Question: 1 . Which method should be used to establish the profit goal? ( 2 point ) ( Hint: Chapter 5 ) 2 . Assuming the

1. Which method should be used to establish the profit goal? (2 point)(Hint: Chapter 5)2. Assuming the return on investment method is used to set the profit goal, calculate the profit goal for the budget period. The net worth is $56,130,000.(2 point)(Hint: Chapter 5)3. Forecast the cost structure of the Shield Sexton company for the budget period, with the actual income statement in previous year and the case data above. (4 points)4. Calculate the earnings required (revenue) to generate the profit goal. (2 points)5. Complete the column of company budget in Table 2.(6 points)6. Prepare a budget for each profit center and fill the rest of Table 2.(12 points)(Hint: Chapter 5)7. Analyze the results of the profit center analysis done above by dropping the losing profit center. What is the expected company profit if the remaining profit centers are operating at capacity? (4 points)8. Select the appropriate allocation method (of overhead and profit) for each profit center. Why was each method chosen? (6 points)(Hint: Chapter 7)9. Calculate the overhead and profit allocation rates for each method selected in Problem #8 above. (6 points)10. Shield Sexton prices a new work project. Direct costs shown on the bid summary sheet follow: direct labor = $13,000,000; direct material = $14,500,000; subcontracts = $950,000; and job overhead = $450,000. Complete the cost estimate by allocating overhead and profit to the project. (Note: apply the choice made in Problem #8 above)(6 points)
1 . Which method should be used to establish the

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!