亨格瑞管理会计英文第15版练习答案05.doc

亨格瑞管理会计英文第15版练习答案05.doc

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CHAPTER5

COVERAGEOFLEARNINGOBJECTIVES

LEARNINGOBJECTIVE

FUNDA-

MENTALASSIGNMENT

MATERIAL

CRITICALTHINKINGEXERCISESANDEXERCISES

PROBLEMS

CASES,EXCEL,COLLAB.&INTERNETEXERCISES

LO1:

Discriminatebetweenrelevantandirrelevantinformationformakingdecisions.

23,30,37,38

49,50,51,54,57

66

LO2:

Applythedecisionprocesstomakebusinessdecisions.

28,29,39

LO3:

Constructabsorptionandcontribution-marginincomestatementsandidentifytheirrelevance

fordecisionmaking.

A1,B1

24,31,32,33,34,35

48

LO4:

Decidetoacceptorrejectaspecialorderusingthecontributionmargintechnique.

A2,B2

36,40

55,56,62

63,64

LO5:

Explainwhypricingdecisionsdependonthecharacteristicsofthemarket.

A2,B2

25,42

58

LO6:

Identifythefactorsthatinfluencepricingdecisionsinpractice.

26,41

47,52,53

65

LO7:

Computeatargetsalespricebyvariousapproaches,andcomparetheadvantagesanddisadvantagesoftheseapproaches.

A3

43,44

LO8:

Usetargetcostingtodecidewhethertoaddanewproduct.

A4,B3

27,45,46

59,60,61

CHAPTER5

RelevantInformationforDecisionMakingwithaFocusonPricingDecisions

5-A1 （40-50min.）

1. INDEPENDENCECOMPANY

ContributionIncomeStatement

FortheYearEndedDecember31,2009

（inthousandsofdollars）

Sales $2,200

Lessvariableexpenses

Directmaterial $400

Directlabor 330

Variablemanufacturingoverhead（Schedule1） 150

Totalvariablemanufacturingcostof

goodssold $880

Variablesellingexpenses 80

Variableadministrativeexpenses 25

Totalvariableexpenses 985

Contributionmargin $1,215

Lessfixedexpenses:

Fixedmanufacturingoverhead（Schedule2） $345

Sellingexpenses 220

Administrativeexpenses 119

Totalfixedexpenses 684

Operatingincome $531

INDEPENDENCECOMPANY

AbsorptionIncomeStatement

FortheYearEndedDecember31,2009

（inthousandsofdollars）

Sales $2,200

Lessmanufacturingcostofgoodssold:

Directmaterial $400

Directlabor 330

Manufacturingoverhead（Schedules1and2） 495

Totalmanufacturingcostofgoodssold 1,225

Grossmargin $975

Less:

Sellingexpenses $300

Administrativeexpenses 144 444

Operatingincome $531

INDEPENDENCECOMPANY

SchedulesofManufacturingOverhead

FortheYearEndedDecember31,2009

（inthousandsofdollars）

Schedule1:

VariableCosts

Supplies $20

Utilities,variableportion 40

Indirectlabor,variableportion 90 $150

Schedule2:

FixedCosts

Utilities,fixedportion $15

Indirectlabor,fixedportion 50

Depreciation 200

Propertytaxes 20

Supervisorysalaries 60 345

Totalmanufacturingoverhead $495

2. Changeinrevenue $200,000

Changeintotalcontributionmargin:

Contributionmarginratioinpart1

is$1,215÷$2,200=.552

Ratiotimesdecreaseinrevenueis.552×$200,000 $110,400

Operatingincomebeforechange 531,000

Newoperatingincome $420,600

Thisanalysisisreadilydonebyusingdatafromthecontributionincomestatement.Incontrast,thedataintheabsorptionincomestatementmustbeanalyzedandsplitintovariableandfixedcategoriesbeforetheeffectonoperatingincomecanbeestimated.

5-A2 （25-30min.）

1. Acontributionformat,whichissimilartoExhibit5-6,clarifiestheanalysis.

Without With

Special Effectof Special

Order SpecialOrder Order

Units 2,000,000 150,000 2,150,000

Total PerUnit

Sales $11,000,000 $660,000 $4.401 $11,660,000

Lessvariableexpenses:

Manufacturing $3,500,000 $322,500 $2.152 $3,822,500

Selling&administrative 800,000 35,250 .2353 835,250

Totalvariableexpenses $4,300,000 $357,750 $2.385 $4,647,250

Contributionmargin $6,700,000 $302,250 $2.015 $7,002,250

Lessfixedexpenses:

Manufacturing $3,000,000 0 0.00 $3,000,000

Selling&administrative 2,200,000 0 0.00 2,200,000

Totalfixedexpenses $5,200,000 0 0.00 $5,200,000

Operatingincome $1,500,000 $302,250 $2.015 $1,802,250

1 $660,000÷150,000=$4.40

2 Regularunitcost=$3,500,000÷2,000,000= $1.75

Logo .40

Variablemanufacturingcosts $2.15

3 Regularunitcost=$800,000÷2,000,000= $.40

Lesssalescommissionsnotpaid（3%of$5.50） （.165）

Regularunitcost,excludingsalescommission $.235

2. Operatingincomefromselling7.5%moreunitswouldincreaseby$302,250÷$1,500,000=20.15%.Notealsothattheaveragesellingpriceonregularbusinesswas$5.50.Thefullcost,includingsellingandadministrativeexpenses,was$4.75.The$4.75,plusthe40¢perlogo,lesssavingsincommissionsof.165¢cameto$4.985.Thepresidentapparentlywanted$4.985+.08（$4.985）=$4.985+.3988=$5.3838perpen.

Moststudentswillprobablycriticizethepresidentforbeingtoostubborn.Thecosttothecompanywastheforgoingof$302,250ofincomeinordertoprotectthecompany'simageandgeneralmarketposition.Whether$302,250wasawiseinvestmentinthefutureisajudgmentthatmanagersarepaidforrendering.

5-A3 （15-20min.）

Thepurposeofthisproblemistounderscoretheideathatanyofanumberofgeneralformulasmightbeusedthat,properlyemployed,wouldachievethesametargetsellingprices.Desiredsales=$7,500,000+$1,500,000=$9,000,000.

Thetargetmarkuppercentagewouldbe:

1. 100%ofdirectmaterialsanddirectlaborcostsof$4,500,000.

Computationis:

（$9,000,000-$4,500,000）÷$4,500,000=100%

2. 50%ofthefullcostofjobsof$6,000,000.

Computationis:

（$9,000,000-$6,000,000）÷$6,000,000=50%

3. [$9,000,000–（$3,500,000+$1,000,000+$700,000）]÷$5,200,000=73.08%

4. （$9,000,000-$7,500,000）÷$7,500,000=20%

5. [$9,000,000–（$3,500,000+$1,000,000+$700,000+$500,000）]÷$5,700,000 =$3,300,000÷$5,700,000=57.9%

Ifthecontractorisunabletomaintaintheseprofitpercentagesconsistently,thedesiredoperatingincomeof$1,500,000cannotbeobtained.

5-A4 （15-20minutes）

1. Revenue（$360×70,000） $25,200,000

Totalcostoverproductlife 16,000,000

Estimatedcontributiontoprofit $9,200,000

Desired（target）contributiontoprofit

40%×$25,200,000 10,080,000

Deficiencyinprofit $880,000

Theproductshouldnotbereleasedtoproduction.

2. Previoustotalestimatedcost $16,000,000

Costsavingsfromsuppliers

.20×.70×$8,000,000 1,120,000

Revisedtotalestimatedcost $14,880,000

Revisedtotalcontributiontoprofit:

$25,200,000-$14,880,000 $10,320,000

Desired（target）contributiontoprofit 10,080,000

Excesscontributiontoprofit $240,000

Theproductshouldbereleasedtoproduction.

3. Previousrevisedtotalestimatedcostfrom

requirement2. $14,880,000

Processimprovementsavings:

.25×.30×$8,000,000 $600,000

Lesscostofnewtechnology 220,000 380,000

Revisedtotalestimatedcost 14,500,000

Revisedtotalcontributiontoprofit:

$25,200,000-$14,500,000 $10,700,000

Desired（target）contributiontoprofit 10,080,000

Excesscontributiontoprofit $620,000

Theproductshouldbereleasedtoproduction.5-B1 （40-50min.）

1. KINGLANDMANUFACTURING

ContributionIncomeStatement

FortheYearEndedDecember31,2009

（Inthousandsofdollars）

Sales $13,000

Lessvariableexpenses:

Directmaterial $4,000

Directlabor 2,000

Variableindirectmanufacturing

costs（Schedule1） 960

Totalvariablemanufacturingcostofgoodssold $6,960

Variablesellingexpenses:

Salescommissions $500

Shippingexpenses 300 800

Variableclericalsalaries 400

Totalvariableexpenses 8,160

Contributionmargin $4,840

Lessfixedexpenses:

Manufacturing（Schedule2） $702

Selling（advertising） 400

Administrative-executivesalaries 100

Totalfixedexpenses 1,202

Operatingincome $3,638

KINGLANDMANUFACTURING

AbsorptionIncomeStatement

FortheYearEndedDecember31,2009

（Inthousandsofdollars）

Sales $13,000

Lessmanufacturingcostofgoodssold:

Directmaterial $4,000

Directlabor 2,000

Indirectmanufacturingcosts

（Schedules1and2） 1,662 7,662

Grossprofit 5,338

Sellingexpenses:

Salescommissions $500

Advertising 400

Shippingexpenses 300 $1,200

Administrativeexpenses:

Executivesalaries $100

Clericalsalaries 400 500 1,700

Operatingincome $3,638

KINGLANDMANUFACTURING

Schedules1and2

IndirectManufacturingCosts

FortheYearEndedDecember31,2009

（Inthousandsofdollars）

Schedule1:

VariableCosts

Cuttingbits $60

Abrasivesformachining 100

Indirectlabor 800 $960

Schedule2:

FixedCosts

Factorysupervisors'salaries $100

Factorymethodsresearch 40

Long-termrent,factory 100

Fireinsuranceonequipment 2

Propertytaxesonequipment 30

Depreciationonequipment 400

Factorysuperintendent'ssalary 30 702

Totalindirectmanufacturingcosts $1,662

2. Operatingincomewoulddecreasefrom$3,638,000to$3,268,000:

Decreaseinrevenue $1,000,000

Decreaseintotalcontributionmargin*:

Ratiotimesrevenueis.37×$1,000,000 $370,000

Decreaseinfixedexpenses 0

Operatingincomebeforeincrease 3,638,000

Newoperatingincome $3,268,000

*Contributionmarginratioincontributionincomestatementis$4,840÷$13,000=.37（rounded）.

Theaboveanalysisisreadilycalculatedbyusingdatafromthecontributionincomestatement.Incontrast,thedataintheabsorptionincomestatementmustbeanalyzedanddividedintovariableandfixedcategoriesbeforetheeffectonoperatingincomecanbeestimated.

5-B2 （30-40min.）

1