Acc420 Cost Accounting: Unit 9 Assignment (E14-28, E14-39, E14-48, E18-21, E18-32)

Acc420 Cost Accounting
Unit 9 Assignment (E14-28, E14-39, E14-48, E18-21, E18-32)

E14-28. EVA
Mountain Mist Inc's. cost of capital is 11 percent. In 2010, one of the firm's divisions generated an EVA of $1,130,000. The fair market value of the capital investment in that division was $29,500,000. How much after-tax income was generated by the division in 2010?

E14-39. ROI
Evergreen Industries operates a chain of lumber stores. In 2010, corporate management examined industry-level data and determined the following performance targets for lumber retail stores:
Asset turnover 1.90
Profit margin 7.00%
The actual 2010 results for the company's lumber retail stores area as follows:
Total assets at beginning of year 10,200,000
Total assets at end of year 12,300,000
Sales 28,250,000
Operating expenses 25,885,000

a. For 2010, how did the lumber retail stores perform relative to their industry norms?
b. Which, as indicated by the performance measures, are the most likely areas to improve performance in the retail lumber stores?
c. What are the advantages and disadvantages of setting a performance target at the start of the year compared with one that is determined at the end of the year based on actual industry performance?
14-48 Balanced scorecard; writing
You have been elected president of your university's newly chartered accounting honor society. The society is a chapter of a national organization that has the following mission: "To promote the profession of accountancy as a career and to imbue members with hight ethical standards."
a. Determine the balanced scorecard categories that you believe would be appropriate for the honor society.
b. Under each category, determine between four and six important performance measures.
c. How would you choose benchmarks against which to compare your chapter to others of the national organization?

E18-21. Target Costing
Utah Utensil has developed a new kitchen utensil. The firm has conducted significant market research and estimated the following pattern for sales of the new product:
Year Expected Volume (units) Expected Price per unit
1 48,000 19
2 48,000 20
3 90,000 16
4 40,000 12
If the firm desires to net $3.50 per unit in profit over the life of the product , and selling and administrative expenses are expected to average $50,000 per year, what is the target cost to produce the new utensil?

E18-32. Production Constraints
X-caliber manufactures high-end flatware. One of the crucial processes in flatware production is polishing. The company normally operates three polishing machines to maintain pace with the upstream and downstream production operations.
However, one of the polishing machines broke yesterday, and management has been informed that the machine will not be back in operation until repairs are complete in three weeks. Two machines cannot keep pace with the volume of product flowing to the polishing operation. You have been hired as a consultant to improve the throughput of the polishing operation.
Discuss tactics you would recommend Xcaliber to employ for handling the capacity limitation.
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