# accounting 349 week 4 - 9588

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• Due on: Thu 10 May, 2012 (03:29am)
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Description

Prepare written responses to the following assignments from Managerial Accounting: Tools for Business Decision Making:

Every page has one question. Acc 349 (Cost Accounting). It should have it complete work on excel with formulas.

5-1 Classify costs as variable, fixed, or mixed.

(SO 1, 3)

Monthly production costs in Ogden Company for two levels of production are as follows.

 Cost 2,000 units 4,000 units Indirect labor \$10,000 \$20,000 Supervisory salaries 5,000 5,000 Maintenance 2,500 4,000

Indicate which costs are variable, fixed, and mixed, and give the reason for each answer.

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E 5-4

 E5-4 Compute break-even point and margin of safety. (SO 5, 6, 8) The San Marcos Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at \$50 a night. Operating costs are as follows.

 Salaries \$8,500 per month Utilities 2,000 per month Depreciation 1,000 per month Maintenance 500 per month Maid service 5 per room Other costs 33 per room

Instructions

1. Determine the inn's break-even point in (1) number of rented rooms per month and (2) dollars.
1. If the inn plans on renting an average of 50 rooms per day (assuming a 30-day month), what is (1) the monthly margin of safety in dollars and (2) the margin of safety ratio?

BE 6-6

 BE6-6 Determine whether to sell or process further, joint products. (SO 5) Each day, Dunham Corporation processes 1 ton of a secret raw material into two resulting products, AB1 and XY1. When it processes 1 ton of the raw material the company incurs joint processing costs of \$60,000. It allocates \$25,000 of these costs to AB1 and \$35,000 of these costs to XY1. The resulting AB1 can be sold for \$90,000. Alternatively, it can be processed further to make AB2 at an additional processing cost of \$50,000, and sold for \$150,000. Each day's batch of XY1 can be sold for \$90,000. Alternatively, it can be processed further to create XY2, at an additional processing cost of \$50,000, and sold for \$130,000. Discuss what products Dunham Corporation should make.

 BE6-8 Determine whether to eliminate an unprofitable segment. (SO 7) Bitterman, Inc., manufactures golf clubs in three models For the year, the Big Bart line has a net loss of \$5,000 from sales \$200,000, variable costs \$175,000, and fixed costs \$30,000. If the Big Bart line is eliminated, \$15,000 of fixed costs will remain. Prepare an analysis showing whether the Big Bart line should be eliminated..

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