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Mid-term Test Management Accounting (BKB0018) 30 January 2012 Solutions 1

Antwoordsleutel Midterm 2012

Er waren drie geheime versies. U weet pas in welke groep u zat na publicatie van het resultaat OF alsu op een of meer vragen let waarvan u zeker weet dat u het goed hebt, en het antwoord verschilttussen de versies, en u zoekt deze vragen terug in de gepubliceerde versie.

Groep 1 Correct Groep 2 Groep 3

1 B D D

2 D C A

3 D D C

4 C A D

5 D C C

6 A D C

7 C C E

8 D C B

9 C E A

10 C B B

11 E A E

12 B B D

13 A E A

14 B D E

15 E A C

16 D E A

17 A C A

18 E A C

19 C A B

20 A C D

21 A B E

22 C D B

23 B E D

24 D B C

25 E D D

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Mid-term Test Management Accounting (BKB0018) 30 January 2012 Solutions 2

Numerical solutions:

Question 5

1,000 250 160 = 590

Question 6

60 + 10 + 18 + 32 = 120

Question 7

4 + 16 = 20

Question 8

Cost of Goods Manufactured Schedule

Direct materials used 378,000Direct manufacturing labor 480,000Manufacturing overhead

Depreciation of manufacturing equipment 264,000

Indirect manufacturing labor 186,000Indirect materials 84,000Miscellaneous plant overhead 135,000Plant utilities 92,400Property taxes on building 28,800 790,200

Manufacturing costs incurred 1,648,200Add beginning work-in-process inventory 140,400Total manufacturing costs 1,788,600Less ending work-in-process inventory 171,000Cost of goods manufactured 1,617,600

Question 11

Cost driver rate for machining:

$500,

,$25

000

20 000 machine hoursper machine hour=

Cost driver rate for finishing:

$400,

$500,.

000

00080%= of direct labor cost

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Mid-term Test Management Accounting (BKB0018) 30 January 2012 Solutions 3

Question 12

Service Dept. Cost Allocation: Direct Method

Service Departments Production DepartmentsMaintenance Power Casting Assembly

Directlyidentifiedcosts 750,000 450,000 150,000 110,000

Allocation ofMaint. Dept.Costs

a (750,000) 500,000 250,000

Allocation ofPower Dept.Costs

b (450,000) 250,000 200,000

0 0 900,000 560,000

a 000,250

000,40000,80

000,40000,750;000,500

000,40000,80

000,80000,750 =

+

=

+

b

000,200000,160000,200

000,160000,504;000,250

000,160000,200

000,200000,450 =

+

=

+

Cost driver rate: Castingmachine hours

per machine hour

=

=

$900,

,

$11.

000

80 000

25

Cost driver rate: Assemblydirect labor hours

per direct labor hour

=

=

$560,

,

$9.

000

60 000

33

Direct labor and material costs 32.000

Support costs:

Casting (1 11.25) 11.250

Assembly (0.5 9.33) 4.665 15.915

Unit cost 47.915

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Mid-term Test Management Accounting (BKB0018) 30 January 2012 Solutions 4

Question 13

M P

P M

= +

= +

$750, .

$450, .

000 01

000 04

Therefore,

M= 750,000 + 0.1 (450,000 + 0.4 M)

M= 795,000 + 0.04 M

0.96M= 795,000

M

P

= =

= + =

$795,

.$828,

, . $828, $781,

000

096125

450 000 04 125 250

Casting Assembly

Directlyidentifiedcosts 150,000 110,000

Allocationof Maint.Dept. costs

828,125 40% =331,250 828,125 20% =165,625

Allocationof PowerDept. costs 781,250 50% =390,625 781,250 40% =312,500

871,875 588,125

Cost driver rate: Casting

Cost driver rate: Assembly

Direct labor and material costs 32.0000

Support costs:

Casting (1 10.8984) 10.8984

Assembly (0.5 9.8021) 4.9011 15.7995

Unit cost 47.7995

=

=

$ ,

,

$ .

871 875

80 000

10 8984 per machine hour

=

=

$ ,

,

$ .

588 125

60 000

9 8021 per labor hour

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Mid-term Test Management Accounting (BKB0018) 30 January 2012 Solutions 5

Question 14

Budgeted contribution per unit = 11.60 - 3.40 (5% x 11.60) = 7.62Break-even point (units) = (430,500 + 198,150) / 7.62 = 82,500 unitsBreak-even point (sales value) = 82,500 x 11.60 = 957,000Budgeted Sales = 1,044,000 = 90,000 x 11.60Margin of safety () = 1,044,000 - 957,000 = 87,000Margin of safety (%) = 87,000 / 1,044,000 = 8.3%

Question 15

Budgeted contribution per unit = 12.25 - 3.40 (8% x 12.25) = 7.87Break-even point (units) = (430,500 + 198,150) / 7.87 = 79,879 units

Question 16

Total budgeted contribution = 80,000 x 4 + 20,000 x 5 = 420,000Average contribution per unit = 420,000 / 100,000 = 4.20Break-even point (units) = 273,000 / 4.20 = 65,000 unitsAverage selling price per unit = (80,000/100,000) x 12 + (20,000/100,000) x 8 = 11.20Break-even point (sales revenue) = 65,000 x 11.20 = 728,000

Question 17

Number of sales units required

units31,625$16

*$200,000$306,000

marginoncontributiunitnew

profitnettargetcostsfixednew

=

+=

+=

to earn target net profit, givenmanufacturing changes

*Last year's profit: ($50)(25,000) $1,050,000 = $200,000New unit contr. margin $16 = $20 - $4.00 ($9.00 $5.00 increasein the unit cost of the new part)

Question 18

.40*$50

$20ratiomargin-oncontributiOld

pricesales

marginoncontributiunitratiomargin-onContributi

==

=

*Sales price, given in problem.

Let Pdenote the price required to cover increased direct-material cost and maintain the samecontribution margin ratio:

(rounded)$56.67$34.60.40$34

.40$4*$30

=

=

=

=

P

P

PPP

P

* Old unit variable cost = $30 = $750,000 25,000 unitsIncrease in direct-material cost = $4

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Mid-term Test Management Accounting (BKB0018) 30 January 2012 Solutions 6

Question 19

Manufacturing support cost driver rate

=+

=

$ , ,

, ,

$ .

11500000

100000 300000

2875perdirectlaborhour.

Costs Per Unit Product X21 Product Y37

Direct materials cost 120.00 140.00

Direct labor cost

2 10 20.00

3 15 45.00

Manufacturing support cost

28.75 (100,00050,000) 57.50

28.75 (300,000100,000) 86.25

Unit cost 197.50 271.25

Question 20

Costs Allocated to Products

Activity Activity Costs

Cost

Driver

Quantity

Cost Driver

Rate X21 Y37

Handling 3,000,000 60,000 50 50 40,000 50 20,000

Number

of parts 2,400,000 20,000 120 120 12,000 120 8,000

Design

changes 3,300,000 3,000 1,100 1,100 2,000 1,100 1,000

Setups 2,800,000 14,000 200 200 8,000 200 6,000

Total 11,500,000 7,240,000 4,260,000

Costs Per Unit X21 Y37Direct materials cost 120.00 140.00

Direct labor cost 20.00 45.00

Manufacturing support cost

7,240,000 50,000 144.80

4,260,000 100,000 42.60

Unit cost 284.80 227.60

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Mid-term Test Management Accounting (BKB0018) 30 January 2012 Solutions 7

Question 22

Slope coefficient = (138,000 120,000) / (4,520,000 4,120,000) = 0.045 per kwh

Constant = 138,000 (0.045 x 4,520,000) = 65,400

Kilowatt-hour estimating equation = -65,400 + 0.045KWH

Question 23

Job Hours Cumulative Cumulative Average1 5 5 52 4 9 4.5

Learning percentage = 4.5/5 = 0.90

Question 24

Y = p Xq

= 5 x 16-0.3219

= 2.048 hours

or 1 unit = 52 units = 5 x 0.8 = 44 units = 4 x 0.8 = 3.2

8 units = 3.2 x 0.8 = 2.5616 units = 2.56 x .8 = 2.048 hours