110年 - 110東吳大學_碩士班招生考試_會計學系︰成本及管理會計學#100126

Problem One
The SCU makes a range of products. The company's predetermined overhead rate is $14 per direct
labor-hour, which was calculated using the following budgeted data:

Management is considering a special order for 300 units of product D03C at $119 each. The normal selling
price of product D03C is $157 and the unit product cost is determined as follows:

If the special order were accepted, normal sales of this and other products would not be affected. The
company has ample excess capacity to produce the additional units. Assume that direct labor is a variable cost, variable manufacturing overhead is really driven by direct labor-hours, and total fixed manufacturing overhead would not be affected by the special order.
Required：
If the special order were accepted, what would be the impact on the company's overall profit?

1.What is the selling price SCU needs to charge to earn the target operating income? Calculate the markup percentage on full cost.

2. IF the SCU expects to produce 400,000 cases and sell 300,000 cases of candy in 2021. Same price as requirement 1. What is breakeven point in units under absorption costing?

3. Compute the operating leverage factor for 2021.

4. Calculate the margin of safety percentage for 2021.

5. SCU’s closest competitor has just increased its candy case price to $16, although it sells 36 candy bars per case. SCU is considering increasing its selling price to $15 per case. Assuming production and sales decrease by 4%, calculate SCU’ return on investment. Is increasing the selling price a good idea?

6. Actual variable manufacturing costs in 2021 were $1,300,000 for 320,000 cases started and completed. Actual fixed manufacturing overhead costs in 2021 were $330,000. Compute the flexible-budget variance and production-volume variance.

1. Total pounds of direct materials purchased

2. Total number of pounds of excess direct materials used

3. Variable manufacturing overhead spending variance

4. Total number of actual direct manufacturing labor-hours used

5. Total number of standard direct manufacturing labor-hours allowed for the units produced

6. Production-volume variance

1. Please calculate the total costs of each batch of each type of product this month (without spoiled units).

2. Assuming that in the finishing department, the bed sheets are inspected at 90% of the completion, and the materials are put in after the inspection. Normal spoilage is 10% of all good units that pass inspection. The finishing department has no beginning inventory this month, and the production ratio of luxury bed sheets to basic bed sheets is 1:3. A total of 1,600 sheets were in ending work in process (50% completed). A total of 8,000 sheets were transferred-in, and 5,600 sheets were manufactured and transferred out. For current month, according to luxury bed sheets summarize total costs to account for and assign these costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. ( Based on original cost data.)

1. If SCU purchases the JR63 units from Scott, the capacity SCU used to manufacture these parts would be idle. Should SCU decide to purchase the parts from Scott, the unit cost of JR63 would increase (or decrease) by what amount?

2. Assume SCU is able to rent out all its idle capacity for $25,000 per month. If SCU decides to purchase the 10 units from Scott Supply, Chenango's monthly cost for JR63 would increase (or decrease) by what amount?

3. Assume that SCU does not wish to commit to a rental agreement but could use its idle capacity to manufacture another product that would contribute $52,000 per month. If SCU's management elects to manufacture JR63 in order to maintain quality control, what is the net amount of SCU's cost from using the space to manufacture part JR63?

Problem Six
The SCU manufactures protective eyewear for use in commercial and home applications. The product is also used by hunters, home woodworking hobbyists, and in other applications. The firm has two main product lines the highest quality product is called Safe-T, and a low-cost, value version is called Safe-V. Information on the factory conversion costs for SCU is as follows:

The SCU uses ABC costing to determine the unit costs of its products. The firm uses resource consumption cost drivers based on rough estimates of the amount that each activity consumes, as shown below. The SCU has four activities: setup, assembly, inspecting and finishing, and packaging.

The activity cost drivers for the two products are summarized below.

Required：
Determine the activity-based unit cost for each of the products.

110年 - 110東吳大學_碩士班招生考試_會計學系︰成本及管理會計學#100126

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