short essay style questions for Managerial Accounting class

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Nan511

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short essay style questions for Managerial Accounting . short on time. all the info attached below

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Short essay questions for final 1.(a) What is a standard cost (5 points)? (b) Provide an example of a manufacturing standard cost (5 points). (c) What is an ideal standard (5 points)? (d) What is a practical standard (5 points)? (e) Should ideal or practical standards be used (5 points)? 2.James Inc. estimates that its employees will utilize 200,000 machine hours during the coming year. Total overhead costs are estimated to be $2,600,000 and direct labor hours are estimated to be 100,000. Actual machine hours are 220,000. Actual labor hours are 225,000. If James Inc. allocates overhead based on machine hours, what is the predetermined manufacturing overhead rate? 3. Stevens Company produces and sells a single product whose selling price is $75.00 per unit and whose variable expense is $39.00 per unit. The company's fixed expense is $540,000 per month. (a) What is the CM ratio (express your answer as a percentage to two decimal places)? (5 points) (b) How many units must be sold to break-even for the month? (10 points) (c) How many units do we need to sell to earn a profit of $180,000 for the month? (10 points) 4.Kelsey Company uses process costing to track its costs in two sequential production departments: Forming and Finishing. The following information is provided regarding the Forming department. Forming Department Month Ended June 30 Unit information Beginning work in process, June 1 --- 8,000 Started into production during June --- 25,000 Completed and transferred to Finishing department during June --- 28,000 End work in process, June 30 (Direct materials are 65% complete and Conversion is 35% complete) - 5,000 Cost information Beginning work in process as of June 1 consists Direct Materials of $12,000 and Conversion costs of $7,500 Direct materials used in June --- $31,000 Conversion costs incurred in June --- $20,000 Required (a) Calculate the equivalent units for conversion costs. (Show your work) (b) Calculate the cost per equivalent unit for conversion costs. (Show your work) 5. (TCO 5) Vernon Inc. manufactures and sells one product. Sales and production information is contained below. • Selling price per unit $65 • Variable manufacturing costs per unit produced (DM, DL, and variable MOH) $29 • Variable operating expenses per unit sold $3 • Fixed manufacturing overhead (MOH) in total for the year $140,000 • Fixed operating expenses in total for the year $43,000 • Units produced during the year 14,000 • Units sold during the year 10,000 (a) Prepare the income statement using variable costing. (10 points) (b) Prepare the income statement using absorption costing. (10 points) (c) Please explain the difference in operating income between the two methods. (5 points) 6. Palmer Company manufactures and sells trophies for winners of athletic events. The company normally charges $60 per trophy. The average costs for a trophy is shown below. Direct materials $22 Direct labor 12 Variable manufacturing overhead 8 Variable marketing expenses 4 Fixed manufacturing overhead 16 ($2,000,000 fixed manufacturing overhead/125,000 trophies) Total costs $62 Palmer Company has enough idle capacity to accept a one-time only special order for 10,000 trophies at $50 per trophy. Palmer Company will not incur any variable marketing expenses for this order and no additional fixed costs. Required Should the company accept this special order? Please state your decision and provide numerical support for your decision.
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Short essay questions for final

1.(a) What is a standard cost (5 points)? (b) Provide an example of a manufacturing
standard cost (5 points). (c) What is an ideal standard (5 points)? (d) What is a practical
standard (5 points)? (e) Should ideal or practical standards be used (5 points)?
a. A standard cost can probably be best described as cost that is related to the
manufacturing process and is determined to be a budgeted or planned
cost. Standard costs are used as target costs and are usually developed from
historical data analysis.
b. Manufacturing costs are all costs associated with converting the materials
into the actual product and they are typically divided into three categories: direct
materials, direct labor & manufacturing overhead. So an example of a
manufacturing standard cost would be the cost of wood if you are making a
table or something like that.
c. Ideal standards are standards that are based on perfect or ideal conditions,
that do not allow for any waste in the production process, machine breakdown,
or other inefficiencies.
d. Practical standards are the standards that can be achieved by the average
worker.
e. Yes, they both set the standard and every employee should try to meet them.
If you don't set standards then your goals wouldn't be attainable.

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Anonymous
I was having a hard time with this subject, and this was a great help.

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