Chapter_21 怀尔德《会计学原理》19版答案.doc

Chapter 21EXERCISESExercise 21-1 (25 minutes)1.Allocation of Indirect Expenses to Four Operating DepartmentsSupervision expensesDepartment Employees% of Total CostMaterials4020%$16,000Personnel22118,800Manufacturing1045241,600Packaging 34 17 13,600Totals200100%$80,000Utilities expensesDepartmentSquare Feet% of Total CostMaterials27,00027%$16,470Personnel5,00053,050Manufacturing45,0004527,450Packaging 23,000 23 14,030Totals100,000100%$61,000Insurance expensesDepartmentAsset Value% of Total CostMaterials$ 60,00050%$ 8,350Personnel1,2001167Manufacturing42,000355,845Packaging 16,800 14 2,338Totals$120,000100%$16,7002.Report of Indirect Expenses Assigned to Four Operating DepartmentsSupervisionUtilities InsuranceTotalMaterials$16,000$16,470$ 8,350$ 40,820Personnel8,8003,050167$ 12,017Manufacturing41,60027,4505,845$ 74,895Packaging 13,600 14,030 2,338$ 29,968Totals$80,000$61,000$16,700$157,700Exercise 21-2 (30 minutes)Calculation of predetermined overhead rates to apply ABCOverhead Cost Category (Activity Cost Pool)Total CostTotal Amount of Cost DriverPredetermined Overhead RateSupervision$ 5,400$36,00015%of direct labor costDepreciation56,6002,000 MH$28.30per machine hourLine preparation46,000250 setups$184.00per setup1. Assignment of overhead costs to the two products using ABCRounded edgeCost DriverCost per Driver UnitAssigned CostSupervision$12,200 15%$ 1,830Machinery depreciation500hours$ 28.3014,150Line preparation40 setups$184.00 7,360Total overhead assigned$23,340Squared edgeCost DriverCost perDriver UnitAssigned CostSupervision$23,80015%$ 3,570Machinery depreciation1,500hours$ 28.3042,450Line preparation210 setups$184.00 38,640Total overhead assigned$84,6602. Average cost per foot of the two productsRounded edgeSquared edgeDirect materials $19,000$ 43,200Direct labor 12,20023,800Overhead (using ABC) 23,340 84,660Total cost $54,540$151,660Quantity produced 10,500 ft.14,100 ft.Average cost per foot (ABC)$5.19$10.763.The average cost of rounded edge shelves declines and the average cost of squared edge shelves increases. Under the current allocation method, the rounded edge shelving was allocated 34% of all of the overhead cost ($12,200 direct labor/$36,000 total direct labor). However, it does not use 34% of all of the overhead resources. Specifically, it uses only 25% of machine hours (500 MH/2,000 MH), and 16% of the setups (40/250). Activity based costing allocated the individual overhead components in proportion to the resources used. Exercise 21-7 (15 minutes)(1)Items included in performance reportThe following items definitely should be included in the performance report for the auto service department manager because they are controlled or strongly influenced by the managers decisions and activities: Sales of parts Sales of services Cost of parts sold Supplies Wages (hourly)(2)Items excluded from performance reportThe following items definitely should be excluded from the performance report because the department manager cannot control or strongly influence them: Building depreciation Income taxes allocated to the department Interest on long-term debt Managers salary(3)Items that may or may not be included in performance reportThe following items cannot be definitely included or definitely excluded from the performance report because they may or may not be completely under the managers control or strong influence: Payroll taxesSome portion of this expense relates to the managers salary and is not controllable by the manager. The portion that relates to hourly wages should be treated as a controllable expense. UtilitiesWhether this expense is controllable depends on the design of the auto dealership. If the auto service department is in a separate building or has separateutility meters, these expenses are subject to themanagers control. Otherwise, the expense probablyis not controllable by the manager of the auto servicedepartment.Exercise 21-9 (20 minutes)(1)Investment CenterNet IncomeAverage AssetsReturn on AssetsElectronics$750,000$3,750,00020%Sporting Goods800,0005,000,00016%Comment: Its Electronics division is the superior investment center on the basis of the investment center return on assets. Exercise 21-9 (continued)(2) Investment CenterElectronicsSporting GoodsNet income$750,000$800,000Target net income $3,750,000 x 12% 5,000,000 x 12%(450,000)(600,000)Residual income. $300,000 $200,000Comment: Its Electronics division is the superior investment center on the basis of investment center residual income. (3) The Electronics division should accept the new opportunity, since it will generate residual income of 3% (15% - 12%) of the investments invested assets. Exercise 21-10 (15 minutes)Investment CenterNet IncomeSalesProfit MarginElectronics$750,000$10,000,0007.50%Sporting Goods800,0008,000,00010.0%Investment CenterSalesAverage AssetsInvestment TurnoverElectronics$10,000,000$3,750,0002.67Sporting Goods8,000,0005,000,0001.6Comments: Its Sporting goods division generates the most net income per dollar of sales, as shown by its higher profit margin. The Electronics division however is more efficient at generating sales from invested assets, based on its higher investment turnover.PROBLEM SET AProblem 21-1A (60 minutes)Part 1Average occupancy cost = $111,800 / 10,000 sq. ft. = $11.18 per sq. ft.Occupancy costs are assigned to the two departments as followsDepartmentSquare FootageRateTotalLanyas Dept.1,000$11.18$11,180Jimezs Dept.1,700$11.18$19,006*A total of $30,186 ($11,180 + $19,006) in occupancy costs is charged to these departments. The company would follow a similar approach in allocating the remaining occupancy costs ($81,614, computed as $111,800 - $30,186) to its other departments (not shown in this problem).Part 2Market rates are used to allocate occupancy costs for depreciation, interest, and taxes. Heating, lighting, and maintenance costs are allocated to the departments on both floors at the average rate per square foot. These costs are separately assigned to each class as follows: Total CostsValue-BasedCostsUsage-BasedCostsDepreciationBuilding$ 31,500$31,500InterestBuilding mortgage47,00047,000TaxesBuilding and land14,00014,000Gas (heating) expense4,425$ 4,425Lighting expense5,2505,250Maintenance expense 9,625_ 9,625Total$111,800$92,500$19,300Problem 21-1A (Continued)Value-based costs are allocated to departments in two steps(i) Compute market value of each floorFloor Square FootageValue per Sq. Ft.TotalFirst floor5,000$40$200,000Second floor5,00010 50,000Total market value$250,000 (ii) Allocate $92,500 to each floor based on its percent of market valueFloorMarketValue% ofTotalAllocated CostCost perSq. Ft.First floor$200,00080%$74,000$14.80Second floor 50,000 20 18,5003.70Totals$250,000100%$92,500Usage-based costs allocation rate= $19,300 / 10,000 sq. ft. = $1.93 per sq. ft. We can then compute total allocation rates for the floorsFloorValueUsageTotalFirst floor$14.80$1.93$16.73Second floor3.701.93$ 5.63These rates are applied to allocate occupancy costs to departmentsDepartmentSquare FootageRateTotalLanyas Department1,000$16.73$16,730Jimezs Department1,7005.63$ 9,571Part 3A second-floor manager would prefer allocation based on market value. This is a reasonable and logical approach to allocation of occupancy costs. The current method assumes all square footage has equal value. This is not logical for this type of occupancy. It also means the second-floor space would be allocated a larger portion of costs under the current method, but less using an allocation based on market value.Problem 21-2A (45 minutes)Part 1 Determination of cost per driver unitCost CenterCostDriverCost per DriverProfessional salaries$1,600,00010,000 hours$160 per hourPatient services & supplies $ 27,000600 patients$45 per patientBuilding cost$ 150,0001,500 sq. ft.$100 per sq. ft.Total costs$1,777,000Part 2 Allocation of cost to the surgical departments using ABC General SurgeryCost DriverCost per Driver UnitAllocated CostProfessional salaries2,500 hours$160 per hr.$400,000Patient services & supplies400 patients$45 per patient18,000Building cost600 sq. ft.$100 per sq. ft. 60,000Total $478,000Average cost per patient$ 1,195 Orthopedic SurgeryCost DriverCost per Driver UnitAllocated CostProfessional salaries7,500 hours$160 per hr.$1,200,000Patient services & supplies200 patients$45 per patient9,000Building cost900 sq. ft.$100 per sq. ft 90,000Total$1,299,000Average cost per patient$ 6,495 Note that the sum of the amounts allocated to General Surgery and Orthopedic Surgery ($478,000 + $1,299,000) equals the total amount of indirect costs ($1,777,000).Part 3If all center costs were allocated on the number of patients, the average cost of general surgery would increase. Since general surgery sees 2/3 of all patients (400/600), it would get allocated 2/3 of all center costs. Orthopedic surgery is currently consuming more professional salaries and building space than general surgery, but has fewer patients. Problem 21-3A (70 minutes)Warton CompanyForecasted Departmental Income StatementsFor Year Ended December 31, 2010ClockMirrorPaintingsCombinedSales$183,600$102,600$50,000$336,200(1)Cost of goods sold 89,964 63,612 27,500 181,076(2)Gross profit93,63638,98822,500155,124Direct expenses Sales salaries 21,000 7,100 8,500 36,600 Advertising2,1007001,1003,900 Store supplies used 5943784001,372(3) Depreciation of equipment 2,300 900 1,000 4,200 Total direct expenses25,9949,07811,00046,072Allocated expenses Rent expense 5,632 2,8352,353 10,820(4) Utilities expense2,2921,1539554,400(4) Share of office dept. expenses 15,288 8,540 4,172 28,000(5) Total allocated expenses 23,212 12,528 7,480 43,220Total expenses 49,206 21,606 18,480 89,292Net income$ 44,430$17,382$ 4,020$ 65,832Supporting Computationscoded (1) through (5) in statement aboveNote 1 (Sales) Clock Mirror Paintings2009 sales$170,000$ 95,000Growth rate (8% increase)x 108%x 108%2010 sales$183,600$102,600$ 50,000 Note 2 (Cost of Goods Sold) Clock Mirror Paintings2009 cost of goods sold$ 83,300$ 58,900$ 50,000Growth rate (8% increase)x 108%x 108%x 55%*2010 cost of goods sold$ 89,964$ 63,612$ 27,500Alternatively2009 cost of goods sold$ 83,300$ 58,9002009 sales$170,000$ 95,0002009 cost as % of sales49%62%2010 sales $183,600 $102,600$ 50,0002010 cost as % of sales x 49%x 62%x 55%*2010 cost of goods sold$ 89,964$ 63,612$ 27,500*The 55% cost of goods sold percent is computed as 100% minus the predicted 45% gross profit margin.Problem 21-3A (Continued)Note 3 (Store Supplies Used) Clock Mirror Paintings2009 store supplies used $ 550$ 350Growth rate (8% increase)x 108%x 108%2010 store supplies $ 594$ 378$ 400Note 4 (Rent and Utilities) Clock Mirror Paintings2009 rent $ 7,040$ 3,780One-fifth from clock to paintings (1,408)$ 1,408One-fourth from mirror to paintings _ (945) 9452010 allocation of $10,820 rent$ 5,632$ 2,835$ 2,353Percent of total * 52.1%26.2%21.7%2010 allocation of $4,400 total utilities $ 2,292$ 1,153$ 955Note 5 (Office Department Expenses) Clock Mirror Paintings2010 sales $183,600$102,600$ 50,000Percent of total sales *54.6%30.5%14.9%2010 allocation of $28,000 total office department expenses ($20,000 in 2009 plus $8,000 increase)$ 15,288$ 8,540$ 4,172*Instructor note: If students round to something other than one-tenth of a percent, their numbers will slightly vary.Problem 21-4A (50 minutes)Part 1a.Responsibility Accounting Performance ReportManager, Camper Department For the Year Budgeted Actual Over (Under) Amount Amount BudgetControllable CostsRaw materials$195,900$194,800$ (1,100)Employee wages104,200107,200 3,000Supplies used34,00032,900(1,100)DepreciationEquipment 63,000 63,000 0Totals$397,100$397,900$ 800b.Responsibility Accounting Performance ReportManager, Trailer Department For the Year Budgeted Actual Over (Under) Amount Amount BudgetControllable CostsRaw materials$276,200$273,600$ (2,600)Employee wages205,200208,0002,800Supplies used92,20091,300(900)DepreciationEquipment 127,000 127,000 0Totals$700,600$699,900$ (700)Problem 21-4A (Continued)c.Responsibility Accounting Performance ReportManager, Ohio Plant For the Year Budgeted Actual Over (Under) Amount Amount BudgetControllable CostsDept. manager salaries$ 97,000$ 98,700$ 1,700Utilities8,8009,200400Building rent15,70015,500(200)Other office salaries46,50030,100(16,400)Other office costs22,00021,000(1,000)Camper department397,100397,900800Trailer department 700,600 699,900 (700)Total$1,287,700$1,272,300$(15,400)Part 2The plant manager did a good job of controlling costs and meeting the budget. He came in under budget for the plant even though he paid the department managers more than budgeted and had to absorb the amounts over budget in their departments. This is because he spent less than the budget amount on building rent, other office salaries, and other office costs. The Trailer Department manager also came in under budget. The Camper Department manager came in over budget, and thus performed the worse of the three managers.PROBLEM SET BProblem 21-1B (60 minutes)Part 1Average occupancy cost = $372,000 / 20,000 sq. ft. = $18.60 per sq. ft.Occupancy costs are assigned to Millers department as followsDepartmentSquare FootageRateTotalMillers Dept.2,000$18.60$37,200Part 2Market rates are used to allocate occupancy costs for the building rent. Lighting and cleaning costs are allocated to the departments on all three floors at the average rate per square foot. Costs assigned to each class are:Occupa