Questions from Cost Accounting

Q: Kieffer Company makes men’s suit alterations for a major clothing store chain

Kieffer Company makes men’s suit alterations for a major clothing store chain. No direct materials are used in the alterations process and overhead costs are primarily variable and relate very closely...

Q: Polermo Inc. produces three-topping, 18-inch frozen

Polermo Inc. produces three-topping, 18-inch frozen pizzas and uses a standard cost system. The three pizza toppings (in addition to cheese) are onions, olives, and mushrooms. To some extent, discreti...

Q: Tomm’s T’s is a New York–based company that produces and

Tomm’s T’s is a New York–based company that produces and sells t-shirts. The firm uses variable costing for internal purposes and absorption costi...

Q: Haddas Ltd. makes Healthy Life, a nutritional aid. For

Haddas Ltd. makes Healthy Life, a nutritional aid. For a 50-pound batch, standard material and labor costs are as follows: During June, the following materials and labor were used in producing 600 bat...

Q: Schmidt Co. has the following standard material and labor quantities and

Schmidt Co. has the following standard material and labor quantities and costs for one unit of Product SWK#468: Material 1.85 pounds @ ……….…………………….$3.50 per pound Labor 0.04 hours @ ……………………………………….....

Q: Griffon Corp. makes small plastic dog toys with the following material

Griffon Corp. makes small plastic dog toys with the following material and labor standards: During October, 60,000 pounds of material were acquired on account at $4.15 per pound. During October, 50,12...

Q: Aquatica uses a standard cost system for materials and labor in producing

Aquatica uses a standard cost system for materials and labor in producing small fishing boats. Production requires three materials: fiberglass, paint, and a purchased trim package. The standard costs...

Q: Surgical Products produces latex surgical gloves. Machines perform the majority of

Surgical Products produces latex surgical gloves. Machines perform the majority of the processing for 1,000 pairs of gloves per hour. Each pair of gloves requires 0.85 square foot of latex, which has...

Q: How are insignificant variances closed at the end of an accounting period

How are insignificant variances closed at the end of an accounting period? How are significant variances closed at the end of an accounting period? Why is there a difference in treatment?

Q: What are the three primary uses of a standard cost system?

What are the three primary uses of a standard cost system? In a business that routinely manufactures the same products or performs the same services, why are standards helpful?