ACCT 323 Final Review Pachage #24

Good question Lingfeng,

The formula that you are using is:

Residual income = (Net operating income – (Average operating assets * Minimum rate of return)

Here we are solving for the minimum rate of return.

Therefore, we structure it as: 90,000 = 130,000 – (550,000* X), where we are solving for X.

As you can see in the formula, it is average operating assets multiplied by the minimum rate, not residual income. This is why we use 550000 rather than 90000.

Hope this makes sense,

Alex

ACCT 323 Final Review Package #28

Hi Karen,

It seems this question is missing the spending variance in the given information. For now, just assume that it is included as 1300 F.

Thanks for bringing this to our attention and good luck on your exam!

Alex

ACCT 323 Winter 2019 Practice Midterm

Hi Christopher,

Great questions! For 38 it is important that you always consider the highest and lowest activity levels not the costs. Even though June is the lowest cost at 1750, its activity of 20 is higher than July which is 10. You always use the lowest, hence why July is used rather than June!

For q42, your actual is the left side of the T-account, not the right side. Using your POHR and the actual machine hours gets you your applied overhead. Since the right side is larger than the actual overhead you incurred, you over-applied your overhead.

Hope this clears things up!

323 EXAM package question12

Since we know that the excess cash from the year was 11,952, and you know that they will require 35,000 next year, you need to figure out what amount needs to be borrowed to reach this. Therefore, we see that they will need to borrow 23,047 to fund this.

Do you have social activities too?

Hi Matt,

Getting involved through ASA is a great way to build relationships with other business students and accountants. Currently, we are planning two upcoming events in the winter, the Haskayne Accounting Case Competition (HACC) and the CPA Round Tables, which is a networking dinner. Be on the look out for registration coming up in January and March respectively.
Beyond these events, sign up for our newsletter (the sign-up form is on our homepage) where we will notify you of accounting-related events, try out Coffee Connect to meet some ASA members, and consider joining ASA as a director – applications to join the ASA executive team will be out in March.

Thank you,
ASA