Albrecht 19.pdf - Marriott School
Albrecht 19.pdf - Marriott School
Albrecht 19.pdf - Marriott School
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
76154_23_ch19_p942-1006.qxd 3/1/07 3:35 PM Page 984<br />
984 Part 6 Control in a Management Accounting System | EOC<br />
PE 19-12<br />
LO3<br />
Segment Margin Statement<br />
The company reports the following costs and revenues for one of its segments:<br />
Net sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $728,000<br />
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416,000<br />
Selling and administrative costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104,000<br />
Advertising cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,400<br />
Insurance cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,000<br />
Of these costs, cost of goods sold and selling and administrative costs are variable, advertising<br />
is a direct fixed cost, and insurance is an indirect fixed cost. Using this information, prepare<br />
a segment margin statement for this segment.<br />
PE 19-13<br />
LO3<br />
PE 19-14<br />
LO3<br />
PE 19-15<br />
LO3<br />
Segment-Margin Ratio<br />
Refer to the data in PE 19-12. Compute the segment-margin ratio.<br />
Revenue Variances<br />
Which of the following are not examples of revenue variances (you may select more than one)<br />
a. Sales price variance<br />
b. Spending variance<br />
c. Materials price variance<br />
d. Sales volume variance<br />
e. Labor rate variance<br />
Computing Revenue Variances<br />
The company sells one product, which is called Product A. Actual and expected sales data<br />
for the most recent year are as follows:<br />
Company<br />
Sales<br />
Sales<br />
Price<br />
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500 units $15<br />
Expected . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600 13<br />
Using these data, compute the following:<br />
1. Sales price variance<br />
2. Sales volume variance<br />
PE 19-16<br />
LO4<br />
PE 19-17<br />
LO4<br />
Return on Investment<br />
The company’s profit margin is 12%, and its asset turnover is 3.1. Compute the company’s<br />
return on investment (ROI).<br />
Residual Income<br />
The company had $360,000 in total assets and $94,000 in operating profit this year, and the<br />
company requires at least a 12% return on assets. Compute the company’s residual income.<br />
EXPANDED<br />
material<br />
PE 19-18<br />
LO5<br />
Variable Manufacturing Overhead Spending Variance<br />
Using the following data, compute the variable manufacturing overhead spending variance.<br />
Number of nightstands produced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150<br />
Actual hours used to produce nightstands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720<br />
Total actual variable overhead costs incurred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,352<br />
Standard variable overhead rate per direct labor hour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11.00<br />
Standard labor hours per nightstand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Change language