Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed

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solutions-manual-to-bhimani-et-al-management-and-cost-accounting-pearson-2012-1

1 July 2011 to 31 December 2011 Profitability Rework On-time delivery Sales returns

Kari Division Bonus Calculation
for the year ended 31 December 2004
1 January 2011 to 30 June 2011
Profitability Rework
On-time delivery Sales returns
(0.02) (€462,000)
(0.02
× €462,000) – €11,500 No bonus – under 96%
[(0.015 v €4,200,000) – €84,000]
× 50%
€9,240
(2,260)
0
(10,500) Semiannual installment Semiannual bonus awarded
(3,520)
€0
1 July 2011 to 31 December 2011
Profitability Rework
On-time delivery Sales returns
(0.02) (€440,000)
(0.02
× €440,000) – €11,000 96–98%
[(0.015 v €4,400,000) – €70,000]
× 50%
€8,800
(2,200)
2,000
(2,000) Semiannual installment Semiannual bonus awarded
6,600
€ 6,600 Total bonus awarded for the year
€ 6,600

Bhimani, Horngren, Datar and Rajan, Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012 The semiannual installments and total bonus for the Siri Division are calculated as follows

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