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K B C D E F G H 1 ] 12 13 Big Al gives his worker's a one hour lunch and two fifteen minute breaks each day. He believes that a 14 cold sada machine would be appreciated by his workers, and an appreciated worker is a good worker 19 He has priced a machine at a national member only warehouse for $1,900. The machine should be usable for 3 years, after which it would be inefficient, absolete and would have to be disposed of at the 21 dump. Big Al believes that 10 cars a day will be purchased. The plant is open five days a week. 50 22 weeks per year. A case of soda (24 cans) costs $6.00 and Big Al believes that a price of S.85 per 23 can would win him good wil. 29 30 What is the estimated annual sales in cans of soda? (17.01) %B 32 37 What is the contribution margin per can of soda? (rounded to two places, St. 39 (17.02) How many cans of soda must be sold each year to breakeven? (Round up to zero places, ### ### cans) 41 46 47 48 49 50 55 (17.03) Annual incremental cash inflows from the soda machine? (rounded to two places. $#) (17.04) What is the payback period in years? (rounded to two places, #.years) 83 84 (17.05) 8888888888888888888889 If the time value of money is 12% per year what is the net present value? Use the tables on page 18 91 (17.05) What is the internal rate of return. Pick the closest interest rate from the tables on page 18 99 100 (17.07) = A1 A2 A3 A4 A5 A6 LP A 8 Calculation Mode: Automatic Workbook Statistics 2955 Note: Show favorable variances as negative numbers 3 4 8 9 10 11 12 16 17 18 19 {16.01) (16.02) 20 What was the variable overhead efficiency variance ? 24 25 26 27 28 What was the variable OH spending variance ? 32 33 34 35 36 40 41 42 43 44 What is the fixed OH volume (denominator) variance? 48 49 50 51 52 56 57 58 What is the fixed OH spending variance? 59 60 64 65 66 = A1 A2 A3 A4 A5 A6 A7 A8 A 9 {16.03) (16.04) 10 11 12 Calculation Mode: Automatic Workbook Statistics H L 12 16 26 28 30 789wuunHEGEumHmmssmmmmwm88mu A B C Background Information I SEE THE LIGHT (ISTL) is a subchapter S corporation that manufactures children's lampsightlights for use in bedrooms. These lamps are sold nationwide through a group of independent sales representatives who have an exclusive sales region. The business is in its tenth year and has asked you to assist in planning for next year's operations. The lamps are ceramic figurines of animals, boats, boys and girls playing and singing, all in delightful colors. The owner of the business, Big Al, creates a drawing for the figurine and faxes it to a plant in China where a mold is created and a sample produced and hand painted. If the mold meets the expectations of Big Al an order of 500 lamp parts is placed Each lamp kit consists of the parts required to complete one lamp, a igurine, a lamp shade and the required electrical components. There are presently 10 different figurines that come in six different colors, 60 models There are presently 10 workers in the plant. They are responsible for receiving the raw material, manufacturing the product, packing and shipping. In addition to Big Al there are two office workers who are responsible for all administrative duties. Big Al had his accountant prepare the projected Income Statement and Balance Sheet presented on page wo. Big AI heard about your skills in managerial accounting and would like your assistance in the following areas Part 1 Fixed and Variable Cost Determinations - Unit Cost Calculations Part 2 Cost Volume Relationships - Profit Planning Budgets Part 4 Process Costing Part 5 Job Order Casting Part 6 Standard Costing. Variance Analysis Part 7 Capital Decision Making To upload your work to Big Al the file without changing the name Pay attention to the specific location that Excel saves the file Return to the bottom of the page that you downloaded the file from Cybertext com, The Book List Building Blocks of Accounting-A Managerial Perspective Enter password, Upload Your Excel File. If you upload an old version of the file the results will not update. Keep two copies of your spreadsheet in two separate places in case one of Big Als competitors sends someone to destroy your work or it is lost in transmission You may find it easier to work on this project if you print a hard copy of all the pages. ggggggggg Part 3 37 40 42 44 45 48 50 SI NOTE 53 54 55 56 If there are any questions about the project e-mail [email protected] or call 305 284.6296 Grade will be based upon answers entered into the shaded boxes. 59 A2 A 3 A 4 A5 AC A Introduction FAQ A1 Calculation Mode: Automatic Workbook Statistics B C D E F G H 1 4 Factory Overhead Budget {9.01) {9.02) F567 ngmMag Overhead Allocation rate based on: 1. Number of Units Total Factory Overhead / Number of Units (Round to two places, S##.##) 5 Cost of making one unit next year Cost of one Lamp Kit Labor Cost Per Lamp Factory overhead per unit Total cost of one unit (Round to two places, $##.##) 14 15 16 17 18 25 26 27 28 29 36 37 49 50 51 58 59 60 61 62 69 {9.03) 6 Selling and Admin. Budget {9.04) {9.05) {9.06) 7 Round dollars to two places. $##.## {9.07) 70 71 72 73 80 81 82 83 84 91 92 106 107 108 109 110 111 Fixed Selling Variable Selling (Round to two places, $##.##) Fixed Administrative Variable Administrative (Round to two places, S#.##) Total Selling and Administrative (Round to two places, $##.##) of units to be produc ed. Beginning Inventory, Finished Goods Production Costs: Materials: Lamp Kits: Beginning Inventory Purchased Available for Use Ending Inventory of Lamp Kits Lamp Kits Used In Production Total Materials: Labor Overhead Cost of Goods Available Less: Ending Inventory, Finished Goods Cost of Goods Sold (9.08) {9.09) {9.10) {9.11) {9.12) {9.13) {9.14) 112 113 A4 A5 A6 A7 A8 A > = Introduction FAQ A1 A2 A3 Calculation Mode: Automatic Workbook Statistics ABC D E G H j 41 42 Assume actual cash receipts and disbursements will follow the pattern below: (Note: Receivables and 43 Payables of 12/31/x1 will have a cash impact in 20x2.) 44 52 1. 22.00% of sales for the year are made in November and December. Since our customers have 60 day terms 53 those funds will be collected be collected in January and February. 54 2. 81.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February 55 3. All other manufacturing and operating costs are paid for when incurred. 56 4. The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, selling and administrative expenses. 64 5. Minimum Cash Balance needed for 20x2, $175,000 65 See The Light 66 Projected Cash Budget 67 For the Year Ending December 31, 20x2 Round dollars to two places, S#.## Beginning Cash Balance Cash Inflows: Sales Collections: Account Receivable (Sales last year not collected) Sales made and collected in 20x2 Cash Available {10.02) {10.03) {10.04) {10.05) 68 76 77 78 79 80 88 89 90 91 92 100 101 102 103 104 112 113 114 115 116 117 118 119 120 121 122 123 124 Cash Outflows: Purchases Accounts Payable (Purchases last year) Purchases made and paid for in 20x2 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead Selling and Administrative Less: Depreciation Total Cash Outflows Budgeted Cash Balance before financing Needed Minimum Balance Amount to be borrowed (if any) Budgeted Cash Balance {10.06) {10.07) {10.08) {10.09) {10.10) A 10 11 = Introduction FAQ A1 A2 A3 Calculation Mode: Automatic Workbook Statistics 10 11 12 Division N has decided to develop its budget based upon projected sales of 43,000 lamps at 13 $50.00 per lamp. 14 The company has requested that you prepare a master budget for the year. This budget is to be used 19 for planning and control of operations and should be composed of. 20 1. Production Budget 21 2. Materials Budget HHH8589 88Gw 3. Direct Labor Budget 30 31 4. Factory Overhead Budget 32 37 5. Selling and Administrative Budget 38 39 6. Cost of Goods Sold Budget 40 41 7. Budgeted Income Statement 46 47 8. Cash Budget 48 49 Notes for Budgeting: 50 55 56 The company wants to maintain the same number of units in the beginning and ending inventories of 57 work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 700 pieces and 58 decreasing the finished goods by 20% 64 Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less: Beginning Inventory 65 66 67 68 73 74 75 76 77 82 83 84 85 86 87 Total Production {7.01) A6 A7 In = Introduction FAQ A1 A2 A3 A4 A5 Calculation Mode: Automatic Workbook Statistics 1 4. C D E F G H For 20x2 the selling price per lamp will be $45.00. If the variable cost increase by $3.50 a unit how many lamps must be sold to breakeven? 4 8 9 10 11 12 16 17 18 19 20 24 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unt if needed) (6.01) 26 27 28 5. 32 For 20x2 the selling price per lamp will be $45.00. If the variable cost decreased by $3.50 a unit how many lamps must be sold to breakeven? 34 Breakeven sales in units (Since we cannot sell part of a unit round up to the next untif needed) {6.02) If for 20x2 the selling price per lamp is increased to $48.50 a unit how many lamps must be sold to breakeven? BuBELL 36 40 41 42 43 44 6. 48 49 50 51 52 56 57 58 59 60 64 65 66 7 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unt if needed) (6.03) If for 20x2 the selling price per lamp is decreased to $41.50 a unit how many lamps must be sold to breakeven? 68 72 73 74 75 76 77 78 79 80 81 82 83 R4 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) A 4 5 al = Introduction FAQ A1 A2 A3 Calculation Mode: Automatic Workbook Statistics 2955 2 Materials Budget {8.01) {8.02) {8.03) {8.04) 22 Lamp Kits Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, S##.##) 3 Direct Labor Budget Labor Cost Per Lamp Production Total Labor Cost (Round to two places, S##.##) {8.05) {8.06) {8.07) {8.08) A 1 A 4 Factory Overhead Budget Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be Produced Total Variable Factory Overhead (Round to two places, S##.##) Fixed Factory Overhead {8.09) {8.10) Total Factory Overhead (Round to two places, S####) {8.11) 100 102 103 104 105 106 108 109 A 9 = Introduction FAQ A1 A2 A3 A4 A5 A6 A7 A8 Calculation Mode: Automatic Workbook Statistics To keep records of the actual cost of a special order job, a Job Order Cast System has been developed. 19 Overhead is applied at the rate of 50% of the direct labor cost. 20 21 22 29 Jab Order Costing Section 30 31 On January 1, 20x2. Division S began Job 2407 for the Client, THE BIG CHILDREN STORE. The 32 job called for 4,000 customized lamps. The following set of transactions occurred from 33 January 5 until the job was completed: 40 41 5-Jan Purchased 4,175 Lamp Kits @ $16.55 per kit. 42 9-Jan 4,200 sets of Lamp Kits were requisitioned. 43 17-Jan Payrol of 570 Direct Labor Hours @ $9.65 per hour. 44 30-Jan Payrol of 620 Direct Labor Hours $9.90 per hour. 51 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were 52 used or scrapped, and are a cost of normal processing. 53 54 Month End Overhead Information Actual Variable Manufacturing Overhead $ 1,118,60 Actual Fixed Manufacturing Overhead $39,623.45 89mmBBBB %6B%5% 65 66 73 74 Round to two places, S.IN Cost of Direct Material incurred in Manufacturing Job 2407 (13.01) Cost of Direct Labor incurred in Manufacturing Job 2407 (13.02) 75 76 77 84 85 86 87 88 95 96 97 98 99 106 107 108 109 110 111 112 113 114 115 Cost of Manufacturing Overhead Applied to Job 2407 (13.09) Cost of manufacturing one lamp (13.04) A1 A2 A 3 A4 A5 A6 A7 A8 A 9 Calculation Mode: Automatic Workbook Statistics BuBHEwn 5 6 Standard Job Order Costing - 7 Variance Analysis 8 9 10 11 12 Special order lamps are manufactured in division S. Because of the precise nature of the process a 14 standard cost system has been developed. The following standards are used for the special orders: 15 16 17 18 Standards 20 Lamp Kits $16.000000 per lamp 21 Direct Labor 2.400000 per lamp (4 lamps/hr.) 22 Variable Overhead 0.250000 per lamp (4 lamps/hr.) 23 " Fixed Overhead 10.000000 per lamp 24 Total $28.650000 26 27 FO verhead is based expected production of 4,010 customized lamps each month. 28 29 To keep records of the actual cost of a jab, a Job Order Cost System has been developed. Entries 30 are made to the Job Order System at actual cost (overhead is applied based on actual labor hours) 32 while entries are made to the accounting system at standard. Variance analysis is used to analyze the 33 differences 34 35 36 38 Job Order Costing Section 39 40 On January 1, 20x2. Division S began Job 1101 for the Client, THE BIG CHILDREN STORE. The 41 job called for 4,000 customized lamps. The following set of transactions occurred from 42 January 5 until the job was completed: 44 45 46 5-Jan Purchased 4,175 Lamp Kits @ $16.55 per kit 47 9-Jan 4.200 sets of Lamp Kits were requisitioned. 48 17-Jan Payrol of 570 Direct Labor Hours $9.65 per hout. 50 30 Jan Payrol of 620 Direct Labor Hours $9.90 per hour. 51 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were 52 used or scrapped 53 54 56 57 58 59 Month End Overhead Information 60 Actual Variable Overhead $ 1,118.60 62 Actual Fixed Overhead $39,623.45 64 65 56 = A1 A2 A3 A4 A5 A6 A7 A Calculation Mode: Automatic Workbook Statistics 3 4 5 6 7 8 9 10 How many Lamps were completed? Note: Show favorable variances as negative numbers Round dollars to two places, S##.## {15.01) {15.02) 11 12 13 16 What was the total material price variance for the Lamp Kits purchased? 17 18 19 20 What was the material usage variance for Lamp Kits? 23 24 25 26 27 30 31 What was the direct labor efficiency variance ? 32 33 34 37 What was the direct labor rate variance? 38 39 40 41 44 45 46 47 48 51 {15.03) {15.04) = A1 A2 A3 A4 A5 A6 A7 A8 A 9 A 10 11 12 A 13 Calculation Mode: Automatic Workbook Statistics B G H 1 K D E Present Value of Annuity $1.00 in Arrears 2 3 Interest Periods Interest Periods 3 2.884 2.856 2.829 2.802 2.775 2.749 2.723 2.698 2.673 2.648 2.624 2.601 2.577 2.554 2.531 2.509 2.487 2.465 2.444 4 5 6 2 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Rate 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 12.5% 13.0% 13.5% 14.0% 14.5% 15.0% 15.5% 16.0% 16.5% 17.0% 17.5% 18.0% 18.5% 19.0% 19.5% 20.0% 20.5% 21.0% 21.5% 22.0% 22.5% 23.0% 23.5% 24.0% 2.423 2.402 2.381 2.361 2.341 2.322 2.302 2.283 2.264 2.246 2.228 2.210 2.192 2.174 2.157 2.140 2.123 2.106 2.090 2.074 2.058 2.042 2.027 2.011 1.996 1.981 4 3.808 3.762 3.717 3.673 3.630 3.588 3.546 3.505 3.465 3.426 3.387 3.349 3.312 3.276 3.240 3.204 3.170 3.136 3.102 3.070 3.037 3.006 2.974 2.944 2.914 2.884 2.855 2.826 2.798 2.770 2.743 2.716 2.690 2.664 2.639 2.613 2.589 2.564 2.540 2.517 2.494 2.471 2.448 2.426 2.404 5 4.713 4.646 4.580 4.515 4.452 4.390 4.329 4.270 4.212 4.156 4.100 4.046 3.993 3.941 3.890 3.840 3.791 3.743 3.696 3.650 3.605 3.561 3.517 3.475 3.433 3.392 3.352 3.313 3.274 3.236 3.199 3.163 3.127 3.092 3.058 3.024 2.991 2.958 2.926 2.895 2.864 2.833 2.803 2.774 2.745 6 5.601 5.508 5.417 5.329 5.242 5.158 5.076 4.996 4.917 4.841 4.767 4.694 4.623 4.554 4.486 4.420 4.355 4.292 4.231 4.170 4.111 4.054 3.998 3.943 3.889 3.836 3.784 3.734 3.685 3.636 3.589 3.543 3.498 3.453 3.410 3.367 3.326 3.285 3.245 3.205 3.167 3.129 3.092 3.056 3.020 Rate 50.5% 51.0% 51.5% 52.0% 52.5% 53.0% 53.5% 54.0% 54.5% 55.0% 55.5% 56.0% 56.5% 57.0% 57.5% 58.0% 58.5% 59.0% 59.5% 60.0% 60.5% 61.0% 61.5% 62.0% 62.5% 63.0% 63.5% 64.0% 64.5% 65.0% 65.5% 66.0% 66.5% 67.0% 67.5% 68.0% 68.5% 69.0% 69.5% 70.0% 70.5% 71.0% 71.5% 72.0% 72.5% A4 3 1.399 1.391 1.383 1.375 1.368 1.360 1.352 1.345 1.337 1.330 1.323 1.315 1.308 1.301 1.294 1.287 1.280 1.273 1.266 1.260 1.253 1.247 1.240 1.234 1.227 1.221 1.214 1.208 1.202 1.196 1.190 1.184 1.178 1.172 1.166 1.160 1.155 1.149 1.143 1.138 1.132 1.127 1.121 1.116 1.111 4 1.594 1.584 1.573 1.563 1.553 1.542 1.532 1.523 1.513 1.503 1.494 1.484 1.475 1.466 1.457 1.447 1.439 1.430 1.421 1.412 1.404 1.395 1.387 1.379 1.371 1.362 1.354 1.347 1.339 1.331 1.323 1.316 1.308 1.301 1.293 1.286 1.279 1.272 1.265 1.258 1.251 1.244 1.237 1.230 1.224 5 1.724 1.711 1.698 1.686 1.674 1.662 1.650 1.638 1.626 1.615 1.604 1.592 1.581 1.570 1.560 1.549 1.539 1.528 1.518 1.508 1.498 1.488 1.478 1.468 1.459 1.449 1.440 1.431 1.422 1.413 1.404 1.395 1.386 1.378 1.369 1.361 1.352 1.344 1.336 1.328 1.320 1.312 1.304 1.297 1.289 6 1.810 1.795 1.781 1.767 1.753 1.740 1.726 1.713 1.700 1.687 1.674 1.662 1.649 1.637 1.625 1.613 1.602 1.590 1.579 1.567 1.556 1.545 1.534 1.524 1.513 1.503 1.492 1.482 1.472 1.462 1.452 1.443 1.433 1.424 1.414 1.405 1.396 1.387 1.376 1.369 1.361 1.352 1.344 1.335 1.327 = Introduction FAQ A1 A2 A3 Calculation Mode: Automatic Workbook Statistics ABC D E G H j 41 42 Assume actual cash receipts and disbursements will follow the pattern below: (Note: Receivables and 43 Payables of 12/31/x1 will have a cash impact in 20x2.) 44 52 1. 22.00% of sales for the year are made in November and December. Since our customers have 60 day terms 53 those funds will be collected be collected in January and February. 54 2. 81.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February 55 3. All other manufacturing and operating costs are paid for when incurred. 56 4. The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, selling and administrative expenses. 64 5. Minimum Cash Balance needed for 20x2, $175,000 65 See The Light 66 Projected Cash Budget 67 For the Year Ending December 31, 20x2 Round dollars to two places, S#.## Beginning Cash Balance Cash Inflows: Sales Collections: Account Receivable (Sales last year not collected) Sales made and collected in 20x2 Cash Available {10.02) {10.03) {10.04) {10.05) 68 76 77 78 79 80 88 89 90 91 92 100 101 102 103 104 112 113 114 115 116 117 118 119 120 121 122 123 124 Cash Outflows: Purchases Accounts Payable (Purchases last year) Purchases made and paid for in 20x2 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead Selling and Administrative Less: Depreciation Total Cash Outflows Budgeted Cash Balance before financing Needed Minimum Balance Amount to be borrowed (if any) Budgeted Cash Balance {10.06) {10.07) {10.08) {10.09) {10.10) A 10 11 = Introduction FAQ A1 A2 A3 Calculation Mode: Automatic Workbook Statistics 10 11 12 Division N has decided to develop its budget based upon projected sales of 43,000 lamps at 13 $50.00 per lamp. 14 The company has requested that you prepare a master budget for the year. This budget is to be used 19 for planning and control of operations and should be composed of. 20 1. Production Budget 21 2. Materials Budget HHH8589 88Gw 3. Direct Labor Budget 30 31 4. Factory Overhead Budget 32 37 5. Selling and Administrative Budget 38 39 6. Cost of Goods Sold Budget 40 41 7. Budgeted Income Statement 46 47 8. Cash Budget 48 49 Notes for Budgeting: 50 55 56 The company wants to maintain the same number of units in the beginning and ending inventories of 57 work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 700 pieces and 58 decreasing the finished goods by 20% 64 Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less: Beginning Inventory 65 66 67 68 73 74 75 76 77 82 83 84 85 86 87 Total Production {7.01) A6 A7 In = Introduction FAQ A1 A2 A3 A4 A5 Calculation Mode: Automatic Workbook Statistics 1 4. C D E F G H For 20x2 the selling price per lamp will be $45.00. If the variable cost increase by $3.50 a unit how many lamps must be sold to breakeven? 4 8 9 10 11 12 16 17 18 19 20 24 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unt if needed) (6.01) 26 27 28 5. 32 For 20x2 the selling price per lamp will be $45.00. If the variable cost decreased by $3.50 a unit how many lamps must be sold to breakeven? 34 Breakeven sales in units (Since we cannot sell part of a unit round up to the next untif needed) {6.02) If for 20x2 the selling price per lamp is increased to $48.50 a unit how many lamps must be sold to breakeven? BuBELL 36 40 41 42 43 44 6. 48 49 50 51 52 56 57 58 59 60 64 65 66 7 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unt if needed) (6.03) If for 20x2 the selling price per lamp is decreased to $41.50 a unit how many lamps must be sold to breakeven? 68 72 73 74 75 76 77 78 79 80 81 82 83 R4 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) A 4 5 al = Introduction FAQ A1 A2 A3 Calculation Mode: Automatic Workbook Statistics 2955 2 Materials Budget {8.01) {8.02) {8.03) {8.04) 22 Lamp Kits Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, S##.##) 3 Direct Labor Budget Labor Cost Per Lamp Production Total Labor Cost (Round to two places, S##.##) {8.05) {8.06) {8.07) {8.08) A 1 A 4 Factory Overhead Budget Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be Produced Total Variable Factory Overhead (Round to two places, S##.##) Fixed Factory Overhead {8.09) {8.10) Total Factory Overhead (Round to two places, S####) {8.11) 100 102 103 104 105 106 108 109 A 9 = Introduction FAQ A1 A2 A3 A4 A5 A6 A7 A8 Calculation Mode: Automatic Workbook Statistics To keep records of the actual cost of a special order job, a Job Order Cast System has been developed. 19 Overhead is applied at the rate of 50% of the direct labor cost. 20 21 22 29 Jab Order Costing Section 30 31 On January 1, 20x2. Division S began Job 2407 for the Client, THE BIG CHILDREN STORE. The 32 job called for 4,000 customized lamps. The following set of transactions occurred from 33 January 5 until the job was completed: 40 41 5-Jan Purchased 4,175 Lamp Kits @ $16.55 per kit. 42 9-Jan 4,200 sets of Lamp Kits were requisitioned. 43 17-Jan Payrol of 570 Direct Labor Hours @ $9.65 per hour. 44 30-Jan Payrol of 620 Direct Labor Hours $9.90 per hour. 51 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were 52 used or scrapped, and are a cost of normal processing. 53 54 Month End Overhead Information Actual Variable Manufacturing Overhead $ 1,118,60 Actual Fixed Manufacturing Overhead $39,623.45 89mmBBBB %6B%5% 65 66 73 74 Round to two places, S.IN Cost of Direct Material incurred in Manufacturing Job 2407 (13.01) Cost of Direct Labor incurred in Manufacturing Job 2407 (13.02) 75 76 77 84 85 86 87 88 95 96 97 98 99 106 107 108 109 110 111 112 113 114 115 Cost of Manufacturing Overhead Applied to Job 2407 (13.09) Cost of manufacturing one lamp (13.04) A1 A2 A 3 A4 A5 A6 A7 A8 A 9 Calculation Mode: Automatic Workbook Statistics BuBHEwn 5 6 Standard Job Order Costing - 7 Variance Analysis 8 9 10 11 12 Special order lamps are manufactured in division S. Because of the precise nature of the process a 14 standard cost system has been developed. The following standards are used for the special orders: 15 16 17 18 Standards 20 Lamp Kits $16.000000 per lamp 21 Direct Labor 2.400000 per lamp (4 lamps/hr.) 22 Variable Overhead 0.250000 per lamp (4 lamps/hr.) 23 " Fixed Overhead 10.000000 per lamp 24 Total $28.650000 26 27 FO verhead is based expected production of 4,010 customized lamps each month. 28 29 To keep records of the actual cost of a jab, a Job Order Cost System has been developed. Entries 30 are made to the Job Order System at actual cost (overhead is applied based on actual labor hours) 32 while entries are made to the accounting system at standard. Variance analysis is used to analyze the 33 differences 34 35 36 38 Job Order Costing Section 39 40 On January 1, 20x2. Division S began Job 1101 for the Client, THE BIG CHILDREN STORE. The 41 job called for 4,000 customized lamps. The following set of transactions occurred from 42 January 5 until the job was completed: 44 45 46 5-Jan Purchased 4,175 Lamp Kits @ $16.55 per kit 47 9-Jan 4.200 sets of Lamp Kits were requisitioned. 48 17-Jan Payrol of 570 Direct Labor Hours $9.65 per hout. 50 30 Jan Payrol of 620 Direct Labor Hours $9.90 per hour. 51 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were 52 used or scrapped 53 54 56 57 58 59 Month End Overhead Information 60 Actual Variable Overhead $ 1,118.60 62 Actual Fixed Overhead $39,623.45 64 65 56 = A1 A2 A3 A4 A5 A6 A7 A Calculation Mode: Automatic Workbook Statistics 3 4 5 6 7 8 9 10 How many Lamps were completed? Note: Show favorable variances as negative numbers Round dollars to two places, S##.## {15.01) {15.02) 11 12 13 16 What was the total material price variance for the Lamp Kits purchased? 17 18 19 20 What was the material usage variance for Lamp Kits? 23 24 25 26 27 30 31 What was the direct labor efficiency variance ? 32 33 34 37 What was the direct labor rate variance? 38 39 40 41 44 45 46 47 48 51 {15.03) {15.04) = A1 A2 A3 A4 A5 A6 A7 A8 A 9 A 10 11 12 A 13 Calculation Mode: Automatic Workbook Statistics B G H 1 K D E Present Value of Annuity $1.00 in Arrears 2 3 Interest Periods Interest Periods 3 2.884 2.856 2.829 2.802 2.775 2.749 2.723 2.698 2.673 2.648 2.624 2.601 2.577 2.554 2.531 2.509 2.487 2.465 2.444 4 5 6 2 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Rate 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 12.5% 13.0% 13.5% 14.0% 14.5% 15.0% 15.5% 16.0% 16.5% 17.0% 17.5% 18.0% 18.5% 19.0% 19.5% 20.0% 20.5% 21.0% 21.5% 22.0% 22.5% 23.0% 23.5% 24.0% 2.423 2.402 2.381 2.361 2.341 2.322 2.302 2.283 2.264 2.246 2.228 2.210 2.192 2.174 2.157 2.140 2.123 2.106 2.090 2.074 2.058 2.042 2.027 2.011 1.996 1.981 4 3.808 3.762 3.717 3.673 3.630 3.588 3.546 3.505 3.465 3.426 3.387 3.349 3.312 3.276 3.240 3.204 3.170 3.136 3.102 3.070 3.037 3.006 2.974 2.944 2.914 2.884 2.855 2.826 2.798 2.770 2.743 2.716 2.690 2.664 2.639 2.613 2.589 2.564 2.540 2.517 2.494 2.471 2.448 2.426 2.404 5 4.713 4.646 4.580 4.515 4.452 4.390 4.329 4.270 4.212 4.156 4.100 4.046 3.993 3.941 3.890 3.840 3.791 3.743 3.696 3.650 3.605 3.561 3.517 3.475 3.433 3.392 3.352 3.313 3.274 3.236 3.199 3.163 3.127 3.092 3.058 3.024 2.991 2.958 2.926 2.895 2.864 2.833 2.803 2.774 2.745 6 5.601 5.508 5.417 5.329 5.242 5.158 5.076 4.996 4.917 4.841 4.767 4.694 4.623 4.554 4.486 4.420 4.355 4.292 4.231 4.170 4.111 4.054 3.998 3.943 3.889 3.836 3.784 3.734 3.685 3.636 3.589 3.543 3.498 3.453 3.410 3.367 3.326 3.285 3.245 3.205 3.167 3.129 3.092 3.056 3.020 Rate 50.5% 51.0% 51.5% 52.0% 52.5% 53.0% 53.5% 54.0% 54.5% 55.0% 55.5% 56.0% 56.5% 57.0% 57.5% 58.0% 58.5% 59.0% 59.5% 60.0% 60.5% 61.0% 61.5% 62.0% 62.5% 63.0% 63.5% 64.0% 64.5% 65.0% 65.5% 66.0% 66.5% 67.0% 67.5% 68.0% 68.5% 69.0% 69.5% 70.0% 70.5% 71.0% 71.5% 72.0% 72.5% A4 3 1.399 1.391 1.383 1.375 1.368 1.360 1.352 1.345 1.337 1.330 1.323 1.315 1.308 1.301 1.294 1.287 1.280 1.273 1.266 1.260 1.253 1.247 1.240 1.234 1.227 1.221 1.214 1.208 1.202 1.196 1.190 1.184 1.178 1.172 1.166 1.160 1.155 1.149 1.143 1.138 1.132 1.127 1.121 1.116 1.111 4 1.594 1.584 1.573 1.563 1.553 1.542 1.532 1.523 1.513 1.503 1.494 1.484 1.475 1.466 1.457 1.447 1.439 1.430 1.421 1.412 1.404 1.395 1.387 1.379 1.371 1.362 1.354 1.347 1.339 1.331 1.323 1.316 1.308 1.301 1.293 1.286 1.279 1.272 1.265 1.258 1.251 1.244 1.237 1.230 1.224 5 1.724 1.711 1.698 1.686 1.674 1.662 1.650 1.638 1.626 1.615 1.604 1.592 1.581 1.570 1.560 1.549 1.539 1.528 1.518 1.508 1.498 1.488 1.478 1.468 1.459 1.449 1.440 1.431 1.422 1.413 1.404 1.395 1.386 1.378 1.369 1.361 1.352 1.344 1.336 1.328 1.320 1.312 1.304 1.297 1.289 6 1.810 1.795 1.781 1.767 1.753 1.740 1.726 1.713 1.700 1.687 1.674 1.662 1.649 1.637 1.625 1.613 1.602 1.590 1.579 1.567 1.556 1.545 1.534 1.524 1.513 1.503 1.492 1.482 1.472 1.462 1.452 1.443 1.433 1.424 1.414 1.405 1.396 1.387 1.376 1.369 1.361 1.352 1.344 1.335 1.327

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