Acct 3250 - Intermediate Management Accounting

ACCT 3250   Fall  2015

Check figures for some selected homework questions

  Ch 13

Ch 13-18:  1.        Meredith Corporation follows a value leadership (product differentiation) strategy in 2013. Meredith’s D4H machine is distinct from its competitors and generally regarded as superior to competitors’ products. To succeed, Meredith must continue to differentiate its product and charge a premium price.

Ch 13-19:  Change in operating income : $607,500 F

      Revenue effect of growth        $400,000 F

        Cost effect of growth         120,000 U

        Change in operating income due to growth        $280,000 F

Revenue effect of price-recovery        $420,000 F

        Cost effect of price-recovery         184,500 U

        Change in operating income due to price-recovery        $235,500 F

Ch 13- 22:  

Ch 14

Ch 14- 17:  Costs allocated to Mississauga under single-rate method based on practical capacity, $3,000

Fixed-Cost Pool:

        Total costs in pool        =        $9,000

        Practical capacity        =        50,000 kilowatt hours

        Allocation rate        =        $9,000 ÷ 50,000 = $0.18 per hour of capacity

Ch 14-20:  1A: Cost allocated to govt. $1,120,

       1C:  Step-down method (allocate IS first) , cost allocated to govt: $1,832,000

Ch 14- 23:  1. Restaurant C actual usage cost allocation: $3,100

Ch 14-29:  1.  Allocation to Wright Inc. under stand-alone cost allocation method, $28,800

       2.  Allocation to Wright Ince. Under the incremental methods with Wright as the primary party:  $36,000

Ch 14- 32:  1. Bread operating income, $4,700,000

Ch 15

Ch 15- 16:  1.a. Joint costs allocated to breasts, $33.75 (Sales Value at Split-off method)