題目

?Division Y of Chardonnay currently has capital employed of $100,000 and earns an annual profit?after depreciation of $18,000. The divisional manager is considering an investment of $10,000 in?an asset which will have a ten-year life with no residual value and will earn a constant annual profit?after depreciation of $1,600. The cost of capital is 15%.?

Calculate the following and comment on the results.?

(i) The return on divisional investment before and after the new investment?

(ii) The divisional residual income before and after the new investment?

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考點(diǎn)：Chapter17Divisionalperformanceandtransferpricing

?(i) Return on divisional investment (ROI)??

? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?Before investment? ? ? ? ? ? ? ? ? ? ? ? ? After investment?

Divisional profit? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? $18,000? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?$19,600?

Divisional investment? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?$100,000? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?$110,000?

Divisional ROI? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 18.0%? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 17.8%?

The ROI will fall in the short term if the new investment is undertaken. This is a problem?which often arises with ROI, as noted in part (a) of this solution.?

(ii) Divisional residual income?

The residual income will increase if the new investment is undertaken. The use of residual?income has highlighted the fact that the new project returns more than the cost of capital?(16% compared with 15%).?


多做幾道

?Actual overheads cost $180,000 and 40,000 machine hours were worked.?

Actual overheads cost $170,000 and 40,000 machine hours were worked.?

材料全屏

A company makes and sells a single product. At the beginning of Period 1, there are no opening?inventories of the product, for which the variable production cost is $4 and the sales price $6 per unit.?

There are no variable selling costs. Fixed costs are $2,000 per period, of which $1,500 are fixed?production costs. Normal output is 1,500 units per period. In Period 1, sales were 1,200 units, production?was 1,500 units. In Period 2, sales were 1,700 units, production was 1,400 units.?

Required?

Prepare profit statements for each period and for the two periods in total using both absorption costing?and marginal costing.?

5

【論述題】

Prepare profit statements for each period and for the two periods in total using both absorption costing?and marginal costing.?

材料全屏

RH makes and sells one product, which has the following standard production cost.??

? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?$?

Direct labour? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 3 hours at $6 per hour? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 18?

Direct materials? ? ? ? ? ? ? ? ? ? ? ? ?4 kilograms at $7 per kg? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 28?

Variable production overhead? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?3?

Fixed production overhead? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 20?

Standard production cost per unit? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 69?


Normal output is 16,000 units per annum. Variable selling, distribution and administration costs are 20%?of sales value. Fixed selling, distribution and administration costs are $180,000 per annum. There are no?units in finished goods inventory at 1 October 20X2. The fixed overhead expenditure is spread evenly?throughout the year. The selling price per unit is $140. Production and sales budgets are as follows.??

? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Six months ending? ? ? ? ? ? ? ? ? ? ? ? ? ? ?Six months ending??

? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?31 March 20X3? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 30 September 20X3

Production? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?8,500? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?7,000?

Sales? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 7,000? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 8,000?

6

【論述題】

Prepare profit statements for each of the six-monthly periods, using the following methods of costing.?

Marginal costing?

Prepare profit statements for each of the six-monthly periods, using the following methods of costing.?

Absorption costing?

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