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This document comprises MAT 116 Week 1 and 2 Quiz A
Business - General Business
Week 1
Ethics in Cost Control . (Exercise 1-9) Zoya Arbiser, regional manager of Gold Medal Sports Shops, is reviewing the results of 15 stores in her region. Store managers are moved annually. Each store manager's income is very dependent on the direct contribution margin of that store. For the past year, Store 9 has been managed by a person who has operated several other profitable stores in recent years and is about to be promoted to a larger store. Zoya notices several items that bother her.
Store 9 has almost no personnel training expenses relative to other stores.
Store 9 has stopped participating in numerous community events that gave the store significant visibility but did incur substantial expenses.
Store 6, where this store manager worked the prior year, has had a severe drop in profits due to higher operating expenses.
The advertising budget was spent almost entirely in the first four months of the year, with almost nothing spent in the last several months.
Discuss a possible negative managerial scenario that the regional manager may be sensing. Might the manager of Store 9 be an exceptional manager? What are the ethical implications of the scenario? What is the regional manager’s ethical responsibility in this scenario? Explain and support your position with evidence from the text. Your initial post should be 200 to 250 words.
Fixed and Variable Costs . (Chapter 1 Discussion Question 9(a)) Controller, Judy Koch, in a recent speech said, "I rarely see a real variable cost or a truly fixed cost." What did she mean? Include in your response an explanation of the difference in behavior of variable and fixed cost, including an example to illustrate your explanation. Your initial post should be 200 to 250 words.
Mendel Paper Company . Complete Case 2B (Mendel Paper Company) in Chapter 2.
In this case, you are provided information regarding selling prices and costs of several products offered by Mendel Paper Company. In addition, management has concerns about sales mix and rising costs. Address the questions (1-5) at the end of the case. Based on the case questions, you are required to provide a three to five double-spaced written report addressing management’s concerns. The written report should be properly formatted according to APA guidelines and demonstrate research and critical thinking skills. Conclusions and recommendations should be supported by at least 2 scholarly sources from the Ashford Library or other external sources, excluding the textbook.
For Questions 1 through 4, you will need to complete several calculations â€" be sure to label and clearly identify your work to demonstrate your understanding of the concept even if you arrive at the incorrect answer. The calculations should be included as part of your analysis and written report required for submission.
For Question 5, fully address management’s concerns as part of your written analysis using the new or the previous calculations to support your recommendation/explanation. As part of your written analysis, include how management might use these calculations to make decisions. The written analysis should be supported by at least 2 scholarly sources, excluding the textbook.
Week 1 Written Assignment should:
Demonstrate graduate level work including appropriate research and critical thinking skills.
Be presented as a written analysis (not a question/answer format)
Incorporate case questions into the overall analysis.
Follow APA formatting guidelines including title page, reference page and in-text citations
Consists of three to five double-spaced pages of content
Provide at least 2 scholarly sources, excluding the textbook.
Week 2
Product Costs . In Chapter 3, you were introduced to three types of costs associated with a manufactured product â€" direct materials, direct labor, and manufacturing overhead. Explain how these costs are associated with the manufactured product. Why are some of these costs allocated to the product through costing methods such as job order costing or process costing?
As part of your response, be sure to provide a specific example of a company’s manufacturing costs. Your initial post should be 200-250 words and your example should be properly cited according to APA as outlined in the Ashford Writing Center.
Job Order Costing vs. Process Costing . Explain the similarities and differences between job order costing and process costing. In your explanation, provide examples of when job order costing and process costing would be most appropriate. Your initial post should be 200 to 250 words.
Auerbach Enterprises . Complete Case 3A (Auerbach Enterprises) in Chapter 3.
Auerbach Enterprises manufactures air conditioners for automobiles and trucks manufactured throughout
North America. The company designs its products with flexibility to accommodate many makes and models of
automobiles and trucks. The company’s two main products are MaxiFlow and Alaska. MaxiFlow uses a few
complex fabricated parts, but these have been found easy to assemble and test. On the other hand, Alaska uses
many standard parts but has a complex assembly and testing process. MaxiFlow requires direct materials costs
which total $135 per unit, while Alaska’s direct materials requirements total $110 per unit. Direct labor costs per
unit are $75 for MaxiFlow and $95 for Alaska.
Auerbach Enterprises uses machine hours as the cost driver to assign overhead costs to the air conditioners.
The company has used a company-wide predetermined overhead rate in past years, but the new controller,
Bennie Leon, is considering the use of departmental overhead rates beginning with the next year.
The following planning information is available for the next year for each the four manufacturing departments
within the company:
Overhead Machine
Costs Hours
Radiator parts fabrication.............. $ 80,000 10,000
Radiator assembly, weld, and test.... 100,000 20,000
Compressor parts fabrication.......... 120,000 5,000
Compressor assembly and test........ 180,000 45,000
Total $480,000 80,000
Normally, the air conditioners are produced in batch sizes of 20 at a time. A production batch of 20 units requires
the following number of hours in each department:
MaxiFlow Alaska
Radiator parts fabrication........... 28 16
Radiator assembly, weld, and test....... 30 74
Compressor parts fabrication......... 32 8
Compressor assembly and test......... 26 66
Total 116 164
Required:
1. Compute the departmental overhead rates using machine hours as the cost driver.
2. Compute a company-wide overhead rate...
