Questions from Cost Accounting

Q: What factors would you consider in deciding whether to use direct labor

What factors would you consider in deciding whether to use direct labor dollars or direct labor hours in charging overhead to jobs in a service firm?

Q: On December 1, Lake George Production Company had a work in

On December 1, Lake George Production Company had a work in process inventory of 1,200 units that were complete as to materials and 50% complete as to labor and overhead. December 1 costs follow: Mate...

Q: Distinguish between a direct cost and an indirect cost when the cost

Distinguish between a direct cost and an indirect cost when the cost object is the job.

Q: The fixed overhead budgeted for Hamlet Company at an expected capacity of

The fixed overhead budgeted for Hamlet Company at an expected capacity of 500,000 units is $1,500,000. Variable costing is used internally, and the net income is adjusted to an absorption costing net...

Q: Grecian Products, Inc., has two divisions, Athens and Sparta

Grecian Products, Inc., has two divisions, Athens and Sparta. For the month ended March 31, Athens had sales and variable costs of $500,000 and $225,000, respectively, and Sparta had sales and variabl...

Q: The sales price per unit is $13 for the Dakota Company’s

The sales price per unit is $13 for the Dakota Company’s only product. The variable cost per unit is $5. In year 2011, the company sold 80,000 units, which was 10,000 units above the break-even point....

Q: Jackson Company sells its only product for $50 per unit.

Jackson Company sells its only product for $50 per unit. Fixed expenses total $800,000 per year. Variable expenses are $1,000,000 when 40,000 units are sold. How many units must be sold to earn a net...

Q: A new product is expected to have sales of $100,

A new product is expected to have sales of $100,000, variable costs of 60% of sales, and fixed costs of $20,000. 1. Using graph paper, construct a break-even chart and label the sales line, total cost...

Q: Leisure Products, Inc., manufactures and sells two products, golf

Leisure Products, Inc., manufactures and sells two products, golf balls and tennis balls. Fixed costs are $100,000, and unit sales are 60,000 sheaths of golf balls and 40,000 cans of tennis balls. The...

Q: A company has sales of $1,000,000,

A company has sales of $1,000,000, variable costs of $250,000, and fixed costs of $600,000. Compute the following: 1. Contribution margin ratio. 2. Break-even sales volume. 3. Margin of safety ratio....