Managerial Accounting: Service Cost Allocations
Galilee College
Managerial Accounting
Final Exam Overview for Saturday June 8th
Instructions A. Complete the budgeting questions and any one of the others.
1. Service Cost Allocations
CLASS:
Teck Tecky Water Services provides water for Departments A,B and C and has prepared its total budget using the following information for the next year:-
Fixed Costs $300,000 Budgeted Gallon Usage:-
Variable Costs $0.10 per gallon Dept. A 2,500,000 gallons
Available capacity 10,000,000 gallons Dept. B 2,000,000 gallons Dept C 1,500,000 gallons
Instructions: Assuming that the single-rate method is used and the allocation base is budgeted usage. How much water cost will be allocated to Dept. A, B and C in the budget year?
2. Budgeting
Fost Fosty company is formulating its plans for the coming year, including the preparation of its cash budget. Historically, 10% of the company’s sales are cash sales. Except for its 5% bad debt, the remaining credit sales are collected as follows:-. Sales $ $
Collections on Account Percentage June 3,900,000 October 6,500,000
In 1st Month 25% July 4,200,000 November 6,900,000
In 2nd Month 35% August 5,000,000 December 7,200,000
In 3rd Month 20% September 6,100,000
In 4th Month 15%
CLASS: Prepare a schedule to show the total cash receipts from sales and collections on account for the month of December 2007.
3. Cost-Volume-Profit (CVP) Analysis
Sport Sporty sells its single product at a price of $75.00 per unit and incurs the following variable cost per unit of product:-
Direct Material $20.00 Fixed costs are $1,000.000
Direct Labour 15.00 Income Tax Rate 25%
Manufacturing Overhead 10.00 Total Variable Man. Cost $45.00
Selling expenses 10.00
Total variable costs $55.00
CLASS: 1. If production and sales volume is 10,000 units of product per month, what is the annual after-tax income or loss? 2. What is
Managerial Accounting
Final Exam Overview for Saturday June 8th
Instructions A. Complete the budgeting questions and any one of the others.
1. Service Cost Allocations
CLASS:
Teck Tecky Water Services provides water for Departments A,B and C and has prepared its total budget using the following information for the next year:-
Fixed Costs $300,000 Budgeted Gallon Usage:-
Variable Costs $0.10 per gallon Dept. A 2,500,000 gallons
Available capacity 10,000,000 gallons Dept. B 2,000,000 gallons Dept C 1,500,000 gallons
Instructions: Assuming that the single-rate method is used and the allocation base is budgeted usage. How much water cost will be allocated to Dept. A, B and C in the budget year?
2. Budgeting
Fost Fosty company is formulating its plans for the coming year, including the preparation of its cash budget. Historically, 10% of the company’s sales are cash sales. Except for its 5% bad debt, the remaining credit sales are collected as follows:-. Sales $ $
Collections on Account Percentage June 3,900,000 October 6,500,000
In 1st Month 25% July 4,200,000 November 6,900,000
In 2nd Month 35% August 5,000,000 December 7,200,000
In 3rd Month 20% September 6,100,000
In 4th Month 15%
CLASS: Prepare a schedule to show the total cash receipts from sales and collections on account for the month of December 2007.
3. Cost-Volume-Profit (CVP) Analysis
Sport Sporty sells its single product at a price of $75.00 per unit and incurs the following variable cost per unit of product:-
Direct Material $20.00 Fixed costs are $1,000.000
Direct Labour 15.00 Income Tax Rate 25%
Manufacturing Overhead 10.00 Total Variable Man. Cost $45.00
Selling expenses 10.00
Total variable costs $55.00
CLASS: 1. If production and sales volume is 10,000 units of product per month, what is the annual after-tax income or loss? 2. What is