The Case Study in Unit I (Case Study 2-2: Mowerson Division) is located on pages 86-88 in your textbook. Read the case
and utilize the data included in the case to answer the following questions.
1. Discuss whether Jim Wright should have analyzed only the costs and savings that Mowerson would realize in
2002.
2. For each of the 10 items listed in Wright’s financial analysis, indicate whether:
a. The item is appropriate or inappropriate for inclusion in the report. If the item is inappropriate, explain
why it should not be included in the report.
b. The amount is correct or incorrect. If the amount is incorrect, state what the correct amount is.
3. What additional information about Tri-Star would be helpful to Mowerson in evaluating its manufacturing decision?
<pstyle=”color: rgb(0,=”” 0,=”” 0);=”” font-size:=”” 12px;”=””>Unit III Case Study
The Case Study in Unit III (Case Study 5-15: U.S Pump Systems) is located on pages 210-211 in your textbook. Read the
case and utilize the data included in the case to answer the following question:
? Analyze the situation and recommend a course of action. What should installation division managers do? What
should valve division managers do? What should U.S Pump senior managers do? Explain.
<pstyle=”color: rgb(0,=”” 0,=”” 0);=”” font-size:=”” 12px;”=””>Unit V Case Study
The case study in Unit V (Case Study 9-2: IPX Packaging) is located on page 445 in your textbook. Read the case and
utilize the data included in the case to answer the following questions.
1. Calculate the overhead rate set at the beginning of the year.
2. Calculate the amount of over/underabsorbed overhead for the year.
3. The company’s policy is to write off any over/underabsorbed overhead to cost of goods sold. Will net income
rise or fall this year when the over/underabsorbed overhead is written off to cost of goods sold?
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