Reference no: EM131094827
1. Leidenheimer Corporation manufactures small airplane propellers. Sales for April totaled $850,000. Information regarding resources for the month follows:
|
Resources Used
|
Resources Supplied
|
|
Parts management
|
$30,000
|
$35,000
|
|
Energy
|
50,000
|
50,000
|
|
Quality inspections
|
45,000
|
50,000
|
|
Long-term labor
|
25,000
|
35,000
|
|
Temporary labor
|
20,000
|
24,000
|
|
Setups
|
70,000
|
100,000
|
|
Materials
|
150,000
|
150,000
|
|
Depreciation
|
60,000
|
100,000
|
|
Marketing
|
70,000
|
75,000
|
|
Customer service
|
10,000
|
20,000
|
|
Administrative
|
50,000
|
70,000
|
In addition, Leidenheimer spent $25,000 on 50 engineering changes with a cost driver rate of $500 and $30,000 on eight outside contracts with a cost driver rate of $3,750.
Required: (33 Points)
a. Prepare a traditional income statement.
b. Prepare an activity-based income statement.
2. Computer Information Services is a computer software consulting company. Its three major functional areas are computer programming, information systems consulting, and software training. Carol Birch, a pricing analyst in the Accounting Department, has been asked to develop total costs for the functional areas. These costs will be used as a guide in pricing a new contract. In computing these costs, Birch is considering three different methods of allocating overhead costs-the direct method, the step method, and the reciprocal method. Birch assembled the following data on overhead from its two service departments, the Information Systems Department and the Facilities Department.
|
Service Departments
|
User Departments
|
|
Info
|
Computer
|
|
Systems
|
Facilities
|
Program
|
Consult
|
Training
|
Total
|
|
Budgeted Overhead
|
$50,000
|
$25,000
|
$75,000
|
$110,000
|
$85,000
|
$345,000
|
|
Info Systems (hrs)
|
|
400
|
1,100
|
600
|
900
|
3,000
|
|
Facilities (Sqft)
|
200,000
|
|
400,000
|
600,000
|
800,000
|
2,000,000
|
Information systems is allocated on the basis of hours of computer usage; facilities are allocated on the basis of floor space.
Required: (33 Points)
Allocate the service department costs to the user departments using the direct method. (Round to the nearest dollar and provide total user department costs)
3. Bayfield Division of Ashland Inc. has a capacity of 200,000 units and expects the following results.
|
Sales (160,000 units at $4)
|
$640,000
|
|
Variable costs, at $2
|
320,000
|
|
Fixed costs
|
260,000
|
|
Income
|
$60,000
|
Washburn Division of Ashland Inc. currently purchases 50,000 units of a part for one of its products from an outside supplier for $4 per unit. Washburn's manager believes he could use a minor variation of Bayfield's product instead, and offers to buy the units from Bayfield at $3.50. Making the variation desired by Washburn would cost Bayfield an additional $0.50 per unit and would increase Bayfield's annual cash fixed costs by $20,000. Bayfield's manager agrees to the deal offered by Washburn's manager.
Required: (33 Points)
a. What is the effect of the deal on Washburn's income?
b. What is the effect of the deal on Bayfield's income?
c. What is the effect of the deal on the income of Ashland Inc. as a whole?
|
Dilemma game nash equilibrium
: Is the solution to the prisoner’s dilemma game a Nash equilibrium? Why?
|
|
Explain at least three hr trends and practices
: Based on your research, explain at least three HR trends and practices that might help the organization analyze work, design jobs, and job flow. Explain and justify your answer.
|
|
Manufacturing overhead costs as product costs
: What arguments can be advanced in favor of treating fixed manufacturing overhead costs as product costs? What arguments can be advanced in favor of treating fixed manufacturing overhead costs as period costs?
|
|
Evaluate the given series of equations using matlab
: Evaluate the following series of equations using MATLAB. Convert each of the three equations to frequency domain both by using the MAT lab command and by hand. These equations are determined in MATLAB using the laplace(F) command.
|
|
Corporation manufactures small airplane propellers
: 1. Leidenheimer Corporation manufactures small airplane propellers. Sales for April totaled $850,000. Information regarding resources for the month follows:
|
|
Aggregate demand–aggregate supply model
: To illustrate inflation inertia in an aggregate demand–aggregate supply model, the short-run aggregate supply curve shifts upward because of increases in ______, and the aggregate demand curve shifts upward because of increases in ______.
|
|
What would be the effect on inflation? interest rate
: If money supply increases by 5%, what will be the impact on price level if the output increases by 2% and the interest rate remains constant?
|
|
Oral component of presentation
: Students will meet the required "oral" component of the presentation by posting a PowerPoint presentation including the following criteria:
|
|
Analyze how your general education courses influenced
: Provide at least two personal examples or events in your life that illustrate the development of global citizenship based on the outcomes. Analyze how your general education courses influenced you to become a global citizen.
|