Questions from General Accounting

Q: York Co. uses a standard cost system. When raw materials

York Co. uses a standard cost system. When raw materials are purchased, the standard cost of the raw materials purchased is recorded as an increase in the Raw Materials Inventory account. When raw mat...

Q: a. Firm A has a margin of 12%, sales of

a. Firm A has a margin of 12%, sales of $600,000, and ROI of 18%. Calculate the firm’s average total assets. b. Firm B has net income of $78,000, turnover of 1.3, and average total assets of $950,000....

Q: The Consortium for Advanced Manufacturing—International (CAM-I)

The Consortium for Advanced Manufacturing—International (CAM-I) is an international consortium of companies, consultancies, and academics that have elected to work cooperatively in a precompetitive en...

Q: The cost formula for the maintenance department of Rainbow, Ltd.,

The cost formula for the maintenance department of Rainbow, Ltd., is $12,600 per month plus $4.50 per machine hour used by the production department. Required: a. Calculate the maintenance cost that...

Q: Clay Co. produces ceramic coffee mugs and pencil holders. Manufacturing

Clay Co. produces ceramic coffee mugs and pencil holders. Manufacturing overhead is assigned to production using an application rate based on direct labor hours. Required: a. For 2010, the company’s...

Q: Following is a partially completed performance report for a recent week for

Following is a partially completed performance report for a recent week for direct labor in the binding department of a book publisher: The original budget is based on the expectation that 8,000 boo...

Q: For the stamping department of a manufacturing firm, the standard cost

For the stamping department of a manufacturing firm, the standard cost for direct labor is $12 per hour, and the production standard calls for 1,000 stampings per hour. During June, 168 hours were req...

Q: Ackerman’s Garage uses standards to plan and control labor time and expense

Ackerman’s Garage uses standards to plan and control labor time and expense. The standard time for an engine tune-up is 3 hours, and the standard labor rate is $25 per hour. Last week, 42 tune-ups wer...

Q: Coastal Industries has established direct labor performance standards for its maintenance and

Coastal Industries has established direct labor performance standards for its maintenance and repair shop. However, some of the labor records were destroyed during a recent fire. The actual hours work...

Q: Birchwood, Inc., manufactures end tables, armchairs, and other

Birchwood, Inc., manufactures end tables, armchairs, and other wood furniture products from high-quality materials. The company uses a standard costing system and isolates variances as soon as possibl...