Questions from Cost Accounting

Q: Langston Automotive Accessories applies overhead using a combined rate for fixed and

Langston Automotive Accessories applies overhead using a combined rate for fixed and variable overhead. The rate is 250 percent of direct labor cost. During the first three months of the current year,...

Q: Is variable or absorption costing generally required for external reporting? Why

Is variable or absorption costing generally required for external reporting? Why is this method preferred to the alternative?

Q: Roddickton Manufacturing Co. has gathered the following information to develop predetermined

Roddickton Manufacturing Co. has gathered the following information to develop predetermined OH rates for 2010. The company produces a wide variety of energy-saving products that are processed through...

Q: At the end of 2010, Jackson Tank Company’s accounts showed a

At the end of 2010, Jackson Tank Company’s accounts showed a $66,000 credit balance in Manufacturing Overhead Control. In addition, the company had the following account balances: Work in Process Inve...

Q: Davidson’s Dolls had the following information in its Work in Process Inventory

Davidson’s Dolls had the following information in its Work in Process Inventory account for June 2010: All workers are paid the same rate per hour. Factory overhead is applied to Wor...

Q: At year-end 2010, Dub’s Wind Generator Co. had

At year-end 2010, Dub’s Wind Generator Co. had a $40,000 debit balance in its Manufacturing Overhead Control account. Overhead is applied to products based on direct labor cost. Rele...

Q: For 2010, Milltown Iron Manufacturing has estimated its production capacities as

For 2010, Milltown Iron Manufacturing has estimated its production capacities as follows: Theoretical capacity ………………………………400,000 units Practical capacity ………………………………….300,000 units Normal capacity...

Q: Alberton Electronics makes inexpensive GPS navigation devices and uses a normal cost

Alberton Electronics makes inexpensive GPS navigation devices and uses a normal cost system that applies overhead based on machine hours. The following 2010 budgeted data are available: Variable facto...

Q: Information about Indiana Industrial’s utility cost for the last six months of

Information about Indiana Industrial’s utility cost for the last six months of 2010 follows. The high–low method will be used to develop a cost formula to predict 2...

Q: Wyoming Wholesale has gathered the following data on the number of shipments

Wyoming Wholesale has gathered the following data on the number of shipments received and the cost of receiving reports for the first seven weeks of 2010. Number of Weekly Cost of Shipments Re...