MANAGERIAL ACCOUNTING(LL)-W/CONNECT >C<
19th Edition
ISBN: 9781264189816
Author: Noreen
Publisher: MCG CUSTOM
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Chapter IE, Problem 7E
Cost-Volume-Profit Relationships, Variable Costing LO1-4, LO2—1, LO2—5, LO2—7, LO2—8, LO4—1, LO4,—2, LO4—3
Refer to the information pertaining to Endless Mountain Company that is provided in Integration Exercise 6. In addition to the budget schedules that you prepared in Integration Exercise 6, insert two new tabs in your Microsoft Excel worksheet titled CVP Analysis” and “Variable Costing.”
Required
(For all questions, be sure to use formulas that link to the other tabs in your Microsoft Excel worksheet when performing your calculations):
- Calculate the following budgeted figures for 2019:
- The total fixed cost.
- The variable cost per unit sold.
- The contribution margin per unit sold.
- The break-even point in unit sales and dollar sales.
- The margin of safety.
- The degree of operating leverage
- Calculate the following budgeted figures for 2019:
- A variable costing income statement. Stop your computations at net operating income.
- A reconciliation that explains the difference in the absorption costing and variable costing net operating incomes.
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Students have asked these similar questions
The costs allocated to each cost center are as follows:
Q3:
Cost Centers/Costs
Production Department
Service Department
Total Cost
Y
A
B
Total of Primary Distribution
There is a reciprocal relationship between cost centers. X Service Cost center based
on the number of workers, Y Service Cost center will be apportioned on the base of
40.000 45.000 55.000 8.000 7.160
155.500
m2.
A
B
X
Y
Total
Number of Workers
m2
152
4.500
114
1.350
76
2.700
20
450
38
300
400
9.300
a) Calculate the benefits received from each service department.
b) Calculate the X Service Center's total cost subject to re-distribution.
c) Calculate the Y Service Center's total cost subject to re-distribution.
d) Re-allocate the cost of service cost centers
TB Problem 12-90 Midtown Retail operates a retail store...
Midtown Retail operates a retail store in Kansas City, MO., and St. Louis, MO. The following information relates to the Kansas
City facility:
• The store sold 61,800 units at $34.00 each, after having purchased the units from various suppliers for $26.50. Kansas
City salespeople are paid a 1% commission based on gross sales dollars.
• Kansas City's sales manager oversees the placement of local advertising contracts, which totaled $70,000 for the year.
Local property taxes amounted to $30,500.
• The sales manager's $81,000 salarv is set by Kansas City's store manager. In contrast, the store manager's $150,000
salary is determined by Midtown's vice president.
• Kansas City incurred $14,800 of other noncontrollable costs.
• Nontraceable (common) corporate overhead totaled $84,000.
ok
nt
ences
Midtown's corporate headquarters is located in St. Louis, and the company uses responsibility accounting to evaluate
performance.
Required:…
Required information
SB (Static) The following information is...
[The following information applies to the questions displayed below.]
The following information is departmental cost allocation with two service departments and two production departments.
Percentage Service
Provided to
Department
Service 1 (S1)
Service 2 (52)
Production 1 (P1)
Production 2 (P2)
P1
P2
Cost
$ 30,000
20,000
100,000
150,000
Total Cost
Allocated
S1
0%
20
P2
35%
20 60
Brief Exercise 7-14 (Static) If the cost in P1 is changed from... [LO 7-3]
What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from
$100,000 to $120,000?
52 P1
30% 35%
0
Chapter IE Solutions
MANAGERIAL ACCOUNTING(LL)-W/CONNECT >C<
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