Académique Documents
Professionnel Documents
Culture Documents
MUSSATTO COMPANY
Direct Labor
$ 200000 $ 203000 $ 3000 U
MUSSATTO COMPANY
Direct Labor F
$ 208000 $ 203000 $ 5000
Return on investment
20 %
Pletcher Company's manufacturing overhead budget for the first quarter of 2010 contained the following
data.
All costs are considered controllable by the production department manager except for depreciation, and
property taxes and insurance.
Correct.
Complete the flexible manufacturing overhead budget report for the first quarter. (If answer is zero,
please enter 0, do not leave any fields blank.)
PLETCHER COMPANY
Difference
Favorable F
Budget Actual Unfavorable U
Variable costs
$ 12,000 $ 13,800 $ 1,800
Indirect materials U
10000 9,600 400
Indirect labor F
8000 8,700 700
Utilities U
6000 4900 1100
Maintenance F
36000 37000 1000
Total variable
costs U
Fixed costs
36000 36000 0
Supervisory
salaries
7000 7000 0
Depreciation
8000 8,200 200
Prop. taxes &
ins. U
5000 5000 0
Maintenance
56000 56200 200
Total fixed
costs U
$ 92000 $ 93200 $ 1200
Total costs U
Correct.
Complete the responsibility report for the first quarter. (If answer is zero, please enter 0, do not leave any
fields blank.)
PLETCHER COMPANY
Difference
Favorable F
Controllable Costs Budget Actual Unfavorable U
Indirect materials U
10000 9600 400
Indirect labor F
8000 8700 700
Utilities U
11000 9900 1100
Maintenance F
36000 36000 0
Supervisory salaries
$ 77000 $ 78000 $ 1000
Total costs U
Presented below is selected financial information for two divisions of Capital Brewery. You are to supply the
missing information. (Round your answers to 0 decimal places, i.e. 250,000, except round rate of return and
return on investment to 2 decimal places, i.e. 15.25.)
Nieto Company uses a responsibility reporting system. It has divisions in Denver, Seattle, and San Diego.
Each division has three production departments: Cutting, Shaping, and Finishing. The responsibility for each
department rests with a manager who reports to the division production manager. Each division manager
reports to the vice president of production. There are also vice presidents for marketing and finance. All vice
presidents report to the president.
In January 2010, controllable actual and budget manufacturing overhead cost data for the departments
and divisions were as shown below.
$183,3 $171,
00 000
Total costs
$158,0 $148,
Shaping Department-Seattle
00 000
210,00 206,0
Finishing Department-Seattle
0 00
676,00 673,0
Denver division
0 00
722,00 715,0
San Diego division
0 00
Additional overhead costs were incurred as follows: Seattle division production manager-actual costs
$52,500, budget $51,000; vice president of production-actual costs $65,000, budget $64,000; president-
actual costs $76,400, budget $74,200. These expenses are not allocated.
The vice presidents who report to the president, other than the vice president of production, had the
following expenses.
$130,00
Marketing $133,600
0
Correct.
No. 1
Indirect labor U
46000 47700 1700
Indirect materials U
18000 20500 2500
Maintenance U
17000 20100 3100
Utilities U
20000 22000 2000
Supervision U
$ 171000 $ 183300 $ 12300
Total U
No. 2
Seattle Division U
Departments:
171000 183300 12300
Cutting U
148000 158000 10000
Shaping U
206000 210000 4000
Finishing U
$ 576000 $ 603800 $ 27800
Total U
No. 3
To Vice President - Production Month: January
V-P Production U
Divisions:
576000 603800 27800
Seattle U
673000 676000 3000
Denver U
715000 722000 7000
San Diego U
$ 2028000 $ 2066800 $ 38800
Total U
No. 4
President U
Vice-Presidents:
2028000 2066800 38800
Production U
130000 133600 3600
Marketing U
105000 109000 4000
Finance U
$ 2337200 $ 2385800 $ 48600
Total U
Correct.
1.
Finishing
2
Shaping
3.
Cutting
2. Division managers.
1.
Denver
2
San Diego
3.
Seattle
3. Vice presidents.
1.
Production
2
Marketing
3.
Finance
Total budgeted fixed costs appearing on a flexible budget will be the same amount as total fixed costs on the master
budget.
True
False
Budget reports provide the feedback needed by management to see whether actual operations are on course.
Tru
e
Fals
e
For June, Mark Manufacturing estimated sales revenue at $200,000. It pays sales commissions that are 4% of sales.
The sales manager's salary is $95,000, estimated shipping expenses total 1% of sales, and miscellaneous selling
expenses are $5,000. How much are budgeted selling expenses for the month of July if sales are expected to be
$180,000?
$14,000
$109,000
$110,000
$9,000
The accumulation of accounting data on the basis of the individual manager who has the authority to make day-to-
day decisions about activities in an area is called
static reporting.
master budgeting.
flexible accounting.
responsibility accounting.
a profit center.
an investment center.
Safety Seats Company recorded operating data for its auto accessories division for the year.
Sales $375,000
How much is ROI for the year if management is able to identify a way to improve the contribution margin by
$15,000, assuming fixed costs are held constant?
15.0%
12.0%
45.0%
22.5%
Manufact.
overhead U
49200 51000 1800
Total F
$ 176200 $ 175500 $ 700
Correct.
Departments
Finishing F
176200 175500 700
Total U
$ 484200 $ 490500 $ 6300
Assembly plants:
Tucson F
496,500 494,000 2,500
Total $1,531,700 $1,540,500 $8,800 U