Questions from Cost Accounting

Q: Svenson Technology considers direct labor cost too insignificant to separately account for

Svenson Technology considers direct labor cost too insignificant to separately account for, and, therefore, uses a $22.50 per machine hour predetermined conversion cost rate (of which $16 is related t...

Q: Hennessey Company produces 12-ounce cans of mixed pecans and cashews

Hennessey Company produces 12-ounce cans of mixed pecans and cashews. Standard and actual information follows. Standard Quantities and Costs (12-oz. can) Pecans: 6 ounces at $6.00 per pound ………………….$2...

Q: Coffen Corp. employs engineers and draftspeople. The average hourly rates

Coffen Corp. employs engineers and draftspeople. The average hourly rates are $60 for engineers and $30 for draftspeople. For one project, the standard was set at 400 hours of engineer time and 600 ho...

Q: Bernie Services has three labor classes: administrative assistants, paralegals,

Bernie Services has three labor classes: administrative assistants, paralegals, and attorneys. Standard wage rates are as follows: administrative assistants, $30 per hour; paralegals, $60 per hour; an...

Q: One of Sure-Bet Sherbet’s bestselling products is raspberry sherbet,

One of Sure-Bet Sherbet’s bestselling products is raspberry sherbet, which is manufactured in 10-gallon batches. Each batch requires 6 quarts of raspberries. The raspberries are sorted by hand before...

Q: In November 2010, DayTime Publishing Company’s costs and quantities of paper

In November 2010, DayTime Publishing Company’s costs and quantities of paper consumed in manufacturing its 2011 Executive Planner and Calendar were as follows: Actual unit purchase price …………………………………...

Q: Cave Company produces a product called Lem. The standard direct material

Cave Company produces a product called Lem. The standard direct material cost to produce one unit of Lem is 4 quarts of raw material at $2.50 per quart. During May 2010, 4,200 quarts of raw material w...

Q: Ayesha Inc. manufactures a product that requires 5 pounds of material

Ayesha Inc. manufactures a product that requires 5 pounds of material. The purchasing agent has an opportunity to purchase the necessary material at a vendor’s bankruptcy sale at $1....

Q: A&G makes wrought iron table and chair sets. During

A&G makes wrought iron table and chair sets. During April, the purchasing agent bought 25,600 pounds of scrap iron at $1.94 per pound. During the month, 21,400 pounds of scrap iron were used to produc...

Q: Heath Construction builds standard prefabricated wooden frames for walls. Each frame

Heath Construction builds standard prefabricated wooden frames for walls. Each frame requires 10 direct labor hours and the standard hourly direct labor rate is $18. During July, the company produced...