Questions from Managerial Accounting

Q: What do strategy maps show, and how do they add value

What do strategy maps show, and how do they add value to the balanced scorecard?

Q: Ming Company has budgeted sales at 6,300 units for July

Ming Company has budgeted sales at 6,300 units for July, and desires to have 590 good units on hand on July 31. Inventory is 470 units on July 1. Ming has found from past experience that 10% of all un...

Q: Krouse Company produces two products, forged putter heads and laminated putter

Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold through specialty golf shops. The company is in the process of developing its operating budget for...

Q: MinnOil performs oil changes and other minor maintenance services on cars and

MinnOil performs oil changes and other minor maintenance services on cars and trucks. The company advertises that all services are performed within 15 minutes each. On a recent Saturday, 160 cars were...

Q: Marten Company has a cost-benefit policy to investigate any variance

Marten Company has a cost-benefit policy to investigate any variance that is greater than $1,000 or 10% of budget, whichever is larger. Actual results for the previous month indicate the following: T...

Q: Frisco Company recently purchased 108,000 units of raw material for

Frisco Company recently purchased 108,000 units of raw material for $583,200. Three units of raw materials are budgeted for use in each finished good manufactured, with the raw material standard set a...

Q: JoyT Company manufactures Maxi Dolls for sale in toy stores. In

JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT estimated variable factory overhead of $600,000 and fixed factory overhead of $400,000. JoyT uses a standar...

Q: Sara Bellows, manager of the telecommunication sales team, has the

Sara Bellows, manager of the telecommunication sales team, has the following department budget: Billings – long distance …………. $350,000 Billings – phone card ………………… 75,000 Billings – toll free ………………...

Q: Most firms allocate corporate and other support costs to divisions and departments

Most firms allocate corporate and other support costs to divisions and departments for all of the following reasons except to: a. remind profit center managers that earnings must be adequate to cover...

Q: Manhattan Corporation has several divisions that operate as decentralized profit centers.

Manhattan Corporation has several divisions that operate as decentralized profit centers. At the present time, the Fabrication Division has excess capacity of 5,000 units with respect to the UT-371 ci...