Questions from Cost Accounting

Q: Wendy Chen established Windy City Coaching (WCC) to provide teen

Wendy Chen established Windy City Coaching (WCC) to provide teen counseling and executive coaching services to its clients. WCC charges a $300 fee per hour for each service. The revenues and costs for...

Q: Delta Parts, Inc., recently switched to activity-based costing

Delta Parts, Inc., recently switched to activity-based costing from the department allocation method. The Fabrication Department manager has estimated the following cost drivers and rates: Direct ma...

Q: Carolina Fashions, a shirt manufacturer, recently switched to activity-

Carolina Fashions, a shirt manufacturer, recently switched to activity-based costing from the department product costing method. The manager of Building S, which manufactures the shirts, has identifie...

Q: The Personnel Department at LastCall Enterprises handles many administrative tasks for the

The Personnel Department at LastCall Enterprises handles many administrative tasks for the two divisions that make up LastCall: LaidBack and StressedOut. LaidBack division manages the companyâ&#...

Q: John’s Custom Computer Shop (JCCS) assembles computers for both individual

John’s Custom Computer Shop (JCCS) assembles computers for both individual and corporate customers. The company is organized into two divisions: Personal and Business. Once a compute...

Q: The management of a liquid cleaning product company is trying to decide

The management of a liquid cleaning product company is trying to decide whether to install a job or process costing system. The manufacturing vice president has stated that job costing gives the best...

Q: EZ-Seat, Inc., manufactures two types of reclining chairs

EZ-Seat, Inc., manufactures two types of reclining chairs, Standard and Ergo. Ergo provides support for the body through a complex set of sensors and requires great care in manufacturing to avoid dama...

Q: Bob’s Baskets, Inc., manufactures and sells two types of baskets

Bob’s Baskets, Inc., manufactures and sells two types of baskets, deluxe and standard. Last year, Bob’s Baskets had the following costs and revenues: Bobâ&#...

Q: Refer to Problem 9-38. Assume that you have prepared

Refer to Problem 9-38. Assume that you have prepared financial statements that show the operating profit for each of the two baskets manufactured by Bob’s Baskets. Further assume tha...

Q: College Supply Company (CSC) makes three types of drinking glasses

College Supply Company (CSC) makes three types of drinking glasses: short, medium, and tall. It presently applies overhead using a predetermined rate based on direct labor-hours. A group of company em...