Individual
$300
$50
Student
$180
$40
Family
$600
$90
Membership Distribution
Individual
60%
Student
10%
Family
30%
New
Renewed
Prime
Regular
100
700
5,000
7,000
70
330
2,000
4,000
50
150
1,000
2,000
200
600
5,000
7,000
Required:
1) Identify at least three weaknesses in WoodCrafts Inc.s
monthly Bookcase Production Performance Report.
2) WoodCrafts Inc. could do a better job of reporting monthly
performance to the production managers. Recommend how
the report could be improved to eliminate weaknesses, and
revise it accordingly.
WoodCrafts Inc.
Bookcase Production Performance Report
For the Month Ended November 30, 2008
Actual
Units
Revenue
Budget
Variance
3,000
2,500
500F
$161,000
$137,500
$23,500F
23,10
20,000
3,100U
18,300
15,000
3,300U
Machine time
Direct labor
19,200
16,250
2,950U
Factory overhead
41,000
35,000
6,000U
Indirect labor
9,400
6,000
3,400U
Depreciation
5,500
5,500
Taxes
2,400
2,300
100U
Insurance
4,500
4,500
12,000
9,000
3,000U
8,300
7,000
1,300U
Administrative expense
Marketing expense
Research and development
Operating profit
6,000
4,500
1,500U
$ 11,300
$12,450
$1,150U
Required:
A. How can the controller use the expected value approach to set
the sales level for the budget? What additional information would
be needed?
B. How could the use of variable (direct) costing mitigate the problem of how to allocate the fixed costs to individual units?
C. Which cost system seems to make more sense for TruJeans, job
order costing or process costing? Explain your answer.
Required:
A. Identify and describe the two fundamental types of internal
audits. Using examples, describe two situations where each type
of audit would be applicable.
B. Referring to Brawn Technology,
1) identify the type of audit that would best address the concerns of the president.
2) identify the objective of this audit.
3) give two reasons why this type of audit would best address
the concerns of the president.
C. Recommend two procedures that could be implemented at
Brawns manufacturing plant that would lessen the presidents
concerns. Explain each of your recommendations.
Required:
A. Using the categories outlined in IMAs Standards of Ethical Professional Practice, identify the standards that are specifically relevant to Alex Raminovs ethical conflict and explain why the
standards are applicable to the situation.
B. According to the IMAs Standards of Ethical Professional Practice,
what further steps, if any, should Raminov take in resolving his
ethical dilemma?
C. If he continues to be rebuffed by his employer, should Raminov
notify the appropriate authorities? Should he anonymously release the information to the local newspaper? Explain your answers.