I have attached an Excel Spreadsheet. Need answers to the questions. Must use cell referencing for answers. thanks

I have attached an Excel Spreadsheet. Need answers to the questions. Must use cell referencing for answers. thanks

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this exam outside the discussion board.
This is an individual assignment and should be completed by each student on their own.
I realize some of you maybe best friends or relatives, but this is an individual assignment and you should not be working as a team.
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responsible adult with high academic and moral standards.
There is no
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Therefore, any student found cheating or presenting material in a dishonest
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.
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files with the solution to any member of the class.
I always have a
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Worth 10 pts.
Grading Rubric:
Requirement Points
Covers material in chapters 7 and 8.
1
0.5
2
1
DATA
3
1
ABC, Inc. is a newly organized manufacturing business this year.
4
1
The following company’s costs and expenses are:
5
1
6
1
Sales price per unit
$50
7
0.5
Manufacturing costs:
Fixed Costs
Variable Costs
8
1
Direct materials
$9
9
0.5
Direct labor
6
10
0.5
Variable Manufacturing overhead
3
11
1
Fixed Manufacturing overhead
$25,000
12
1
Period expenses:
10
Variable Selling and administrative expenses
4
Fixed Selling and Administrative expenses
31,000
Totals
$56,000
$22
Units produced
5,000 units
Units sold
4,800 units
Required:
Use the information in the DATA field above using cell referencing to answer the following requirements.
1.
Calculate the unit cost for variable costing.
Review Exhibit 8-2 on page 328.
2.
Calculate the unit cost for absorption costing.
Review Exhibit 8-2 on page 328.
3.
Prepare an absorption-costing income statement.
Review Exhibit 8-3 on page 329.
4.
Prepare a variable-costing income statement. Review Exhibit 8-3 on page 329.
5.
Reconcile the differences in income that you calculated in #3 and #4 using exhibit 8-4 on page 330 as your guide or use the shortcut reconciliation on page 330-331.
6.
Calculate the breakeven point in units.
Reference page 279.
7.
Calculate the breakeven point in sales dollars.
8.
Calculate the safety margin in Dollars.
Explain what
the margin of safety means in your own words using this project? Reference page 285.
9.
Calculate the operating leverage.
Reference page 296
10.
What if sales volume increases by 4% how much will income increase in percentage terms?
Make sure you have read over the DOL discussion and
understand the multiplier impact of changes in sales volume that occurs based on DOL.
You should only have to change the direct labor in the data area and actually all your answers should be updated.
Please put the direct material cost back to the original number once you have answered the question?
You should only have to change the fixed MOH in the data area and actually all your answers should be updated.
Please put the fixed MOH cost back to the original number once you have answered the question?
Solution:
1.
2.
Variable costing
Absorption Costing
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total per unit cost
3.
ABC Company Inc.
Absorption Costing Income statement
Sales revenue
Less: Cost of goods sold
Gross Margin
Less:
Selling and administrative expenses
Variable
Fixed
Net income
4.
ABC Company Inc.
Variable Costing Income statement
Sales Revenue
Less: Variable Expenses:
Variable manufacturing costs
Variable Selling and administrative costs
Contribution margin
Less: Fixed Expenses:
Fixed manufacturing overhead
Fixed selling and Administrative expenses
Net income
5.
I am using a modification of the short cut method on page 331 as my model.
Change in inventory:
Units produced
Units sold
Increase in inventory
Fixed overhead rate
Difference in fixed overhead expensed
Net income:
Absorption costing
Variable costing
Difference
6.
Break even in units
Units
7.
Break even in sales $
8.
Safety Margin in Dollars
On page 297 I realize the author uses budgeted sales revenue in the margin of safety calculation, but if you are
given the actual sales revenue you can replace budgeted sales with actual sales, which you should do for #8.
9.
What does the margin of safety mean?
Be very explicit in your answer, so I know you understand this concept and the importance of it to managers.
10.
Calculate the operating leverage .
Reference page 296
11.
What if sales volume increases by 4% how much will income increase in percentage terms?
Make sure you have read over the Operating leverage discussion and
understand the multiplier impact of changes in sales volume that occurs based on operating leverage.
You should only have to change the direct labor in the data area and actually all your answers should be updated.
Please put the direct material cost back to the original number once you have answered the question?
You should only have to change the fixed MOH in the data area and actually all your answers should be updated.
Please put the fixed MOH cost back to the original number once you have answered the question?
Project 3
is due by Tuesday, October 15th.
Send via the assignment area and make sure you save your file with first initial of first name and last name.
You will be graded on the accuracy of your answer and usage of cell referencing in the DATA area.
Total pts.
Possible
11.
What if the direct material
cost per unit increases from $9 a unit to $10, what will be the new
breakeven in units?
Explain why it changed.
12.
What if the manufacturing overhead cost decreases from 25,000 to 20,000, what will be the new
breakeven in units?
Explain why it changed.
12.
What if the direct material
cost per unit increases from $9 a unit to $10, what will be the new
breakeven in units?
Explain why it changed.
13.
What if the manufacturing overhead cost decreases from 25,000 to 20,000, what will be the new
breakeven in units?
Explain why it changed.
Guidance:
This difference should 
equal the difference in net 
income below.

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