Managerial Accounting



Item Name

Assume that Timberland Company uses a responsibility accounting

Assume that Timberland Company uses a responsibility accounting system for evaluating its managers, and that abbreviated performance reports for the company's three divisions for the month of March are as presented on the following page (amounts in thousands). The West Division manager is very disturbed over his performance report and recent rumors that his division may be closed because of its...

Assume that United Technologies is evaluating a proposal to chan

Assume that United Technologies is evaluating a proposal to change the company's manual design system to a computer-aided design (CAD) system. The proposed system is expected to save 10,000 design hours per year; an operating cost savings of $40 per hour. The annual cash expenditures of operating the CAD system are estimated to be $200,000. The CAD system requires an initial investment of...

Assume that Waycross Manufacturing manages its cash flow from it

Assume that Waycross Manufacturing manages its cash flow from its home office. Waycross controls cash disbursements by category and month. In setting its budget for the next six months, beginning in July, it used the following managerial guidelines: Category Guidelines Purchases ………… Pay half in current and half in following month. Payroll ……………. Pay 80 percent in current month...

Assume that you plan to open a soft ice cream

Assume that you plan to open a soft ice cream franchise in a resort community during the summer months. Fixed operating costs for the three-month period are projected to be $5,250. Variable costs per serving include the cost of the ice cream and cone, $0.25, and a franchise fee payable to Snowdrift Cooler, $0.10. A market analysis prepared by Snowdrift Cooler indicates that summer sales in the...

Assume the local DHL delivery service hub has the following

Assume the local DHL delivery service hub has the following information available about fleet miles and operating costs: Required Use the high-low method to develop a cost-estimating equation for total annual operating costs.

Assume the local LensCrafters has the following information on t

Assume the local LensCrafters has the following information on the number of sales orders received and order-processing costs. Required a. Use information from the high-and low-volume months to develop a cost-estimating equation for monthly order-processing costs. b. Plot the data on a scatter diagram. Using the information from representative high-and low- volume months, develop a...

Assume the same facts as given in Exercise E-23. Required

Assume the same facts as given in Exercise E-23. Required With a 40 percent tax rate and a 14 percent time value of money, determine the annual unit sales required to break even on a time-adjusted basis.

Assume the same facts as given in P12-32, except that

Assume the same facts as given in P12-32, except that management intends to use double-declining balance depreciation with a switch to straight-line depreciation (applied to any undepreciated balance) starting in Year 4. Required Determine the project's net present value.

At the beginning of October, the Comfort Cushion Company had

At the beginning of October, the Comfort Cushion Company had 2,400 cushions and 7,740 pounds of raw materials on hand. Budgeted sales for the next three months are: Month Sales October ………………………….......... 8,000 cushions November …………………………...... 10,000 cushions December …………………………....... 12,000 cushions Comfort Cushion wants to have...

At the end of business on June 30, 2009, the

At the end of business on June 30, 2009, the Wooly Rug Company had 100,000 square yards of rugs and 400,000 pounds of raw materials on hand. Budgeted sales for the third quarter of 2009 are: Month Sales _______ July …………………………………………… 200,000 sq. yards August ………………………………………... 180,000 sq. yards September...