Questions from Managerial Accounting

Q: Why can undue emphasis on labor efficiency variances lead to excess work

Why can undue emphasis on labor efficiency variances lead to excess work in process inventories?

Q: Only variable costs can be differential costs. Do you agree?

Only variable costs can be differential costs. Do you agree? Explain.

Q: Privack Corporation has a standard cost system in which it applies overhead

Privack Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most r...

Q: Primara Corporation has a standard cost system in which it applies overhead

Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most r...

Q: Operating at a normal level of 30,000 direct labor-

Operating at a normal level of 30,000 direct labor-hours, Lasser Company produces 10,000 units of product each period. The direct labor wage rate is $12 per hour. Two and one-half yards of direct mate...

Q: Norwall Company’s variable manufacturing overhead should be $3.00 per

Norwall Company’s variable manufacturing overhead should be $3.00 per standard machine-hour and its fixed manufacturing overhead should be $300,000 per period. The following information is available f...

Q: Selected operating information on three different companies for a recent year is

Selected operating information on three different companies for a recent year is given below: Required: For each company, state whether the company would have a favorable or unfavorable volume varia...

Q: The standard cost card for the single product manufactured by Cutter,

The standard cost card for the single product manufactured by Cutter, Inc., is given below: Standard Cost Card—per Unit Direct materials, 3 yards at $6.00 per yard ....................

Q: Selected information relating to Yost Company’s operations for the most recent year

Selected information relating to Yost Company’s operations for the most recent year is given below: Activity: Denominator activity (machine-hours) ............ 45,000 Standard hours allowed per unit …...

Q: Erie Company manufactures a small CD player called the Jogging Mate.

Erie Company manufactures a small CD player called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate CD player are as follo...