Huang Consumer Products has a small car division that operates as a profit center.Below is a partially completed responsibility report for the first quarter. $\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\text { Responsibility Report }$ $\begin{array}{|c|c|c|c|c|c|} \hline&& & \text { Flexible } & & & \\ && \text { Flexible } & \text { Budget } & & \text { Percentage } & \\ &\text { Actual } & \text { Budget } & \text { Variance } & \text { U/F } & \text { Variance } & \text { U/F } \\ \hline\text { Sales } & & \\ \text { Revenue } & \$ 688,100 & \$ 703,000 \\ \hline \begin{array}{c} \text { Variable } \\ \text { Expenses } \end{array} & \underline{309,400} & \underline{322,000} \\ \hline \begin{array}{c} \text { Contribution } \\ \text { Margin } \end{array} & 378,700 & 381,000 \\ \hline \begin{array}{c} \text { Traceable } \\ \text { Fixed } \end{array} & & \\ \begin{array}{c} \text { Expenses } \end{array} & \underline{371,000} & \underline{369,000} \\ \hline \begin{array}{c} \text { Division } \\ \text { Margin } \end{array} & \$ 7,700 & \$ 12,000 \\ \hline \end{array}$ Compute the percentage variance for the flexible budget variance for sales revenue.(Round your answer to two decimal places.)

A) 2.12% F B) 2.12% U C) 3.91% U D) 3.91% F A) 2.12% F B) 2.12% U C) 3.91% U D) 3.91% F

Roberts Logistics provides the following information: \[\begin{array} { | l | r | } \hline \text { Operating income } & \$ 1,600,000 \\ \hline \text { Net sales } & \$ 13,500,000 \\ \hline \text { Average total assets } & \$ 2,000,000 \\ \hline \text { Management's target rate of return } & 20 \% \\ \hline \end{array}\] What is the company's asset turnover ratio? (Round your answer to two decimal places.)

A) 3.75 B) 4.12 C) 10.55 D) 6.75 A) 3.75 B) 4.12 C) 10.55 D) 6.75

Aimee Cosmetics Company uses the following allocation rates from its activity-based costing system to assign overhead costs to products: \[\begin{array} { | l | l | } \hline \text { Activity } & \text { Allocation Rate } \\ \hline \text { Purchasing raw materials } & \$ 40 \text { per purchase order } \\ \hline \text { Setting up machines for production } & \$ 150 \text { per set-up } \\ \hline \text { Inspecting finished products } & \$ 25 \text { per inspection } \\ \hline \end{array}\] Product A1 uses the following: 17 purchase orders 4 set-ups 12 inspections How much overhead cost would be assigned to Product A1?

A) $7,095 B) $215 C) $600 D) $1,580 A) $7,095 B) $215 C) $600 D) $1,580

Exam 24: Cost Allocation and Responsibility Accounting

Huang Consumer Products has a small car division that operates as a profit center.Below is a partially completed responsibility report for the first quarter. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { Responsibility Report }$ Flexible Flexible Budget Percentage Actual Budget Variance U/F Variance U/F Sales Revenue \ 688,100 \ 703,000 Variable Expenses Contribution Margin 378,700 381,000 Traceable Fixed Expenses Division Margin \ 7,700 \ 12,000 Compute the percentage variance for the flexible budget variance for sales revenue.(Round your answer to two decimal places.)

(Multiple Choice)

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Question 181

Managerial accountants can design performance evaluation systems that encourage goal congruence.

(True/False)

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Question 182

The payroll department of a manufacturing company is most likely to be a(n)________.

(Multiple Choice)

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Question 183

One part of the balanced scorecard helps management answer the question,"How do we look to investors and creditors?" Which of the four perspectives is being described with this statement?

(Multiple Choice)

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Question 184

One of the advantages of decentralization is that it allows top management to concentrate on long-term strategic planning.

(True/False)

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Question 185

The production line of a manufacturing company is most likely to be considered as a(n)________.

(Multiple Choice)

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Question 186

Roberts Logistics provides the following information: Operating income \ 1,600,000 Net sales \ 13,500,000 Average total assets \ 2,000,000 Management's target rate of return 20\% What is the company's asset turnover ratio? (Round your answer to two decimal places.)

(Multiple Choice)

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Question 187

Aimee Cosmetics Company uses the following allocation rates from its activity-based costing system to assign overhead costs to products: Activity Allocation Rate Purchasing raw materials \ 40 per purchase order Setting up machines for production \ 150 per set-up Inspecting finished products \ 25 per inspection Product A1 uses the following: 17 purchase orders 4 set-ups 12 inspections How much overhead cost would be assigned to Product A1?

(Multiple Choice)

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Question 188

Atom,Inc.has a division that manufactures a component that sells for $160 and has a variable cost of $50.Another division of the company wants to purchase the component.Fixed cost per unit of the component is $20.What is the minimum transfer price if the division is operating at capacity?

(Multiple Choice)

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Question 189

Managerial accountants can design performance evaluation systems that encourage goal congruence.

The payroll department of a manufacturing company is most likely to be a(n)________.

One part of the balanced scorecard helps management answer the question,"How do we look to investors and creditors?" Which of the four perspectives is being described with this statement?

One of the advantages of decentralization is that it allows top management to concentrate on long-term strategic planning.

The production line of a manufacturing company is most likely to be considered as a(n)________.

Roberts Logistics provides the following information: Operating income \ 1,600,000 Net sales \ 13,500,000 Average total assets \ 2,000,000 Management's target rate of return 20\% What is the company's asset turnover ratio? (Round your answer to two decimal places.)

Atom,Inc.has a division that manufactures a component that sells for $160 and has a variable cost of $50.Another division of the company wants to purchase the component.Fixed cost per unit of the component is $20.What is the minimum transfer price if the division is operating at capacity?

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Short-Term Business Decisions

Capital Investment Decisions

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