Question: Rensing Groomers is in the dog-grooming

> Suppan Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2014, and relevant budget d

> Clarke Inc. operates the Patio Furniture Division as a profit center. Operating data for this division for the year ended December 31, 2014, are as shown below. In addition, Clarke incurs $180,000 of indirect fixed costs that were budgeted at $175,000.

> Zelmer Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2014. The following data were used in developing the master manufacturing overhead budget for

> Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2014 are: All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month f

> Deleon Inc. is preparing its annual budgets for the year ending December 31, 2014. Accounting assistants furnish the data shown below. An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative ex

> Glendo Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2014. 1. Sales: quarter 1, 30,000 bags; quarter 2, 42,000 bags. Selling price is $60

> Krause Industries’ balance sheet at December 31, 2013, is presented below. Additional information accumulated for the budgeting process is as follows. Budgeted data for the year 2014 include the following. To meet sales requirements

> The budget committee of Litwin Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2014. 1. Sales for May are expected to be $800,000. Sales in June and July are expected to be 5% higher t

> Last year (2013), Richter Condos installed a mechanized elevator for its tenants. The owner of the company, Ron Richter, recently returned from an industry equipment exhibition where he watched a computerized elevator demonstrated. He was impressed with

> Presented below is information related to the Southern Division of Lumber, Inc. Contribution margin …………………………………………. $1,200,000 Controllable margin ……………………………………………$ 800,000 Average operating assets …………………………………. $4,000,000 Minimum rate of return ………

> Marsh Industries had sales in 2013 of $6,400,000 and gross profit of $1,100,000. Management is considering two alternative budget plans to increase its gross profit in 2014. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volu

> The management of Shatner Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part, called CISCO, is a component of the company’s finished product. The following

> ShurShot Sports Inc. manufactures basketballs for the National Basketball Association (NBA). For the first 6 months of 2014, the company reported the following operating results while operating at 80% of plant capacity and producing 120,000 units. Amoun

> Campbell Soup Company is an international provider of soup products. Management is very interested in continuing to grow the company in its core business, while “spinning off” those businesses that are not part of its core operation. Address: www.campbel

> Tecumseh Products Company has its headquarters in Tecumseh, Michigan. It describes itself as “a global multinational corporation producing mechanical and electrical components essential to industries creating end-products for health, comfort, and conveni

> Hawke Skateboards is considering building a new plant. Bob Skerritt, the company’s marketing manager, is an enthusiastic supporter of the new plant. Lucy Liu, the company’s chief financial officer, is not so sure that

> Luang Company is considering the purchase of a new machine. Its invoice price is $122,000, freight charges are estimated to be $3,000, and installation costs are expected to be $5,000. Salvage value of the new machine is expected to be zero after a usefu

> A company that manufactures recreational pedal boats has approached Mike Cichanowski to ask if he would be interested in using Current Designs’ rotomold expertise and equipment to produce some of the pedal boat components. Mike is intri

> The December 22, 2009, edition of the Wall Street Journal has an article by Kevin Kelliker entitled “In Risky Move, GM to Run Plants Around Clock.” Instructions: Read the article and answer the following questions. (a) According to the article, what is

> The Balanced Scorecard Institute (www.balancedscorecard.org) is a great resource for information about implementing the balanced scorecard. One item of interest provided at its website is an example of a balanced scorecard for a regional airline. Address

> Data for the investment centers for Kaspar Company are given in BE22-9. The centers expect the following changes in the next year: (I) increase sales 15%; (II) decrease costs $400,000; (III) decrease average operating assets $500,000. Compute the expe

> Glassmaster Company is organized as two divisions and one subsidiary. One division focuses on the manufacture of filaments such as fishing line and sewing thread; the other division manufactures antennas and specialty fiberglass products. Its subsidiary

> Ana Carillo and Associates is a medium-sized company located near a large metropolitan area in the Midwest. The company manufactures cabinets of mahogany, oak, and other fine woods for use in expensive homes, restaurants, and hotels. Although some of the

> Milton Professionals, a management consulting firm, specializes in strategic planning for financial institutions. James Hahn and Sara Norton, partners in the firm, are assembling a new strategic planning model for use by clients. The model is designed fo

> There are many useful resources regarding budgeting available on websites. The following activity investigates the results of a comprehensive budgeting study. Address: http://www.accountingweb.com/whitepapers/centage_ioma.pdf, or go to www.wiley. com/col

> Computer Associates International, Inc., the world’s leading business software company, delivers the end-to-end infrastructure to enable e-business through innovative technology, services, and education. Computer Associates has 19,000 employees worldwide

> Lanier Company manufactures expensive watch cases sold as souvenirs. Three of its sales departments are Retail Sales, Wholesale Sales, and Outlet Sales. The Retail Sales Department is a profit center. The Wholesale Sales Department is a cost center. Its

> Green Pastures is a 400-acre farm on the outskirts of the Kentucky Bluegrass, specializing in the boarding of broodmares and their foals. A recent economic downturn in the thoroughbred industry has led to a decline in breeding activities, and it has made

> The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,000 kayaks during 2013. Each kayak will require 54 pounds of polyethylene powder and a finishing kit (rope, seat,

> Information regarding many approaches to budgeting can be found on the Web. The following activity investigates the merits of “zero-based” budgeting, as discussed by Michael LaFaive, Director of Financial Policy of the Mackinac Center for Public Policy.

> Network Computing Devices, Inc. was founded in 1988 in Mountain View, California. The company develops software products such as X-terminals, Z-mail, PC X-ware, and related hardware products. The following is a discussion by management in its annual repo

> North Company has completed all of its operating budgets. The sales budget for the year shows 50,000 units and total sales of $2,250,000. The total unit cost of making one unit of sales is $25. Selling and administrative expenses are expected to be $300,

> Elliot & Hesse Inc. manufactures ergonomic devices for computer users. Some of its more popular products include glare screens (for computer monitors), keyboard stands with wrist rests, and carousels that allow easy access to discs. Over the past 5 years

> Palmer Corporation operates on a calendar-year basis. It begins the annual budgeting process in late August when the president establishes targets for the total dollar sales and net income before taxes for the next year. The sales target is given first t

> Diane Buswell is preparing the 2013 budget for one of Current Designs’ rotomolded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the following unit sales projections for 2013. Quarter 1 ……………………………………

> Outsourcing by both manufacturers and service companies is becoming increasingly common. There are now many firms that specialize in outsourcing consulting. Address: www.alsbridge.com, or go to www.wiley.com/college/kimmel Instructions: Go to the Web pa

> Founded in 1983, Beverly Hills Fan Company is located in Woodland Hills, California. With 23 employees and sales of less than $10 million, the company is relatively small. Management feels that there is potential for growth in the upscale market for ceil

> MiniTek manufactures private-label small electronic products, such as alarm clocks, calculators, kitchen timers, stopwatches, and automatic pencil sharpeners. Some of the products are sold as sets, and others are sold individually. Products are studied a

> Aurora Company is considering the purchase of a new machine. The invoice price of the machine is $140,000, freight charges are estimated to be $4,000, and installation costs are expected to be $6,000. Salvage value of the new equipment is expected to be

> Current Designs faces a number of important decisions that require incremental analysis. Consider each of the following situations independently. Situation 1 Recently, Mike Cichanowski, owner and CEO of Current Designs, received a phone call from the pr

> Fisk Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances. In addition, 8,000 units of product were sold at $8 per unit. Each unit sold had a standard cost of $5. Selling and adminis

> Burte Corporation prepared the following variance report. Instructions: Fill in the appropriate amounts or letters for the question marks in the report. BURTE CORPORATION Variance Report-Purchasing Department For the Week Ended January 9, 2014 Туре

> For Mize Company, units to be produced are 5,000 in quarter 1 and 6,000 in quarter 2. It takes 1.6 hours to make a finished unit, and the expected hourly wage rate is $15 per hour. Prepare a direct labor budget by quarters for the 6 months ending June 30

> Picard Landscaping plants grass seed as the basic landscaping for business campuses. During a recent month, the company worked on three projects (Remington, Chang, and Wyco). The company is interested in controlling the materials costs, namely the grass

> Wales Company purchased (at a cost of $10,800) and used 2,400 pounds of materials during May. Wales’s standard cost of materials per unit produced is based on 2 pounds per unit at a cost $5 per pound. Production in May was 1,070 units. Instructions: (a)

> Byrd Company produces one product, a putter called GO-Putter. Byrd uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 100,000 units per year.

> During March 2014, Toby Tool & Die Company worked on four jobs. A review of direct labor costs reveals the following summary data. Analysis reveals that Job A257 was a repeat job. Job A258 was a rush order that required overtime work at premium rat

> Shannon Company is planning to produce 2,000 units of product in 2014. Each unit requires 3 pounds of materials at $5 per pound and a half-hour of labor at $15 per hour. The overhead rate is 70% of direct labor. Instructions: (a) Compute the budgeted am

> Lowell Company’s manufacturing overhead budget for the first quarter of 2014 contained the following data. Actual variable costs were indirect materials $13,900, indirect labor $9,500, utilities $8,700, and maintenance $5,000. Actual

> Kitchen Help Inc. (KHI) is a manufacturer of toaster ovens. To improve control over operations, the president of KHI wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for KH

> The actual selling expenses incurred in March 2014 by DeWitt Company are as follows. Instructions: (a) Prepare a flexible budget performance report for March using the budget data in E22-5, assuming that March sales were $170,000. (b) Prepare a flexibl

> Presented below is selected financial information for two divisions of Yono Brewing. Instructions: Supply the missing information for the lettered items. Lite Lager $ 300,000 (c) $1,200,000 13% (d) $ 204.000 Lager Contribution margin Controllable m

> Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $10,000 from sales $200,000, variable costs $180,000, and fixed costs $30,000. If the Big Bart line is eliminated, $20,000 of fixed costs will remain.

> Presented below is selected information for three regional divisions of Medina Company. Instructions: (a) Compute the return on investment for each division. (b) Compute the residual income for each division. (c) Assume that each division has an invest

> Crede Company budgeted selling expenses of $30,000 in January, $35,000 in February, and $40,000 in March. Actual selling expenses were $31,200 in January, $34,525 in February, and $46,000 in March. Instructions: (a) Prepare a selling expense report that

> The Pletcher Transportation Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance is measured using a system of responsibility reports and return on invest

> The Dinkle and Frizell Dental Clinic provides both preventive and orthodontic dental services. The two owners, Reese Dinkle and Anita Frizell, operate the clinic as two separate investment centers: Preventive Services and Orthodontic Services. Each of th

> The West Division of Nieto Company reported the following data for the current year. Sales …………………………………..$3,000,000 Variable costs ………………………..1,980,000 Controllable fixed costs ……………600,000 Average operating assets ………5,000,000 Top management is unhap

> The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division were budgeted for 2014 at $900,000. The only variable costs budgeted for the division were cost of goods sold ($440,000) and selling and administra

> Deitz Inc. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows. Instructions: (a) Compute the missing amounts. Show computations. (b) Prepare a responsibility report for

> The Mixing Department manager of Malone Company is able to control all overhead costs except rent, property taxes, and salaries. Budgeted monthly overhead costs for the Mixing Department, in alphabetical order, are: Actual costs incurred for January 20

> Fultz Company’s organization chart includes the president; the vice president of production; three assembly plants—Dallas, Atlanta, and Tucson; and two departments within each plant—Machining and Finishing. Budget and actual manufacturing cost data for J

> Venetian Company has two production departments, Fabricating and Assembling. At a department managers’ meeting, the controller uses flexible budget graphs to explain total budgeted costs. Separate graphs based on direct labor hours are used for each depa

> Sales budget data for Palermo Company are given in BE21-2. Management desires to have an ending finished goods inventory equal to 25% of the next quarter’s expected unit sales. Prepare a production budget by quarters for the first 6 months of 2014. Data

> Kirkland Plumbing Company is a newly formed company specializing in plumbing services for home and business. The owner, Lenny Kirkland, had divided the company into two segments: Home Plumbing Services and Business Plumbing Services. Each segment is run

> As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Soria Company for the month of October. As a result of this budget report, Joe was called into the presidentâ€&#153

> Mike Trusler has prepared the following list of statements about budgetary control. 1. Budget reports compare actual results with planned objectives. 2. All budget reports are prepared on a weekly basis. 3. Management uses budget reports to analyze diffe

> Donnegal Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2014. Donnegal has a labor contract that calls for a wage increase to $9.00 p

> Chandler Ltd. estimates sales for the second quarter of 2014 will be as follows. Month Units April ………………………………………………………. 2,550 May …………………………………………………………2,475 June ………………………………………………………..2,390 The target ending inventory of finished

> Garza and Neely, CPAs, are preparing their service revenue (sales) budget for the coming year (2014). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below. Ave

> Green Landscaping Inc. is preparing its budget for the first quarter of 2014. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end the following information has been collected. Clients us

> LRF Company’s budgeted sales and direct materials purchases are as follows. LRF’s sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in th

> The controller of Trenshaw Company wants to improve the company’s control system by preparing a month-by-month cash budget. The following information is for the month ending July 31, 2014. June 30, 2014, cash balance ……………………………………………………$45,000 Dividend

> Danner Company expects to have a cash balance of $45,000 on January 1, 2014. Relevant monthly budget data for the first 2 months of 2014 are as follows. Collections from customers: January $85,000, February $150,000. Payments for direct materials: Januar

> Each day, Adama Corporation processes 1 ton of a secret raw material into two resulting products, AB1 and XY1. When it processes 1 ton of the raw material, the company incurs joint processing costs of $60,000. It allocates $25,000 of these costs to AB1 a

> (a) “Standard costs are the expected total cost of completing a job.” Is this correct? Explain. (b) “A standard imposed by a governmental agency is known as a regulation.” Do you agree? Explain.

> Explain the differences in philosophy of the Calm Waters and White-Water Rapids views of change.

> Why is evaluation of training effectiveness necessary?

> What are the similarities and differences between training and development?

> Explain the purpose and benefits of an effective onboarding process for new employees.

> How do the types of validity differ? Explain their use in evaluating testing and in preventing discrimination.

> What mistakes could employers make that would influence a qualified candidate to turn down a job offer?

> What are the advantages of conducting background investigations on applicants and what do employees need to consider when conducting the investigations?

> Explain the advantages and disadvantages of searching social media as a screening tool for applicants.

> Explain guidelines for developing effective interview questions that respect the legal rights of the applicant.

> Describe the differences one may encounter when recruiting globally.

> Elyse took over as president of a home healthcare supply company when her father retired. Soon after, many other longtime employees also retired. Replacing the lost experience was difficult and the new employees just don't seem to be able to fill their s

> Explain the advantages and disadvantages of the external recruitment alternatives.

> Present the advantages and disadvantages of promote from within policies.

> What are some challenges to effective recruiting?

> Explain the importance of essential functions as they relate the Americans with Disabilities Act.

> Identify the advantages and disadvantages of the observation, structured questionnaire, and diary job analysis methods.

> Explain how you would do a job analysis for the position of “Successful HR Student” and create a job description using the elements in this chapter. Explain your choices of essential functions and job specifications.

> Describe the progressive discipline process as it would apply to an employee with a minor violation of workplace rules as opposed to a serious violation.

> Explain the potential advantages and disadvantages of having organizational policies that deal with workplace romance.

> What is employment-at-will? How does it affect employees? Employers?

> Discuss issues involved in using honesty tests to screen job applicants?

> This case concerns a casino employee placing a “Dilbert” cartoon on the company bulletin board, which management found offensive. The employee was fired for misconduct and denied unemployment benefits. The employee appealed to an administrative judge, cl

> What should be considered when developing a policy on employee use of social media?

> What should an organization know about employee records?