Question: Refer to the data given in the

> Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm’s fixed costs are 4,000,000 p per year. The variable cost of each component is 2,000 p, and the components are sold for 3,000 p each.

> College Pizza delivers pizzas to the dormitories and apartments near a major state university. The company’s annual fixed expenses are $40,000. The sales price of a pizza is $10, and it costs the company $5 to make and deliver each pizza. (In the followi

> Fill in the missing data for each of the following independent cases. (Ignore income taxes.)

> Gator Beach Marts, a chain of convenience grocery stores in the Fort Lauderdale area, has store hours that fluctuate from month to month as the tourist trade in the community varies. The utility costs for one of the company’s stores are

> Manta Ray Company manufactures diving masks with a variable cost of $25. The masks sell for $34. Budgeted fixed manufacturing overhead for the most recent year was $792,000. Actual production was equal to planned production. Required: Under each of the

> Explain the nature and importance of internal controls over financial reporting.

> Recent monthly costs of providing on-board flight service incurred by Great Plains Airlines are shown in the following table. Required: 1. Build a spreadsheet: Construct an Excel spreadsheet and use the Excel commands to perform a least-squares regressi

> Weathereye Inc. manufactures weather satellites. The final assembly and testing of the satellites is a largely manual operation involving dozens of highly trained electronics technicians. The following learning curve has been estimated for the firm&acirc

> The State Department of Taxation processes and audits income-tax returns for state residents. The state tax commissioner has recently begun a program of work measurement to help in estimating the costs of running the department. The independent variable

> Chillicothe Meat Company produces one of the best sausage products in southern Ohio. The company’s controller used the account-classification method to compile the following information. a. Depreciation schedules revealed that monthly depreciation on bui

> The Iowa City Veterinary Laboratory performs a variety of diagnostic tests on commercial and domestic animals. The lab has incurred the following costs over the past year. Required: 1. Plot the data above in a scatter diagram. Assign cost to the vertica

> Hold a classroom discussion (or debate) arguing the following two viewpoints, A: Sound data analytics is the key to using data for decision making. This is where the story embedded in the data is unlocked. Data visualization is all fluff—just a bunch of

> Refer to the data in the exercise 6-25. 1. Draw a scatter diagram and graph the company’s energy cost behaviour using the visual-fit method. 2. Predict the energy cost for a month in which 26,000 pints of applesauce are produced. 3. Wha

> Jonathan Macintosh is a highly successful Pennsylvania orchard man who has formed his own company to produce and package applesauce. Apples can be stored for several months in cold storage, so applesauce production is relatively uniform throughout the ye

> WMEJ is an independent television station run by a major state university. The station’s broadcast hours vary during the year depending on whether the university is in session. The station’s production-crew and supervi

> Redwood Company sells craft kits and supplies to retail outlets and through its catalogue. Some of the items are manufactured by Redwood, while others are purchased for resale. For the products it manufactures, the company currently bases its selling pri

> Visit the website of one of the following organizations, or a different organization of your choosing. Required: Read about the organization’s activities and operations. Then list three activities that you think the organization would

> Finger Lakes Winery is a small, family-run operation in upstate New York. The winery produces two varieties of wine: Riesling and chardonnay. Among the activities engaged in by the winery are the following: 1. Trimming: At the end of a growing season, th

> Wheelco, Inc., manufactures automobile and truck wheels. The company produces four basic, high-volume wheels used by each of the large automobile and pickup truck manufacturers. Wheelco also has two specialty wheel lines. These are fancy, complicated whe

> Refer to the information given in the exercise 5-28. For each of the activity cost pools identified, indicate whether it represents a unit-level, batch-level, product-sustaining-level, or facility-level activity. Data from Exercise 5-28: Kentaro Corporat

> Kentaro Corporation Manufactures Digital Video Recorders (DVRs) in its Tokyo plant. The following costs are budgeted for January. (Yen is the Japanese monetary unit.) Required: Divide these costs into activity cost pools, and identify a cost driver for

> Urban Elite Cosmetics has used a traditional cost accounting system to apply quality-control costs uniformly to all products at a rate of 14.5 percent of direct-labor cost. Monthly direct-labor cost for Satin Sheen makeup is $27,500. In an attempt to mor

> Big Apple Design Company specializes in designing commercial office space in Manhattan. The firm’s president recently reviewed the following income statement and noticed that operating profits were far below her expectations. She had a

> The customer profitability analysis for Dronze Inc., which is displayed in Exhibit 5–14, ranks customers by operating income. An alternative, often-used approach is to rank customers by sales revenue. Required: 1. List the customer num

> Tioga Company manufactures sophisticated lenses and mirrors used in large optical telescopes. The company is now preparing its annual profit plan. As part of its analysis of the profitability of individual products, the controller estimates the amount of

> Think carefully about a recent visit to a sit-down restaurant. List as many activities as you can think of that were performed by the restaurant’s employees for its customers. Required: For each activity on your list, indicate the following: 1. Value-ad

> Consider the following costs that were incurred during the current year: 1. Tire costs incurred by Ford Motor Company. 2. Sales commissions paid to the sales force of Dell Inc. 3. Wood glue consumed in the manufacture of Rooms to Go furniture (assume tha

> Refer to the data given in the preceding exercise 17-17. Required: Use the step-down method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments. Tuscaloosa National Bank allocates the costs of the HR De

> Not all manufacturing processes fall neatly into the structure presented in the chapter. One variation is called mass customization. Search the term mass customization on the Internet. Required: Select and read several articles about mass customization.

> A loom operator in a textiles factory earns $16 per hour. By contract, the employee earns $24 (time and a half) for overtime hours. The operator worked 45 hours during the first week of May, and overtime is paid after the usual 40 hours. Required: 1. Co

> List the costs that would likely be included in each of the following marginal-cost calculations. 1. The marginal cost of one additional passenger on an American Airlines flight. 2. The marginal cost of serving one additional customer in a Chipotle Mexic

> Suppose you paid $150 for a ticket to see your university’s football team compete in a bowl game. Someone offered to buy your ticket for $400, but you decided to go to the game. Required: 1. What did it really cost you to see the game? 2. What type of c

> The state Department of Education owns a computer system, which its employees use for word processing and keeping track of education statistics. The governor’s office recently began using this computer also. As a result of the increased usage, the demand

> Orbital Communications, Inc., manufactures communications satellites used in TV signal transmission. The firm currently purchases one component for its satellites from a European firm. An Orbital Communications engineering team has found a way to use the

> Martin Chuzzlewit purchased a vacant lot outside of London for £1,350,000, because he heard that a shopping mall was going to be built on the other side of the road. He figured that he could make a bundle by putting in a fast-food outlet on the site. As

> A hotel pays the phone company $100 per month plus $.25 for each call made. During January 6,000 calls were made. In February 5,000 calls were made. Required: 1. Calculate the hotel’s phone bills for January and February. 2. Calculate the cost per phone

> Mighty Muffler, Inc., operates an automobile service facility that specializes in replacing mufflers on compact cars. The following table shows the costs incurred during a month when 600 mufflers were replaced. Required: Fill in the missing amounts, la

> A foundry employee worked a normal 40-hour shift, but four hours were idle due to a small fire in the plant. The employee earns $18 per hour. Required: 1. Calculate the employee’s total compensation for the week. 2. How much of this compensation is a di

> Tuscaloosa National Bank has two service departments, the Human Resources (HR) Department and the Computing Department. The bank has two other departments that directly service customers, the Deposit Department and the Loan Department. The usage of the t

> Use the Internet to access the website for one of the following companies, or any other company of your choosing. Required: After perusing the company’s website, work as a group to 1. List three key activities you believe would be in th

> For each of the following activities, explain which of the objectives of managerial accounting activity is involved. In some cases, several objectives may be involved. 1. Developing a bonus reward system for the managers of the various offices of the AAA

> Give an example of managerial accounting information that could help a manager make each of the following decisions. 1. The president of Budget Rent a Car is deciding whether to add luxury cars to the rental car fleet. 2. The production manager in a Volv

> For each case below, find the missing amount. Case I Case II Case III  Beginning inventory of finished goods ……………………… ? $12,000 $ 7,000  Cost of goods manufactured during period ……………….. $419,000 $95,000 ?  Ending inventory of finished g

> Refer to the original data given in Exercise III–5 for Fiber Technology, Inc. Required: Prepare a graphical analysis of the economic order quantity decision for XL-20. Data from Exercise III-5: Fiber Technology, Inc., manufactures glass fibers used in

> You plan to retire at age 40 after a highly successful but short career. You would like to accumulate enough money by age 40 to withdraw $225,000 per year for 40 years. You plan to pay into your account 15 equal installments beginning when you are 25 and

> Refer to the answers given for the preceding exercise. Required: 1. Refer to requirement 1 of the preceding exercise. Prepare a display similar to Exhibit II-1 to show how your accumulation grows each year to equal $5,487.50 after six years. 2. Refer to

> Answer each of the following independent questions. Ignore personal income taxes. 1. Suppose you invest $2,500 in an account bearing interest at the rate of 14 percent per year. What will be the future value of your investment in six years? 2. Your best

> Refer to the data given in Exercise 17–17 for Tuscaloosa National Bank. Required: Use the reciprocal-services method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments. Data from Exe

> Refer to the data given in Exercise 17–20. Breakfast time Cereal Company has an opportunity to process its Crummies further into a mulch for ornamental shrubs. The additional processing operation costs $.50 per kilogram, and the mulch w

> Refer to the data given in the preceding exercise 17-20. Required: Use the relative-sales-value method to allocate Breakfast time Cereal Company’s joint production cost between Yummies and Crummies. Data from Exercise 17-20: Breakfast

> Breakfast time Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows: Required: Use the physical-units method to allocate the company’s joint production cost between Yummies a

> Refer to the data in the preceding exercise 16-38. Required: 1. Compute the nominal interest rate. 2. Prepare a schedule of cash flows measured in nominal dollars. 3. Using cash flows measured in nominal dollars, compute the net present value of the pro

> The state’s Secretary of Education is considering the purchase of a new computer for $100,000. A cost study indicates that the new computer should save the Department of Education $30,000, measured in real dollars, during each of the next eight years. Th

> Metro Car Washes, Inc., is reviewing an investment proposal. The initial cost as well as the estimate of the book value of the investment at the end of each year, the net after-tax cash flows for each year, and the net income for each year are presented

> Allegience Insurance Company’s management is considering an advertising program that would require an initial expenditure of $165,500 and bring in additional sales over the next five years. The projected additional sales revenue in year 1 is $75,000, wit

> The owner of Atlantic City Confectionary is considering the purchase of a new semiautomatic candy machine. The machine will cost $25,000 and last 10 years. The machine is expected to have no salvage value at the end of its useful life. The owner projects

> Sharpe Machining Company purchased industrial tools costing $100,000, which fall in the 3-year property class under MACRS. Required: 1. Prepare a schedule of depreciation deductions assuming: a. The firm uses the accelerated depreciation schedule specif

> In December of 20x4, Atlas Chemical Corporation sold a forklift for $9,255. The machine was purchased in 20x1 for $50,000. Since then $38,845 in depreciation has been recorded on the forklift. Required: 1. What was the forklift’s book value at the time

> Daly Publishing Corporation recently purchased a truck for $30,000. Under MACRS, the first year’s depreciation was $6,000. The truck driver’s salary in the first year of operation was $32,000. Required: Show how each of the amounts mentioned above shoul

> Hudson Community College enrolls students in two departments, Liberal Arts and Sciences. The college also has two service departments, the Library and the Computing Services Department. The usage of these two service departments’ output

> Use the Internet to access the home page for the City of Chicago, www.cityofchicago.org. Use one of the links there to access the home page for one of Chicago’s sister organizations, such as the following: Each of these linked pages con

> Refer to the data given in the exercise 16-24. Required: Compute the internal rate of return on the new well. Should the governing board approve the new well? Data from Exercise 16-24: Jack and Jill’s Place is a non-profit nursery school run by the par

> Jack and Jill’s Place is a non-profit nursery school run by the parents of the enrolled children. Since the school is out of town, it has a well rather than a city water supply. Lately, the well has become unreliable, and the school has had to bring in b

> The following data pertain to Royal Lighting Company’s oak-clad, contemporary chandelier. Variable manufacturing cost …………………………………………………….. $200  Applied fixed manufacturing cost ……………………………………………… 70  Variable selling and administrative cost …………

> The following data pertain to Lawn Master Corporation’s top-of-the-line lawn mower. Variable manufacturing cost …………………………………………………….. $250  Applied fixed manufacturing cost ……………………………………………… 50  Variable selling and administrative cost …………………………

> Visit the website of one of the following companies, or a different company of your choosing. Required: Read about a new product or service to be offered by the company. Then explain how the firm could use target costing to price the new product or serv

> Corrientes Company produces a single product in its Buenos Aires plant that currently sells for 5.00 p per unit. Fixed costs are expected to amount to 60,000 p for the year, and all variable manufacturing and administrative costs are expected to be incur

> Refer to the data given in the preceding two exercises (Exercise 15-28 and 15-29). Required: 1. Prepare a table of Spectrum Sound’s revenue, cost, and profit relationships. For guidance, refer to panel C of Exhibit 15â€&#147

> Refer to the exercise 15-28. The divisional controller at Spectrum Sound’s St. Louis Division has estimated the following cost data for the division’s CD players. (Assume there are no fixed costs.) Required: 1. Prepar

> Spectrum Sound, Inc., manufactures compact disc players with unusual features in its St. Louis Division. The divisional sales manager has estimated the following demand-curve data. Required: 1. Prepare a table similar to panel C of Exhibit 15â&#12

> Refer to the original data given in Exercise III–5 for Fiber Technology, Inc. The lead time required to receive an order of XL-20 is one month. Required: 1. Assuming stable usage of XL-20 each month, determine the reorder point for XL-20. 2. Draw a grap

> Southern California Chemical Company manufactures two industrial chemical products, called kreolitered and kreolite-blue. Two machines are used in the process, and each machine has 24 hours of capacity per day. The following data are available: The compa

> Refer to the data given in the exercise 14-41 for Duo Company. Assume that the direct-labor rate is $24 per hour, and 10,000 labor hours are available per year. In addition, the company has a short supply of machine time. Only 8,000 hours are available e

> Duo Company manufactures two products, Uno and Dos. Contribution margin data follow. Duo company’s production process uses highly skilled labor, which is in short supply. The same employees work on both products and earn the same wage r

> Zytel Corporation produces cleaning compounds and solutions for industrial and household use. While most of its products are processed independently, a few are related. Grit 337, a coarse cleaning powder with many industrial uses, costs $1.60 a pound to

> Fusion Metals Company needs a new manager for its Cutting Department. It is considering closing its Packaging Department, and if it does the Packaging Department manager will be appointed manager of the Cutting Department. The Packaging Department manage

> Fusion Metals Company is considering the elimination of its Packaging Department. Management has received an offer from an outside firm to supply all Fusion’s packaging needs. To help her in making the decision, Fusion’s president has asked the controlle

> Intercontinental’s special order also requires 1,000 kilograms of genatope, a solid chemical regularly used in the company’s products. The current stock of genatope is 8,000 kilograms at a book value of 8.10 p per kilogram. If the special order is accept

> Intercontinental Chemical Company, located in Buenos Aires, Argentina, recently received an order for a product it does not normally produce. Since the company has excess production capacity, management is considering accepting the order. In analyzing th

> Armstrong Corporation manufactures bicycle parts. The company currently has a $21,000 inventory of parts that have become obsolete due to changes in design specifications. The parts could be sold for $9,000, or modified for $12,000 and sold for $22,300.

> Day Street Deli’s owner is disturbed by the poor profit performance of his ice cream counter. He has prepared the following profit analysis for the year just ended. Required: Criticize and correct the owner’s analysis

> Read Problem 9–43. Instead of answering the requirements listed in the problem, discuss the implications of SOX sections 302 and 404 regarding John Winslow’s contemplated actions. Data from Problem 9-43: Healthful Foo

> Lamont Industries produces chemicals for the swimming pool industry. In one joint process, 10,000 gallons of GSX are processed into 7,000 gallons of xenolite and 3,000 gallons of banolide. The cost of the joint process, including the GSX, is $19,000. The

> Valley Pizza’s owner bought his current pizza oven two years ago for $9,000, and it has one more year of life remaining. He is using straight-line depreciation for the oven. He could purchase a new oven for $1,900, but it would last only one year. The ow

> Choose an organization and a particular decision situation. Then give examples, using that decision context, of each step illustrated in Exhibit 14–1. For example, you could choose a decision that would be made by a retailer, such as Be

> Refer to the exercise 13-34. The Fabrication Division’s full (absorption) cost of a component is $340, which includes $40 of applied fixed-overhead costs. The transfer price has been set at $374, which is the Fabrication Division’s full cost plus a 10 pe

> Illinois Metallurgy Corporation has two divisions. The Fabrication Division transfers partially completed components to the Assembly Division at a predetermined transfer price. The Fabrication Division’s standard variable production cost per unit is $300

> The following data pertain to British Isles Aggregates Company, a producer of sand, gravel, and cement, for the year just ended. Required: 1. Compute the company’s sales margin, capital turnover, and ROI. 2. If the sales and average in

> Dryden Company is an auto parts supplier. At the end of each month, the employee who maintains all of the inventory records takes a physical inventory of the firm’s stock. When discrepancies occur between the recorded inventory and the physical count, th

> Select one of the following companies (or any company of your choosing) and use the Internet to explore the company’s most recent annual report. Required: 1. Calculate the company’s overall return on investment (ROI).

> Refer to the data in the exercise 13-27 for Golden Gate Construction Associates. The company has two divisions: the real estate division and the construction division. The divisions’ total assets, current liabilities, and before-tax ope

> Golden Gate Construction Associates, a real estate developer and building contractor in San Francisco, has two sources of long-term capital: debt and equity. The cost to Golden Gate of issuing debt is the after-tax cost of the interest payments on the de

> Read Exercise 13–32. Instead of answering the requirements listed in the exercise, discuss the implications of SOX sections 302 and 404 for the company’s internal control issues. Data from Exercise 13-32: Dryden Company is an auto parts supplier. At the

> Refer to the data for Exercise 13–24. Assume that the company’s minimum desired rate of return on invested capital is 11 percent. Required: Compute Dakota Division’s residual income for the year. Data from Exercise 13-24: The following data pertain to

> Refer to the exercise 13-24: Required: Demonstrate two ways Dakota Division’s manager could improve the division’s ROI to 25 percent. Data from Exercise 13-24: The following data pertain to Dakota Division’s most recent year of operations. Income ……………

> The following data pertain to Dakota Division’s most recent year of operations. Income …………………………………………………….. $ 4,000,000  Sales revenue …………………………………………….. 50,000,000  Average invested capital ……………………………… 20,000,000   Required: Compute Dakota

> Data Screen Corporation is a highly automated manufacturing firm. The vice president of finance has decided that traditional standards are inappropriate for performance measures in an automated environment. Labor is insignificant in terms of the total co

> Hiawatha Hydrant Company manufactures fire hydrants in Oswego, New York. The following information pertains to operations during May. Required: Compute the following operational measures: (1) manufacturing cycle efficiency; (2) manufacturing cycle time;

> Fly High Tech, an early-stage start up, reports to its investors using a balanced scorecard that is prepared at the end of each quarter. During the first and second quarters of the current year, the company had the following results: The following additi

> Refer to the list of companies in Exercise 12–33. Required: Choose one of the companies, research it online, and prepare an abbreviated balanced scorecard for that company. Your scorecard should include • The company&