Questions from Cost Accounting

Q: The normal capacity of a manufacturing plant is 30,000 direct

The normal capacity of a manufacturing plant is 30,000 direct labor hours or 20,000 units per month. Standard fixed costs are $6,000, and variable costs are $12,000. Data for two months follow: For e...

Q: The overhead application rate for a company is $2.50

The overhead application rate for a company is $2.50 per unit, made up of $1.00 for fixed overhead and $1.50 for variable overhead. Normal capacity is 10,000 units. In one month, there was an unfavora...

Q: Georgia Gasket Company budgets 8,000 direct labor hours for the

Georgia Gasket Company budgets 8,000 direct labor hours for the year. The total overhead budget is expected to amount to $20,000. The standard cost for a unit of the company’s product estimates the va...

Q: Using the data shown, calculate the following overhead variances:

Using the data shown, calculate the following overhead variances: Production for the month . . . . . . . . . . . . . . . . . . . . . . . . 9,000 units Direct labor hours used . . . . . . . . . . . ....

Q: 1,000 units were started and finished. Case 1

1,000 units were started and finished. Case 1: All prices and quantities for the cost elements are standard, except for materials cost, which is $8.50 per pound. Case 2: All prices and quantities for...

Q: Akron Manufacturing Company manufactures a cement sealing compound called Ultra-Seal

Akron Manufacturing Company manufactures a cement sealing compound called Ultra-Seal. The process requires that the product pass through three departments. In Dept. 1, all materials are put into produ...

Q: D-List Calendar Company specializes in manufacturing calendars that depict obscure

D-List Calendar Company specializes in manufacturing calendars that depict obscure comedians. The company uses a standard cost system to control its costs. During one month of operations, the direct m...

Q: Overhead Doors, Inc., manufactures garage doors for homes. The

Overhead Doors, Inc., manufactures garage doors for homes. The standard quantity of direct labor to manufacture a door is 4.5 hours. The standard hourly wage in this department is $12.50 per hour. Dur...

Q: AACSB Processors, Inc., produces an average of 10,000

AACSB Processors, Inc., produces an average of 10,000 units each month. The factory standards are 20,000 hours of direct labor and 10,000 pounds of materials for this volume. The standard cost of dire...

Q: This includes standards for such items as food, labor, and

This includes standards for such items as food, labor, and paper products. Given the level of sales volume achieved, the actual costs incurred are compared to the standard costs that should have been...