Questions from Cost Accounting

Q: Main Street Ice Cream Company uses a plantwide allocation method to allocate

Main Street Ice Cream Company uses a plantwide allocation method to allocate overhead based on direct labor-hours at a rate of $3 per labor-hour. Strawberry and vanilla flavors are produced in Departm...

Q: The Personnel Department at Drumm Corporation is centralized and provides services to

The Personnel Department at Drumm Corporation is centralized and provides services to the two operating units: Illinois and Ohio. The Illinois unit is the original unit of Drumm and is well establishe...

Q: Refer to exercise 9-24. Kurt, the manager of

Refer to exercise 9-24. Kurt, the manager of the Ohio unit, is unhappy with the results of the controller’s study. He asks the controller to develop separate rates for fixed and vari...

Q: After reviewing the new activity-based costing system that Janis McGee

After reviewing the new activity-based costing system that Janis McGee has implemented at Joplin Industries’s Port Arthur manufacturing facility, Kris Kristoff, the production superv...

Q: Give examples of cost drivers commonly used to allocate overhead costs to

Give examples of cost drivers commonly used to allocate overhead costs to products and services.

Q: Cathy, the manager of Cathy’s Catering, Inc., uses activity

Cathy, the manager of Cathy’s Catering, Inc., uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires four people to...

Q: Rodent Corporation produces two types of computer mice, wired and wireless

Rodent Corporation produces two types of computer mice, wired and wireless. The wired mice are designed as low-cost, reliable input devices. The company only recently began producing the higher-qualit...

Q: Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant

Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company’s two versions of a special reel used for river fishing. The two mode...

Q: We-Clean, Inc., is a home-cleaning service

We-Clean, Inc., is a home-cleaning service. It originally specialized in serving small residential clients but recently started contracting for work in large apartment and office buildings. Julie Lodg...

Q: Isadore’s Implements, Inc., manufactures pens and mechanical pencils often used

Isadore’s Implements, Inc., manufactures pens and mechanical pencils often used for gifts. Overhead costs are currently allocated using direct labor-hours, but the controller has rec...