Questions from Cost Accounting

Q: How do rate and efficiency variances relate to labor costs?

How do rate and efficiency variances relate to labor costs?

Q: Is a favorable variance ‘‘good’’ and an unfavorable variance ‘‘bad’’

Is a favorable variance ‘‘good’’ and an unfavorable variance ‘‘bad’’? Explain.

Q: Chiao and Piaker, CPAs, budgeted for the following professional labor

Chiao and Piaker, CPAs, budgeted for the following professional labor hours for the coming year: partners, 1,500; managers, 5,000; and staff, 20,000. Budgeted billing rates are: partners, $250 per hou...

Q: Jones and Wang, physicians, budgeted for the following revenue and

Jones and Wang, physicians, budgeted for the following revenue and expenses for the month of September: Depreciation—equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....

Q: The partners of Harris and Whelan, attorneys-at-law

The partners of Harris and Whelan, attorneys-at-law, decide to implement an activity-based costing system for their firm. They identify the following three cost pools and budgeted amounts for each for...

Q: From the following list of performance measures, label each one as

From the following list of performance measures, label each one as Financial, Customer, Internal Business Processes, or Learning and Growth: Percentage of on-time deliveries Employee turnover ratio...

Q: Hi-End, Inc., a chain of gasoline service stations

Hi-End, Inc., a chain of gasoline service stations, has a strategy of charging premium prices for its gasoline by providing excellent service such as attendants to pump gas, clean restrooms, and free...

Q: Hayes and Manolis have a professional service firm that has the following

Hayes and Manolis have a professional service firm that has the following budgeted costs for the current year: Associates’ salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....

Q: Brown and Stetham, plumbers, successfully bid $30,000

Brown and Stetham, plumbers, successfully bid $30,000 for the plumbing work on a new luxury home. Total direct labor cost on the job was $9,500, other direct costs were $2,500, and overhead is charged...

Q: Boone Oil Company transports crude oil to its refinery where it is

Boone Oil Company transports crude oil to its refinery where it is processed into main products gasoline, kerosene, and diesel fuel, and by-product base oil. The base oil is sold at the split-off poin...