management accounting

management accounting

ATTACHMENT PREVIEW

Download attachment

Assignment:
HW Set #3 – E16.21, E16.22, E4.10
1.
Exercise 4.10
Predetermined Overhead Rate, Applied Overhead, Unit Cost
Ripley, Inc., costs products using a normal costing system. The following data are available for last
year:
Overhead is applied on the basis of direct labor hours.
Required:
1.
What was the predetermined overhead rate?
$ _________________ per direct labor hour
2.
What was the applied overhead for last year?
$ _________________
3.
Was overhead over- or underapplied, and by how much?
_________________ = $ _________________
4.
What was the total cost per unit produced (carry your answer to four significant digits)?
$ _________________ per unit
2.
Exercise 16.21
Operating Leverage
Income statements for two different companies in the same industry are as follows:
eBook
eBook
eBook
eBook
eBook
eBook

Unlock Solution Unlocking…

Required:
1.
Compute the degree of operating leverage for each company.
Trimax
_________________
Quintex
_________________
2.
Compute the break-even point for each company.
Trimax, Inc.
$ _________________
Quintex, Inc.
$ _________________
Why is the break-even point for Quintex, Inc. higher?
_________________
3.
Suppose that both companies experience a 50 percent increase in revenues. Compute the
percentage change in profits for each company.
Trimax
_________________ %
Quintex
_________________ %
3.
Exercise 16.22
CVP Analysis of Multiple Products
Steinberg Company produces commercial printers. One is the regular model, a basic model that is
designed to copy and print in black and white. Another model, the deluxe model, is a color printer-
scanner-copier. For the coming year, Steinberg expects to sell 90,000 regular models and 18,000
deluxe models. A segmented income statement for the two products is as follows:
Required:
eBook
eBook
eBook

Show entire document

Leave a Comment