讲解 ACCT 222 Management Accounting调试Haskell程序

ACCT 222

REVISION FOR TERM TEST

ETHICAL BEHAVIOUR

The Alert Company is a closely held investment service group that has been very successful over the past five years, consistently providing most members of the top management group with 50 percent bonuses. In addition, both the chief financial officer and the chief executive officer have received 100 percent bonuses. Alert expects this trend to continue.

Recently, Alert’s top management group, which holds  35 percent of the outstanding  shares  of common  stock,  has  learned  that  a  major  corporation  is  interested  in  acquiring  Alert.  Alert’s management is concerned that this corporation may make an attractive offer to the other shareholders and management would be unable to prevent the takeover. If the acquisition occurs, this executive group is uncertain about continued employment in the new corporate structure. As a consequence, the management group is considering changes to several accounting policies and practices that, although not in accordance with generally accepted accounting principles, would make the company a less attractive acquisition. Management has told Roger Deerling, Alert’s controller, to implement some of these changes. Roger has also been informed that Alert’s management does not intend to disclose these changes immediately to anyone outside the top management group.

Required:

Using the code of ethics for management accountants, evaluate the changes that Alert’s management is considering, and discuss the specific steps that Roger should take to resolve the situation.            (Source: Hansen & Mowen (7th ed.): 1-14)

SUPPORT DEPARTMENT COST ALLOCATION

Barrylou Corporation is developing departmental overhead rates based on direct labour hours for its two production departments, moulding and assembly. The moulding department employs 20 people,- and the assembly department employs 80 people.  Each person in these two departments works 2,000 hours per year. The-production-related overhead costs for the moulding department are budgeted at $200,000, and the assembly department costs are budgeted at $320,000. Two service departments, repair and power, directly  support the two production departments and have budgeted costs of $48,000 and $250,000, respectively. The production department's overhead rates cannot be set until the service department's costs are properly allocated. The following schedule reflects the use of the repair department's and power department's output by the various departments.

Departments

Required:

1.      Calculate the overhead rates per direct labour hour for the moulding department  and the assembly department, allocating service department costs directly to production departments, without inter-service department cost allocation.

2.      Calculate the overhead rates per direct labour hour for the moulding department and the assembly department, allocating service department costs using the step-down method.

3.      Calculate the overhead rates per direct labour hour for the moulding department and the assembly department, using the reciprocal method to charge service department costs to each other and to the production departments.

ABSORPTION AND VARIABLE COSTING

Ziemble Company uses a predetermined overhead rate based on normal capacity expressed in units of output. Normal capacity is 75,000 units, and the expected fixed overhead cost for the year is $300,000.

During the year, Ziemble produced 74,000 units and sold 72,000 units. There was no beginning finished goods inventory. The variable-costing income statement for the year follows:

Any under or over-applied overhead is added to Cost of Goods Sold. Variable cost of goods sold is already adjusted for any variable overhead variance.

Required:

1.      Ziemble Company needs an income statement based on absorption costing for external reporting. Using the information provided, prepare this statement.

2.      Explain the  difference between the  income reported by variable costing and by absorption costing.      (Source: Hansen & Mowen (7th ed.): 15-5)

ACTIVITY ANALYSIS AND MANAGEMENT

Part 1

The following overhead cost information is available for the Christopher Co. Ltd for the year ended 30 June 20XX:

During the year, 30,000 purchase orders were issued, 25,000 shipments were received, machine setups numbered 2,700, and 22,000 inspections were conducted. A total of 11,000 direct labour hours were charged to various products. The corporate managers are trying to decide whether they should stick with a traditional allocation method, where overhead is allocated based upon direct labour hours, or switch to an activity-based costing system.

Required:

(a)     Assuming costs and activities will be approximately the same in the coming year, determine the overhead rate based upon direct labour hours.

(b)    Determine the overhead rate for each of the activities.

(c)     A job card for one particular batch of products had the following specifications:

Direct labour hours              7

Purchase orders                   7

Shipments received            10

Setups                                3

Inspections                          3

Compute the estimated overhead that would be allocated to this batch under traditional allocation.  Recalculate the overhead that would be allocated to this batch under activity-based costing.

(d)    Are there any differences in your two answers in (c)? If so, why? Which method do you think is better? Why?

Part 2

Identify which of the following items generate capacity-sustaining costs, product- or customer- sustaining costs, batch costs, or unit costs.

(a)   Piecework labour

(b)   Long-term lease on a building

(c)   Energy to run machines

(d)   Engineering drawings for a product

(e)   Purchase order

(f)   Movement of materials for products in production

(g)   Change order to meet new customer specifications