Professional ethics and reporting division performance. Maria Mendez is division controller andJames Dalton is division manager of the Hestor Shoe Company. Mendez has line responsibility to Dalton,but she also has staff responsibility to the company controller.pizthotDalton is under severe pressure to achieve the budgeted division income for the year. He has askedMendez to book $200,000 of revenues on December 31. The customers' orders are firm, but the shoes arestill in the production process. They will be shipped on or around January 4. Dalton says to Mendez, "Thekey event is getting the sales order, not shipping the shoes. You should support me, not obstruct my reachingoni terd apalnwioeMdivision goals."smno vitr1. Describe Mendez's ethical responsibilities.2. What should Mendez do if Dalton gives her a direct order to book the sales?Po

Facts of the case-MM is the division controller and JD is the Division manager. JD asked MM to book…

Answered: Professional ethics and reporting…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

PwC, a local accounting firm, employs 25 full-time tax professionals. The budgeted annual compensation per employee is $50,000. The average chargeable time per client annually is 380 hours. Indirect costs are allocated according to professional labor-hours. Budgeted indirect costs for the year are $521,000 and the firm expects to have 80 clients during the coming year. Required: a) What is the budgeted indirect cost rate per hour? b) If 8 clients leave and the workforce stays at 25 employees, what is PwC's new indirect cost rate per hour?
Transmissions are delivered to the fabrication line four at a time. It takes one hour for transmissions to be delivered. Approximately five vehicles are produced each hour, and management has decided that 40 percent of expected demand should be maintained as safety stock. How many Kanban card sets are needed? (Round up your answer to the next whole number.) The Deming Cycle is: A. a checklist that enables managers to evaluate employee performance more systematically. B. a systematic method of evaluating potential facility locations. C. a process for finding potential quality errors before they occur. D. a process for using identical production steps in the creation of different types of products.
as
Provide FOUR objectives of the internal control that should be exercised over a wages system.
Kirnon Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $300 per month plus $114 per job plus $16 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in October to be 27 jobs and 224 meals, but the actual activity was 29 jobs and 227 meals. The actual cost for catering supplies in October was $7,500. The activity variance for catering supplies in October would be closest to: Multiple Choice A. $276 F B. $276 U C. $538 U D. $538 F
The demand for cocoa butter hand lotion, one of numerous products manufactured by Smooth Skin Care Products Inc., has dropped sharply because of recent competition from a similar product. The controller has been asked by the president of the company for advice on whether to continue production during the following month or to suspend the manufacture of cocoa butter hand lotion until a strategy to regain market share. The controller has assembled the following pertinent data: Smooth Skin Care Products Inc. Income Statement - Cocoa Butter Hand Lotion For the Month Ended January 31 Financial Categories Sales (400,000) Cost of goods sold Gross profit Dollar Amount $ 32,200,000 $28,330,000 $ 3,870,000 Selling and admin expenses Loss from operations $ 4,270,000 $ (400,000) The production costs and selling and administrative expenses, based on the production of 400,000 units in the Income Statement above, are as follows: Direct materials Category Dollar Amount $16 per unit 17 per unit Direct…
Carol Morgan manages the production division of Campbell Corporation. Ms. Morgan's responsibility report for the month of August follows: Controllable costs. Raw materials Labor Maintenance Supplies Total The budget had called for 4,500 pounds of raw materials at $4.20 per pound, and 4,500 pounds were used during August; however, the purchasing department paid $5.20 per pound for the materials. The wage rate used to establish the budget was $20.80 per hour. On August 1, however, it increased to $23.80 as the result of an inflation index provision in the union contract. Furthermore, the purchasing department did not provide the materials needed in accordance with the production schedule, which forced Ms. Morgan to use 120 hours of overtime at a $35.70 rate. The projected 530 hours of labor in the budget would have been sufficient had it not been for the 120 hours of overtime. In other words, 650 hours of labor were used in August. Required a. When confronted with the unfavorable…
The manager of the Personnel Department at City Enterprises has been reading about time-driven ABC and wants to apply it to her department. She has identified four basic activities her employees spend most of the their time on: Interviewing, Hiring, Assessment, and Separation Processing. The department employs 8 staff who perform these activities. The manager provides the following estimates for the amount of time it takes to complete each of these activities: Interviewing: 95 minutes. • Hiring: 85 minutes. • Assessment: 125 minutes. • Separation Processing: 115 minutes. Employees in Personnel work 34-hour weeks with four weeks for vacation. Of the 34 hours, five are reserved for administrative tasks, training, and so on. The costs of the Personnel Department, including any allocated costs from other staff functions, are $1,503,360. During the year, Personnel conducted 1,250 Interviews, made 400 hires, made 4,000 assessments, and had 350 separations. The manager of the Personnel…
Fiske Corporation manufactures a popular regional brand of kitchen utensils. The design and variety have been fairly constant over the last three years. The managers at Fiske are planning for some changes in the product line next year, but first they want to understand better the relation between activity and factory costs as experienced with the current products. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or both. The following data were collected from the last three years of operations: Quarter Machine-Hours Labor-Hours Factory costs 1 18,850 14,905 $ 3,388,671 2 18,590 15,477 3,425,136 3 17,480 16,720 3,617,144 4 19,240 15,983 3,573,240 5 21,280 17,501 3,812,284 6 19,630 17,369 3,777,312 7 19,240 15,290 3,531,726 8 18,850 14,366 3,369,102 9 18,460 15,994 3,512,487 10 20,670 16,995 3,730,734 11 17,550 14,278 3,135,315 12 18,460 19,244 3,723,786 Required: Use the high-low method to…
Millard Corporation is a wholesale distributor of office products. It purchases office products from manufacturers and distributes them in the West, Central, and East regions. Each of these regions is about the same size and each has its own manager and sales staff. The company has been experiencing losses for many months. In an effort to improve performance, management has requested that the monthly income statement be segmented by sales region. The company's first effort at preparing a segmented income statement for May is given below. Sales Regional expenses (traceable): Cost of goods sold Advertising Salaries Utilities Depreciation Shipping expense Total regional expenses Regional income (loss) before corporate expenses Corporate expenses: Advertising (general) General administrative expense Total corporate expenses Net operating income (loss) Variable expenses: Total variable expenses Traceable fixed expenses: Total traceable fixed expenses Common fixed expenses: Total common…
Explain the internal control procedures that Research Sdn Bhd should adopt over the updating of its wages master file with regard to interviewer starters and leavers.
Sun Company, a subsidiary of Guardian, Inc., produces and sells three product lines. The company employs a standard cost accounting system for record keeping purposes. At the beginning of the current year, the president of Sun Company presented the budget to the parent company and accepted a commitment to contribute $15,800 to Guardian’s consolidated profit for the year. The president has been confident that the year’s profit would exceed the budget target, since the monthly sales reports that he has been receiving have shown that sales for the year will exceed budget by 10%. The president is both disturbed and confused when the controller presents an adjusted forecast as of November 30 indicating that profit will be 11% under budget. The two forecasts are presented below: Sun Company Forecasts of Operating Results 1/1 11/30 Sales $268,000 $294,800 Cost of goods sold at standard* 212,000 233,200 Gross margin at…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS