Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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Chapter 1, Problem 14E
The following describes the job responsibilities of two employees of Barney Manufacturing.
Joan Dennison, Cost Accounting Manager. Joan is responsible for measuring and collecting costs associated with the manufacture of the garden hose product line. She is also responsible for preparing periodic reports that compare the actual costs with planned costs. These reports are provided to the production line managers and the plant manager. Joan helps to explain and interpret the reports.
Steven Swasey, Production Manager. Steven is responsible for the manufacture of the high-quality garden hose. He supervises the line workers, helps to develop the production schedule, and is responsible for seeing that production quotas are met. He is also held accountable for controlling
Required:
CONCEPTUAL CONNECTION Identify Joan and Steven as line or staff and explain your reasons.
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The following describes the job responsibilities of two employees of Barney Manufacturing.Joan Dennison, Cost Accounting Manager. Joan is responsible for measuring and collectingcosts associated with the manufacture of the garden hose product line. She is also responsiblefor preparing periodic reports that compare the actual costs with planned costs. These reportsare provided to the production line managers and the plant manager. Joan helps to explain andinterpret the reports.Steven Swasey, Production Manager. Steven is responsible for the manufacture of thehigh-quality garden hose. He supervises the line workers, helps to develop the productionschedule, and is responsible for seeing that production quotas are met. He is also held accountable for controlling manufacturing costs.Required:CONCEPTUAL CONNECTION Identify Joan and Steven as line or staff and explain yourreasons.
Ana Perez is the plant manager of Travel Free’s Indiana plant. The Camper and Trailer operating departments manufacture products and have their own managers. The Office department, which Perez also manages, provides services equally to the two operating departments.
Each performance report includes only those costs that a particular operating department manager can control: direct materials, direct labor, supplies used, and utilities. The plant manager is responsible for the department managers’ salaries, building rent, office salaries other than her own, and other office costs plus all costs controlled by the two operating department managers.
The annual departmental budgets and actual costs for the two operating departments follow.
The Office department’s budgeted and actual costs follow.
Required
Prepare responsibility accounting performance reports like those in costs controlled by the following.
1. Manager of Camper department. 2. Manager of Trailer department. 3. Manager of…
Classify the following costs of this new product as direct materials, direct labor,
manufacturing overhead, selling, or administrative
1. President's salary.
2. Packages used to hold the skin wipes.
3. Cleaning materials used to clean the skin wipe
packages.
4. Wages of workers who package the product.
5. Cost of advertising the product.
6. The salary of the supervisor of the workers
who package the product.
7. Cost accountant's salary (the accountant works
in the factory).
8. Cost of a market research survey.
9. Sales commissions paid as a percent of sales.
10. Depreciation of administrative office building.
Problem B Classify the costs listed in the previous
problem as either product costs or period costs.
Chapter 1 Solutions
Managerial Accounting: The Cornerstone of Business Decision-Making
Ch. 1 - Prob. 1DQCh. 1 - What are the three broad objectives of managerial...Ch. 1 - Prob. 3DQCh. 1 - Should a managerial accounting system provide both...Ch. 1 - What is meant by controlling?Ch. 1 - Describe the connection between planning,...Ch. 1 - Prob. 7DQCh. 1 - Explain the role of financial reporting in the...Ch. 1 - Explain the meaning of customer value. How is...Ch. 1 - Prob. 10DQ
Ch. 1 - Explain why todays managerial accountant must have...Ch. 1 - Briefly explain the practice of enterprise risk...Ch. 1 - Prob. 13DQCh. 1 - The controller should be a member of the top...Ch. 1 - What is ethical behavior? Is it possible to teach...Ch. 1 - Prob. 16DQCh. 1 - Prob. 17DQCh. 1 - The provision of accounting information for...Ch. 1 - The use and importance of managerial accounting is...Ch. 1 - Setting objectives and identifying methods to...Ch. 1 - The process of choosing among competing...Ch. 1 - Prob. 5MCQCh. 1 - An effective managerial accounting system should...Ch. 1 - Prob. 7MCQCh. 1 - Prob. 8MCQCh. 1 - Prob. 9MCQCh. 1 - Prob. 10MCQCh. 1 - The Managerial Process Each of the following...Ch. 1 - Differences between Managerial Accounting and...Ch. 1 - Customer Value, Strategic Positioning Adriana...Ch. 1 - The following describes the job responsibilities...Ch. 1 - Ethical Behavior Consider the following scenario...Ch. 1 - Manager: If I can reduce my costs by 40,000 during...Ch. 1 - Ethical Issues The following statements have...Ch. 1 - Prob. 18ECh. 1 - Prob. 19E
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