1. ACC 349 Entire Course and Final Guide
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ACC 349 Entire Course and Final Guide
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ACC 349 Entire Course
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ACC 349 Week 1 Individual Assignment BYP 1-7, E1-7
ACC 349 Week 1 Discussion Question 1
ACC 349 Week 1 Discussion Question 2
ACC 349 Week 2 Individual Assignment Assignments CH 2 & 3
ACC 349 Week 2 Team Assignment Problems Ch. 2 & 3
ACC 349 Week 2 Team Assignment Case Study BYP 2-2
ACC 349 Week 2 Discussion Question 1
ACC 349 Week 2 Discussion Question 2
ACC 349 Week 3 Individual Assignment Article Analysis Summary
ACC 349 Week 3 Individual Assignment Assignments Ch. 4
ACC 349 Week 3 Team Assignment Problems Ch. 4
ACC 349 Week 3 Team Assignment Case Study Ch. 4
ACC 349 Week 3 Discussion Question 1
ACC 349 Week 3 Discussion Question 2
ACC 349 Week 4 Individual Assignment Ch. 5 & 6
ACC 349 Week 4 Team Assignment Problems Ch. 7
ACC 349 Week 4 Team Assignment Case Study Ch. 6
ACC 349 Week 4 Discussion Question 1
2. ACC 349 Week 4 Discussion Question 2
ACC 349 Week 5 Individual Assignment Ch. 8, 9, & 11
ACC 349 Week 5 Team Assignment Problems Ch. 8 & 11
ACC 349 Week 5 Discussion Question 1
ACC 349 Week 5 Discussion Question 2
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ACC 349 Final Exam Guide (New 2018 with Excel sheet)
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Excel Sheet can be used for any change in values, it automatically gives
correct answers 1. The following costs were incurred in September:
Direct materials $42,700 Direct labor $29,400 Manufacturing overhead
$27,300 Selling expenses $23,600 Administrative expenses
$33,700 Conversion costs during the month totaled: 2. A soft drink
bottler incurred the following factory utility cost: $3,861 for 950 cases
bottled and $3,922 for 1,200 cases bottled. Factory utility cost is a mixed
cost containing both fixed and variable components. The variable
factory utility cost per case bottled is closest to: 3 The following cost
data pertain to the operations of Swestka Department Stores, Inc., for the
month of July. Corporate headquarters building lease $87,600
Cosmetics Department sales commissions--Northridge Store $5,230
Corporate legal office salaries $60,500 Store manager's salary-
Northridge Store$17,200 Heating-Northridge Store $20,200
Cosmetics Department cost of sales--Northridge Store $37,400 Central
warehouse lease cost $11,100 Store security-Northridge Store
$18,900 Cosmetics Department manager's salary--Northridge Store
$4,150 The Northridge Store is just one of many stores owned and
operated by the company. The Cosmetics Department is one of many
departments at the Northridge Store. The central warehouse serves all of
3. the company's stores. What is the total amount of the costs listed above
that are direct costs of the Cosmetics Department? 4 Erkkila Inc. reports
that at an activity level of 6,400 machine-hours in a month, its total
variable inspection cost is $425,930 and its total fixed inspection cost is
$179,493. What would be the average fixed inspection cost per unit at an
activity level of 6,700 machine-hours in a month? Assume that this level
of activity is within the relevant range. 5. Nikkel Corporation, a
merchandising company, reported the following results for July: Sales
$407,000 Cost of goods sold (all variable) $173,400 Total
variable selling expense $20,400 Total fixed selling expense
$22,200 Total variable administrative expense $14,800 Total
fixed administrative expense $39,700 The contribution margin for
July is: 6 Job 593 was recently completed. The following data have been
recorded on its job cost sheet: Direct materials $2,412 Direct labor-
hours74 labor-hours Direct labor wage rate $ 21 per labor-hour
Machine-hours 137 machine-hours The Corporation applies
manufacturing overhead on the basis of machine-hours. The
predetermined overhead rate is $22 per machine-hour. The total cost that
would be recorded on the job cost sheet for Job 593 would be: 7 The
Assembly Department started the month with 19,500 units in its
beginning work in process inventory. An additional 285,000 units were
transferred in from the prior department during the month to begin
processing in the Assembly Department. There were 45,250 units in the
ending work in process inventory of the Assembly Department. How
many units were transferred to the next processing department during
the month? 8 Lasseter Corporation has provided its contribution format
income statement for August. The company produces and sells a single
product. If the company sells 5,200 units, its total contribution margin
should be closest to: 9 Olds Inc., which produces a single product, has
provided the following data for its most recent month of operations:
Number of units produced 5,400 Variable costs per unit: Direct
materials $88 Direct labor $79 Variable manufacturing overhead $7
Variable selling and administrative expense $13 Fixed costs: Fixed
manufacturing overhead $210,600 Fixed selling and administrative
expense $388,800 There were no beginning or ending inventories.
4. The absorption costing unit product cost was: 10 Zurasky Corporation is
considering two alternatives: A and B. Costs associated with the
alternatives are listed below: Alternative A Alternative B Materials
costs $22,000 $52,000 Processing costs $28,000 $28,000
Equipment rental $10,100 $28,200 Occupancy costs $10,500
$22,000 What is the differential cost of Alternative B over Alternative
A, including all of the relevant costs? 11 Bossie Corporation uses an
activity-based costing system with three activity cost pools. The
company has provided the following data concerning its costs and its
activity based costing system: Costs: Wages and salaries $284,000
Depreciation 268,000 Utilities221,000 Total $773,000 Distribution
of resource consumption: Activity Cost Pools Assembly Setting up
Other Total Wages and salaries 45% 35% 20% 100%
Depreciation 30% 10% 60% 100% Utilities 15% 65% 20% 100%
How much cost, in total, would be allocated in the first-stage allocation
to the Assembly activity cost pool? 12 The cash budget is usually
prepared after the budgeted income statement. True False 13 Cadavieco
Detailing's cost formula for its materials and supplies is $2,090 per
month plus $15 per vehicle. For the month of November, the company
planned for activity of 89 vehicles, but the actual level of activity was 49
vehicles. The actual materials and supplies for the month was $2,660.
The materials and supplies in the planning budget for November would
be closest to: Q-14 Aide Industries is a division of a major corporation.
Data concerning the most recent year appears below: Sales
$18,120,000 Net operating income $1,177,800 Average
operating assets $4,450,000 The division's return on investment (ROI) is
closest to: (Round your answer to 2 decimal places.) Q-15 Blue
Corporation's standards call for 5,800 direct labor-hours to produce
1,450 units of product. During May 1,050 units were produced and the
company worked 1,350 direct labor-hours. The standard hours allowed
for May production would be: Q-16 The following standards for variable
manufacturing overhead have been established for a company that
makes only one product: Standard hours per unit of output 6.0 hours
Standard variable overhead rate $12.40 per hour The following data
pertain to operations for the last month: Actual hours 2,600 hours
5. Actual total variable manufacturing overhead cost $32,870 Actual output
250 units What is the variable overhead efficiency variance for the
month? What is the variable overhead efficiency variance for the month?
17 Wyly Inc. produces and sells a single product. The selling price of the
product is $240.00 per unit and its variable cost is $88.80 per unit. The
fixed expense is $374,598 per month. The break-even in monthly dollar
sales is closest to: (Round your intermediate calculations to 2 decimal
places.) Use excel sheet for any change in values 18 Part O43 is used in
one of Scheetz Corporation's products. The company's Accounting
Department reports the following costs of producing the 16,400 units of
the part that are needed every year. An outside supplier has offered to
make the part and sell it to the company for $32.00 each. If this offer is
accepted, the supervisor's salary and all of the variable costs, including
direct labor, can be avoided. The special equipment used to make the
part was purchased many years ago and has no salvage value or other
use. The allocated general overhead represents fixed costs of the entire
company. If the outside supplier's offer were accepted, only $22,400 of
these allocated general overhead costs would be avoided. Required: a.
Prepare a report that shows the effect on the company's total net
operating income of buying part O43 from the supplier rather than
continuing to make it inside the company. (Input the amount as a
positive value. Omit the "$" sign in your response.) Net operating
income would decrease be by $ . Make 19 Activity rates from Quattrone
Corporation's activity-based costing system are listed below. The
company uses the activity rates to assign overhead costs to products:
Activity Cost Pools Activity Rate Processing customer orders $94.07 per
customer order Assembling products $2.87 per assembly hour Setting up
batches $62.33 per batch Last year, Product F76D involved 3 customer
orders, 464 assembly hours, and 21 batches. How much overhead cost
would be assigned to Product F76D using the activity-based costing
system? 20 The Gasson Company uses the weighted-average method in
its process costing system. The company's ending work in process
inventory consists of 12,000 units, The ending work in process inventory
is 100% complete with respect to materials and 70% complete with
respect to labor and overhead. If the costs per equivalent unit for the
6. period $4.10 for the materials and $1.30 for labor and overhead, whatis
the balance of the ending work in process inventory account would be:
(Do not round Cost per equivalent unit)
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ACC 349 Final Exam Guide
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1) What does cost accounting measure, record, and report?
2) What is the best way to handle manufacturing overhead costs in order
to get the most timely job cost information?
3) At the end of the year, manufacturing overhead has been overapplied.
What occurred to create this situation?
4) Which of the following would be accounted for using a job order cost
system?
5) In a job order cost accounting system, the Work in Process account is
6) Which one of the following is an important feature of a job order cost
system?
7) Which one of the following is indirect labor considered?
7. 8) Which of the following is an element of manufacturing overhead?
9) Which one of the following costs would be included in manufacturing
overhead of a lawn mower manufacturer?
10) A well-designed activity-based costing system starts with
11) An activity that has a direct cause-effect relationship with the
resources consumed is a(n)
12) In traditional costing systems, overhead is generally applied based
on
13) All of the following statements are correct EXCEPT that
14) Which of the following is a value-added activity?
15) Which of the following is a nonvalue-added activity?
16) Poodle Company manufactures two products, Mini A and Maxi B.
Poodle's overhead costs consist of setting up machines, $800,000;
machining, $1,800,000;and inspecting, $600,000.Information on the
two products is:
Mini A Maxi B
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
8. Inspections 800 700
Overhead applied to Mini A using activity-based costing is
17) Poodle Company manufactures two products, Mini A and Maxi B.
Poodle's overhead costs consist of setting up machines, $800,000;
machining, $1,800,000;and inspecting, $600,000.Information on the
two products is:
Mini A Maxi B
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead applied to Mini A using traditional costing using direct labor
hours is
18) Which of the following factors would suggest a switch to activity-
based costing?
19) Rosen, Inc. has 10,000 obsolete calculators, which are carried in
inventory at a cost of $20,000. If the calculators are scrapped, they can
be sold for $1.10 each (for parts). If they are repackaged, at a cost of
$15,000, they could be sold to toy stores for $2.50 per unit. What
alternative should be chosen, and why?
20) Walton, Inc. is unsure of whether to sell its product assembled or
unassembled. The unit cost of the unassembled product is $16, while the
9. cost of assembling each unit is estimated at $17. Unassembled units can
be sold for $55, while assembled units could be sold for $71 per unit.
What decision should Walton make?
21) The cost to produce Part A was $10 per unit in 2005. During 2006, it
has increased to $11 per unit. In 2006, Supplier Company has offered to
supply Part A for $9 per unit. For the make-or-buy decision,
22) Hess, Inc. sells a single product with a contribution margin of $12
per unit and fixed costs of $74,400 and sales for the current year of
$100,000. How much is Hess’s break-even point?
23) Hartley, Inc. has one product with a selling price per unit of $200,
the unit variable cost is $75, and the total monthly fixed costs are
$300,000. How much is Hartley’s contribution margin ratio?
24) H55 Company sells two products, beer and wine. Beer has a 10
percent profit margin and wine has a 12 percent profit margin. Beer has
a 27 percent contribution margin and wine has a 25 percent contribution
margin. If other factors are equal, which product should H55 push to
customers?
25) Which cost is charged to the product under variable costing?
26) Which cost is NOT charged to the product under variable costing?
27) Variable costing
28) If a company is concerned with the potential negative effects of
establishing standards, they should
10. 29) The difference between a budget and a standard is that
30) A standard cost is
31) The per-unit standards for direct labor are 2 direct labor hours at $12
per hour. If in producing 2,400 units, the actual direct labor cost was
$51,200 for 4,000 direct labor hours worked, the total direct labor
variance is
32) The total variance is $10,000. The total materials variance is $4,000.
The total labor variance is twice the total overhead variance. What is the
total overhead variance?
33) The per-unit standards for direct materials are 2 gallons at $4 per
gallon. Last month, 11,200 gallons of direct materials that actually cost
$42,400 were used to produce 6,000 units of product. The direct
materials quantity variance for last month was
34) If the standard hours allowed are less than the standard hours at
normal capacity,
35) Manufacturing overhead costs are applied to work in process on the
basis of
36) The overhead volume variance relates only to
37) At January 1, 2004, Barry, Inc. has beginning inventory of 4,000
widgets. Barry estimates it will sell 35,000 units during the first quarter
of 2004 with a 10% increase in sales each quarter. Barry’s policy is to
11. maintain an ending inventory equal to 25% of the next quarter’s sales.
Each widget costs $1 and is sold for $1.50. How much is budgeted sales
revenue for the third quarter of 2004?
38) Lewis Hats is planning to sell 600 straw hats. Each hat requires a
half pound of straw and a quarter hour of direct labor. Straw costs $0.20
per pound and employees of the company are paid $22 per hour. Lewis
has 80 pounds of straw and 40 hats in beginning inventory and wants to
have 50 pounds of straw and 60 hats in ending inventory. How many
units should Lewis Hats produce in April?
39) Gottberg Mugs is planning to sell 2,000 mugs and produce 2,200
mugs during April. Each mug requires 2 pounds of resin and a half hour
of direct labor. Resin costs $1 per pound and employees of the company
are paid $12.50 per hour. Manufacturing overhead is applied at a rate of
120% of direct labor costs. Gottberg has 2,000 pounds of resin in
beginning inventory and wants to have 2,400 pounds in ending
inventory. How much is the total amount of budgeted direct labor for
April?
40) The cost-plus pricing approach's major advantage is
41) A company must price its product to cover its costs and earn a
reasonable profit in
42) Prices are set by the competitive market when
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ACC 349 Wee 5 Team Assignment Part 3 (Jeemp Farms)
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You have completed the analysis of ABC and determined whether it is a
good option for Jeemp Farms. Create a 5- to 10-slide presentation with
speaker notes for Jeemp Farms management that addresses the
following: • Explain ABC costing and how it is different than
traditional costing. • Explain the advantages/disadvantages of using
ABC costing. • Define the terminology that is used in an ABC costing
system. • Explain whether ABC is the preferential system for Jeemp
Farms and why. • Recommend whether the company should
discontinue the sod portion of the business and what outside factors
might need to be considered prior to doing so. • List any non-financial
factors that should be considered in decisions the company makes. •
Include at least three outside credible sources in APA formatting at
the end of your presentation so the management will know how to
access more information about ABC. Format your assignment to APA
standards. Click the Assignment Files tab to submit your assignment.
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ACC 349 Week 1 Discussion Question 1
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What are some of the key differences between financial and managerial
accounting? How do these differences impact the type of information
that must be gathered and reported? What are the different types of
decisions that users of financial accounting information must make?
What are the different types of decisions that users of managerial
accounting information must make?
13. ==============================================
ACC 349 Week 1 Discussion Question 2
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What are the differences between a direct cost and an indirect cost?
Which is the more difficult cost to track? Why? How do indirect costs
affect the cost of a product? Should indirect costs be included in product
cost? Why or why not?
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ACC 349 Week 1 Individual Assignment BYP 1-7, E1-7
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Prepare written responses to the following assignments from Ch. 1 of
Managerial Accounting: Tools for Business Decision Making:
Exercise E1-7 exercise #7 only
Ethics Case BYP 1-7 case #7 only
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ACC 349 Week 1 Lab Problems
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14. Week 1 • Question 1 Segregation of duties o is a preventive control
o is a detective control o separates responsibilities for
authorizing transactions, recording transactions, and maintaining
custody of the related assets • Question 2 The following cost and
inventory data are taken from the accounting records of Mason
Company for the year just completed: Costs incurred: Direct labor cost $
87,000 Purchases of raw materials $ 131,000 Manufacturing overhead $
208,000 Advertising expense $ 46,000 Sales salaries $ 102,000
Depreciation, office equipment $ 228,000 Beginning End of of the Year
the year Inventories: Raw materials $ 8,900 $10,100 Work in process $
5,400 $21,000 Finished goods $76,000 $25,800 Required: 1. Prepare a
schedule of cost of goods manufactured. 2. Prepare the cost of goods
sold section of Mason Company’s income statement for the year. •
Question 3 Award: 10 out of 10.00 points Arden Company reported the
following costs and expenses for the most recent month: Direct
materials $83,000 Direct labor $45,000 Manufacturing overhead
$22,000 Selling expenses $25,000 Administrative expenses
$38,000 Required: 1. What is the total amount of product costs? 2.
What is the total amount of period costs? 3. What is the total
amount of conversion costs? 4. What is the total amount of prime
costs? • Question 4 6 Mickley Company’s predetermined overhead rate
is $23.00 per direct laborhour and its direct labor wage rate is $13.00 per
hour. The following information pertains to Job A500: Required: 1.
What is the total manufacturing cost assigned to Job A500? 2. If Job
A500 consists of 40 units, what is the average cost assigned to each unit
included in the job? • Question 5 Helix Corporation produces
prefabricated flooring in a series of steps carried out in production
departments. All of the material that is used in the first production
department is added at the beginning of processing in that department.
Data for May for the first production department follow: Percent
Complete Units Materials Conversion Work in process inventory, May 1
74,000 65% 30% Work in process inventory, May 31 54,000 40% 20%
Materials cost in work in process inventory, May 1 $ 58,800 Conversion
cost in work in process inventory, May 1 $ 17,500 Units started into
production 262,400 Units transferred to the next production department
15. 282,400 Materials cost added during May $ 400,240 Conversion Cost
Added During May $ 252,244 Required: 1. Assume that the company
uses the weightedaverage method of accounting for units and
costs.Determine the equivalent units for May for the first process. 2.
Compute the costs per equivalent unit for May for the first process. 3.
Determine the total cost of ending work in process inventory and the
total cost of units transferred to the next process in May. • Question 6
Financial accounting focuses on decisions affecting the future.
False True • Question 7 Managerial Accounting creates reports for
managers within the organization while financial accounting creates
reports outside the organization. True False • Question 8 The IMA
Statement of Ethical Professional Practice standards include all of the
following EXCEPT: Honesty Credibility Confidence Competence
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ACC 349 Week 2 Connect Problems (with Excel Sheet)
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This Tutorial contains Excel Sheet which can be used for any values
Week 2 • Question 1 The Hartford Symphony Guild is planning its
annual dinnerdance. The dinnerdance committee has assembled the
following expected costs for the event: Dinner (per person) $10 Favors
and program (per person) $4 Band $700 Rental of ballroom $2,000
Professional entertainment during intermission $2,000 Tickets and
advertising $700 The committee members would like to charge $41 per
person for the evening’s activities. Required: 1. Compute the breakeven
point for the dinnerdance (in terms of the number of persons who must
attend). 2. Assume that last year only 200 persons attended the
dinnerdance.If the same number attend this year, what price per ticket
must be charged in order to break even? 3. Refer to the original data
($41 ticket price per person). Prepare a CVP graph for the dinnerdance
16. from zero tickets up to 550 tickets sold. • Question 2 Walsh Company
manufactures and sells one product. The following information pertains
to each of the company’s first two years of operations: Variable costs
per unit: Manufacturing: Direct materials $ 21 Direct labor $ 11 Variable
manufacturing overhead $ 4 Variable selling and administrative $ 3
Fixed costs per year: Fixed manufacturing overhead $ 320,000 Fixed
selling and administrative expenses $ 100,000 During its first year of
operations, Walsh produced 50,000 units and sold 40,000 units. During
its second year of operations, it produced 40,000 units and sold 50,000
units. The selling price of the company’s product is $51 per unit.
Required: 1. Assume the company uses variable costing: a. Compute the
unit product cost for year 1 and year 2. b. Prepare an income statement
for year 1 and year 2. 2. Assume the company uses absorption costing: a.
Compute the unit product cost for year 1 and year 2. b. Prepare an
income statement for year 1 and year 2. 3. Reconcile the difference
between variable costing and absorption costing net operating income in
year 1and year 2. • Question 3 Award: 6 out of 6.00 points Barlow
Company manufactures three products: A, B, and C. The selling price,
variable costs, and contribution margin for one unit of each product
follow: Product A B C Selling price $240 $ 320 $ 300 Variable
expenses: Direct materials 18 72 27 Other variable expenses 174 152
228 Total variable expenses 192 224 255 Contribution margin $ 48 $ 96
$ 45 Contribution margin ratio 20% 30% 15% The same raw material is
used in all three products. Barlow Company has only 4,900 pounds of
raw material on hand and will not be able to obtain any more of it for
several weeks due to a strike in its supplier’s plant. Management is
trying to decide which product(s) to concentrate on next week in filling
its backlog of orders. The material costs $9 per pound. Required: 1.
Compute the amount of contribution margin that will be obtained per
pound of material used in each product. 2. a. Compute the amount of
contribution margin on each product. b. Which orders would you
recommend that the company work on next week—the orders for
product A,product B, or product C? 3. .A foreign supplier could furnish
Barlow with additional stocks of the raw material at a substantial
premium over the usual price. If there is unfilled demand for all three
17. products, what is the highest price that Barlow Company should be
willing to pay for an additional pound of materials? • Question 4.
Award: 6 out of 6.00 points Imperial Jewelers is considering a special
order for 24 handcrafted gold bracelets to be given as gifts to members
of a wedding party. The normal selling price of a gold bracelet is
$408.00 and its unit product cost is $268.00 as shown below: Direct
materials $ 147 Direct labor 81 Manufacturing overhead 40 Unit product
cost $ 268 Most of the manufacturing overhead is fixed and unaffected
by variations in how much jewelry is produced in any given period.
However, $11 of the overhead is variable with respect to the number of
bracelets produced. The customer who is interested in the special
bracelet order would like special filigree applied to the bracelets. This
filigree would require additional materials costing $10 per bracelet and
would also require acquisition of a special tool costing $457 that would
have no other use once the special order is completed. This order would
have no effect on the company’s regular sales and the order could be
fulfilled using the company’s existing capacity without affecting any
other order. Required: a. What effect would accepting this order have on
the company’s net operating income if a special price of $368.00 per
bracelet is offered for this order? b. Should the special order be accepted
at this price?
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ACC 349 Week 2 Discussion Question 1
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What is activity-based costing? What are some of the key elements of
activity-based costing? How does this method differ from a more
traditional costing method?
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18. ACC 349 Week 2 Discussion Question 2
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What are value-added processes? How do you determine if a process
adds value? How does identification of value-added processes help a
company run more efficiently and effectively?
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ACC 349 Week 2 Individual Assignment Assignments CH 2
and 3
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Prepare written responses to the following assignments from Managerial
Accounting: Tools for Business Decision Making:
Ch. 2 – Exercises E-2-6 and E2-9
Ch. 3 – Exercises E3-5 and E3-9
Ch. 3 – Questions 2 and 3
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ACC 349 Week 2 Lab Problems
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19. Week 2 • Question 1 The Hartford Symphony Guild is planning its
annual dinnerdance. The dinnerdance committee has assembled the
following expected costs for the event: Dinner (per person) $10 Favors
and program (per person) $4 Band $700 Rental of ballroom $2,000
Professional entertainment during intermission $2,000 Tickets and
advertising $700 The committee members would like to charge $41 per
person for the evening’s activities. Required: 1. Compute the breakeven
point for the dinnerdance (in terms of the number of persons who must
attend). 2. Assume that last year only 200 persons attended the
dinnerdance.If the same number attend this year, what price per ticket
must be charged in order to break even? 3. Refer to the original data
($41 ticket price per person). Prepare a CVP graph for the dinnerdance
from zero tickets up to 550 tickets sold. • Question 2 Walsh Company
manufactures and sells one product. The following information pertains
to each of the company’s first two years of operations: Variable costs
per unit: Manufacturing: Direct materials $ 21 Direct labor $ 11
Variable manufacturing overhead $ 4 Variable selling and administrative
$ 3 Fixed costs per year: Fixed manufacturing overhead $ 320,000 Fixed
selling and administrative expenses $ 100,000 During its first year of
operations, Walsh produced 50,000 units and sold 40,000 units. During
its second year of operations, it produced 40,000 units and sold 50,000
units. The selling price of the company’s product is $51 per unit.
Required: 1. Assume the company uses variable costing: a. Compute the
unit product cost for year 1 and year 2. b. Prepare an income statement
for year 1 and year 2. 2. Assume the company uses absorption costing: a.
Compute the unit product cost for year 1 and year 2. b. Prepare an
income statement for year 1 and year 2. 3. Reconcile the difference
between variable costing and absorption costing net operating income in
year 1and year 2. • Question 3 Award: 6 out of 6.00 points Barlow
Company manufactures three products: A, B, and C. The selling price,
variable costs, and contribution margin for one unit of each product
follow: Product A B C Selling price $240 $ 320 $ 300 Variable
expenses: Direct materials 18 72 27 Other variable expenses 174 152
228 Total variable expenses 192 224 255 Contribution margin $ 48 $ 96
$ 45 Contribution margin ratio 20% 30% 15% The same raw material is
20. used in all three products. Barlow Company has only 4,900 pounds of
raw material on hand and will not be able to obtain any more of it for
several weeks due to a strike in its supplier’s plant. Management is
trying to decide which product(s) to concentrate on next week in filling
its backlog of orders. The material costs $9 per pound. Required: 1.
Compute the amount of contribution margin that will be obtained per
pound of material used in each product. 2. a. Compute the amount of
contribution margin on each product. b. Which orders would you
recommend that the company work on next week—the orders for
product A,product B, or product C? 3. .A foreign supplier could furnish
Barlow with additional stocks of the raw material at a substantial
premium over the usual price. If there is unfilled demand for all three
products, what is the highest price that Barlow Company should be
willing to pay for an additional pound of materials? • Question 4.
Award: 6 out of 6.00 points Imperial Jewelers is considering a special
order for 24 handcrafted gold bracelets to be given as gifts to members
of a wedding party. The normal selling price of a gold bracelet is
$408.00 and its unit product cost is $268.00 as shown below: Direct
materials $ 147 Direct labor 81 Manufacturing overhead 40 Unit
product cost $ 268 Most of the manufacturing overhead is fixed and
unaffected by variations in how much jewelry is produced in any given
period. However, $11 of the overhead is variable with respect to the
number of bracelets produced. The customer who is interested in the
special bracelet order would like special filigree applied to the bracelets.
This filigree would require additional materials costing $10 per bracelet
and would also require acquisition of a special tool costing $457 that
would have no other use once the special order is completed. This order
would have no effect on the company’s regular sales and the order could
be fulfilled using the company’s existing capacity without affecting any
other order. Required: a. What effect would accepting this order have
on the company’s net operating income if a special price of $368.00 per
bracelet is offered for this order? b. Should the special order be
accepted at this price?
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21. ACC 349 Week 2 Team Assignment Case Study BYP 2-2
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Prepare written responses to the following case study from Ch. 2 of
Managerial Accounting: Tools for Business Decision Making:
Managerial Analysis BYP 2-2
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ACC 349 Week 2 Team Assignment Problems Ch. 2 and 3
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Prepare written responses to the following problems from Managerial
Accounting: Tools for Business Decision Making:
Ch. 2 – Problem P2-4A
Ch. 3 – Problem P3-3A
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ACC 349 Week 3 Connect Problems (with Excel Sheet)
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This Tutorial contains Excel Sheet which can be used for any values Q-1
Lehner Corporation has provided the following data from its activity-
22. based costing accounting system: Indirect factory wages $552,000
Factory equipment depreciation $332,000 Distribution of
Resource Consumption across Activity Cost Pools: The "Other"
activity cost pool consists of the costs of idle capacity and organization-
sustaining costs that are not assigned to products. How much indirect
factory wages and factory equipment depreciation cost would NOT be
assigned to products using the activity-based costing system? Q-2 For
years, Worley believed that the 6% markup covered its selling and
administrative expenses and provided a reasonable profit. However,
in the face of declining profits Worley decided to implement an
activitybased costing system to help improve its understanding of
customer profitability. The company broke its selling and
administrative expenses into five activities as shown below: Q-3
SecuriCorp operates a fleet of armored cars that make scheduled pickups
and deliveries in the Los Angeles area. The company is implementing
an activitybased costing system that has four activity cost pools:
Travel, Pickup and Delivery, Customer Service, and Other. The activity
measures are miles for the Travel cost pool, number of pickups and
deliveries for the Pickup and Delivery cost pool, and number of
customers for the Customer Service cost pool. The Other cost pool has
no activity measure because it is an organizationsustaining activity.
The following costs will be assigned using the activitybased costing
system: Q-4 Reasons a company may decide not to use ABC
include ABC tends to be more expensive to implement and maintain
than the traditional method. ABC does not conform to external reporting
requirements. Some arbitrary allocations will still occur and managers
who are not knowledgeable in the limitations of an ABC system may
make mistakes in pricing and other critical decisions. Q-4 When a
company shifts from a traditional cost system in which manufacturing
overhead is applied based on direct labor-hours to an activitybased
costing system with batch-level and product-level costs, the unit product
costs of low volume products typically decrease whereas the unit
product costs of high volume products typically increase. Q-5 Which
of the following would probably be the most accurate measure of
activity to use for allocating the costs associated with a factory's
23. purchasing department? Machine-hours Direct labor-hours
Number of orders processed Cost of materials purchased Q-5
Direct labor-hours or direct labor cost should not be used as a measure
of activity in an activity-based costing system. TRUE FALSE
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ACC 349 Week 3 Discussion Question 1
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For what is cost-volume-profit (CVP) analysis used? What are some of
the key underlying assumptions that make CVP analysis useful for
decision makers? Why might decision makers use CVP analysis?
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ACC 349 Week 3 Discussion Question 2
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What are the differences between variable and absorption costing? Why
is variable costing not allowed for GAAP reporting? Which method is
more useful for internal decision-making? Why? As a manager, which
would you prefer? Why?
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ACC 349 Week 3 Individual Assignment Article Analysis
Summary
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Use the Internet or other credible resources to find an article relevant to
activity-based costing (ABC), job costing, or process costing.
Write a 125-word summary of the article.
Summarize the major topics of the article, and explain what you learned
as a result of your reading.
Format your summary consistent with APA guidelines.
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ACC 349 Week 3 Individual Assignment Assignments Ch. 4
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Prepare written responses to the following assignments from Ch. 4 of
Managerial Accounting: Tools for Business Decision Making:
Exercises E4-10 and E4-11
Questions 13 and 14
==============================================
ACC 349 Week 3 Team Assignment Case Study Ch. 4
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25. Prepare written responses to the following case study from Ch. 4 of
Managerial Accounting: Tools for Business Decision Making:
Managerial Analysis BYP 4-2
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ACC 349 Week 3 Team Assignment Part 1 (Jeemp Farms)
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Read the following scenario below: Leighton Beridon owns "Jeemp
Farms", located near Weimar, TX. The farm produces pecan trees and
sod. He has so many orders from the Houston metropolitan area that he
is able to sell all his inventory each year, but he is not netting as much as
he has in past years. His daughter, LieslBeridon, came home from
college over Thanksgiving and mentioned ABC costing, which she
learned about in her cost accounting class. Mr.Beridon does not really
know what ABC costing is and is skeptical as to whether it would be
right for his business. He has hired your company to educate him about
ABC and whether or not he should use an ABC system. Over the next
few weeks, you will work towards helping Mr.Beridon decide what is
the best route for his company to take. Shortly after you get started,
Mr.Beridon sends you an email stating that he feels he needs to
discontinue the sod portion of his business and focus on his tree sector,
as he can charge more per tree than he can charge for a foot of sod. He
sends you an email stating, "I can charge so much more for a tree than a
foot of grass. Therefore, I am planning on discontinuing the sod portion
of the business immediately as I make so much more on the trees! I am
going to plant all my sod acres with trees". Write a 700- to 1,050-word
paper plan for your boss explaining how you will analyzeJeemp Farms.
Include the following: • Prepare an argument convincing him to hold
off on his decision and see the results of your analysis first. As you have
26. not had time to do any analysis yet, you need to convince Mr.Beridon to
wait on whether to discontinue his sod business. • Project potential
benefits Mr.Beridon could gain from using an ABC system. • Explain
how ABC creates these benefits. Your team is planning on conducting
an analysis of whether ABC would be beneficial to Mr.Beridon. Create a
process for conducting this analysis. Include the following: 1.How could
you apply the data in the company's general ledger? 2. Determine
questions to ask Mr.Beridon. 3. Determine other information to gather.
4. Explain how this additional information could help you in your
analysis? 5. Explain how you would decide on a final
recommendation. Format your assignment to APA standards. Click the
Assignment Files tab to submit as a Microsoft® Word document.
==============================================
ACC 349 Week 3 Team Assignment Problems Ch. 4
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Prepare written responses to the following problems from Ch. 4 of
Managerial Accounting: Tools for Business Decision Making:
Problems P4-3A and P4-4A
==============================================
ACC 349 Week 4 Connect Problems (with Excel Sheet)
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27. This Tutorial contains Excel Sheet which can be used for any values Q-1
Puget Sound Divers is a company that provides diving services such as
underwater ship repairs to clients in the Puget Sound area. The
company’s planning budget for May appears below: During May, the
company’s activity was actually 340 diving-hours. Complete the
following flexible budget for that level of activity. Q-2 Flight Café is a
company that prepares in-flight meals for airlines in its kitchen located
next to the local airport. The company’s planning budget for July
appears below: In July, 22,000 meals were actually served. The
company’s flexible budget for this level of activity appears below: 1.
Compute the company’s activity variances for July. Q-3
QuilceneOysteria farms and sells oysters in the Pacific Northwest. The
company harvested and sold 7,300 pounds of oysters in August. The
company’s flexible budget for August appears below: Compute the
company’s revenue and spending variances for August. Q-4 Selected
operating data for two divisions of Outback Brewing, Ltd., of Australia
are given below: 1. Compute the rate of return for each division using
the return on investment (ROI) formula stated in terms of margin and
turnover. 2. Which divisional manager seems to be doing the better
job? Q-5 A planning budget is prepared before the period begins and is
valid for whatever the actual level of activity turns out to be. True False
Q-5 (Set 2) In business, a budget is a method for putting a limit on
spending. True False Q-6 Fixed costs should be included in a flexible
budget even though they do not change when the level of activity
changes. True False Q-6 (Set 2) A flexible budget can be used to
estimate what revenues and costs should have been, given the actual
level of activity for the period. True False Q-7 A balanced scorecard
consists of an integrated set of performance measures that are derived
from and support a company’s strategy. True False Q-7 (Set 2) A
balanced scorecard should not contain any performance measures
concerning customer satisfaction since the extent to which customers are
satisfied is beyond the control of any manager in the company. True
False
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28. ACC 349 Week 4 Discussion Question 1
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What are some of the advantages and disadvantages of standard costs?
How do managers determine what the standard cost should be? Describe
the effect of inaccurate standard costs on financial reporting.
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ACC 349 Week 4 Discussion Question 2
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When should variances be investigated? Who should be responsible for
correcting a negative variance? Why? What are some factors that can
lead to variances? How can variances be corrected?
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ACC 349 Week 4 Individual Assignment Ch. 5 and 6
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Prepare written responses to the following assignments from Managerial
Accounting: Tools for Business Decision Making:
Ch. 5 – Exercises E5-1 and E5-9
Ch. 6 – Exercises E6-7 and E6-10
29. ==============================================
ACC 349 Week 4 Team Assignment Case Study Ch. 6
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Prepare written responses to the following case study from Ch. 6 of
Managerial Accounting: Tools for Business Decision Making:
Managerial Analysis BYP 6-2
==============================================
ACC 349 Week 4 Team Assignment Part 2 (Jeemp Farms)
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Mr.Beridon received your requests for information and returned data
which you have compiled in an Microsoft® Excel® spreadsheet (see
document template). He also said, "We grow sod and trees at Jeemp
Farms. We sell the sod mainly to home builders in the area, although we
sell to some individuals who are purchasing square footages to re-sod
their yard. Many home builders will purchase to sod an entire
subdivision. They then may come back to us to purchase trees for the
yards. It really is a package deal. For builders like that, we are a one-
stop-shop. In most cases, however, we sell the trees to orchards and
some individuals. The purchaser is responsible for all shipping costs
related to their product. "Our production process is different for each
product. For sod, we plant the seed, irrigate, cut, and roll the sod and
then transport it. For the trees, we plant the root stock, graft the tree,
30. water until a particular maturity and then dig it up and sell it. We inspect
the plants as needed to make sure we are producing a quality product
that is disease-free. "We have delayed purchasing some machinery that
reduces time for the planting of the trees because it is a large up-front
cost and we don't want to have a huge outlay of cash if our profits keep
going down". "The grass does not require as much irrigation as the trees,
as it is at a lower elevation than the tree acres and is closer to the creek;
it gets a lot of the run off". "Historically, we have always been able to
sell everything we produce. Hopefully, that will continue since Houston
is expanding rapidly". Compute the product costs for the sod and trees
under traditional and ABC costing using the Microsoft® Excel®
spreadsheet. Write a 700- to 1,050-word paper analyzingJeemp Farms
and what data and information you will consider. Include the following:
• Describe any factors that could skew your results. In other words,
explain if there is one method of costing that could make a product look
more favorable than it really is. • Justify whether Mr.Beridon should cut
the sod portion of his company. • Justify whether Mr.Beridon should cut
the tree portion of his company instead. • Describe other methods of
analysis you could use to help you come to a decision. • Describe any
other qualitative or quantitative factors or changes to Mr.Beridon's
business that might be relevant to Jeemp Farms as they make the
decision as to whether to use ABC and whether to cut sectors. •
Determine any additional information you would need to have
before making a recommendation. Format your assignment to APA
standards. Click the Assignment Files tab to submit your assignment as a
Microsoft® Word document.
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ACC 349 Week 4 Team Assignment Problems Ch. 7
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31. Prepare written responses to the following problems from Ch. 7 of
Managerial Accounting: Tools for Business Decision Making:
Problem P7-1A
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ACC 349 Week 5 Discussion Question 1
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What is a master budget? What are some of the underlying budgets that
form the master budget? What is the budgeting process at your
organization? Is it effective? Why or why not?
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ACC 349 Week 5 Discussion Question 2
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What is the difference between external and internal pricing? What
factors must be considered when setting internal transfer pricing
between divisions of a company? What are the different methods of
setting internal transfer pricing? Which is the most effective? Why?
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ACC 349 Week 5 Individual Assignment Ch. 8, 9, and 11
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Prepare written responses to the following assignments from Managerial
Accounting: Tools for Business Decision Making:
Ch. 8 – Exercises E8-11
Ch. 9 – Brief Exercises BE9-6 and BE9-8
Ch. 11 – Questions 2 and 11
Ch. 11 – Exercise E11-6
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ACC 349 Week 5 Lab Problems
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Week 5 • Question 1 Huron Company produces a commercial cleaning
compound known as Zoom. The direct materials and direct labor
standards for one unit of Zoom are given below: Standard Quantity or
Standard Price Standard Hours or Rate Cost Direct materials 6.4 pounds
$ 3.00 per pound $19.20 Direct labor 0.4 hours $11.00 per hour $ 4.40
__________________________________________________________
__________________ During the most recent month, the following
activity was recorded: a. Twelve thousand four hundred pounds of
material were purchased at a cost of $2.90 per pound. b. The company
produced only 1,240 units, using 11,160 pounds of material. (The rest of
the material purchased remained in raw materials inventory.) c. Five
hundred and ninety six hours of direct labor time were recorded at a total
labor cost of $7,152. Required: Compute the materials price and quantity
variances for the month. • Question 2 SkyChefs, Inc., prepares inflight
meals for a number of major airlines. One of the company’s products is
grilled salmon in dill sauce with baby new potatoes and spring
vegetables. During the most recent week,the company prepared 6,500 of
33. these meals using 3,200 direct laborhours.The company paid these
directlabor workers a total of $36,800 for this work, or $11.50 per hour.
According to the standard cost card for this meal, it should require 0.50
direct laborhours at a cost of $11.00 per hour. Required: 1. According
to the standards, what direct labor cost should have been incurred to
prepare 6,500 meals? How much does this differ from the actual direct
labor cost? 2. Break down the difference computed in (1) above into a
labor rate variance and a labor efficiency variance. • Question 3
Dawson Toys, Ltd., produces a toy called the Maze. The company
has recently established a standard cost system to help control costs and
has established the following standards for the Maze toy: Direct
materials: 6 microns per toy at $0.31 per micron Direct labor: 1.3 hours
per toy at $7.30 per hour During July, the company produced 5,000
Maze toys. Production data for the month on the toy follow: Direct
materials: 70,000 microns were purchased at a cost of $0.28 per micron.
32,500 of these microns were still in inventory at the end of the month.
Direct labor: 7,000 direct laborhours were worked at a cost of $55,300.
Required: 1. Compute the following variances for July: a. The
materials price and quantity variances. b. The labor rate and
efficiency variances. • Question 4 Logistics Solutions provides order
fulfilment services for dot.com merchants. The company maintains
warehouses that stock items carried by its dot.com clients. When a client
receives an order from a customer, the order is forwarded to Logistics
Solutions, which pulls the item from storage, packs it, and ships it to the
customer. The company uses a predetermined variable overhead rate
based on direct labor-hours. In the most recent month, 165,000 items
were shipped to customers using 6,800 direct labor-hours. The company
incurred a total of $22,100 in variable overhead costs. According to the
company’s standards, 0.04 direct labor-hours are required to fulfill an
order for one item and the variable overhead rate is $3.30 per direct
labor-hour. Required: 1. According to the standards, what variable
overhead cost should have been incurred to fill the orders for the
165,000 items? How much does this differ from the actual variable
overhead cost? 2. Break down the difference computed in (1) above
into a variable overhead rate variance and a variable overhead efficiency
34. variance. • Question 5 An unfavorablelabor rate variance can occur if
workers with high hourly wage rates are assigned to work on products
with standards that assume workers have low hourly wage rates. True
False
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ACC 349 Week 5 Signature Assignment Ethics on the Job (2
Papers)
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This Tutorial contains 2 Papers About Your Signature Assignment
Signature/Benchmark Assignments are designed to align with specific
program student learning outcome(s) in your program. Program Student
Learning Outcomes are broad statements that describe what students
should know and be able to do upon completion of their degree.
Signature/Benchmark Assignments are graded with a grading guide or
an automated rubric that allows the University to collect data that can be
aggregated across a location or college/school and used for
course/program improvements. Format your assignment to APA
standards. Submit your assignment to the Assignment Files tab as a
Microsoft® Word document. Identify a specific job within a specific
company that you might be interested in applying for after you graduate
from the University of Phoenix. Research the job and the field in
general, as well as ethical issues managerial accountants have faced that
would pertain to that field. Also, educate yourself on the basics of
operations within the job and company you have selected. Write a 700-
to 1,050-word paper to include the following: • Summarize the main
duties of the job. • Describe a specific ethical issue you might face in
that position using 2 credible sources to support your description. •
Summarize the IMA's standards of ethical practice and conflict
35. resolution guide. • Analyze how the IMA's standards of ethical
practice and conflict resolution guide applies to the ethical issue. •
Predict how you would handle the ethical issue. • Hypothesize
what would happen if no one in the company followed the IMA's
standards of ethical practice. • Assess why it is important to follow
the IMA's standards of ethical practice. • Design or name any
methods of internal controls you think could prevent or detect the
unethical behavior in the future. Click the Assignment Files tab to
submit your assignment as a Microsoft® Word document.
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ACC 349 Week 5 Team Assignment Problems Ch. 8 and 11
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Prepare written responses to the following problems from Managerial
Accounting: Tools for Business Decision Making:
Ch. 8 – Problem P8-2A
Ch. 11 – Problem P11-4A
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