Questions from Cost Accounting


Q: Enviro-Tech has only two retail and two wholesale customers.

Enviro-Tech has only two retail and two wholesale customers. Information relating to each customer for 2017 follows (in thousands): Enviro-Tech’s annual distribution-channel costs a...

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Q: Pineway Electric manufactures electric motors. It competes and plans to grow

Pineway Electric manufactures electric motors. It competes and plans to grow by selling high-quality motors at a low price and by delivering them to customers in a reasonable time after receiving cust...

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Q: Instant Service (IS) repairs printers and photocopiers for five multisite

Instant Service (IS) repairs printers and photocopiers for five multisite companies in a tristate area. IS’s costs consist of the cost of technicians and equipment that are directly...

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Q: Best Drugs is a distributor of pharmaceutical products. Its ABC system

Best Drugs is a distributor of pharmaceutical products. Its ABC system has five activities: Activity Area Cost Driver Rate in 2017 1. Order processing……â...

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Q: Reidland Manufacturing has four divisions: Acme, Dune, Stark,

Reidland Manufacturing has four divisions: Acme, Dune, Stark, and Brothers. Corporate headquarters is in Minnesota. Reidland corporate headquarters incurs costs of $16,800,000 per period, which is an...

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Q: Rembrandt Hotel & Casino is situated on beautiful Lake Tahoe in Nevada

Rembrandt Hotel & Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a 300-room hotel, a casino, and a restaurant. As Rembrandt’s new controller, your man...

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Q: Bergen Corporation has three divisions: pulp, paper, and fibers

Bergen Corporation has three divisions: pulp, paper, and fibers. Bergen’s new controller, David Fisher, is reviewing the allocation of fixed corporate-overhead costs to the three div...

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Q: The Chicago Tigers play in the American Ice Hockey League. The

The Chicago Tigers play in the American Ice Hockey League. The Tigers play in the Downtown Arena, which is owned and managed by the City of Chicago. The arena has a capacity of 15,000 seats (5,500 low...

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Q: The Hiro Corporation sells two brands of wine glasses: Plain and

The Hiro Corporation sells two brands of wine glasses: Plain and Chic. Hiro provides the following information for sales in the month of June 2017: Static-budget total contribution margin…………………………$15...

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Q: Emcee Inc. manufactures and sells two fruit drinks: Kostor and

Emcee Inc. manufactures and sells two fruit drinks: Kostor and Limba. Budgeted and actual results for 2017 are as follows: Required: 1. Compute the total sales-volume variance, the total sales-mix va...

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