Examen Contabilidad De Costo

PROBLEMS CHAPTER 5 (100 POINTS)

PROBLEM 1 (50 pts)

Aunt Ethel's Fancy Cookie Company manufactures and sells three flavors of cookies: Macaroon, Sugar, and Buttercream. The batch size for the cookies is limited to 1,000 cookies based on the size of the ovens and cookie molds owned by the company. Based on budgetary projections, the information listed below is available:Macaroon Sugar Buttercream
Projected sales in units 500,000 800,000 600,000

PER UNIT data:
Selling price $0.80 $0.75 $0.60

Direct materials $0.20 $0.15 $0.14
Direct labor $0.04 $0.02 $0.02

Hours per 1000-unit batch:
Direct labor hours 2 1 1
Oven hours 1 1 1
Packaging hours 0.5 0.5 0.5

Total overhead costs and activity levelsfor the year are estimated as follows:

Activity Overhead costs Activity levels
Direct labor 2,400 hours
Oven $210,000 1,900 oven hours
Packaging $150,000 950 packaging hours
$360,000


Required:

a. Determine the activity-cost-driver rate for packaging costs.

Respuesta: $150,000 / 950 =$157.89 per packaging hour

b. Using the ABC system, for thesugar cookie:

1. compute the estimated overhead costs per thousand cookies.
Respuesta:$210,000 / 1,900 hours= $110.53 per oven hour
1 x 110.53 = 110.53
.5 x 157.89 =78.95
110.53 + 78.95 = $189.48

2. compute the estimated operating profit per thousand cookies.
Respuesta: Revenue = 1,000 x 0.75 =750.00
Direct Material= 1,000 x .015 = (150.00)
Direct Labor = 1,000 x .02 =(20.00)
Overhead = (189.48)
Operating Profit =$ 390.52

c. Using a traditional system (with direct labor hours as the overhead allocation
base), for the sugar cookie:.

1. compute the estimated overhead costs per thousand cookies.
Respuesta: $ 360,000 / 2,400 =$ 150.00 per direct labor hour

2. compute the estimated operating profit per thousand cookies.Respuesta: Revenue = 1,000 x .75 = 750.00
Direct Material = 1,000 x .015 = (150.00)
Direct Labor = 1,000 x .02 = (20.00)
Overhead = (150.00)
Operating Profit =$ 430.00

d. Explain the difference between the profits obtained from the traditional
system and the ABC system. Which system provides a better estimate of
profitability? Why?
Respuesta: En el sistema deABC para sacar el resultado del Overhead tienes que hacer más cálculos que en el sistema tradicional, que solo haces una división que sería el total de los Overhead cost entre el Direct labor hours.
Para estimar el Profit operating en el sistema tradicional hay que restar un Overhead menor que en el sistema ABC.
En mi opinión yo escogería el sitema ABC porque el Overhead cost es menor y eloperating profit me da a una mayor ganancia.


PROBLEM 2 (35 pts)

Brilliant Accents Company manufactures and sells three styles of kitchen faucets: Brass, Chrome, and White. Production takes 25, 25, and 10 machine hours to manufacture 1000-unit batches of brass, chrome and white faucets, respectively. The following additional data apply:

BRASS CHROME WHITE
Projected sales in units 30,00050,000 40,000

PER UNIT data:
Selling price $40 $20 $30

Direct materials $ 8 $ 4 $ 8
Direct labor $15 $ 3 $ 9
Overhead cost based on direct labor hours
(traditional system) $12 $ 3 $ 9

Hours per 1000-unit batch:
Direct labor hours 40 10 30
Machine hours 25 25 10
Setup hours 1.0 0.5 1.0
Inspection hours 30 20 20
Total overhead costs and activity levels for the year are estimated asfollows:

Activity Overhead costs Activity levels
Direct labor hours 2,900 hours
Machine hours 2,400 hours
Setups $465,500 95 setup hours
Inspections $405,000 2,700 inspection hours
$870,500

Required:
a. Using the traditional system, determine the operating profit per unit for each style of faucet.
Respuesta:
Operating profit per unit for Brass faucets is $5 = $40 –($8 + $15 +...