Questions and Answers of Horngrens Accounting managerial

What is the importance of the relevance range?
Briefly define the contribution margin ratio.
Describe and give the formula for target profit.
Describe the elements of a CVP graph.
What is meant by absorption costing?
Define variable costing.
Give two ways in which absorption costing differs from variable costing.
What is the impact of changes in fixed costs on the contribution margin and breakeven point when using CVP relationships for sensitivity analysis?
What is a sales mix? Provide an example of a sales mix.
Mark owns a machine shop. In reviewing the shop’s utility bills for the past 12 months, he found that the highest bill of $2,400 occurred in August when the machines worked 1,000 machine hours. The
Gabby Company sells a product for $105 per unit. Variable costs are $65 per unit, and fixed costs are $2,200 per month. The company expects to sell 540 units in September. Calculate the contribution
Using the Playtime Park information presented, do the following tasks.Requirements 1. Suppose Playtime Park cuts its ticket price from $60 to $54 to increase the number of tickets sold. Compute the
Calculate the contribution margin and operating income for June using variable costing.Burlington Company reports the following information for June: Sales Revenue Variable Cost of Goods Sold Fixed
Calculate the gross profit and operating income for June using absorption costing.Burlington Company reports the following information for June: Sales Revenue Variable Cost of Goods Sold Fixed Cost
Calculate the unit product cost using absorption costing. Round your answer to the nearest cent.Matthew Company had the following costs: Units produced Direct materials Direct labor Variable
Calculate the unit product cost using variable costing. Round your answer to the nearest cent.Matthew Company had the following costs: Units produced Direct materials Direct labor Variable
For each variable cost per unit listed below, determine the total variable cost when units produced and sold are 100, 150, and 200 units. Direct materials Direct labor Variable overhead Selling
A company pays a cost of $7.00 per unit at a volume of 10,000 units and $2.00 per unit above 10,000 units. Calculate the total cost when the company uses 9,000 units, 12,000 units, and 15,000 units.
For its top managers, Global Travel formats its income statement as follows:Global’s relevant range is between sales of $250,000 and $360,000.Requirements 1. Calculate the contribution margin
Darazi Company has prepared the following cost-volume-profit graph:Requirements For the items listed below, enter to the left of the item, the letter in the graph which best corresponds to the
Portemilio Company reported actual sales of $2,000,000, and fixed costs of $510,000.The contribution margin ratio is 30%.Requirements 1. Compute the margin of safety in dollars.2. Compute the margin
Refer to the information for Organic, Inc.Requirements 1. Using absorption costing, calculate the unit product cost.2. Prepare an income statement using the traditional format.Organic, Inc. has
Refer to the information for Organic, Inc.Requirements 1. Using variable costing, calculate the unit product cost.2. Prepare an income statement using the contribution margin format.Organic, Inc. has
Refer to Exercise E21A-44.Requirements 1. Prepare the April income statement using absorption costing.2. Determine the product cost per unit and the total cost of the 3,000 cases in Finished Goods
Dina El-Tohamy, a local resident of Cairo, Egypt, has always had a passion for baking.After graduating with a degree in business administration, she decided to attend several cooking classes to
As part of the restructuring exercise in your galvanized tin firm, you have been assigned to the marketing division where your role will be to advise on the pricing and costing of the firm’s two
Select a nearby company. Arrange an interview for your team with a managerial accountant, a controller, or another accounting/finance officer of the company.Requirements Before your team conducts the
A financial plan that managers use to coordinate a business’s activities is calleda. a record.b. a budget.c. planning.d. a proposal.
A budget prepared for only one level of sales volume is known asa. an operational budget.b. a strategic budget.c. a static budget.d. a master budget.
The production budgeta. is the basis for the production costs budgets.b. has the information that is used to complete the net income budget.c. is an indirect material budget.d. is known as the
How many 10-inch skillets should Iron City produce in July?a. 500 skilletsb. 550 skilletsc. 600 skilletsd. 650 skillets Suppose Iron City manufactures cast iron skillets. One model is a 10-inch
Compute the total amount budgeted for product costs for July.a. $6,000b. $6,500c. $6,600d. $7,200 Suppose Iron City manufactures cast iron skillets. One model is a 10-inch skillet that sells for $20.
Compute the budgeted cost of goods sold for July.a. $6,000b. $6,500c. $6,600d. $7,200 Suppose Iron City manufactures cast iron skillets. One model is a 10-inch skillet that sells for $20. Iron City
Compute the budgeted gross profit for July.a. $6,000b. $5,000c. $4,000d. $3,000 Suppose Iron City manufactures cast iron skillets. One model is a 10-inch skillet that sells for $20. Iron City
Which of the following is not one of the budgeted financial statements?a. Budgeted income statementsb. Budgeted balance sheetc. Budgeted statement of cash flowsd. Budgeted cost of goods sold
Which of the following sections is not part of the cash budget?a. Cash receiptsb. Cash paymentsc. Short term financingd. Actual budget
Technology helps companies prepare a cost-effective master budget to conducta. sensitivity analysis.b. cash receipts records.c. product depreciation.d. none of the above.
Compute Mallcentral’s budgeted sales for the next (seven-day) week.a. $157,500b. $217,000c. $435,000d. $210,000 Suppose Mallcentral sells 1,000 hardcover books per day at an average price of
Determine Mallcentral’s budgeted purchases for the next (seven-day) week.a. $300,000b. $225,000c. $157,500d. $75,000 Suppose Mallcentral sells 1,000 hardcover books per day at an average price of
The budgeted balance sheet is part of which element of the master budget?a. Financial budgetb. Operating budgetc. Capital expenditures budgetd. None of the above Suppose Mallcentral sells 1,000
What does planning mean in the context of budgeting objectives?
Briefly describe budgeting procedures.
What are the criteria for preparing a strategic budget?
What are the criteria for preparing an operational budget?
How does the operating budget differ from the cash budget?
Explain the purpose of a capital expenditure budget.
Briefly discuss the three budgets under the production budget.
Briefly explain the cost of goods sold budget.
What is the selling and administrative expense budget?
What is the final step in the master budget process?
List three items that are required in order to prepare the budgeted income statement.
List three items that are required in order to prepare the budgeted balance sheet.
How is the cost of goods sold calculated when preparing a budget?
Yem Company manufactures luggage sets. Yem sells its luggage sets to department stores. Yem expects to sell 2,050 luggage sets for $320 each in January and 2,200 luggage sets for $320 each in
Refer to the Packers schedule of cash receipts from customers that you prepared in Short Exercise S22A-17. Now assume that Packers’s sales are collected as follows:50% in the month of the sale 20%
Fawzi Production is beginning the budgeting process for 2014. The sales forecast for the first three months of 2014 in units is: January 10,000; February 14,000; March 12,000. The company desires to
Dory plans to produce 800,000 fizzy drinks during 2014, with 120,000 of them during the first quarter, 250,000 during the second quarter, 220,000 during the third quarter, and 210,000 during the
Walid Company is preparing its manufacturing overhead budget for 2012. They’ve have the following data:Units to be produced (by quarters): 10,000, 12,000, 14,000, 16,000.Direct labor: Time is 1
Karen Company has budgeted sales revenues as follows:Past experience has indicated that 80% of sales each month are on credit and that collection of credit sales occurs as follows: 60% in the month
MajorNet’s total flexible budget cost for 84 connectors per month isa. $14,500.b. $12,180.c. $19,680.d. $21,000.MajorNet Systems is a start-up company that makes connectors for high-speed Internet
What is MajorNet’s direct labor cost variance for August?a. $67.20 Ub. $151.20 Uc. $201.60 Ud. $919.80 UMajorNet Systems has budgeted three hours of direct labor per connector, at a standard cost
What is MajorNet’s direct labor efficiency variance for August?a. $919.80 Fb. $1,071.00 Fc. $1,121.40 Fd. $3,364.20 FMajorNet Systems has budgeted three hours of direct labor per connector, at a
FrontGrade’s standard variable manufacturing overhead allocation rate isa. $5.00 per machine hour.b. $5.50 per machine hour.c. $7.50 per machine hour.d. $12.50 per machine hour.FrontGrade Systems
Calculate the variable overhead cost variance for FrontGrade.a. $450 Fb. $600 Uc. $1,050 Fd. $1,650 FFrontGrade Systems allocates manufacturing overhead based on machine hours. Each connector should
Calculate the variable overhead efficiency variance for FrontGrade.a. $450 Fb. $600 Uc. $1,050 Fd. $1,650 FFrontGrade Systems allocates manufacturing overhead based on machine hours. Eachconnector
The person probably most responsible for the direct labor efficiency variance isa. the marketing manager.b. the production manager.c. the human resources manager.d. the purchasing manager.
MajorNet Systems’s static budget predicted production of and sales of 100 connectorsin August, but the company actually produced and sold only 84 connectors. Directmaterials were budgeted at $95
Define static budget.
Briefly explain flexible budget.
List three items whose knowledge is required to create the flexible budget.
List three criteria present in variable costs.
What does sales volume variance mean?
What is the flexible budget variance?
Explain the term standard.
Why can setting standards be difficult?
Who are responsible for setting cost standards and efficiency standards for direct materials?
Who are responsible for setting cost standards and efficiency standards for direct labor?
Give three benefits of a standard cost system.
How does cost variance differ from efficiency variance?
What is the formula for direct materials cost variance?
What are the three amounts required to analyze fixed overhead costs?
How is the fixed overhead cost variance calculated?
What is the purpose of variable overhead cost variance?
Define the variable overhead efficiency variance.
What is the fixed overhead volume variance?
Use the following information to prepare a standard cost income statement for Smithson Company for 2016. Cost of Goods Sold at standard Sales Revenue at standard Direct Materials Cost Variance Direct
Zouhair Manufacturing makes a single product. Expected manufacturing costs consist of:– Variable costs: direct materials $6.50 per unit and direct labor $2.4 per unit.– Fixed costs per month:
Gamlouch Industries uses flexible budgets to control its selling expenses. Monthly sales are expected to be from $200,000 to $240,000. Variable costs and their percentage relationships to sales
Hala Company produces shirts for men. The following budgeted and actual amounts are for 2014:Requirement Prepare a performance report for Hala Company for the year. Cost Direct materials Direct labor
The standard cost of Product X manufactured by Baassir Company includes 2 pounds of direct materials at $4.00 per pound. During September, 40,000 pounds of direct materials are purchased at a cost of
Rania Corporation manufactured 100,000 buckets during February. The overhead cost-allocation base is $5.00 per machine-hour. The following variable overhead data pertain to February:Requirements 1.
Bazar Company produces one product, a lighter called LIT-lighter. Bazar uses a standard cost system and determines that it should take one hour of direct labor to produce one LIT-lighter. The normal
Saad Company uses a standard cost accounting system. During March, 2014, the company reported the following manufacturing variances:In addition, 15,000 units of product were sold at $18 per unit.
The following direct labor data pertain to the operations of Hamad Manufacturing Company for the month of November:The standard cost card shows that 2.5 hours are required to complete one unit of
Cintya Company purchased 6,000 units of raw material on account for $17,600, when the standard cost was $18,000. Later in the month, Cintya Company issued 5,600 units of raw materials for production,
Which of the following focuses on the costs of the activities as the building blocks forallocating indirect costs to products and services?a. Activity-based costingb. Activity-based managementc.
A company in which major planning and controlling decisions are made by top managementis calleda. a decentralized companyb. a centralized companyc. a responsibility centerd. a parent company
Which of the following is not a type of responsibility center?a. Cost centerb. Revenue centerc. Access centerd. Profit center
Which of the following is not one of the perspectives from which the balanced scorecardviews the company?a. Financial perspectiveb. Customer perspectivec. Internal business perspectived. Shareholders
Which of the following is a summary performance measure that helps managersassess whether the company is achieving its goal?a. Balanced scorecardb. Target indicatorc. Key performance indicatord.

Showing 300 - 400 of 474