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Key Figures for the Exercises, Problems and Cases To Accompany Managerial Accounting Creating Value in a Dynamic Business Environment 9th Edition McGraw-Hill/Irwin 2011 by Ronald W. Hilton CHAPTER 1 No key figures. CHAPTER 2 E 2-24Beginning inventory of finished goods, case I: $84,000 E 2-251. Total compensation: $720 E 2-262. Total overtime premium: $20 E 2-292. Cost of goods sold: $820,000 E 2-30(f)$77,000 (o)$110 E 2-312. Cost per call, February: $ . 27 E 2-33Annual differential cost: $33,000 P 2-382. Cost of goods manufactured: $913,200 P 2-39Direct material used: $40,000 P 2-402. Net income: $168,000
P 2-41Net income, case A: $110,000 P 2-421. a. Total prime costs: $2,680,000 P 2-421. d. Manufacturing overhead: $534,000 P 2-432. Cost of goods sold: $580,000 P 2-442. Total cost of wages: $608 P 2-51Direct material, 20×2 forecast: $3,600,000 P 2-556. $370 P 2-572. Output of 20,000 bottles, profit: $26,000 C 2-601. a. 60,000 copies CHAPTER 3 E 3-241. Predetermined overhead rate at 300,000 chicken volume: $ . 43 per chicken (rounded) E 3-273. Cost of goods manufactured: $665,000 E 3-281. Applied manufacturing overhead: $750,000 E 3-29Total cost: $7,470 E 3-301. Cost of goods manufactured: $643,100 E 3-312. Gross margin: $63,000
E 3-321. Purchases: $336,000 E 3-33Underapplied overhead: $16,000 E 3-341. Predetermined overhead rate: $13. 30 per hour E 3-352. c. Overapplied overhead: $11,000 E 3-37Overhead: 9,600 euros E 3-412. Overhead rate: 108% 3. Applied overhead: $3,456 P 3-421. Total manufacturing costs: $175,100 3. Net income: $7,100 P 3-431. Predetermined overhead rate: $12 per hour P 3-454. Finished-goods inventory increased by $203,000 P 3-461. Predetermined overhead rate: 130% of direct labor cost 6. Cost of goods sold: $15,309,300 P 3-471. Traceable costs: $2,500,000 P 3-482. Ending work-in-process inventory is carried at a cost of $153,530 P 3-491.
Predetermined overhead rate: $20 per machine hour P 3-502. Cost of goods sold (adjusted for underapplied overhead): $1,770,000 P 3-521. Cost of goods manufactured: $348,000 P 3-533. Underapplied overhead: $6,000 P 3-554. Predetermined rate: $4. 44 per hour (rounded) P 3-562. Cost of job 77: $200,675 6. Underapplied overhead for November: $4,575 P 3-571. Predetermined overhead rate: $21 per direct-labor hour 4. Total actual overhead: $33,900 7. Income (loss): $(1,625) P 3-58Total cost of job T81: $34,050 P 3-595. $80,000 P 3-601. Total budgeted overhead (departments A and B): $800,000 3.
Departmental overhead rate, Department A: $26 per direct-labor hour C 3-613. Finished-goods inventory, 12/31: 13,400 units 4. Actual manufacturing overhead: $4,392,000 C 3-623. Manufacturing overhead applied in December: $90,000 6. Cost of goods manufactured: $2,968,800 CHAPTER 4 E 4-153. 750,000 gallons E 4-171. 6,000 equivalent units E 4-18Total equivalent units, conversion: 2,902,000 E 4-19Units completed and transferred out during the year: 125,000 E-4-20Costs per equivalent unit, total: $570 E 4-21Costs per equivalent unit, direct material: $11. 00 E 4-221. Cost of goods completed and transferred out during September: $520,000 E 4-232.
Cost remaining in February 28 work in process: $25,100 E 4-242. Total product cost, professional: $35. 00 P 4-253. Costs per equivalent, total: $4. 77 P 4-262. Total equivalent units, conversion: 226,000 P 4-27Cost remaining in ending work-in-process inventory: direct material: $123,750 Total cost of July 31 work in process: $202,950 P 4-281. b. Costs per equivalent unit, direct material: $5. 60 P 4-292. Equivalent units, direct material: 110,000 P 4-302. Costs per equivalent unit, total: $11. 43 5. Work-in-Process inventory (credit): $1,143,000 P 4-311. Overhead applied: $379,500 3. Cost of the ending work-in-process inventory: $324,000
P 4-323. Cost of the June 30 work-in-process inventory: $34,600 P 4-33Total equivalent units, conversion: 71,000 Total cost of May 31 work-in-process: $167,500 P 4-342. Total cost of returns in process on February 28: ? 14,250 P 4-35Cost of goods completed and transferred out during November: $306,300 P 4-361. Total product cost, deluxe model: $207,900 P 4-372. Conversion cost per unit in department II: $10,00 per unit 5. Cost of an etched, colored glass sheet: $76. 25 per sheet P 4-382. Unit cost, reflective ceralam housings: $200. 00 C 4-394. Weighted-average unit cost of completed leather belts: $6. 10
Total cost of October 31 work in process: $4,700 CHAPTER 5 E 5-263. Material-handling cost per lens: $500 E 5-272. The traditional product-costing system undercosts the Satin Sheen product line, with respect to quality-control costs by $525 E 5-351. Total cost per order size (small): $185,400 P 5-461. Total cost, standard: $157 2. The manufactured cost of a standard unit: $181 P 5-472. Machine-related costs for REG line: $135,000 3. Total cost per unit, under ABC, for GMT line: $663. 90 4. Cost distortion per unit for ADV line: overcosted by $8. 85 P 5-491. Type A manufacturing overhead cost: $160 per unit 2.
The manufactured cost of a type A cabinet: $243. 50 P 5-502. E-commerce consulting, income: $22,040 3. Activity-based application rate, staff support: $720 per client Billings, information systems services: $387,500 P 5-523. Predetermined overhead rate: $31. 25 per machine hr. P 5-531. Unit cost per plate: $260. 25 P 5-542. Total cost, royal: $4,431,900 P 5-552. The total contribution margin expected from the PC board: $2,360,000 3. Using activity-based costing, the total contribution margin expected from the TV board: $2,557,100 P 5-562. New product cost, under an activity-based costing approach: $7. 46 per pound of Kona P 5-572.
Pool rate, plant-related costs: $50 per sq. ft. 5. New target price, odds: $605. 16 P 5-581. Total Material-Handling Department costs: $288,000 3. There is a $74,600 reduction in material-handling costs allocated to government contracts 4. The cumulative dollar impact of the recommended change in allocating material-handling department costs: $234,346 P 5-591. b. Tuff Stuff unit cost: $28. 00 3. Fabricating cost per unit, Tuff Stuff: $4. 93 per unit (rounded) 4. Ruff Stuff unit costs, cost with overhead assigned on direct-labor hours: $37. 50 P 5-605. Reported product costs, activity-based costing system, product G: $141. 67 6.
Reported product costs, activity-based costing system, product T: $163. 74 CHAPTER 5 (continued) P 5-62Traditional system undercosts product W by: $120. 25 per unit P 5-661. Operating income, Trace Telecom: $7,000 P 5-67Tele-Install, operating profit: $(18,000) C 5-683. Total cost, JR-14, estimated 20×2 product cost: $1,540,000 4. Gross margin, RM-13: $(113,000) C 5-692. Product costs based on activity-based costing system, Standard Model: $437. 75 3. New target price, Heavy-Duty Model: $248. 73 C 5-70Traditional system undercosts Deluxe Model by $222. 75 per unit CHAPTER 6 E 6-242. December cost predictions, production crew: $5,250 E 6-252.
Energy cost: $22,600 E 6-303. Cost prediction at the 22,000-mile activity level, maintenance cost: $12,750r E 6-331. Monthly cost of flight service = $9,667 + $545X, where X denotes thousands of passengers E 6-341. Variable utility cost per hour: $2. 00 4. Cost prediction at 300 hours of operation, high-low method, utility cost: $1,100 P 6-362. Variable maintenance cost: $9 per hour P 6-372. Total cost for 1,650 tons: $823,500 P 6-383. Cost prediction at 590 hours of activity, maintenance cost: $4,995 P 6-403. Fixed-cost component: $12,010 P 6-413. Variable cost per unit of activity: $1. 00 P 6-422. Total monthly cost: $9,943 + $. 9 per unit of activity P 6-434. C: $1,567,000 P 6-445. Fixed cost: $150 P 6-453. Minimum bid for a 200-person cocktail party: $4,400 P 6-462. 2. Variable: $6. 77 per flight Fixed: $11,796 per month 4. Cost prediction for 1,600 flights: $22,628 C 6-472. Total variable cost per 1,000 square feet: $496. 25 5. b. Total incremental variable overhead: $3,285 C 6-486. Administrative cost = $7,000 + $3. 00X, where X denotes the number of patients C 6-491. High-low method, variable administrative cost per patient: $10 2. Total monthly administrative cost = $2,671 + $7. 81X, where X denotes the number of patients for the month CHAPTER 7
E 7-234. Break-even sales revenue: $62,500 E 7-242. Contribution-margin ratio: . 5 E 7-252. New break-even point (in units): 4,400 components E 7-262. The team must play 4 games to break even E 7-272. Safety margin: $160,000 E 7-282. Operating leverage factor (at $2,000,000 sales level): 4. 35 E 7-293. Weighted-average unit contribution margin: $162. 50 E 7-312. Decrease in net income: $30,000 E 7-322. Contribution margin: $(100,000) E 7-333. Service revenue required to earn target after-tax income of $48,000: $1,000,000 P 7-342. Net income: $280,000 P 7-352. Sales units required to earn income of $180,000: 54,000 units P 7-362.
Net income, model no. 4399: $1,094,400 P 7-372. Break-even point: 32,000 units P 7-382. c. Commissions will total: $535,600 P 7-391. Plan B break-even point: 2,200 units 3. Operating leverage factor, plan A: 1. 2 P 7-403. Number of sales units required to earn target net profit: 140,000 units 6. Old contribution-margin ratio: . 208 P 7-413. Margin of safety: $4,000,000 P 7-423. Break-even point (in units): 80,500 units P 7-431. Total fixed expenses: $1,491,980 2. Safety margin: $1,167,000 P 7-441. a. Computer-assisted manufacturing system, break-even point in units: 210,000 units P 7-451. Break-even sales volume, regular model: 27,500 tubs . Volume at which both machines produce the same profit: 37,500 tubs P 7-463. New break-even point (in units): 19,125 units 5. New contribution-margin ratio: . 40 (rounded) P 7-472. Break-even point (in units): 17,000 units P 7-482. Decrease in operating income: $(1,400) P 7-492. Total unit sales to break even: 162,500 units 3. Weighted-average unit contribution margin: $13. 00 P 7-503. Variable cost per ton: $275 per ton 6. Dollar sales required to earn target net profit: $1,140,000 P 7-513. Break-even point (in units) for the mountaineering model: 10,500 units P 7-522. Required sales dollars to break even: $19,692,308 C 7-531.
Contribution margin per patient-day: $200 2. Increase in revenue: $540,000 CHAPTER 7 (continued) C 7-541. b. In order to achieve its after-tax profit objective, Oakley must sell 2,500 units. 2. Alternative (3), after-tax profit: $204,000 C 7-551. Break-even point: $500,000 3. New contribution-margin ratio: . 15 CHAPTER 8 E 8-142. Inventoriable costs under absorption costing: $520,000 E 8-152. Predetermined fixed-overhead rate: $21 per unit E 8-162. Difference in fixed overhead expensed under absorption and variable costing: $2,500 E 8-171. b. Fixed overhead rate per unit: $110 E 8-182. Break-even point: 14,667 units
E 8-192. Inventoriable costs under variable costing: $575,000 P 8-212. a. Net income: $200,000 3. Cost of goods sold under absorption costing: $1,500,000 P 8-222. Net income: $25,000 P 8-231. Total contribution margin: $320,000 2. Break-even point: 25,000 units P 8-242. Budgeted variable manufacturing costs: $3,500,000 3. Increase in inventory (in units): 5,000 units P 8-251. Total variable cost: $39 2. b. Net income: $320,000 P 8-262. Net income: $263,000 P 8-272. a. Contribution margin per unit: $22 2. b. Projected net income for the year under absorption costing: $178,000 P 8-281. Total cost: $644,800 2.
Year-end inventory, throughput costing: $4,800 4. Net income: $51,200 P 8-291. a. Absorption cost per case is $42 b. Variable costing, operating income, year 2: $145,000 P 8-30Net income, year 1: $485,000 P 8-311. Operating income, year 1: $27,500 2. Operating income, year 2: $20,500 P 8-321. Cost of goods sold, year 1, absorption costing income statement: $52,500 Cost of goods sold, year 2, variable costing income statement: $17,500 5. a. Total sales revenue minus total costs expensed across both years, absorption costing: $41,000 P 8-334. Absorption costing, finished-goods inventory, end of year 1: $10,500 5.
Variable costing, reported income for year 2, $20,500 CHAPTER 9 E 9-222. Payments of accounts payable during 20×1: (1,100,000 euros) E 9-241. Required production during the year: 450,000 units E 9-252. Total collections in fourth quarter from credit sales in fourth quarter: $230,000 E 9-262. Total raw-material purchases during third quarter: $2,645,000 E 9-273. Expected cash balance, August 31: $21,880 E 9-29Total cash receipts at $100,000 sales level: $102,125 E 9-301. Budgeted cash collections for December: $208,000 E 9-311. Total direct professional labor cost: $144,000 P 9-321. Total direct-labor cost for the quarter: $470,155 P 9-332.
Faculty needed: 672 P 9-342. Total cash disbursements, February: $121,000 P 9-355. December 31 inventory: 1,900 units P 9-361. Total cash disbursements, April: $9,785,000 Ending cash balance, June: $2,605,000 P 9-382. Planned production, June: 15,000 sets 4. Planned direct-labor cost, May: $378,000 P 9-392. Conversion cost budget: $245,040 4. Increase in cost of raw material: $100,820 P 9-402. Production required (units), heavy coils: 41,000 6. Manufacturing overhead budget for 20×0, total manufacturing overhead: $1,464,250 P 9-421. Operating income: $179,600 Total compensation, management consulting: $245,000
P 9-431. Total sales revenue: $1,100,000 3. Cost of purchases (paperboard): $97,000 5. Total overhead: $148,500 7. Predetermined overhead rate: $40 per hour P 9-442. Increase in sales: 11. 5% P 9-452. Total cash receipts, first quarter: $1,367,030 4. Total cash disbursements, first quarter: $1,213,576 6. Required short-term borrowing: $(100,000) 7. Net income: $160,656 C 9-481. Total sales revenue, entire year: $5,650,000 3. Production budget, S frames, units to be produced, entire year: 254,000 4. Cost of metal strips to be purchased, entire year: $1,150,000 5. Total cash payments for direct labor, entire year: $936,000 . Cost of goods sold: $3,850,000 8. Net income: $1,337,500 10. Total assets: $9,634,700 CHAPTER 10 E 10-281. Direct-labor efficiency variance: $8,000 unfavorable E 10-29Actual material cost: $194,400 E 10-32Direct-labor rate variance: $645 unfavorable E 10-33Standard material cost: $28,000 E 10-36Direct-labor rate variance: $35,000 U E 10-382. Delivery cycle time: 22 days E 10-40Cost of goods sold (debit): $22,300 P 10-422. Direct-material quantity variance: $750 favorable P 10-441. Direct-material price variance: $540 unfavorable P 10-452. Direct-labor efficiency variance: $495. 00 favorable 4.
Total material and labor variances: $902. 50 favorable P 10-46Direct-labor rate variance: $47,025 unfavorable P 10-471. Direct-labor efficiency variance: $4,343 F P 10-482. Direct-material quantity variance: $16,625 favorable P 10-501. b. Direct-labor efficiency variance, labor class III: $800 U P 10-511. Total standard unit cost: $8. 62 P 10-521. Total standard cost per 10-gallon batch: $30. 20 P 10-561. Charter Division, total bonus awarded for the year: $6,600 P 10-571. b. Total standard hours allowed: 37,200 hours 2. Direct-material price variance: $750 favorable P 10-581. Direct-material quantity variance: $300 U
P 10-591. Total standard cost of direct material in July, Finishing Dept: $7,500 2. Construction Dept, standard material cost: $48,000 3. Direct-material quantity variance, Construction Dept: $6,000 U P 10-60To close variances into Cost of Goods Sold (CGS): $5,770 (debit to CGS) C 10-622. Direct-material price variance: $1,900 U 3. Direct-material price variance (debit): $1,900 C 10-631. Actual output (in drums): 1,000 drums 2. Direct material, quantity variance, A: $2,500 U 3. Direct labor, actual hours, (mixers): 2,000 hr 4. Total of all variances for the month: $1,510 F CHAPTER 11 E 11-222.
Variable-overhead efficiency variance: $60,000 U E 11-231. Flexible budget, variable overhead: $240,000 E 11-24Efficiency variance: $60,000 U E 11-261. Applied fixed overhead: $108,000 E 11-271. Total standard hours: 2,100 E 11-282. Variable electricity cost, 30,000 patient days: 90,000 euros E 11-30Actual production in units: 24,000 E 11-311. f. Total overhead cost: $60,300 E 11-32Fixed-overhead volume variance: $240,000 (positive or “unfavorable”) E 11-33Cost of goods sold (debit): $97,000 E 11-34Sales-volume variance: $12,000 unfavorable P 11-35Actual variable-overhead rate: $3. 10 P 11-364. Budgeted overhead cost for July: $11,800
P 11-381. d. Variable-overhead efficiency variance: $8,850 F P 11-393. Direct material used: $20. 00 per unit Variable manufacturing overhead: $6. 25 per unit Supervisory salaries: $36,000 per month P 11-401. Medical assistants, budget: $11,060 Medical assistants, actual: $13,020 3. Variable-overhead spending variance: $20,856 F P 11-412. Variable-overhead spending variance: $2,310 F 5. Variable-overhead is underapplied by $42,065 P 11-422. Advertising, flexible budget: $1,650,000 P 11-431. Operating income: $122,400 2. Operating income, flexible budget variance: $45,400 U P 11-442. Case A: $7. 00 per hour 5. Case B: $18,000 4. Case B: 1,000 units P 11-45Total variable expenses, activity level (air miles), 38,000: $93,100 4. Total variable expenses, flexible budget: $78,400 P 11-47Contribution margin, actual: $59,400 P 11-483. $11 per machine hour 5. Standard variable-overhead rate per machine hour: $10. 10 per machine hour 8. Variable-overhead efficiency variance: $10,100 unfavorable 11. Fixed overhead cost: $324,000 P 11-49Direct-labor efficiency variance: $13,500 unfavorable Fixed-overhead budget variance: $1,000 unfavorable P 11-501. a. Variable-overhead spending variance: $173,000 unfavorable 2. Cost of goods sold (debit): $218,000
P 11-51Flexible budget, variable overhead: $18,000 5. Fixed overhead applied to work in process: $25,000 CHAPTER 11 (continued) P 11-518. Cost of goods sold (debit): $14,130 P 11-522. Sales volume variance: $50,000 unfavorable P 11-531. Sales price variance: $456,000 U C 11-543. Actual fixed overhead: $43,250 7. Actual variable-overhead rate: $6. 30 per hr 10. Applied fixed overhead: $36,000 C 11-554. a. Direct-material price variance, total: $133,000 U e. Variable-overhead spending variance: $75,000 U h. Sales-price variance: $45,000 U CHAPTER 12 E 12-31Banquets & catering, flexible budget, March: $650 E 12-321.
Admissions, liberal arts: $36,000 E 12-33Profit margin controllable by segment manager, Metro: $400,000 E 12-35Appraisal costs: $42,000 P 12-421. Rocky Mountain General Hospital, total cost, flexible budget, August: $582,700 P 12-43Facilities, General Medicine: $71,250 P 12-441. Segment profit margin, Las Vegas: $161,560 P 12-452,3Total quality costs, no. 165: $439,900 P 12-46Profit margin traceable to segment, Olentangy store: $845,000 C 12-511. Net income, Boston store: $91,275 2. Portland store’s net income for May: $12,375 C 12-521. Operating income (loss), Canada: $421,000 CHAPTER 13 E 13-26Residual income: $1,800,000
E 13-27Weighted-average cost of capital: . 114 E 13-28Construction Division, economic value added: $4. 416 million E 13-291. b. Residual income: $615,000 E 13-331. ROI: 10% E 13-342. Transfer price: $300 E 13-352. Profit per unit in special order: $65 P 13-37Residual income, division A: $240,000 P 13-382. ROI: 25% P 13-40Year 2, ROI based on net book value: 12. 5% P 13-41Year 1, residual income (based on net book value): $5,000 P 13-423. Income: $150,000 5. Current residual income of the Northeast Division: $148,000 P 13-431. Capital turnover: 80% P 13-441. Weighted-average cost of capital: . 1056 P 13-451.
The weighted-average cost of capital: . 0972 2. Atlantic Division, economic value added: $(12,181,200) P 13-462. a. Transfer price: $65 P 13-474. Produce diode and sell externally, contribution margin: $275 P 13-482. U. S. operation, income after tax: $24. 00 3. German operation, income after tax: $36. 00 P 13-492. Total contribution margin, Mining Division: $15,200,000 C 13-502. Residual income, RLI: $120,000 C 13-511. Increase in net income before taxes: $132,000 3. Increase in net income before taxes for Interglobal Industries: $312,500 C 13-522. Unit contribution margin, LDP: $6 5. Net savings if TCH-320 is produced using an HDP: $112. 0 CHAPTER 14 E 14-33Profit on ice cream counter: $6,500 E 14-371. Cost of replacing the 1,000 kilograms to be used in the special order: 8,700p E 14-41Unit contribution margin, uno: $3. 00 E 14-433. The objective function value at the optimal solution: $132 total contribution margin E 14-441. Cost savings per machine hour if manufactured, blender: $4 P 14-451. Net contribution to profit: $34,050 P 14-461. Unit contribution margin, Enhanced Model, $200 P 14-471. Income (loss) from closure: $(12,800) P 14-482. Contribution margin per direct-labor hour, Deluxe Model: $12 P 14-501. a. Savings if purchased from Marley: $(15,440)
P 14-51Total revenue from further processing $460,000 P 14-521. Incremental contribution margin: $42,945 P 14-531. Total variable cost per unit: $10. 50 2. Quantity of component B81 to be purchased: 4,000 units P 14-542. Increase in monthly cost: $23,000 P 14-552. Contribution from sale to Kaytell: $53,848 P 14-562. Accepting the special order will result in a total additional contribution margin of $37,500 P 14-572. Contribution margin, product M07: $93 2. Total contribution margin: $113,250 P 14-582. Costs to be avoided by purchasing (ABC analysis), total: $810,750 P 14-593. Total contribution margin: $55,000
P 14-603,4Contribution margin at the optimal solution: $4,500 P 14-612. a. Contribution margin, RL: $10. 30 C 14-621. Contribution per hour, tackle boxes: $26. 40 2. Improvement in contribution margin: $236,250 C 14-63Unit contribution, E-gauge: $19. 00 CHAPTER 15 E 15-303. Of the five candidate prices listed, $900 is the optimal price E 15-321. Profit: 79,000p E 15-341. Markup percentage: 131. 25% E 15-351. Allocated fixed selling and administrative cost: $40 E 15-372. Material component of price: $8,736 P 15-382. Total incremental profit: $552,000 P 15-392. Total bid price: $14,950 P 15-404. Target profit: $2,520,000 P 15-413.
Required cost reduction: $24 P 15-423. Maximum allowable cost: $76. 00 P 15-431. The order will boost Graydon’s net income by: $27,900 P 15-443. Pharsalia Electronics’ current profit on sales is 10 percent P 15-452. Total price of job: $77,600 P 15-462. Bid price: $29. 90 P 15-471. Predetermined overhead rate: $10 per direct-labor hour 5. Price, Advanced Model: $588. 80 C 15-482. a. Contribution margin, Standard: $350 C 15-492. Variable overhead rate: $5. 40 CHAPTER 16 E 16-26Net present value using 10% discount rate: 193 euros E 16-281. Net present value using 8% discount rate: $25,419 E 16-29Annuity discount factor: 4. 968
E 16-30Salary expense, after-tax cash outflow: $22,400 E 16-321. Book value: $11,155 E 16-33Present value of depreciation tax shield, MACRS accelerated depreciation: $24,134 E 16-34Profitability index for 8%: 1. 07 E 16-35 2. Net present value with 10% discount rate: $7,236 E 16-362. Net present value: $37,037 E 16-371. Payback period: 2. 25 years E 16-382. Net present value: $15,110 E 16-391. Nominal interest rate: . 32 (or 32%) P 16-40Net present value: $1,829 P 16-41Difference in NPV of costs: $(2,270,200) P 16-42Net present value of excess cash outflows with interior stations: $(2,270,200) P 16-43Net present value: $239,410
P 16-441. Old machine, net present value: $(494,605) P 16-451. Initial cost of investment: $(429,440) P 16-461. Present value of annual benefits: $361,600 P 16-47Initial cost of investment: $429,440 P 16-48Computer-controlled printing press, present value of tax shield: $72,126 P 16-491. Total initial cash outflow: $(312,000) P 16-50Computer expert’s salary and fringe benefits (after-tax): $(56,000) Tax effect of gain on sale: $(15,000) P 16-51Net present value: $68,098 P 16-52Total after-tax cash flow, 20×1: $(964,000) 3. Total after-tax cash inflow (years 20×2, 20×3, 20×4): $910,360 P 16-531. a)Mall restaurant, net present value: $25,700 2. (b)Downtown restaurant, profitability index: 1. 10 (rounded) P 16-541. (a)Payback period, mall restaurant: 8 years P 16-552. Accounting rate of return (ARR) using initial investment: . 125 P 16-56The increase in annual before-tax sales revenue could fall to: $34,840 CHAPTER 16 (continued) P 16-571. Time 0 cash outflow: $(188,000) 3. Net present value: $56,204 P 16-58Time 0 cash outflow: $(188,000) C 16-594. Present value of incremental annual cash flows: $129,780 Acquisition cost of minibuses: $(216,000) 5. Initial cost if the minibuses are purchased: $(231,250) P 16-601.
Net present value: $47,359 CHAPTER 17 E 17-15Library cost allocated to liberal arts: $360,000 E 17-16Library cost allocated to sciences: $259,200 E 17-17Computing department cost allocated to loan: $94,500 E 17-18Computing department cost allocated to deposit: $144,000 E 17-20Yummies, allocation of joint cost: $18,000 E 17-21Crummies, allocation of joint cost: $13,650 E 17-221. Incremental revenue less incremental cost: $ . 50 E 17-23HR department cost allocated to deposit: $114,167 P 17-241. HR department cost allocated to assembly: $138,889 3. HR department cost allocated to CAD: $12,500
P 17-251. a. Variable costs, CAD, allocated to machining: $37,500 b. Fixed costs, HR department, allocated to assembly: $117,647 P 17-261. Overhead rate per hour, etching: $10. 602 (rounded) 2. Maintenance department costs allocated to finishing: $87,111 P 17-272. CBL, allocation of joint cost: $225,000 3. MSB, net realizable value: $200,000 P 17-281. Plantwide overhead rate: $20. 55 per direct-labor hour 2. c. Rate, molding: $37. 44 per MH P 17-291. HTP-3, net realizable value: $1,926,000 3. Additional processing costs per gallon: $2. 33 (rounded) P 17-301. Omega, joint cost allocation: $9,000 . Kappa, net realizable value: $20,000 P 17-312. Joint cost allocation, VX-4: $900,000 3. Incremental revenue: $160,000 P 17-321. Ultrasene, relative proportion: 40% 3. b. Ultrasene, separable cost of processing: $88,000 P 17-33M = $100,000, where M denotes the “total” cost of the Maintenance Department Service department costs allocated to Etching: $192,000 P 17-341. Variable costs: H = $17,551 (rounded), where H denotes the “total” cost of the HR Department Total variable cost allocated to orthopedics: $29,705 2. H = $59,848 (rounded), where H denotes the “total” cost of the HR Department
Total fixed cost allocated to internal medicine: $151,918 C 17-352. Juice, net realizable value: $17,000 3. Allocation of joint cost, slices: $30,160 C 17-361. Total joint cost: $210,000 2. b. Resoline, sales value at split-off point: $200,000 APPENDIX I No key figures. APPENDIX II E II-73. You need to invest $12,000 per year E II-91. You need to accumulate $1,854,900 APPENDIX III E III-3Case C, EOQ: 40 E III-41. Safety stock: 15 tons E III-53. Total annual cost of ordering and storing XL-20: $2,400 E III-61. Minimum total annual costs (ordering costs + holding costs): $2,400 E III-81. Reorder point: 400 canisters