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Acc 349 Week 4 Team Assignment Challenges

2Signature Assignment:  Ethics on the JobChoosing a specific job within a specific company after graduation from college is challenging.  Understanding the primary operations and how ethical issues can arise in any position is the first step.  The internal auditor is a position that draws interest currently.  It is a given that auditors face ethical issues regarding Institute of Management Accountants (IMA) standards practically daily.  But designing controls in place can prevent or detect unethical behavior for the future.Compliance or Operational Internal AuditorAccording to Monster Worldwide (2017), “Audits, legal compliance, documentation skills, and attention to detail, reporting research results, and thoroughness”(Auditor Job Duties).  Also, presentation skills, knowledge of financial software, corporate finance, and Statements of Financial Accounting Standards (SFAS) rules, as well as objectivity, are included within the main types of duties of an auditor.Ethical Issues That Might AriseAmato (2015), “Larry Rittenberg, CPA, a professor emeritus at the University of Wisconsin, said he and report co-author Patricia K. Miller, CPA, former IIA global chairman and Deloitte & Touché LLP partner, found that 55% of survey respondents had been asked at least once, and some more than once, to omit or modify an audit finding” (para. 7). Examples of such ethical issues would be Enron and WorldCom. In addition to management asked auditors to modify audit findings not only in areas of high or low-risk areas, but the ultimate motive would be to get at another individual within the company. Within this particular article, it always mentions that 49% of auditors are directed to not perform audits within high-risk areas and that 32% of auditors are directed to not perform audits within low-risk areas.

A B C Manufacturing overhead $930,000 $800,000 $750,000 Direct labor cost $600,000 $100,000 $600,000 Direct labor hours 50,000 40,000 40,000 Machine hours 100,000 120,000 150,000 During January, the job cost sheets showed the following costs and production data. A B C Direct materials used $92,000 $86,000 $64,000 Direct labor cost $48,000 $35,000 $50,400 Manufacturing overhead incurre $76,000 $74,000 $61,500 Direct labor hours 4,000 3,500 4,200 Machine hours 8,000 10,500 12,600 Instructions (a) Compute the predetermined overhead rate for each department. (b) Compute the total manufacturing costs assigned to jobs in January in each department. (c) Compute the under- or overapplied overhead for each department at January 31. a) Estimated overhead costs / Expected direct labor costs = predetermined overhead rate $930,000 / $600,000 = 155% b) Direct materials + direct labor costs + manufacturing overhead = Total manufacturing cost $92,000 + $48,000 + $74,400 = $214,400 c) Applied overhead cost – Incurred overhead cost = under- or overapplied overhead $74,400 – $76,000 = $1,600 under-applied overhead cost Acquatic Manufacturing uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department A, direct labor hours in Department B, and machine hours in Department C. In establishing the predetermined overhead rates for 2005 the following estimates were made for the year.