# Week 2 Assignment for Acc217

Words 354
Pages 2
Course: ACC217
Date: 9/18/2015
E7-5 – Use incremental analysis for make-or-buy decision
Managerial Accounting, 6th Edition, by Weygandt, Kieso, and Kimmel
Primer on Using Microsoft Excel in Accounting by Rex A Schildhouse
Exercise E7-5 Schopp Inc. has been manufacturing its own shades for its table lamps. The company is currently
100% of capacity, and variable manufacturing overhead is charged to production at operating at the rate of
70%
of direct labor cost. The direct materials and direct labor cost per unit to make the lamp
\$4.00
and
\$5.00
30,000 shades are respectively. Normal production is table lamps per year.
A supplier offers to make the lamp shades at a price of
\$12.75
per unit. If Schopp Inc. accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the
\$45,000 of fixed manufacturing overhead currently being charged to the lamp shades will have to be absorbed by other products.
Instructions:
(a) Prepare the incremental analysis for the decision to make or buy the lamp shades.

Direct materials (30,000 × \$4.00)
Direct labor (30,000 × \$5.00)
Variable manufacturing costs (150,000 × 70%)
Fixed manufacturing costs
Purchase price (30,000 × \$12.75)
Total annual cost
No, it's actually cheaper to make them, by \$7,500.

Make
\$120,000
150,000
105,000
45,000
0
\$420,000

\$0
0
0
45,000
382,500
\$427,500

Net Income
Increase
(Decrease)
\$120,000
150,000
105,000
0
(382,500)
(\$7,500)

(c) Would your answer be different in (b) if the productive capacity released by not making the lamp shades could be used to produce income of
\$25,000 ?
Yes, at that point additional production will produce \$17,500 more in income and revenue. If this were the case, it would definitely be worth it to buy the products rather than make them.

Total…...

### Similar Documents

Free Essay

#### Gm520 Week 2 Assignment

...Safety Commission. Explain why this agency and your proposed regulation interests you: Because I am a grandmother and my granddaughter fell out of her bassinet at one time and had to get stiches. I have never been in favor of bassinet and when I raised my sons, always put them in a crib to nap or sleep. I feel bassinets are ok to put a baby in for short periods of time, nap time and then you should watch them the whole time period, but not for long periods of time. Will this proposed regulation affect you or the business in which you are working? It wouldn’t affect me directly but any future grandchildren I have and it would make me feel more secure in knowing there were better safety measures in place to ensure less fatalities and injuries 2. Describe the proposal/change. The proposal request several changes be put into place in the manufacturing of bassinets and/or cradles to make them safer. There are several proposals be request as list below: Updated warnings; Stability requirements; Performance requirements for fabric-sided products to address entrapment incidents; Performance requirements to limit the rocking/swinging angle to 20 degrees and the rest angle of certain rocking/swinging cradles to 5 degrees; Show citation box requirement to eliminate active restraints; Changes to scope and terminology; Performance requirements specifying a mattress flatness angle of 5 degrees to address suffocation incidents on segmented mattresses 3. Write the public comment......

Words: 718 - Pages: 3

#### Week 8 Assignment 2

...Week 8 Assignment 2 Dr.Chinwe E. Nweke ECO100089VA016-1128-001 Principles of Economics December 2, 2012 1. Analyze the current economic situation in the U.S. as compared to five (5) years ago. Include interest rates, inflation, and unemployment in your analysis. The news informs everyone on a daily basis that the United States has the largest economy and that it is looking to be in great shape since four years ago. To some Americans it seems otherwise. The unemployment rate in 2007 was 4.6% compared to unemployment rate in 2012 at 7.5%. The U.S inflation rate ended in October 2012 after twelve months was 2.16% which is 0.11% higher than the one in September. The U.S inflation forecast consists of apparel, education and communication, energy, food and beverages, housing, medical care, recreation, and transportation. The U.S Government’s inflation economics policy tries to control inflation. High inflation and negative inflation (deflation) can have damaging effects on the economy. 2. Propose two (2) strategies that the federal government could implement that would encourage people to spend more money in order to create employment opportunities. Two strategies that the federal government could implement that would encourage people to spend more money in order to create employment opportunities is to give free college training to low income and unemployed. This would allow them to get paid for going to school or training. It would also provide an automatic job after...

Words: 796 - Pages: 4

#### Week 2 Assignment

Words: 808 - Pages: 4

#### Week 4 Assignment 2

...Assignment 2: Scope and Time Management By: Joshua Roberts CIS 517: IT Project Management Dr. Reddy Urimindi February 2, 2014 Scope and Time Management Summarize how this activity improves the chances of your future IT project being a success. Given that the IT project in scope, i.e. installation of 10 wireless access points in the company is a complex undertaking that would impact a lot of stakeholders and also incur a lot of company resources, it is very essential that it is done in an effective and efficient manner. Also, given that the scope of this project spans across different departments, and would go on for about three months, there needs to be very high degree of coordinated efforts, aided by regular and effective communication that would ensure that the project is a success (Project Management Certification, n.d). The creation of a WBS allows the company both these points above, by bringing in structure to project planning and execution and providing very good visibility on what is to be performed and achieved in order to execute the project effectively. This essentially translates into the project teams and sponsors having a good view on the schedule estimates, and also to effectively manage the schedule to ensure that the project gets completed on time. The activity of creating a project plans ensures that the project team has given enough though to all the key areas, and is well prepared to execute the project, thus enabling complex tasks to be broken......

Words: 340 - Pages: 2

Free Essay

#### Week 2 Film Assignment

...Week 2 Assignment Movie - Zoolander (2001) In this paper , I will discuss the elements of design. I will talk about and give a full break down of the process of envisioning and designing a film, which includes the key players of what it takes to design a film. My film of choice I will talk about and give examples for is Zoolander (2001). Film Production Director- Ben Stiller Production Designer- Robin Standefer Art Director- Stephen Alesch A film director is the person who directs the making of a film. In some cases the film director can control the artistic and dramatic aspects of the film . They also visualize the script while depending on the cast and crew to help bring his/her vision to life. The director plays a major part in choosing the cast and crew. Once the director comes up with the vision of the film they make the necessary movements to get things started and begin shooting, once shooting starts they have deadlines to meet. In the movie Zoolander (2001) Ben Stiller was the film director. A production designer (PD) is the person responsible for the overall look of a filmed event. They are the major head of the the entire art department. They control things such as films, tv programs, video games, music videos, and or advertisements. The production designer will collaborate with the director and director of photography to get a visual feel of the specific needs for the project. The production designer for the Zoolander (2001) film was......

Words: 592 - Pages: 3

#### Week 2 Assignment

...    MGMT  597                                                                                                                                                                                                                                                                                    May  17,  2014   Week 2 Assignment 14.2- In the case of Briggs v. Sackett, I think Briggs wins the case. Robert Briggs wins the case because the oral contract is in violation of the Statute of Frauds. Under the Statute of Frauds, “any contract that transfers an ownership interest in real property must be in writing to be enforceable” (Cheeseman 220). Prior to agreeing to Briggs terms of the property, Mr. and Mrs. Sackett should have obtained a written contract as proof of the terms as well as protection just in case any issues were to arise. Although Mrs. Sackett and Mrs. Briggs are sisters, that did not stop Mr. Briggs from evicting family who helped him out fifteen years prior when the Briggs were struggling with payment. Regardless of family or not, a written......

Words: 525 - Pages: 3

Free Essay

#### Week 3 Assignment 2

...Week 3 Assignment 2 Personality & Attitudes 1. What did you think of the profile assessment? How did you feel while taking it? I took it imagining I was a job candidate I felt nervous about it as do all job candidates. I also felt confident as I would have been shocked if I somehow “failed” the personality profile or assessment. One misconception we see in the general public is the use of the word “test” when they refer to profile assessments. A test you can pass or fail or fall somewhere in between, but what profile assessments measures are behavioral styles. You are a measure of the behaviors you use and adapt to. The only way to fail a profile assessment is to lie on it. There is a tremendous amount of value that can be learned about you from these tools. Chances are your assessor wants to use profile assessments to see how you would fit with different team members, whether you’d be happy doing the type of work required, or how they may work best with you. You can only fail an assessment designed to pick up on your behavior styles if you tell it you behave in ways you don’t typically behave. 2. Would you use this or another profile to hire/promote within your organization? If so, why and how? If not, why not? Profile assessments were developed during World War II, when there was a desperate need to find people capable of certain types of leadership. Companies then began adopting this process for recruitment. Their popularity increased, and now there's...

Words: 1534 - Pages: 7

#### Week 2 Assignment

...Week 2 Assignment Wednesday oct 8, 2014 1.What is professionalism? Professionalism describes the qualities, skills, competence and behaviors expected of individuals belonging to any given profession. Professionalism in the workplace is based on many factors, including how you dress; carry yourself, your attitude and how you interact with others. The definition of professionalism indicates that each person perform their tasks with genuine earnest and honesty. It refers to a person doing his / her job with sincerity, and maintaining professional etiquette and ethics in the workplace. 2.Why is goal setting important? Setting goals is a fundamental component to long-term success. The basic reason for this is that you can’t get where you are trying to go until you clearly define where that is. Goals help you focus and allocate your time and resources efficiently, and they can keep you motivated when you feel like giving up. Furthermore, setting and achieving goals translates to feelings of success for both individuals and companies, which in turn spurs greater productivity and confidence. 3.What are Ways of teamwork in the physician’s office? Developing an effective and highly functional staff that puts practice performance first, though, is easier said than done. To a large degree, that’s because medical practices are comprised of a small group of people who work together but perform very different roles. As practice administrator, you can encourage teamwork by modeling......

Words: 392 - Pages: 2

Free Essay

#### Week 2 Assignment

...Week 2 Assignment Dianglio V. Baylor September 9, 2014 Week 2 Assignment The film that I selected for this week’s assignment is 2007 film “Knocked Up”. The film starred actors Seth Rogen, Katherine Heigi, Paul Rudd, Leslie Mann and Jason Segel. The genre of this film is considered to be a romantic comedy. Romantic comedies are considered to be the least flexible of all the genres of film. There are a number of reasons that have been identified as reasons that this genre is lacking. The plot of a romantic comedy involves romance that leads to comic situations. In recent years the film genre has been identified genericly with a female protagonist finding love against all odds with a course of unconventional comic situations along the way. There can also be a variation of the basic plotline, instead of the typical romance where the two lead characters end up falling in love there could be a mismatch in love affair with the primary character and a secondary character. In the romantic comedy genre one of the reasons cited is that the scope of what this genre seeks to accomplish is limited. According to the textbook the romantic comedy is limited in scope of what it attempts to accomplish – brining two people together. There are many ways for this to happen, and many comedic obstacles to be placed before them , but the goal remains the same (Goodykoontz, B. & Jacobs C. P. 2011). The struggle that is present within this genre is for a......

Words: 872 - Pages: 4

#### Mgt404 Week 2 Assignment

...Anya M. Williams MGT404- Operations Management Professor Dr. Willie Brown Week 2 Assignment Analyzing Casino Money- Handling Processes 1. Drop Process How long should it take to empty 300 silver dollar slot machines? 15 min + 10 min (300 slot machines) + (300 slot machines/ 20 buckets per cart)(30 minutes delivery per cart)= 15 + 3000+450 = 3465 min / 60mins = 57 hrs and 45 mins 2. Hard Count Process How long should this process take to complete for 300 silver dollar slot machines? Assume that each slot machine has an average of 750 silver dollars when its emptied 10min weight scales + 7min per bucket(300 machines) +[ (750 per bucket * 300 machines)/25 per roll] / 10 rolls per min + (9000 rolls/40roll per can)(5min to fill and stack) + 5 min to record on report + (9000 rolls/40roll per can)(2 min per can verification) = 10+2100+900+1125+450+5 = 4590mins / 60 = 76.50 hours 3. Purchasing a second coin wrapping machine would enhance the hard count process. They would be able to complete twice as many rolls per minute and you can complete the process in half the time. With a new machine the process would have to be revised so you don’t have jams in the conveyer belt. I am not sure that purchasing this machine would be the most desirable because technology is advancing and developing and such a rapid rate that casino’s may want to look into upgrading the actual slot machines. 4. Electric slot machines that do not use cash would have a huge impact on......

Words: 294 - Pages: 2

Free Essay

#### Week 2 Assignment

...Week 2 Assignment Grayson Wimmer 1. What is the simplest SQL retrieval? SELECT 2. What is the purpose of the Where clause when using SELECT? The WHERE clause is used to extract only those records that fulfill a specified criterion. 3. What are data types and why are they important? A data type is a classification identifying one of various types of data, they are important because assigning data types gives meaning to collections of information 4. Provide an example of the GROUP by clause, when would you use this clause? SELECT Salesperson, SUM(Revenue) AS ‘Total’, MIN(Revenue) AS ‘Smallest’, MAX(Revenue) AS ‘Largest’, AVG(Revenue) AS ‘Average’, COUNT(Revenue) AS ‘Number’ FROM Orders GROUP BY Salesperson You use this clause when you need to see the information in a certain order 5. What is an aggregate function (provide 4)? How are they used? An aggregate function is a function where the values of multiple rows are grouped together as input on certain criteria to form a single value of more significant meaning or measurement AVG() - Returns the average value (average) COUNT() - Returns the number of rows (count) FIRST() - Returns the first value LAST() - Returns the last value 6. Provide example using the COUNT() function SELECT COUNT(*) FROM employees WHERE salary > 25000; 7. How is a field name qualified? How is this used when using a JOIN command, why is it important? A Field name is qualified by preceding the name of the filed with......

Words: 318 - Pages: 2

#### Week 8 Assignment 2

...Week 8 Assignment 2 Clifton Bland Professor Hughes BUS 325 March 1, 2015 Introduction Human resource management refers to the exercise or function through which an organization will be able to maximize the productivity of its employees through set strategic objectives. Human resource management determines the motivation that employees of an organization have to work at the employing organization. This is because human resource management deals with all aspects that pertain to the workplace environment including salaries and wages. Therefore, it is important for an organization to perform quality human resource management right from the recruitment of an individual to the retirement of the individual. In the case that an organization mistreats its employees, the employees will not perform to their maximum potential thereby reducing the productivity of the organization and by extension, the organizations profit margins (Hurn, 2007). Human Resource Management as a Strategy Organizations use human resource management as a strategy to improve its productivity in terms of volumetric production as well as quality production. This is simply through the motivation of the employees to help improve the corporation’s productivity. In simple terms, happy employees contribute to the success of the company because of their motivation to work. Performance, productivity, quality, and specialization qualities will improve once they are happy. In addition, human resource management is...

Words: 2092 - Pages: 9

#### Acc225 Week 2 Assignment

...Week 2 “Preparing Journal Entries & Trial Balances” ACC225 Exercise 2-4 Date Account Title PR Debit Credit Aug 1 Cash 101 \$7,500 Photography Equipment 165 \$35,500 H. Paris, Capital 301 \$43,000 Insurance 114 \$3,000 Aug 5 Office Supplies 240 \$1,400 Aug 20 Photography Fees Earned 623 \$2,650 Aug 31 Utilities 275 \$875 Exercise 2-5 Debit Credit Cash \$7,500 Office Supplies \$1,400 Prepaid Insurance \$3,000 Photography Equipment \$35,500 H. Paris, Capital \$43,000 Photography Fees Earned \$35,500 Utilities \$875 Problem 2-2A General Journal - S. Shelton Designs Date Account Title PR Debit Credit June 1 Cash 101 \$105,000 Office Equipment 163 \$6,000 Drafting Equipment 164 \$45,000 S.Shelton, Capital 301 \$156,000 June 2 Land 172 \$54,000 Cash 101 \$5,400 Notes Payable 250 \$48,600 June 3 Building 170 \$75,000 Cash 101 \$75,000 June 4 Prepaid Insurance 108 \$6,000 Cash 101 \$6,000 June 7 Cash 101 \$5,700 Engineering Fees Earned 402 \$5,700 June 8 Drafting Equipment 164 \$22,500 Cash 101 \$10,500 Notes Payable 250 \$12,000 June 11 Accounts Receivable 106 \$12,000 Engineering Fees Earned 402 \$12,000 June 12 Office Equipment 163 \$2,250 Accounts Payable 201 \$2,250 June 14 Accounts Receivable 106 \$18,000 Engineering Fees......

Words: 826 - Pages: 4

Free Essay