Easy Finance 2

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General Instructions

Instructions for the Microsoft Excel Templates by Rex A Schildhouse
Be advised, the template workbooks and worksheets are not protected. Overtyping any data may remove it.
Extensive detail and information is contained within the help function of Microsoft Excel and in the provided text.
You should enter your name, date, instructor's name, and course into the cells at the top of the page. This information will be printed on the top of each page if the template requires more than one page.
Each template is set to print with File Name, tab name, Page # of # Page(s), the print date, and the print time to assist in assembly of multiple pages.
If more than one page is required by the template, manual page breaks have been set to provide consistent presentation.
All of the cells have been correctly formatted for presentation and should not require any adjustment. For example, if the text requires one, two, or three significant digits in a presentation, the template has been set for that presentation in the appropriate cells.
In general, the yellow highlighted cells are the cells which work and effort should be presented. These entries may include date(s), account title(s), values, memorandum appropriate to the entry, or text answers to questions.
And information or data which may be required by the solution will be entered in cells with borders to help identify them.
Where a yellow highlighted cell shows "Date" enter the appropriate date for that step of the challenge. This may be any date format that Microsoft Excel accepts. Some of these formats include "1/1/12", "01/01/12", and "01/01/2012." All of these will return January 01, 2010, in the format set in the template.
Where a yellow highlighted cell shows "Acct Nbr" enter the appropriate account number, provided in the template and in the text for that step of the challenge. This is entry may be a "Look to" formula to another cell where that information has been provided or previously entered.
Where a yellow highlighted cell shows "Account Title" enter the appropriate account title for that step of the challenge. This is a text entry and most of those cells are set for the proper indentation for that step. Frequently the chart of accounts appropriate to the challenge is provided and you can use the "look to" formula to reference the appropriate account title without typing it.
Check with your instructor to see if abbreviated account titles are acceptable. For example "A/R" for Accounts Receivable, "A/P" for Accounts Payable. If your instructor is using a comparison process between workbooks for grading, these abbreviates may not be acceptable.
Where a yellow highlighted cell shows titles such as "Values," "Amounts," or "Quantities" enter the appropriate numerical value for that step of the challenge. The cell is formatted for proper presentation of the entered information. If a dollar sign is appropriate, it should not be entered, Microsoft Excel will place it there through formatting. Commas and significant digits (decimals) are also set through formatting for common presentation. Since the formatting of the templates is not protected by any password, you may change any of the formatting found in the templates to meet your desires.
Where a yellow highlighted cell shows titles such as "Formula" you may enter the appropriate formula or enter a numerical value appropriate for that step of the challenge. Most of the values necessary for the appropriate formula are located on the template in cells with borders or in other yellow highlighted cells. The formula may be a simple "Look to" formula, an equal sign and a cell reference, "=E27" or more complex as "=E27*5," or something similar to the time-value-of-money formula. These are addressed in the tutorial text provided for Microsoft Excel.
Where a yellow highlighted cell shows "Text" enter the appropriate text for that step of the challenge. This may be a memorandum entry for a journal entry or a lengthy text answer discussing the results of an analysis of a company's financials. These titles can simply be typed over.
Where a yellow highlighted cell shows titles such as "Journal Number" or "Journ #" you should enter the appropriate number provided in the template and in the text for that step of the challenge. In general this will appear in instances such as "Record the following events in General Journal number six."
The print area is defined to fit onto 8 1/2" × 11" sheets in portrait or landscape mode as required. Margins are generally set to no less than 1/2" so most printers can print them without a problem. If you printer cannot accept margins less than 1" you may have to reformat the margins through Page Setup.
The display may have "Freeze Pane" invoked so column titles remain visible during data entry. This can be removed by utilizing the View menu and selecting "Unfreeze Panes" under "Freeze Panes."
When negative values are required, enter them by starting with a minus sign, "-". Negative values may be shown as ($400) or -$400. Negative values in formulas can be created by putting a minus sign in front of the cell reference - "=E10*-E11" will return a negative value if both cells E10 and E11 contain positive values.
Microsoft Office and Microsoft Excel are products of, and copyrighted by, Microsoft Corporation, One Microsoft Way, Redmond, Washington 98052-6399

Exercise E21-3

Name: Date:
Instructor: Course:
Accounting, Fourth Edition by Kimmel, Weygandt, and Kieso
Primer on Using Excel in Accounting by Rex A Schildhouse
E21-3 - Prepare flexible manufacturing overhead budget.
Thome Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows.
Indirect labor $1.00
Indirect materials 0.50
Utilities 0.40
Fixed overhead costs per month are: Supervision $4,000
Depreciation 1,500
Property Taxes 800
The company believes it will normally operate in a range of 7,000 to 10,000 direct
labor hours per month.
Instructions:
Prepare a monthly manufacturing overhead flexible budget for 2012 for the expected range of activity, using increments of 1,000 direct labor hours.
THOME COMPANY
Monthly Manufacturing Overhead Flexible Budget
For the Year 2012
Activity level Direct labor hours 7,000 8,000 9,000 10,000
Variable costs
Title Amount Amount Amount Amount
Title Amount Amount Amount Amount
Title Amount Amount Amount Amount
Title Formula Formula Formula Formula
Fixed costs
Title Amount Amount Amount Amount
Title Amount Amount Amount Amount
Title Amount Amount Amount Amount
Title Formula Formula Formula Formula
Total costs Formula Formula Formula Formula

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Exercise E21-4

Name: Date:
Instructor: Course:
Accounting, Fourth Edition by Kimmel, Weygandt, and Kieso
Primer on Using Excel in Accounting by Rex A Schildhouse
E21-4 - Prepare flexible budget reports for manufacturing overhead costs, and comment on findings.
Thome Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows.
Indirect labor $1.00
Indirect materials 0.50
Utilities 0.40
Fixed overhead costs per month are: Supervision $4,000
Depreciation 1,500
Property Taxes 800
In July 2012, Thome Company incurs the following manufacturing overhead costs:
Variable Costs: Fixed Costs:
Indirect labor $8,700 Supervision $4,000
Indirect materials 4,300 Depreciation 1,500
Utilities 3,200 Property Taxes 800
Instructions:
(a) Prepare a flexible budget performance report, assuming that the company worked 9,000
direct labor hours during the month.
THOME COMPANY
Manufacturing Overhead Flexible Budget Report
For the Month Ended July 31, 2012
Direct labor hours (DLH) Budget: Actual Costs Favorable - Fav
Variable costs 9,000 DLH 9,000 DLH Unfavorable - Unf
Title Amount Amount Amount Fav/Unf
Title Amount Amount Amount Fav/Unf
Title Amount Amount Amount Fav/Unf
Total variable Formula Formula Formula Fav/Unf
Fixed costs
Title Amount Amount Amount Fav/Unf
Title Amount Amount Amount Fav/Unf
Title Amount Amount Amount Fav/Unf
Total fixed Formula Formula Formula Fav/Unf
Total costs Formula Formula Formula Fav/Unf
(b) Prepare a flexible budget performance report, assuming that the company worked 8,500
direct labor hours during the month.
THOME COMPANY
Manufacturing Overhead Flexible Budget Report
For the Month Ended July 31, 2012
Direct labor hours (DLH) Budget: Actual Costs Favorable - Fav
Variable costs 8,500 DLH 8,500 DLH Unfavorable - Unf
Title Amount Amount Amount Fav/Unf
Title Amount Amount Amount Fav/Unf
Title Amount Amount Amount Fav/Unf
Total variable Formula Formula Formula Fav/Unf
Fixed costs
Title Amount Amount Amount Fav/Unf
Title Amount Amount Amount Fav/Unf
Title Amount Amount Amount Fav/Unf
Total fixed Formula Formula Formula Fav/Unf
Total costs Formula Formula Formula Fav/Unf
(c) Comment on your findings.
Enter text answer here.

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Problem P21-1A

Name: Date:
Instructor: Course:
Accounting, Fourth Edition by Kimmel, Weygandt, and Kieso
Primer on Using Excel in Accounting by Rex A Schildhouse
P21-1A - Prepare flexible budget and budget report for manufacturing overhead.
Cook Company estimates that 360,000 direct labor hours will be worked during the coming year,
2012, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data, shown below, are computed for the year.
Fixed Overhead Costs Variable Overhead Costs
Supervision $90,000 Indirect labor $126,000
Depreciation 60,000 Indirect materials 90,000
Insurance 30,000 Repairs 54,000
Rent 24,000 Utilities 72,000
Property taxes 18,000 Lubricants 18,000
$222,000 $360,000
It is estimated that direct labor hours worked each month will range from 27,000 to 36,000
hours.
During October, 27,000 direct labor hours were worked and the following overhead costs were
incurred.
Fixed Overhead Costs Variable Overhead Costs
Supervision $7,500 Indirect labor $10,360
Depreciation 5,000 Indirect materials 6,400
Insurance 2,470 Repairs 4,000
Rent 2,000 Utilities 5,700
Property taxes 1,500 Lubricants 1,640
Instructions:
(a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,000 direct labor hours
over the relevant range for the year ending December 31, 2012.
COOK COMPANY
Packaging Department
Monthly Manufacturing Overhead Flexible Budget
For the Year 2012
Activity level
Direct labor hours Number Number Number Number
Variable costs
Title Amount Amount Amount Amount
Title Amount Amount Amount Amount
Title Amount Amount Amount Amount
Title Amount Amount Amount Amount
Title Amount Amount Amount Amount
Total variable costs (1.00) Formula Formula Formula Formula
Fixed costs
Title Amount Amount Amount Amount
Title Amount Amount Amount Amount
Title Amount Amount Amount Amount
Title Amount Amount Amount Amount
Title Amount Amount Amount Amount
Total fixed costs Formula Formula Formula Formula
Total costs Formula Formula Formula Formula
(b) Prepare a flexible budget report for October.
COOK COMPANY
Packaging Department
Manufacturing Overhead Flexible Budget Report
For the Month Ended October 31, 2012
Budgeted at Actual Costs Difference
Direct labor hours (DLH) Amount Amount Favorable - Fav Unfavorable - Unf
Variable costs DLH DLH
Title Amount Amount Formula Fav / Unf
Title Amount Amount Formula Fav / Unf
Title Amount Amount Formula Fav / Unf
Title Amount Amount Formula Fav / Unf
Title Amount Amount Formula Fav / Unf
Total variable costs (1.00) Formula Formula Formula Fav / Unf
Fixed costs
Title Amount Amount Formula Fav / Unf
Title Amount Amount Formula Fav / Unf
Title Amount Amount Formula Fav / Unf
Title Amount Amount Formula Fav / Unf
Title Amount Amount Formula Fav / Unf
Total fixed costs Formula Formula Formula Fav / Unf
Total costs Formula Formula Formula Fav / Unf
(c) Comment on management's efficiency in controlling manufacturing overhead costs in October.
Enter text answer here.

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