costmanagmentaccountingandcontrol第十四章解答手册

costmanagmentaccountingandcontrol第十四章解答手册内容摘要：

rototype testing. Total quality costs: .............................Current control $ 160,000 ............................. Quality training 160,000 ........................... Process control 200,000 ..................... Supplier evaluation 120,000 .................Engineering redesign 40,000 ................................. Failure costs 184,000* $ 864,000 *$40,000 + ($720,000 – $656,000) + ($200,000 – $120,000) (adds back cost reductions of two activities not implemented). 324 14–6 Concluded 2. a. Total quality costs were reduced by $736,000 ($1,600,000 – $864,000). Quality training increased costs by $160,000 but reduced failure costs by $400,000, for a gain of $240,000. Process control increased costs by $200,000 but decreased failure costs by $320,000, for a gain of $120,000. Supplier evaluation increased costs by $120,000 but decreased failure costs by $456,000, for a gain of $336,000. Engineering redesign increased costs by $40,000 but decreased failure costs by $80,000, for a gain of $40,000. Total gain: $ 240,000 120,000 336,000 40,000 $ 736,000 b. Distribution percentage: Control costs:* $680,000/$864,000 = 79% (rounded) Failure costs: $184,000/$864,000 = 21% (rounded) *Total control costs less costs of activities not implemented: $1,000,000 – $80,000 – $240,000 = $680,000 Failure costs = $864,000 – $680,000 c. Bonus pool =  $736,000 = $73,600 3. All of the same activities would be adopted plus prototype testing. Of the activities adopted, training, supplier evaluation, engineering redesign, and prototype testing are all prevention activities and so would not be counted in the cost reduction calculation. Failure costs would now be $104,000 (prototype addition reduces failure costs by an additional $80,000). The initial failure and appraisal costs are $1,600,000 ($1,440,000 + $160,000). The ending failure and appraisal costs are the sum of the current appraisal costs, ending failure costs, and the cost of adding process control: $160,000 + $104,000 + $200,000 = $464,000. Thus, the cost reductions counted for the bonus pool would be $1,136,000 ($1,600,000 – $464,000), and the bonus would be $113,600 (  $1,136,000). This approach has some merit as it encourages managers to invest in valueadded activities and avoid the temptation of reducing prevention costs prematurely. It is possible, however, that some prevention activities are not really worth doing, and this approach may lead to an overinvestment in this category. 325 14–7 1. Quality costs, 2020 ................... $ 110,000 Less quality costs, 2020.......... 81,000 $ 29,000 2. TruDelite Frozen Desserts, Inc. LongRange Performance Report For the Year Ended December 31, 2020 Actual Costs* LongRange 2020 Target Costs Variance Prevention costs: Training program ............. $ 6,000 $ 3,750 $ 2,250 U Supplier evaluation ......... 13,000 4,688 8,312 U ...............Total prevention $ 19,000 $ 8,438 $ 10,562 .....................................U Appraisal costs: Test labor ........................... $ 10,000 $ 4,687 $ 5,313 U Inspection labor ............... 30,000 2,813 27,187 U ..................Total appraisal $ 40,000 $ 7,500 $ 32,500 .....................................U Internal failure costs: Scrap ................................... $ 18,750 $ 2,812 $ 15,938 U Rework ............................... 12,500 0 12,500 U ........ Total internal failure $ 31,250 $ 2,812 $ 28,438 .....................................U External failure costs: Consumer plaints .... $ 6,250 $ 0 $ 6,250 U Lost sales, incorrect labeling 0 0 0 ....... Total external failure $ 6,250 $ 0 $ 6,250 .......................................U Total quality costs ....................... $ 96,500 $ 18,750 $ 77,750 U Percent of sales............................ % % % *Adjusted for sales of $750,000 [Uses the actual variable cost ratios of 2020 to pute the ―actual‖ unitlevel variable costs for this level of activity。 prevention costs are discretionary fixed and so are assumed to not change as sales increase。 all other costs are assumed to vary with sales volume and so are adjusted to the $750,000 level。 for example, test labor is ($8,000/ $600,000)  $750,000 = $10,000]. 326 14–7 Concluded 3. Prevention and some appraisal costs can be interpreted as valueadded costs. All failure costs are nonvalueadded. Thus, the distribution of costs for 2020 cannot all be valueadded (there are nonzero internal failure costs). If they were, then the variances would be the nonvalueadded costs being incurred in 2020. 4. There would be a $77,750 increase in profits in 2020 if total quality costs are % of sales and the targeted distribution is achieved (the $77,750 increase is the savings reported in the longrange performance report in Requirement 2). 14–8 1. Prevention 2. Prevention 3. Internal failure 4. External failure (societal) 5. Detection 6. Prevention 7. Internal failure 8. External failure (societal) 9. Detection 10. External failure (societal) 11. Prevention 12. External failure (private) 13. Internal failure 14. Detection 15. Internal failure 16. Detection 327 14–9 1. Hender Chemicals Environmental Cost Report For the Year Ended December 31, 2020 Environmental Costs Percentage* Prevention costs: Evaluating suppliers........................ $ 120,000 Recycling products ......................... 75,000 $ 195,000 % Detection costs: Inspecting products/processes ... $ 600,000 Developing perf. m。