Assignment
Part 1
1. A consulting company that provides software and services relating to business intelligence and analytics has a library of customer success stories on its website. Select and read one of the success stories relating to Activity-Based Management. Summarize the success story, and relate the ideas of the article to what you have learned this week in this course.
2. The State of Rhode Island publishes its budget and the supporting information. Access the budget and answer the following:
• What are the duties of the budget office? (Hint: Use the Primer link.)
• What are the six governmental functions listed in the budget?
• What are the major sources of Rhode Island's revenues?
• What is the accounting basis used in the preparation of the budget? (Hint: Use the Primer link and scroll down until you see the Budget Basis section.)
• The budget mentions four categories of program performance measures. List them, and briefly describe how they are used in Rhode Island.
(Hint: Use the Primer link and scroll down until you see the Program Performance Measures section.)
• What did you learn from reviewing the most recent budget of the State of Rhode Island?
• What do you think the biggest challenges are when it comes to preparing their budget?
Part 2
Question 1. Tatman Corporation uses an activity-based costing system with the following three activity cost pools:
The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs.
The company has provided the following data concerning its costs:
The distribution of resource consumption across activity cost pools is given below:
The activity rate for the Fabrication activity cost pool is closest to:
$3.30 per machine-hour
$13.20 per machine-hour
$10.30 per machine-hour
$8.80 per machine-hour
Question 2. Mayeux 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:
Distribution of resource consumption:
How much cost, in total, would be allocated in the first-stage allocation to the Setting Up activity cost pool?
$360,000
$336,000
$288,000
$348,000
Question 3. Feldpausch Corporation has provided the following data from its activity-based costing system:
The company makes 470 units of product W26B a year, requiring a total of 660 machine-hours, 50 orders, and 40 inspection-hours per year. The product's direct materials cost is $40.30 per unit and its direct labor cost is $42.22 per unit. The product sells for $118.00 per unit. According to the activity-based costing system, the product margin for product W26B is:
$6,444.70 per unit
$4,679.20 per unit
$3,384.70 per unit
$16,675.60 per unit
Question 4. On October 1, The Gala Manufacturing Company has 300 units of Product XYZ on hand. The company plans to sell 1,200 units of Product XYZ during October, and plans to have 500 units on hand October 31. How many units of Product XYZ must be produced during October?
1,400
1,500
1,000
2,000
Question 5. Pitkins Company collects 20% of a month's sales in the month of sale, 70% in the month following sale, and 6% in the second month following sale. The remainder is uncollectible. Budgeted sales for the next four months are:
Cash collections in April are budgeted to be:
$321,000
$313,000
$320,000
$292,000
Question 6. Betz Company's sales budget shows the following projections for next year:
Inventory at the beginning of the year was 18,000 units. The finished goods inventory at the end of each quarter is to equal 30% of the next quarter's budgeted unit sales. How many units should be produced during the first quarter?
24,000
48,000
66,000
72,000
Question 7. Pooler Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.15 direct labor-hours. The direct labor rate is $7.00 per direct labor-hour. The production budget calls for producing 6,500 units in April and 6,200 units in May. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 1,000 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months?
$13,825.00
$13,335.00
$14,000.00
$13,510.00
Question 8. Francis Manufacturing Company is currently preparing its cash budget for next month and has gathered the following information:
The beginning cash balance will be $6,000 and the company requires a minimum cash balance at the end of the month of $5,000. How much will Francis Manufacturing need to borrow to meet its cash needs for the month?
$9,100
$14,100
$20,100
None of these.
Question 9. The following information relates to Minorca Manufacturing Corporation for next quarter:
How many units should Minorca plan on producing for the month of February?
360,000 units
388,000 units
392,000 units
420,000 units
Question 10. The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 4,400 direct labor-hours will be required in January. The variable overhead rate is $1.30 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $60,280 per month, which includes depreciation of $17,160. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
$5,720
$43,120
$48,840
$66,000
Question 11. Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 1,300 units are planned to be sold in March. The variable selling and administrative expense is $4.20 per unit. The budgeted fixed selling and administrative expense is $19,240 per month, which includes depreciation of $3,380 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be:
$15,860
$5,460
$24,700
$21,320
Question 12. Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:
Data concerning two products appear below:
How much overhead cost would be assigned to Product K91B using the activity-based costing system?
$9,097.41
$81,146.53
$4,961.04
$135.47
Attachment:- Links.rar