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Accounting 211

Monday, April 5th, 1999
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Lecture notes:

Chapter 19 Homework

Questions

  1. Extra machinery and equipment kept on standby.
  2. The average annual level of operating capacity needed to meet expected sales demand.
  3. The span in which a company expects to operate.
  1. The more you produce, the less it costs to produce each item.
  1. Because they have other expenses that need to be accounted for.
  1. They all have managers in charge, but they work towards different goals or costs that are incurred by that specific center.

 

Short Exercises

5.

4000x = 320,000 + 12,000 + 20,000

X = $88


6.

8.5x = 4.3x + 3780

X = 900 units


7.

BE = 5,500 / (11 - 6) = 1,100


8.

S = FC + VC + P

48 x 300 = 4,000 + (18 x 300) + P

P = 5,000

 

Exercises

5.

1)

BE = (126,500 + 82,030) / [13.4 - (4.65 + 2.75)] = 34,755

2)

Be = 34,755 x 13.40 = $465,717

3)

BE = 175,065 / (14 - 7.4) = 26,525


6.

1) C

3) B

5) C

2) A

4) A

6) A


10.

1) V

4) F

7) F

10) V

2) V

5) V

8) V

11) F

3) F

6) F

9) SV

 

Problem Sets

A4. The answer is in the packet.
 

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