Chapter 1. The Accountant’s Role in the Organization
1-17 a. Prod b. Dist c. Des d. R&D e. CS or Mark f. Des or R&D g. Mark h. Prod
1-18 a. Mark b. Des c. CS d. R&D e. Mark f. Prod g. Mark h. Dist
1-19 a. Prod b. Dist c. Mark d. Mark e. Mark f. Prod g. Des or R&D h. CS
1-20 a. Innov b. Cost & Qual c. Time d. Time & Cost e. Cost
1-21 a. Time & Cost b. Time, Quality & Cost c. Quality & Cost d. Innov & Quality e.
Cost
1-22 a. Planning b. Control c. Control d. Planning e. Planning
1-23 a. Planning b. Control c. Planning d. Planning e. Control
1-24 a. OI b. MP c. I P&U d. IE&L e. MP f. MD g. OI
1-25 a. MD b. I P&U c. OI and/or MP d. OI and/or MP e. MP f. OI
1-29 1. a. CL b. PD c. CL d. PD
1-30 1. a. CL b. PD c. CL d. PD
1-31 1. CB 2. B-T 3. Dif 4. CB 5. B-T 6. CB 7. B-T 8. Dif 9. B-T
1-32 1. CB 2. B-T 3. Dif 4. CB or B-T 5. B-T 6. CB 7. Dif
1-33 1. CFO CFO CFO Cont Cont CFO Cont Cont
1-36 2.Unacceptable: (c) (d) and (e) Gray to acceptable area: (a), (b), (f)
1-37 1.Unacceptable: (a) (c) (f) and (i) Acceptable: (d) (e) and (g) Gray area: (b) and (h)

Chapter 2. An Introduction to Cost Terms and Purposes
2-21 1. S, $1.1856 D, $1.0213 R, $0.6400 2. Total $527.69
2-22 1. rubber D/V, reinf cables D/V, other dm D/V, dep form I/F or V, dep mix I/F or V, rent
I/F, ins I/F, fact util I/F and V, fin labor D/V or F, mix mgr I/F, matl hand I/F or V, cust
I/F, guard I/F, mach mix I/F or V, mach maint I/F or V, maint sup I/V, clean sup I/F,
mach form I/F or V. 2. Dep. MM, MDM, MH, Mach. Mix, Mach.MP, MS
2-23 A. D/V B. I/F C. I/F D. I/F E. I/V F. I/F G. D/V H. I/V I. I/F
2-24 A. D/F B. I/F C. D/V D. D/F E. I/F F. I/V G. I/F H. D/V
2-25 A. D/V B. I/F C. I/F D. D/V E. D/V F. I/V G. D/V H. I/F I. I/F
2-26 2. 100 mins; Plan A; 240 mins; Plan B; 540 mins; Plan C
2-27 1. VC=$2,950/surfer FC per month=$367,040 (0-100)
$392,000 (101-200); $576,870 (201 +) 3. (a) $7,538 (b) $5,764
2-28 1. 0 to 60,000 jaw breakers 2. FC=$15,050 VC=$0.40 per jaw breaker
3. RelR=60,000 to 120,000 FC=$15,700 VC=$0.36 per jaw breaker
2-29 1. DP, DP, M, P, D, D, CS
2-30 1. 1. # of Bills 2. # of Emp 3. # of Comp 4. # of Units Mfd 5. # of PO 6. # of
PM 7. # of Inv 2. 1. # of Checks 2. # of Interv 3. # of CT 4. # of DL
Empl 5. # of Matl Types 6. Dist Trav 7. # of Cr Sales Trans
2-31 2. Total=$31,000; $310/attendee 3. Total=$41,125; $235/attendee
2-32 2. FC=$28,000 VC per flange=$1 (material) + $2.80(labor)
2. OI $(7,000) 3. OI $24,000.
2-33 3. a. inv b. inv c. per d. per e. inv f. per g. per h. per
2-34 1a.Purch $152,000 1b.COGS $145,000 2. OI $34,000
2-35 1a. Purch $575,000 1b. COGS $558,900 2. OI $34,040
2-36 1. $85 2. $185 3. $775 4. $180 5. $1,790 6. $20
2-37 1. COGM=$133,000 thousand 2. OI=$69,000 thousand
2-38 COGM=$812,000 thousand OI=$258,000 thousand
2-39 OI=$50 million COGM=$645 million
2-40 5. DM used=$320/unit Dep=$80/unit 6. Total DM=$384 mil Total dep=$80 mil
2-41 OI=$15 million COGM=$224 million
2-42 1. Prime costs=$158 million, Conversion costs=$101 million
2. Total inv costs=$219 million Period costs=$90 million
4. DM used=$59 per unit Dep=$3 per unit 5. TDMC=$177 million
Total dep=$6 million 6. (a) $3 million (b) $4.5 million
2-43 1. (a) $4,068 (b) $372 (c) $756 (d) $5,196
2-44 1. $105,000 2. $95,000 3. $42,500
2-45 1. $1,610 2. 9,000 units 3. $5.20 per unit 4. OI $44,170
2-47 1. $14/unit 3. $32,200
2-48 A. $34,000 B. $1,000 C. $20,500 D. $7,500

Chapter 3. Cost-Volume-Profit Analysis
3-21 a. $2,400; $200; 75% b. $1,400; $1,600; 44%
c. $200; $0; $300; 40% d. $900; $1,100; $100
3-22 1a. $3,280,000 1b. $1,640,000 2a. $5,740,000 2b. $410,000
3-23 1a. 500 1b. 713 2a. 470 2b. 670 3a. 1,175 3b. 1,675 4a. 940 4b. 1,340
3-24 Orig $500,000 1. $850,000 2. $150,000 3. $350,000 4. $650,000 5. $675,000
6. $325,000 7. $550,000 8. $725,000.
3-25 1.(a) $100,000 (b) $2,250,000 2. $(100,000) 3. $110,000 4. $190,000
5. 4,950,000 6. 3,680,000
3-26 1. 37 cars 2. 69 cars
3-27 1. $1,023,750 2.(a) 82,000 (b) 117,000 3. $295,680
3-28 1. 250,000 2. (a) 292,000 (b) 302,500 3. BE decreases to (a) 275,000 (b) 266,520
(c) 181,250
3-29 CM% = 60% 2. SP = $40 3. MS = $1,900,000
3-30 1. (a) 39 (b) 0 2. 78 carpets or $7,410; Q>78, Option 1; Q<78, Option 2; 3. Option 1:
2.5; Option 2: 1.0
3-31 Portugal BE 38,462; $9,615,500; OI $8,100,000; Italy BE 29,412; $7,353,000; OI
$8,600,000; Thailand BE 51,429; $12,857,250; OI $5,000,000
3-32 1. 150,000 2. $2,200,000 3. (a) 165,000 (b) 137,500
3-33 1. 91,000 2. $324,000 3. 94,500
3-34 1. 30 concerts 2. 45 concerts 3. 35 concerts
3-35 1. $198,000 2. 33% 3. Incremental OI=$41,500
3-36 1. OI $20,000 2. 40%; BE 15,000 units; BE $150,000 revenues 3. 5,000 units 4. NI
$2,800
3-37 1. CS: 300,000; $18,500,000 700,000; $40,500,000
PAS: 300,000; $19,500,000 700,000; $37,500,000
FAS: 300,000; $21,500,000 700,000; $31,500,000
2. CS: $30,050,000; PAS: $28,950,000; FAS: $26,750,000
3-38 1. 475 2. $4,200,000 3. $1,240 4. 300
3-39 1. 12 2. 39 3. $100
3-40 1. BE 400 MOS 100 2. (a) BE 200 MOS% 60% (b) BE 400 MOS% 30% (c) BE
350 MOS% 30%
3-41 1. $89,100 2. 13,000 3. $108,900 4. $490,000 5. $805,000 6. $17,250
3-42 1. $115,000 2. $95,000 3. $68,000 4. $120,000.
3-43 1. (a) 9,000 (b) $540,000 2. $(20,000) 3.(a) 8,500 (b) $510,000
4. (a) 10,000 (b) $600,000 5. $54,000
3-44 1. Sal $34,500; Com $20,000 2. Sal 11,500; Com 12,450 3. $25,750
3-45 1. Fixed BE = 30,000 Commission BE = zero 2. 0-37,500 Commission; >37,500
Fixed 3. Fixed EV = $500; Commission EV = $400
3-46 1. 360 2. 625 3. 600 4. 333 (rounded)
3-47 1. (a) 1,112 (b) 1,412 2. Alt a: NI=$882,000 Alt b: NI=$1,533,500 Alt c:
NI=$655,800
3-48 1. Agents: 42%; $19,404,762; 2.23 Own sales force: 52%; $22,442,308; 2.76
3. $38,946,808
3-49 1. 150,000 2. CM $340,000; OI $85,000 3. OI $65,000; BE 159,380 units

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3-50 1. F: 6,000; $540,000 P: 9,000; $990,000 2. F: 6,400; $576,000 P: 9,600;
$1,056,000 3. 5,200 bundles
3-51 1. 135,000 Standard plus 45,000 Deluxe 2. (a) 225,000 (b) 112,500
3. OI=$750,000 BE bundles 37,500 BE 150,000 Standard plus 37,500 Deluxe
3-52 1. OI $(5,200) 2. OI $575
3-53 1. $5,400,000 2. $4,200,000 3. $360,000
3-54 1. P: 73,500; M: 47,200 2. $3,628,800 3. P: 120,000; M: 72,000; OI = $4,094,400

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Chapter 4. Job Costing
4-21 Job costing a c e f g k l n o p q s u
Process costing b d h i j m r t
4-22 1. B 180% A 195% 2. A $187,750 N $181,000 3. N underallocated $247,500
4-23 1. B $40 A $42 2a. L $181,600 M $208,580 2b. L $183,540 M $210,580
4-24 1. $19 per mh 2. $3,724,000 3. overallocated $64,000
4-25 1. M $50 A 170% 2. $172,300 3. M $150,000 under; A $(140,000) over
4-26 1. 125% 2. 250% 3. TC $35,550; BP $39,500
4-27 1. 2Q $187; 3Q $337. 2. 2Q $201; 3Q $201. 3. 2Q $241.20; 3Q $241.20
4-28 1. $23 per dlh 2. dr. WIP Control $4,347,000 3. cr. COGS $10,000
4-29 2. (11) dr. MOH Allocated $2,080; cr. MOH Control $1,950; cr. COGS $130
4-30 8. dr. MOH Allocated $269,700; cr. MOH Control $261,500; cr. COGS $8,200
4-31 3. dr. MOH Allocated $93; dr. CGS $1; cr. MOH Control $94 4. $115
4-32 1. M1 $592,000 M2 $448,920 2. $370
3. dr. FG Control $592,000 cr. WIP Control $592,000 4. $448,920 dr. balance
4-33 1. (a) $53; $48 (b) $53; $45 (c) $60; $45
3. (a) $18,685 (b) $18,130 (c) $19,425
4-34 1a. D: $25 I: $14 1b. D: $25 I: $15 1c. D: $26 I: $15
3a. $3,081 2b. $3,160 2c. $3,239
4-35 1. 50% 2. underallocated $3,000 3. COGS a. $552,250 b. $551,200 c. $551,200
4-36 2. M $52; F 200% 3. $10,400 4. $78
5. M $250,000 underallocated F $200,000 overallocated Total $50,000 underallocated
4-37 2. $65 3. $55 4. R $14,400 P $19,200
4-38 1. PL $140 AL $50 2. GS $45 SS $60 3. R $18,600; P $20,000 4. R $4,200
undercosted; P $800 undercosted
4-39 1. $60 2. $400,000 underallocated;
COGS a. $8,400,000 b. $8,320,000 c. $8,320,000 3.(c) is theoretically preferred
4-40 1 a. $1,640,000 1 b. $2,560,000 2. $620,000
4-41 1. Fab. $38,400 Fin. $36,000 2. Fab. underallocated $4,200 Fin. underallocated
$3,800 3. COGS $364,800
4-42 1. cr. $148,000 2. $380,000 3. $705,000 4. $190,000 5. $700,000
6. $45,000 underallocated 7.(a) COGS $745,000 (b) COGS $731,500
8. WO $(5,000); P $8,500
4-43 1a. dr. WIP Control $8,600 dr. MOH Control $2,800 cr. WP Control $11,400
1b. dr. WIP Control $9,460 cr. MOH Allocated $9,460 2a. $119,800 2b. $176,600
2c. $194,260 2d. $36,060 2e. $438,000 3. dr. MOH Allocated $194,260 cr. MOH
Control $190,800 cr. COGS $3,460
4-44 1. 140% of LC 2. $537,950 3. underallocated $2,200 4. COGS a. $540,150 b.
$539,992
4-45 1a. $45,000 1b. $1,408,000 1c. $2,930,000 2. $108,000 overallocated 3. NOI
$8,000 4. NOL $(10,036)
4-46 1. $151,000 2. $99,000 3. underallocated $5,000 4. CCJ a. $104,000 b. $100,980
c. $100,385

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Chapter 5. Activity-Based Costing and Activity-Based Management
5-18 1. a. unit-level b. batch-level c. unit-level d. batch-level e. product-sustaining
f. unit-level g. facility-sustaining
5-19 1. Unit-level: a, b Batch-level: c Service-sustaining: d
2. HT $20.50 ST $12.33
5-20 1. SAD $28,132 AE $14,092 2. SAD $26,890 AE $16,090
5-21 1. $56 per mh SM $16,800 CM $207,200 JA $56,000 Total $280,000
2. $70 per dh; $50 per eh; $44 per mh SM $30,200 CM $185,300 JA $64,500
Total $280,000
3. SM 1.80 CM 0.89 JA 1.15
5-22 1. Basic DC $110,000; Total unit cost $17.60 Deluxe DC $90,000; Total unit cost
$28.80 2. Form Basic $48,000 Deluxe $32,000; Assem Basic $15,000 Deluxe $25,000 3.
TC Basic $160,200 Deluxe $159,800
5-23 1. M $5.60 F $3.70 2. M $11.60 F $9.70
5-24 1. $2,700,000 2. Chan $2,070,000 Hen $3,170,000 Man $2,860,000 3. Design Chan
10% Hen 50% Man 40%; Engin Chan 32% Hen 32% Man 36%; Const Chan 35% Hen 33%
Man 32%
5-25 1. Standard $525.83 Special $560.83
2. Standard $473.57 Special $665.36
5-26 1. I $97.97 E $144.95 2. I $85.10 E $167.82
5-27 1. BG $6,700; MFJ $200; FP $8,900
2. BG $160; MFJ $2,780; FP $12,860
5-28 1. $3,260 2. $(8,410) 3. $19,965 4. $10,070
5-29 1. #220 $588.60 #330 $1,373.40 2. #220 $969 #330 $953
5-30 1. L $(233.70) W $80.60 C $602.30
5-31 2. SE $780,000 BI $520,000
5-32 1. $40 2. SE $669,000 BI $631,000
5-33 1. SE $621,000 BI $679,000
5-34 1. DMLS $291,000 OP $228,000 DS $249,000 O $132.000 2. $10,224
5-35 1. EJ $68,400 LC $562,800 LD $118,800 O $90,000 2 and 3. $35,771.40
5-36 Budg. costs per serv. 1. X-rays $58.83 U $122.93 CT $291.23 MRI $473.85
2. X-rays $46.50 U $112.64 CT $267.36 MRI $539.12
5-37 1. GSC 2.91% DC 4.76% MSS 9.09%
2. (1) $40 per order (2) $3 per line item (3) $47.973 per delivery
(4)$1 per carton (5) $16 per hour
3. Activity-based cost: GSC $58,997 DC $71,510 MPSS $170,573
OI: GSC $49,003 DC $78,490 MSS $9,427
5-38 (1) (2) (3)
DM – Purses Unit-level Number of bags $103.79 per purse
DM – Backpacks Unit-level Number of bags $73.68 per backpack
DL – Purses Unit-level Number of bags $32.20 per purse
DL – Backpacks Unit-level Number of bags $18.30 per backpack
Setup Batch-level Number of batches $320 per batch
Shipping Batch-level Number of batches $365 per batch
Design Product-sustaining Number of designs $42,250 per design
Plant U&A Facility-sustaining Hours of production $52 per hour

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4. Budgeted cost per bag B $133.00 P $225.00
5-39 1. (a) MSR $2,200/patient-year RCMR $6.60/sq foot ACR $4,400 per patient-year
LSR $44/test (b) D $1,531,000 AC $1,406,000
5-40 1. Setup is $210 per batch; E&M is $4.80 per mh; LRIU is $15 per sq ft
2. Cost of unused capacity is $42,000 3. B $487,200; $8.40 V $637,500; $7.50
5-41 1. 30% of DLC; $75/batch; $8/MH; $25/sq. ft. 2. $62,500 3. B $90.90 D $165.50
5-42 1. Gross margin: Mam $9,349,890 Max $140,910
5-43 1. OI: Clothing $166,700 Equip $(32,500) Shoes $120,800
2. OI: Clothing $131,500 Equip $94,500 Shoes $29,000

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Chapter 6. Master Budget and Responsibility Accounting
6-21 1. Total revenues $5,884,200 2. Total revenues $5,992,200
6-22 217,000
6-23 2,558,000
6-24 Prod budget–FG 44,000 units Pur budget–DM 124,000 gallons
6-25 1. 332,500,000 pesos 2. 91,000 units 3. 72,000,000 pesos
6-26 1. $4,296,000 2. 5,680,000 3. 660,000 1-gallon units
6-27 1. Wool: 7,200,000 skeins; $14,445,800 Dye: 160,000 gal; $959,680
2. Weaving: $2.55/DMLH Dyeing: $12/MH 3. $1,127.30
4a. $400,000,000 4b. $370,000,000 5a. $225,505,480 5b. $208,595,980
6a. GM $174,494,520 6b. GM $161,404,020
6-28 1. $15.00/DLH 2. $12/DLH 3. $324/job
4. $360,000 5. OI $36,000 6. OI $25,800
6-29 Production: Jan 12,000 Feb 8,500 Mar 11,000
DML: Jan $461,700 Feb $327,038 Mar $282,150
6-30 1. Total $13,574 Ordering $2,340 Del $3,813 SS $2,961 CS $4,460
SD $1,704 FP $8,506 PF $3,364 2. Fresh snacks (62.7%)
3. Ordering: SD 27%, FP 46%, PF 27%; Del SD 13%, FP 67%, PF 20%;
Shelf-stock SD 6%, FP 61%, PF 33%; Cust Sup SD 9%, FP 69%, PF 22%
6-31 1. Ordering $2,321 Del $3,783 SS $2,938 CS $4,424 Total $13,466
SD $1,691 FP $8,438 PF $3,337
6-32 1. (a) Prod. mgr. (b) Purch. mgr. 2. (a) Prod. mgr. (b) External forces
3. (a) Van 3 driver (b) Service mgr.
4. (a) Prestige’s service mgr. (b) Regency mgr.
5. (a) Service mgr. (b) Service mgr.
6. (a) Service mgr. (b) External forces
6-34 1. April $11,880 May $11,595 June $13,250
2. (a) $995 (b) $995.00; $3.50; $445.00; Borrow $246.50
6-35 1. a. $42,700; $73,710 b. 150; 205 c. Usage $27,135; Purch $26,830 d. $45,500
e. $42,250 f. $18,149 g. $102,741
6-36 1. $150,000 2. $31,916 diff.
6-37 1. $22,392,000 3. T1 74,000 T2 45,000 4. A 761,000 B 524,000 C 138,000
5. $15,051,000 6. $7,898,000 7. $10,378,000
6-38 OI = $3,684
6-40 1. $178,400 2. C 550 D 216 3a. P 3,496 lbs; $17,132 M 491 lbs; $1,901
3b. P 3,616 lbs; $18,080 M 486 lbs; $1,944
4. $27,300 5. M $7,875 P $101,540 I $417
6. C $168.60 D $296.20 Total ending inv $10,330
7. $153,795 8. $34,584 9. $(9,979)
6-41 Total cash available $181,089 Total disb $172,728 Ending cash $6,341
6-42 1. $1,885,000 2. 2,600 3. $1,024,480 usage $1,021,600 purchases 4. $377,000
5. $172,000 6. $13.23 per hour 7. $66 per unit 8. $607.00 9. $192,120
10. $1,639,480 11. $201,020
6-43 1. $1,744,000 collections; $920,800 disb. for MP; $42,000 42,000 disb. for FOH;
$267,700 end. cash bal. 4. $2,766,420 total assets
6-44 1. $528,000 2a. $0.2105 per sales dollar 2b. $45 per delivery

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3. C 12,600 units B 14,200 units
4a. $165 / setup hour 4b. $24 per mh 4c. $0.45 per unit
5. DM Usage Budget: P 176,600 oz., $52,956 B 227,200 bunches, $170,454
DM Pur Budget: P 176,766 oz., $53,030 B 227,652 bunches; $170,739
6. $0.225 per oz. of plastic
7. $62,460 8. MH $39,735 MS $26,895 P $41,640 I $12,060
9. Unit costs Ending FG inv: C $4.85 B $24.30
Ending Inventories Budget DM $2,233.80 FG $39,840.00 Total $42,073.80
10. $396,240
11. Mark $111,150 Dist $1,170 Total $112,320 12. OI $19,440
6-45 $548,700 cash avail. $567,034 cash disb. $25,666 end. cash
6-46 1. DM 790 lbs; DML 48.33 hrs; MT 39.33 hrs
6-47 1. 743,142 metric tons 2. $31,420 net benefit
6-48 1a. R $240,000 D $585,000 1b. R 2,150 units D 2,950 units
c. DM Usage Budget: Cloth 7,220 yds; $37,922 Wood 5,900; $44,310 Total $82,232
DM Pur Budget: Cloth 6,996 yds; $36,729 Wood 5,395; $40,463 Total $77,192
d. 31,400 hrs; $471,000 e. M Setup $4,734 Processing $56,520 Insp $6,885
f. Unit costs of Ending FG inv: R $92.90 D $142.91
Ending Inventories Budget: DM $4,239 FG $122,906
g. $614,340 h. $67,875
2. Total cash available $812,235 Total disb $682,939 Ending cash $128,546
3. NI $125,535 Total assets $1,275,627

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Chapter 7. Flexible Budgets, Direct-Cost Variances, and Management Control
7-21 1. FBV $20,500 U SVV $4,300 U SBV $24,800 U
7-22 1. FBV $15,100 U SVV $62,000 F SBV $46,900 F
7-23 1. SBV $17,000 U 2. FBV $19,000 F SVV $36,000 U
7-24 1. FBV: $15,000 U SVV: $15,000 F SBV $0
2. Actual SP $5.50 Budgeted SP $3.50 Actual VC $3.96 Budgeted VC $2.00
7-25 1. Units 13,000 F (2.91%) Rev $34,000 F (1.31%) VMC $86,900 U (5.55%)
CM $52,900 U (5.15%) 2. FBV $82,800 U SVV $29,900 F 3. $52,900 U
7-26 1. FBV $16 F SVV $46U 2. PV $1,120 F EV $1,104 U
7-27 DM: PV $14,000 F EV $11,000 F FBV $25,000 F
DML: PV $4,000 U EV $6,000 U FBV $10,000 U
7-28 1. DM: PV $1,300.00 U; EV $3,022.50 U DML: PV $70.50 U; EV $812.50 F
Total FBV $3,581.50 U; 9.69% (= $3,581.50/$36,952.50)
7-29 1. DM: PV $15,000 U; EV $2,002 F DML: PV $7,350 U; EV $750 F
2. cr. AP Control $465,000; cr. DM Control $441,248; cr. WP Control $154,350
7-30 1. DM: PV $1,240 U EV $2,200 F DML: PV $184 F EV $1,890 F
2. PV $1,740 U EV $2,200 F
7-31 cr. AP Control $35,340; cr. DM Control $34,100; cr. WP Control $9,844
7-32 1. Prov Budg VC $286.80; Amh Budg VC $288.43; Bev Budg VC $248.20
2. Prov DM: PV $111,000 U EV $58,000 U; DL: PV $18,750 U EV $5,250 U
Amh DM: PV $76,500 U EV $8,800 U; DL: PV $20,400 U EV $0 U
7-33 1. Static OI $2,246,000 2. Actual OI $3,195,500; FBV $137,000 U; SVV $1,086,500
3. PV $486,875 U; EV $691,875 U
7-34 1. Rev: FBV $192,000 F; SVV $1,496,000 U DM: FBV $8,700 U; SVV $176,000 F
DML: FBV $9,600 F; SVV $407,000 F FC: FBV $230,000 F
2. DM: PV $135,300 F; EV $144,000 U DML: PV $36,600 F; EV $27,000 U
7-35 1. Budget: Exp 84 offices Less Exp 28 offices; Actual Exp 120 offices Less Exp 20
offices
2. FBV: R $5,600 F VC $640 U OI $5,200 F SVV: R $3,800 F VC $570 U OI
$3,230 F
3. LEV: Exp $720 U; Less Exp $360 F
7-36 1. Act. OI $1,061,600 SBudg OI $1,691,000 2. Total SBB $629,400 U 3. FB
OI $1,422,900 4. FBV OI $361,300 U 5. SVV OI $268,100 U 6. PV DML $1,400 U;
EV DML $10,500 U 7. FBV DML $11,900 U
7-37 1. DM: PV € 4,300 F; EV € 4,500 U
DML: PV € 550 F; EV € 1,200 U
7-38 1. PV $5,200 F; EV $27,000 U
7-39 1. DML: PV $64,500 U EV $241,800 F
2. 195,600 lbs 3. $3.30 per pound 4. PV $69,000 U
7-40 1. $15,000 2. PV $598 F; EV $163 F 3. YieldV $750 U; MixV $315 F
7-41 1. 2,000 hours 2. 1,890 hours 3. $21/hour 4. 12,000 lbs 5. 12,600 lbs 6.
12,875 lbs 7. $4.27/lb
7-42 1. DM Wood: PV $150 F; EV $300 U DML: PV $125 F; EV $100 U
2. cr. AP Control $7,350; c. DM Control $7,500 cr. Wages Payable Control $2,375
7-43 1. Unit VC: A $28.57 B $38.50 C $25.52 D $30.61

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2. Firm B: DM PV $0.30 U / 2.94%; DM EV $0.77 F / -6.98%
DL PV $1.50 U / 12.00%; DL EV $3.75 U 42.86%
7-44 1. $6,000 2. DL: PV $0; EV $25 F 3. AQ 305 hrs.; BudgQ 300 hrs.
4. DL: Yield V $100 U; Mix V $125 F
7-45 1. $69,300 U 2-4. DM: Actual SP $0.05; CP $0.11; WFT $0.50
DML: Actual Setup $24.00; Fab $31.00 DM: PV $50,000 U; EV $64,300 U
DML: PV $14,400 U; EV $32,800 F
7-46 1. $48,000 2. PV $318 F; EV $2,200 U; FBV $1,882 U 4. Actual Mix 68%
skilled; 32% unskilled Std Mix 60% skilled; 40% unskilled 5. MixV $2,360 U; YieldV $800 F
7-47 1. Nav Syst: PV $0; EV $760 F Pol Gl: PV $500 F; EV $3,200 F
Plas Cas: PV $250 F; EV $450 F DML: PV $480 U; EV $2,880 F

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Chapter 8. Flexible Budgets, Overhead Cost Variances, and Management Control
8-21 1. FBV $324 U SV $2,268 F EV $2,592 U
8-22 1. SV $1,516 U 2. PVV $2,400 F
8-23 1. 62,000 hours 2. SV $149,760 U EV $52,000 F
8-24 1. SV $108,000 U PVV $32,000 U 2. Underallocated by $138,000
8-25 1. VMOH: SV $417U EV $1,364 F PVV Never a variance
FMOH: SV $1,410 U EV Never a variance PVV $6,580 F
2. VMOH a. cr. AP Control, etc. $12,693 b. cr. VMOH Allocated $13,640
c. cr. VMOH Control $12,693 d. cr. CGS $947
FMOH a. cr. Salaries Payable, etc. $15,510 b. cr. FMOH Allocated $20,680
c. cr. FMOH Control $15,510 d. cr. CGS $5,170
8-26 1. Var: (1) $3,500 U (2) $4,500 F (3) never (4) $1,000 F (5) $1,000 F
Fixed: (1) $500 U (2) never (3) $800 U (4) $500 U (5) $1,300 U
8-27 1. VMOH: SV $17,800 U EV $16,000 U FMOH: SV $13,000 U PVV $36,000 F
2. AP Control, etc. $245,000 WIP Control dr. $211,200 VMOH Control $245,000
Wages Payable Cont, etc. cr. $373,000 WIP Cont dr. $396,000 FMOH Cont $373,000
8-28 1. VMOH: SV $7,570 U EV $28,700 F FMOH: SV $10,101 U PVV $23,600 F
2. cr. AP Control, etc. $537,470; cr. Wages Payable Control, etc. $146,101; Cr. FMOH
Control $146,101
8-29 1. VOH: SV $1,680 U EV $840 F
2. FOH: SV $2,800 U PVV $11,900 U
8-30 1. DML: PV $9,375 F EV $7,500 U FBV $1,875 F
2. Total MOH: SV $1,500 U EV $3,500 U PVV $16,000 F
D = 8,800 dlh
8-31 1 and 2. SV $500 U PVV $4,560 U 4. SB OI $9,040 FB OI $42,900 SVV $13,600 U
8-32 VTO: SV $200 U; EV $120 U FTO: SV $300 F; PVV $1,920 F
8-34 1. a. DM PV $12,400 U b. DM EV $2,000 F
c. DML PV $175,200 U d. DML EV $95,200 F
e. VMOH SV $22,600 U f. VMOH EV $1,000 F
g. FMOH PVV $27,000 U h. FMOH SV $500 U
8-35 1. 1,830 2. $192.00 3. $42.00 4. 1,920 5. 960 6. 1.7
8-36 1. VMOH cr. AP Control, etc $71,808; cr. VMOH Alloc $80,640; Cr. VMOH Control
$71,808; FMOH cr. Wages Payable, etc. $360,672; cr. FMOH Alloc $368,640;
cr. FMOH Control $360,672 2. cr. COGS $16,800
8-37 2. a. VMOH: SV $75,000 U EV $750,000 U PVV Never a variance
b. FMOH: SV $100,000 U EV Never a variance PVV $2,125,000 F
4. FBV: $100,000 U PVV: $5,750,000 U Total FMOHV $5,850,000 U
8-38 A: VMOH EV $286 F FMOH SV $3,625 U FMOH PVV $3,400 U
B: VMOH Actual $10,511 VMOH AQ x BR $10,054 VMOH FB $10,340
FMOH SV $3,625 U FMOH Alloc $19,975 Total Budg MOH $33,715
8-39 1. $356,400 2-4. VMOH: SV $40,500 U; EV $19,500 F FMOH: SV $17,600 U
PVV $39,200 F
8-40 1. 15,000 crates 2. 12,000 crates 3. 18,000 crates 4. 13,500 hours; $4.00/hr.
5. PV $39,600 F; EV $162,000 U 6. SV $2,500 U; PVV $10,800 U
8-41 1. VOH: SV $54,500 F; EV $17,500 U FOH: SV $7,400 U; PVV $105,000 U

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Horngren's Cost Accounting: A Managerial Emphasis, 16th Edition Solution Manual

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