Final Exam

Final Exam

Part 1

1

C

 

15

D

2

B

16

A

3

A

17

A

4

D

18

A

5

A

19

D

6

B

20

A

7

B

21

A

8

C

22

A

9

D

23

C

10

A

24

D

11

D

25

B

12

C

26

A

13

A

27

C

14

A

28

C

Part 2

29.

Activity Cost Pools

Total Cost

Total Activity

Activity Rates

 

(a)

(b)

(a/b)

Assembling Products

$ 49,830

4530 per hour

$ 11 per hour

Designing Products

$ 557,220

3012 per hour

$ 185 per hour

Setting-up Batches

$ 38,180

830 per set-up

$ 46 per set-up

30.

Activity Cost Pools

Activity Rate

Product P91M

Overhead Cost

 

(a)

(b)

(a*b)

Setting-Up Batches

$74.76

per batch

33

Number of batches

$ 2,467.08

Processing customer orders

$ 55.40

per customer order

1

Number of customer orders

$ 55.40

Assembling products

$ 1.36

per assembly hour

368

Number of assembly hours

$ 500.48 $ 3,022.96

31. Equipment Depreciation $72,000

0.2 * $72,000 = $14,400 allocated to processing

0.4 * $72,000 = $28,800 allocated to setting up

0.4 * $72,000 = $28,800 allocated to others

Indirect Labor$8,000

0.2 * $8,000 = $1,600 allocated to processing

0.3 * $8,000 = $2,400 allocated to setting up

0.5 * $8,000 = $4,000 allocated to others

(14400 + 1600) / 72000 = 0.22 per order

(28800 + 2400) / 8000 = 3.9 per batch

(72000 * 0.22) + (8000 * 3.9) = $47,040 Overhead Cost

32.

Schedule of Expected Cash Collections for November and December

 

Nov

Dec

Sales

$ 350,000 $ 360,000

Schedule of expected cash collections

 

 

Account receivables

$ 70,000

 

November sales

$ 210,000 $ 136,500

December sales

 

$ 216,000

Total cash collections

$ 630,000 $ 712,500

33.

Payback Period

Initial Investment

$ 331,000

Cash flow per period

$ 54,000

Add: Depreciation $ 40,000

Payback Period

3.52

34.

Incremental revenue (5000 units * $40.20 per unit)

$ 201,000

Less incremental costs:

 

Direct materials (5000 units * $12.70 per unit)

$ 63,500

Direct Labor (5000 units * $6.10 per unit)

$ 30,500

Variable manufacturing overhead (5000 units * $8.70 per unit)

$ 43,500

Modifications (5000 units * 3.50 per unit)

$ 17,500

Special molds

$ 23,000

Total incremental cost

$ 178,000

Incremental net operating income

$ 23,000

35.

Delivery cycle time - Wait time + Throughput time

Wait time = Delivery time - Throughput time

Wait time ...