Question

Question 22 (3.5 points)

Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments (Assembly Department & Packaging Department.) Frederick uses a step allocation method where Cafeteria Services is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Cafeteria Services has costs of $235,000 and Maintenance has costs of $250,000 before any allocations. What amount of Maintenance total cost is allocated to the Packaging Department? (round to closest whole dollar) Employees are:

            Cafeteria Services    5

            Maintenance     3

Assembly Department 11

Packaging Department 11

Your Answer:

Question 22 options:

Answer

Question 23 (3.5 points)

Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:

Direct material of 5.50 yards at $6.00 per yard

Direct labor of 3.00 hours at $17.00 per hour

Overhead applied per sleeping bag at $18.00

In the month of April, the company actually produced 4,900 sleeping bags using 24,200 yards of material at a cost of $5.10 per yard. The labor used was 11,500 hours at an average rate of $16.50 per hour. The actual overhead spending was $96,200.

Determine the materials price variance and round to the nearest whole dollar. Enter a favorable variance as a negative number. Enter an unfavorable variance as a positive number.

Your Answer:

Question 23 options:

Answer

Question 24 (3.5 points)

Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:

Direct material of 5.00 yards at $5.75 per yard

Direct labor of 3.00 hours at $17.00 per hour

Overhead applied per sleeping bag at $18

In the month of April, the company actually produced 5,100 sleeping bags using 26,800 yards of material at a cost of $5.90 per yard. The labor used was 13,000 hours at an average rate of $18.50 per hour. The actual overhead spending was $96,200.

Determine the labor quantity variance and round to the nearest whole dollar. Enter a favorable variance as a negative number. Enter an unfavorable variance as a positive number.

Your Answer:

Question 24 options:

Answer

Question 25 (16 points)

Selected financial information for the Adelphi Company for the fiscal years ended December 31, 2018 and 2017 follows. Prepare a cash flow statement using the indirect method. Properly title the statement.

	2018	2017
Cash balance	$113,500	$37,500
Net income	142,500	162,000
Depreciation Expense	42,000	35,000
Purchase of Plant Assets	135,000	125,000
Disposal of Plant Assets	40,000	50,000
Gain (Loss) on Disposal of Plant Assets	(10,000)	5,000
Accounts Receivable Balance	64,500	58,000
Accounts Payable Balance	42,000	39,000
Interest Expense	8,000	6,000
Income Taxes Paid	35,000	28,000
Dividends Paid	30,000	25,000
Common Stock Issued for Cash	20,000	0

Answer 1

Ans 22	Maintenance	Assembly	Packaging
First cafeteria cost will be allocated	28200	103400	103400
	235000/(11+11+3)*3	235000/(11+11+3)*11	235000/(11+11+3)*11
Now maintenance cost allocated
	Packaging
	139100
	(250000+28200)/(11+11)*11
Answer 22 is $139100
ans 23	in $
Material Price Variance	21780	F
(AQ*Ap)-(AQ*SP)
(24200*5.1)-(24200*6)	-21780
ans 24
Labor Qty Variance	39100	F
SR*(Ah-SH)
17*(13000-(5100*3))	-39100
ans 25
Statement of cash flow
Cash flows from operating activities
Net income		142500
Depreciation expenses	42000
Loss on disposal of plant assets	10000
Increase in Accounts Rec	-6500
Increase in Accounts payable	3000
		48500
Net cash from operating activities		191000
Cash flows from investing activities
Sale of plant assets (40000-10000)	30000
Purchase of Plant assets	-135000
		-105000
Net cash used investing activities		(105,000.00)
Cash flows from financing activities
Issue of common stock	20,000.00
Payment of Cash Dividend	-30000
		(10,000.00)
Net cash used financing activitie		(10,000.00)
Net Increase in cash and cash equivalents		76,000.00
Cash and cash equivalents at beginning of period		37,500.00
Ending Balance		113,500.00
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