Managerial accounting 16th edition garrison powerpoint
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Managerial Accounting, 16e Garrison, Noreen, Brewer, Test Bank
Did we spend more or less than expected for the units we actually produced? Summary data concerning the last two years of operations follow: Last Year This Year Estimated hours of studio service. Measure and analyze estimated future cash flows. Third, they use them to evaluate and reward employees. If these costs are to be assigned to products, they must be allocated to the products. After returning from the seminar, she arranged a meeting with the production manager, J.




Managerial Accounting 16th Edition By Ray H Garrison And Eric Noreen
The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Designing a Customer Value-Driven Marketing Strategy and Mix 7. The spiced meat mixture is then transferred to the Casing and Curing Department, where the mixture is force-fed into casings and then hung and cured in climate-controlled smoking chambers. Required: Prepare an answer sheet with column headings as shown below. Carter, the general manager, why the step-down method provides a better basis for computing predetermined overhead rates than the direct method.




(PDF) Managerial Accounting by Garrison, Noreen, Brewer 14th Edition
The authors also revised the discussion of alternative measures of performance and profitability. Three-fourths of this depreciation related to actual production of the videos, and the remainder related to equipment used in marketing and administration. Also, degree of operating leverage is defined and illustrated with an example. Much to your surprise, today you received a phone call from an accounting professor at Oregon Coastal University. The Accounting Information System 4. Financial Analysis: The Big Picture 14. The sales budget will also be instrumental in determining your pay raise, potential for promotion, and bonus.




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The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor-hours. Factory Administration is allocated based on labor-hours; Custodial Services based on square feet occupied; Personnel based on number of employees; and Maintenance based on machine-hours. Prepare a schedule of cost of goods sold. If the company bases its predetermined overhead rate on the estimated overhead cost and the estimated professional staff hours to be charged to clients, how much overhead cost would have been applied to Ms. Revisions for clarity include an expanded discussion of accrued revenues and accrued expenses, a major revision of the presentation of the first 7 transactions of King Hardware, an added balance sheet after transaction 2 to show how a balance sheet changes with each transaction, and a revision of the section on nonprofit organizations. Required: Classify each cost listed below as either a product cost or a period cost for the purpose of preparing financial statements for the bank.




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Pat: We compute the predetermined overhead rate by dividing the estimated total factory overhead for the coming year, which is all a fixed cost, by the estimated total units produced for the coming year. It provided the following information related to those two jobs: Job C-200 Molding Fabrication Total Direct materials cost. Accordingly, Gallant has ordered that wherever possible, expenditures should be postponed to the new year—including canceling or postponing orders with suppliers, delaying planned maintenance and training, and cutting back on end-of-year advertising and travel. Would you expect the average product cost per set to increase, decrease, or remain unchanged? Department Number of Employees Total Labor- Hours Square Feet of Space Occupied Direct Labor- Hours Machine- Hours Factory Administration. Then, income variances are analyzed as more detailed revenue and cost variances. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. Is our employee retention rate exceeding our goals? Machine-hours 180,000 12,000 0 12,000 General factory.




Managerial Accounting 16th edition
Relevant Information for Decision Making with a Focus on Pricing Decisions 6. The company uses a standard cost system, with the following standards for each product on a per unit basis : Information relating to materials purchased and materials used in production during May follows: The following additional information is available: a. How will my company serve its customers? At the beginning of the year, the company provided the following estimates: Direct labor-hours required to support estimated output. Studio manufacturing overhead is charged to videos on the basis of camera-hours of activity. Historically, McCullough has used one predetermined overhead rate based on the number of patient-days each night that a patient spends in the hospital counts as one patient-day to allocate overhead costs to patients.




(PDF) Management Accounting Managerial Accounting Ray Garrison Eric Noreen
All other costs, such as depreciation of medical equipment, insurance, utilities, incidental medical supplies, and the labor costs associated with around-the-clock monitoring of patients are treated as overhead costs. Compute the average product cost of one patio set. Finally, the authors have updated all financial statement references throughout. Percent Completed Units Materials Conversion Work in process, beginning. Product Leadership Strategy Offer higher quality products.




Managerial Accounting 16th Edition by Garrison
P—16 If you were a restaurant owner, what internal controls would you implement to help maintain control of your cash? The manufacturing overhead applied to Jobs P and Q is computed as follows: Job P Job Q Actual machine-hours worked a. Make an entry in the T-accounts to close any balance in the Studio Overhead account to Cost of Goods Sold. P—6 Why is managerial accounting relevant to accounting majors and their future careers? If a new customer unexpectedly emerges and expresses interest in buying the 200 extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer? Chapter 8 has been reorganized to develop variance concepts in smaller steps. How much unused capacity cost would the company report last year? The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. Prepare a contribution format income statement and compute the degree of operating leverage.



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