Questions from Cost Accounting

Q: Balfore Office makes metal five-drawer desks and, occasionally,

Balfore Office makes metal five-drawer desks and, occasionally, takes custom orders. The company’s overhead costs for a month in which no custom desks are produced are as follows: Purchasing Departmen...

Q: Reese’s Tot Toy Boxes uses variable costing to manage its internal operations

Reese’s Tot Toy Boxes uses variable costing to manage its internal operations. The following data relate to the company’s first year of operation, when 25,000 units were produced and 21,000 units were...

Q: Illiad Inc. has a total of $2,362,

Illiad Inc. has a total of $2,362,500 in production overhead costs. The company’s products and related statistics follow. Additional data: The 330,000 pounds of material were purchas...

Q: Louisiana Leisure makes umbrellas, gazebos, and chaise lounges. The

Louisiana Leisure makes umbrellas, gazebos, and chaise lounges. The company uses a traditional overhead allocation scheme and assigns overhead to products at the rate of $30 per direct labor hour. The...

Q: Casito Corp. manufactures multiple types of products; however, most

Casito Corp. manufactures multiple types of products; however, most of the company’s sales are from Product #347 and Product #658. Product #347 has been a standard in the industry fo...

Q: West Virginia Concepts provides a wide range of engineering and architectural consulting

West Virginia Concepts provides a wide range of engineering and architectural consulting services through its three offices in Charleston, Morgantown, and Martinsburg. The company allocates resources...

Q: Bernie Lipscomb owns and manages a commercial cold-storage warehouse that

Bernie Lipscomb owns and manages a commercial cold-storage warehouse that has 100,000 cubic feet of storage capacity. Historically, he has charged customers a flat rate of $0.16 per pound per month fo...

Q: Moriarity Manufacturing produces two product models: Regular and Special. The

Moriarity Manufacturing produces two product models: Regular and Special. The following information was taken from the accounting records for the first quarter of 2010: Moriarity currently uses a trad...

Q: If five people from the same organization calculated manufacturing cycle efficiency for

If five people from the same organization calculated manufacturing cycle efficiency for one specific process, would each compute the same MCE? Why or why not?

Q: Do cost drivers exist in a traditional accounting system? Are they

Do cost drivers exist in a traditional accounting system? Are they designated as such? How, if at all, does the use of cost drivers in a traditional accounting system differ from those in an activity-...