chapter21怀尔德会计学原理19版答案

©McGraw-HillCompanies,2009

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FundamentalAccountingPrinciples,19thEdition

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©McGraw-HillCompanies,2009

SolutionsManual,Chapter21

Chapter21

EXERCISES

Exercise21-1(25minutes)

1. AllocationofIndirectExpensestoFourOperatingDepartments

Supervisionexpenses

Department

Employees

%ofTotal

Cost

Materials

40

20%

$16,000

Personnel

22

11

8,800

Manufacturing

104

52

41,600

Packaging

34

17

13,600

Totals

200

100%

$80,000

Utilitiesexpenses

Department

SquareFeet

%ofTotal

Cost

Materials

27,000

27%

$16,470

Personnel

5,000

5

3,050

Manufacturing

45,000

45

27,450

Packaging

23,000

23

14,030

Totals

100,000

100%

$61,000

Insuranceexpenses

Department

AssetValue

%ofTotal

Cost

Materials

$60,000

50%

$8,350

Personnel

1,200

1

167

Manufacturing

42,000

35

5,845

Packaging

16,800

14

2,338

Totals

$120,000

100%

$16,700

2. ReportofIndirectExpensesAssignedtoFourOperatingDepartments

Supervision

Utilities

Insurance

Total

Materials

$16,000

$16,470

$8,350

$40,820

Personnel

8,800

3,050

167

$12,017

Manufacturing

41,600

27,450

5,845

$74,895

Packaging

13,600

14,030

2,338

$29,968

Totals

$80,000

$61,000

$16,700

$157,700

Exercise21-2(30minutes)

CalculationofpredeterminedoverheadratestoapplyABC

OverheadCostCategory(ActivityCostPool)

TotalCost

TotalAmountofCostDriver

PredeterminedOverheadRate

Supervision

$5,400

$36,000

15%

ofdirectlaborcost

Depreciation

56,600

2,000MH

$28.30

permachinehour

Linepreparation

46,000

250setups

$184.00

persetup

1.AssignmentofoverheadcoststothetwoproductsusingABC

Roundededge

Cost

Driver

Costper

DriverUnit

AssignedCost

Supervision

$12,200

15%

$1,830

Machinerydepreciation

500

hours

$28.30

14,150

Linepreparation

40setups

$184.00

7,360

Totaloverheadassigned

$23,340

Squarededge

Cost

Driver

Costper

DriverUnit

AssignedCost

Supervision

$23,800

15%

$3,570

Machinerydepreciation

1,500

hours

$28.30

42,450

Linepreparation

210setups

$184.00

38,640

Totaloverheadassigned

$84,660

2.Averagecostperfootofthetwoproducts

Roundededge

Squarededge

Directmaterials

$19,000

$43,200

Directlabor

12,200

23,800

Overhead(usingABC)

23,340

84,660

Totalcost

$54,540

$151,660

Quantityproduced

10,500ft.

14,100ft.

Averagecostperfoot(ABC)

$5.19

$10.76

3. Theaveragecostofroundededgeshelvesdeclinesandtheaveragecostofsquarededgeshelvesincreases.Underthecurrentallocationmethod,theroundededgeshelvingwasallocated34%ofalloftheoverheadcost($12,200directlabor/$36,000totaldirectlabor).However,itdoesnotuse34%ofalloftheoverheadresources.Specifically,itusesonly25%ofmachinehours(500MH/2,000MH),and16%ofthesetups(40/250).Activitybasedcostingallocatedtheindividualoverheadcomponentsinproportiontotheresourcesused.

Exercise21-7(15minutes)

(1) Itemsincludedinperformancereport

Thefollowingitemsdefinitelyshouldbeincludedintheperformancereportfortheautoservicedepartmentmanagerbecausetheyarecontrolledorstronglyinfluencedbythemanager’sdecisionsandactivities:

Salesofparts

Salesofservices

Costofpartssold

Supplies

Wages(hourly)

(2) Itemsexcludedfromperformancereport

Thefollowingitemsdefinitelyshouldbeexcludedfromtheperformancereportbecausethedepartmentmanagercannotcontrolorstronglyinfluencethem:

Buildingdepreciation

Incometaxesallocatedtothedepartment

Interestonlong-termdebt

Manager’ssalary

(3) Itemsthatmayormaynotbeincludedinperformancereport

Thefollowingitemscannotbedefinitelyincludedordefinitelyexcludedfromtheperformancereportbecausetheymayormaynotbecompletelyunderthemanager’scontrolorstronginfluence:

Payrolltaxes Someportionofthisexpenserelatestothe manager’ssalaryandisnotcontrollablebythe manager.Theportionthatrelatestohourlywages shouldbetreatedasacontrollableexpense.

Utilities Whetherthisexpenseiscontrollabledependsonthe

designoftheautodealership.Iftheautoservice

departmentisinaseparatebuildingorhasseparate

utilitymeters,theseexpensesaresubjecttothe

manager’scontrol.Otherwise,theexpenseprobably

isnotcontrollablebythemanageroftheautoservice

department.

Exercise21-9(20minutes)

(1)

InvestmentCenter

NetIncome

AverageAssets

ReturnonAssets

Electronics

$750,000

$3,750,000

20%

SportingGoods

800,000

5,000,000

16%

Comment:ItsElectronicsdivisionisthesuperiorinvestmentcenteronthebasisoftheinvestmentcenterreturnonassets.

Exercise21-9(continued)

(2)

InvestmentCenter

Electronics

SportingGoods

Netincome

$750,000

$800,000

Targetnetincome

$3,750,000x12%

5,000,000x12%

(450,000)

(600,000)

Residualincome…….$300,000$200,000

Comment:ItsElectronicsdivisionisthesuperiorinvestmentcenteronthebasisofinvestmentcenterresidualincome.

(3)TheElectronicsdivisionshouldacceptthenewopportunity,sinceitwillgenerateresidualincomeof3%(15%-12%)oftheinvestment’sinvestedassets.

Exercise21-10(15minutes)

InvestmentCenter

NetIncome

Sales

ProfitMargin

Electronics

$750,000

$10,000,000

7.50%

SportingGoods

800,000

8,000,000

10.0%

InvestmentCenter

Sales

AverageAssets

InvestmentTurnover

Electronics

$10,000,000

$3,750,000

2.67

SportingGoods

8,000,000

5,000,000

1.6

Comments:ItsSportinggoodsdivisiongeneratesthemostnetincomeperdollarofsales,asshownbyitshigherprofitmargin.TheElectronicsdivisionhoweverismoreefficientatgeneratingsalesfrominvestedassets,basedonitshigherinvestmentturnover.

PROBLEMSETA

Problem21-1A(60minutes)

Part1

Averageoccupancycost=$111,800/10,000sq.ft.=$11.18persq.ft.

Occupancycostsareassignedtothetwodepartmentsasfollows

Department

SquareFootage

Rate

Total

Lanya’sDept.

1,000

$11.18

$11,180

Jimez’sDept.

1,700

$11.18

$19,006*

*Atotalof$30,186($11,180+$19,006)inoccupancycostsischargedtothesedepartments.Thecompanywouldfollowasimilarapproachinallocatingtheremainingoccupancycosts($81,614,computedas$111,800-$30,186)toitsotherdepartments(notshowninthisproblem).

Part2

Marketratesareusedtoallocateoccupancycostsfordepreciation,interest,andtaxes.Heating,lighting,andmaintenancecostsareallocatedtothedepartmentsonbothfloorsattheaverageratepersquarefoot.Thesecostsareseparatelyassignedtoeachclassasfollows:

Total

Costs

Value-Based

Costs

Usage-Based

Costs

Depreciation—Building

$31,500

$31,500

Interest—Buildingmortgage

47,000

47,000

Taxes—Buildingandland

14,000

14,000

Gas(heating)expense

4,425

$4,425

Lightingexpense

5,250

5,250

Maintenanceexpense

9,625

______

9,625

Total

$111,800

$92,500

$19,300

Problem21-1A(Continued)

Value-basedcostsareallocatedtodepartmentsintwosteps

(i)Computemarketvalueofeachfloor

Floor

Square

Footage

Valueper

Sq.Ft.

Total

Firstfloor

5,000

$40

$200,000

Secondfloor

5,000

10

50,000

Totalmarketvalue

$250,000

(ii)Allocate$92,500toeachfloorbasedonitspercentofmarketvalue

Floor

Market

Value

%of

Total

Allocated

Cost

Costper

Sq.Ft.

Firstfloor

$200,000

80%

$74,000

$14.80

Secondfloor

50,000

20

18,500

3.70

Totals

$250,000

100%

$92,500

Usage-basedcostsallocationrate =$19,300/10,000sq.ft.

=$1.93persq.ft.

Wecanthencomputetotalallocationratesforthefloors

Floor

Value

Usage

Total

Firstfloor

$14.80

$1.93

$16.73

Secondfloor

3.70

1.93

$5.63

Theseratesareappliedtoallocateoccupancycoststodepartments

Department

SquareFootage

Rate

Total

Lanya’sDepartment

1,000

$16.73

$16,730

Jimez’sDepartment

1,700

5.63

$9,571

Part3

Asecond-floormanagerwouldpreferallocationbasedonmarketvalue.Thisisareasonableandlogicalapproachtoallocationofoccupancycosts.Thecurrentmethodassumesallsquarefootagehasequalvalue.Thisisnotlogicalforthistypeofoccupancy.Italsomeansthesecond-floorspacewouldbeallocatedalargerportionofcostsunderthecurrentmethod,butlessusinganallocationbasedonmarketvalue.

Problem21-2A(45minutes)

Part1

Determinationofcostperdriverunit

CostCenter

Cost

Driver

CostperDriver

Professionalsalaries

$1,600,000

10,000hours

$160perhour

Patientservices&supplies

$27,000

600patients

$45perpatient

Buildingcost

$150,000

1,500sq.ft.

$100persq.ft.

Totalcosts

$1,777,000

Part2

AllocationofcosttothesurgicaldepartmentsusingABC

GeneralSurgery

Cost

Driver

CostperDriverUnit

AllocatedCost

Professionalsalaries

2,500hours

$160perhr.

$400,000

Patientservices&supplies

400patients

$45perpatient

18,000

Buildingcost

600sq.ft.

$100persq.ft.

60,000

Total

$478,000

Averagecostperpatient

$1,195

OrthopedicSurgery

Cost

Driver

CostperDriverUnit

AllocatedCost

Professionalsalaries

7,500hours

$160perhr.

$1,200,000

Patientservices&supplies

200patients

$45perpatient

9,000

Buildingcost

900sq.ft.

$100persq.ft

90,000

Total

$1,299,000

Averagecostperpatient

$6,495

[NotethatthesumoftheamountsallocatedtoGeneralSurgeryandOrthopedicSurgery($478,000+$1,299,000)equalsthetotalamountofindirectcosts($1,777,000).]

Part3

Ifallcentercostswereallocatedonthenumberofpatients,theaveragecostofgeneralsurgerywouldincrease.Sincegeneralsurgerysees2/3ofallpatients(400/600),itwouldgetallocated2/3ofallcentercosts.Orthopedicsurgeryiscurrentlyconsumingmoreprofessionalsalariesandbuildingspacethangeneralsurgery,buthasfewerpatients.

Problem21-3A(70minutes)

WartonCompany

ForecastedDepartmentalIncomeStatements

ForYearEndedDecember31,2010

Clock

Mirror

Paintings

Combined

Sales

$183,600

$102,600

$50,000

$336,200

(1)

Costofgoodssold

89,964

63,612

27,500

181,076

(2)

Grossprofit

93,636

38,988

22,500

155,124

Directexpenses

Salessalaries

21,000

7,100

8,500

36,600

Advertising

2,100

700

1,100

3,900

Storesuppliesused

594

378

400

1,372

(3)

Depreciationofequipment

2,300

900

1,000

4,200

Totaldirectexpenses

25,994

9,078

11,000

46,072

Allocatedexpenses

Rentexpense

5,632

2,835

2,353

10,820

(4)

Utilitiesexpense

2,292

1,153

955

4,400

(4)

Shareofofficedept.expenses

15,288

8,540

4,172

28,000

(5)

Totalallocatedexpenses

23,212

12,528

7,480

43,220

Totalexpenses

49,206

21,606

18,480

89,292

Netincome

$44,430

$17,382

$4,020

$65,832

SupportingComputations—coded(1)through(5)instatementabove

Note1(Sales)

Clock

Mirror

Paintings

2009sales

$170,000

$95,000

Growthrate(8%increase)

x108%

x108%

2010sales

$183,600

$102,600

$50,000

Note2(CostofGoodsSold)

Clock

Mirror

Paintings

2009costofgoodssold

$83,300

$58,900

$50,000

Growthrate(8%increase)

x108%

x108%

x55%*

2010costofgoodssold

$89,964

$63,612

$27,500

Alternatively

2009costofgoodssold

$83,300

$58,900

2009sales

$170,000

$95,000

2009costas%ofsales

49%

62%

2010sales

$183,600

$102,600

$50,000

2010costas%ofsales

x49%

x62%

x55%*

2010costofgoodssold

$89,964

$63,612

$27,500

* The55%costofgoodssoldpercentiscomputedas100%minusthepredicted45%grossprofitmargin.

Problem21-3A(Continued)

Note3(StoreSuppliesUsed)

Clock

Mirror

Paintings

2009storesuppliesused

$550

$350

Growthrate(8%increase)

x108%

x108%

2010storesupplies

$594

$378

$400

Note4(RentandUtilities)

Clock

Mirror

Paintings

2009rent

$7,040

$3,780

One-fifthfromclocktopaintings

(1,408)

$1,408

One-fourthfrommirrortopaintings

______

(945)

945

2010allocationof$10,820rent

$5,632

$2,835

$2,353

Percentoftotal*

52.1%

26.2%

21.7%

2010allocationof$4,400

totalutilities

$2,292

$1,153

$955

Note5(OfficeDepartmentExpenses)

Clock

Mirror

Paintings

2010sales

$183,600

$102,600

$50,000

Percentoftotalsales*

54.6%

30.5%

14.9%

2010allocationof$28,000

totalofficedepartment

expenses($20,000in2009

plus$8,000increase)

$15,288

$8,540

$4,172

* Instructornote:Ifstudentsroundtosomethingotherthanone-tenthofapercent,theirnumberswillslightlyvary.

Problem21-4A(50minutes)

Part1

a.

ResponsibilityAccountingPerformanceReport

Manager,CamperDepartment

FortheYear

Budgeted

Actual

Over(Under)

Amount

Amount

Budget

ControllableCosts

Rawmaterials

$195,900

$194,800

$(1,100)

Employeewages

104,200

107,200

3,000

Suppliesused

34,000

32,900

(1,100)

Depreciation—Equipment

63,000

63,000

0

Totals

$397,100

$397,900

$800

b.

ResponsibilityAccountingPerformanceReport

Manager,TrailerDepartment

FortheYear

Budgeted

Actual

Over(Under)

Amount

Amount

Budget

ControllableCosts

Rawmaterials

$276,200

$273,600

$(2,600)

Employeewages

205,200

208,000

2,800

Suppliesused

92,200

91,300

(900)

Depreciation—Equipment

127,000

127,000

0

Totals

$700,600

$699,900

$(700)

Problem21-4A(Continued)

c.

ResponsibilityAccountingPerformanceReport

Manager,OhioPlant

FortheYear

Budgeted

Actual

Over(Under)

Amount

Amount

Budget

ControllableCosts

Dept.managersalaries

$97,000

$98,700

$1,700

Utilities

8,800

9,200

400

Buildingrent

15,700

15,500

(200)

Otherofficesalaries

46,500

30,100

(16,400)

Otherofficecosts

22,000

21,000

(1,000)

Camperdepartment

397,100

397,900

800

Trailerdepartment

700,600

699,900

(700)

Total

$1,287,700

$1,272,300

$(15,400)

Part2

Theplantmanagerdidagoodjobofcontrollingcostsandmeetingthebudget.Hecameinunderbudgetfortheplanteventhoughhepaidthedepartmentmanagersmorethanbudgetedandhadtoabsorbtheamountsoverbudgetintheirdepartments.Thisisbecausehespentlessthanthebudgetamountonbuildingrent,otherofficesalaries,andotherofficecosts.TheTrailerDepartmentmanageralsocameinunderbudget.TheCamperDepartmentmanagercameinoverbudget,andthusperformedtheworseofthethreemanagers.

PROBLEMSETB

Problem21-1B(60minutes)

Part1

Averageoccupancycost=$372,000/20,000sq.ft.=$18.60persq.ft.

OccupancycostsareassignedtoMiller’sdepartmentasfollows

Department

SquareFootage

Rate

Total

Miller’sDept.

2,000

$18.60

$37,200

Part2

Marketratesareusedtoallocateoccupancycostsforthebuildingrent.Lightingandcleaningcostsareallocatedtothedepartmentsonallthre