Essay About Meredith Corporation And Cost Effect Of Growth

Acct 3250 – Intermediate Management Accounting
ACCT 3250   Fall  2015Check figures for some selected homework questions  Ch 13Ch 13-18:  1.        Meredith Corporation follows a value leadership (product differentiation) strategy in 2013. Meredith’s D4H machine is distinct from its competitors and generally regarded as superior to competitors’ products. To succeed, Meredith must continue to differentiate its product and charge a premium price.Ch 13-19:  Change in operating income : $607,500 F      Revenue effect of growth        $400,000 F        Cost effect of growth         120,000 U        Change in operating income due to growth        $280,000 FRevenue effect of price-recovery        $420,000 F        Cost effect of price-recovery         184,500 U        Change in operating income due to price-recovery        $235,500 FCh 13- 22:  •        Internal Business Process•        Improve manufacturing quality•        Introduce new products•        Minimize invoice error rate•        On-time delivery by suppliers•        Increase proprietary products•        Increase information system capabilities•        Percentage of defective product units•        Percentage of error-free invoices•        Percentage of on-time deliveries by suppliers•        Number of patents•        Percentage of processes with real-time feedbackCh 14Ch 14- 17:  Costs allocated to Mississauga under single-rate method based on practical capacity, $3,000Fixed-Cost Pool:        Total costs in pool        =        $9,000        Practical capacity        =        50,000 kilowatt hours        Allocation rate        =        $9,000 ÷ 50,000 = $0.18 per hour of capacityCh 14-20:  1A: Cost allocated to govt. $1,120,       1C:  Step-down method (allocate IS first) , cost allocated to govt: $1,832,000Ch 14- 23:  1. Restaurant C actual usage cost allocation: $3,100Ch 14-29:  1.  Allocation to Wright Inc. under stand-alone cost allocation method, $28,800       2.  Allocation to Wright Ince. Under the incremental methods with Wright as the primary party:  $36,000Ch 14- 32:  1. Bread operating income, $4,700,000Ch 15 Ch 15- 16:  1.a. Joint costs allocated to breasts, $33.75 (Sales Value at Split-off method)