Questions from Accounting Principles

Q: Nathan T Corporation is comparing two different options. Nathan T currently

Nathan T Corporation is comparing two different options. Nathan T currently uses Option 1, with revenues of $65,000 per year, maintenance expenses of $5,000 per year, and operating expenses of $26,000...

Q: Gundy Company expects to produce 1,200,000 units of

Gundy Company expects to produce 1,200,000 units of Product XX in 2020. Monthly production is expected to range from 80,000 to 120,000 units. Budgeted variable manufacturing costs per unit are direct...

Q: McKnight Company is considering two different, mutually exclusive capital expenditure proposals

McKnight Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $400,000, has an expected useful life of 10 years, a salvage value of zero, and is...

Q: In October, Pine Company reports 21,000 actual direct labor

In October, Pine Company reports 21,000 actual direct labor hours, and it incurs $118,000 of manufacturing overhead costs. Standard hours allowed for the work done is 20,600 hours. The predetermined o...

Q: Kanye Company is evaluating the purchase of a rebuilt spot-welding

Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $176,000, has an estimated useful life of 7 years, a sa...

Q: For the year ending December 31, 2020, Cobb Company accumulates

For the year ending December 31, 2020, Cobb Company accumulates the following data for the Plastics Division which it operates as an investment center: contribution margin—$700,000 budget, $710,000 ac...

Q: Swift Oil Company is considering investing in a new oil well.

Swift Oil Company is considering investing in a new oil well. It is expected that the oil well will increase annual revenues by $130,000 and will increase annual expenses by $70,000 including deprecia...

Q: Some overhead data for Pine Company are given in BE26.6

Some overhead data for Pine Company are given in BE26.6. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $4 variable per direct labor hour and $50,000 fixed. Comp...

Q: Using the data in BE26.6 and BE26.10,

Using the data in BE26.6 and BE26.10, compute the overhead volume variance. Normal capacity was 25,000 direct labor hours. Data from BE26.6 & BE26.10: In October, Pine Company reports 21,000 actual d...

Q: Deines Corporation has fixed costs of $480,000. It

Deines Corporation has fixed costs of $480,000. It has a unit selling price of $6, unit variable costs of $4.40, and a target net income of $1,500,000. Compute the required sales in units to achieve i...