with reporting the favorable variance which is $21,000 for industrial engineering in the final report but the bill was not received yet. Therefore, it can mislead and exclude the final cost of the contract. This practice violated the credibility standard of the profession which is considered by the (IMA) Institute of
The acts of person T in response to the given situation.
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Exercise 9-53 (Algo) Time-Driven ABC for an Administrative Service (LO 9-8, 9)
The manager of the Personnel Department at City Enterprises has been reading about time-driven ABC and wants to apply it to her department. She has identified four basic activities her employees spend most of the their time on: Interviewing, Hiring, Assessment, and Separation Processing. The department employs 21 staff who perform these activities. The manager provides the following estimates for the amount of time it takes to complete each of these activities:
Interviewing: 61 minutes.
Hiring: 76 minutes.
Assessment: 107 minutes.
Separation Processing: 106 minutes.
Employees in Personnel work 51-hour weeks with four weeks for vacation. Of the 51 hours, five are reserved for administrative tasks, training, and so on. The costs of the Personnel Department, including any allocated costs from other staff functions, are $988,000. During the year, Personnel conducted 2,800 interviews, made 695…
CASE 2
Harry Potter has been appointed as a divisional controller at the Electronics Division of BMW Products. One of her main duties is to calculate the division’s predetermined overhead rate (POHR). Such a task is crucial, since POHR is used throughout the year and any under-applied or over-applied overhead is closed out to Cost of Goods Sold at fiscal year-end.
The company’s allocation base across all its divisions is machine-hours. Having estimated next year’s total manufacturing overhead, Hopkins calculated the POHR, by dividing with the number of total machine-hours for the coming year, as projected by the production manager.
Being sure about her assumptions and calculations, she went to the division’s manager, Harry Potter, for approval. Surprisingly, the manager suggested a modification in the allocation base, as per the following discussion:
Harry: These are my calculations of next year’s POR. If you approve, we can update our job-order costing system accordingly for this…
Chapter 9 Solutions
MANAGERIAL ACCOUNTING FOR MANAGERS
Ch. 9 - Prob. 9.1QCh. 9 - Prob. 9.2QCh. 9 - Prob. 9.3QCh. 9 - Prob. 9.4QCh. 9 - Prob. 9.5QCh. 9 - Prob. 9.6QCh. 9 - Prob. 9.7QCh. 9 - Prob. 9.8QCh. 9 - Prob. 9.9QCh. 9 - Prob. 9.10Q
Ch. 9 - The Excel worksheet form on the next page is to be...Ch. 9 - Prob. 1TF15Ch. 9 - Prob. 9.1ECh. 9 - Prob. 9.2ECh. 9 - Prob. 9.3ECh. 9 - Prob. 9.4ECh. 9 - Prob. 9.5ECh. 9 - Prob. 9.6ECh. 9 - Prob. 9.7ECh. 9 - Prob. 9.8ECh. 9 - Prob. 9.9ECh. 9 - Prob. 9.10ECh. 9 - Prob. 9.11ECh. 9 - Prob. 9.12ECh. 9 - Prob. 9.13ECh. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17PCh. 9 - Prob. 9.18PCh. 9 - Prob. 9.19PCh. 9 - Prob. 9.20PCh. 9 - Prob. 9.21PCh. 9 - Prob. 9.22PCh. 9 - Prob. 9.23PCh. 9 - Prob. 9.24CCh. 9 - Prob. 9.25CCh. 9 - Prob. 9.26C
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