Questions from Cost Accounting

Q: Archer Pro manufactures two models of sport bows, Basic and Deluxe

Archer Pro manufactures two models of sport bows, Basic and Deluxe, using a combination of machining and hand finishing. Machine setup costs are driven by the number of setups. Indirect manufacturing...

Q: Plum Electronics, a division of Berry Corporation, manufactures two large

Plum Electronics, a division of Berry Corporation, manufactures two large-screen television models: The Mammoth, which has been produced since 2013 and sells for $990, and the Maximum, a newer model i...

Q: Mountain Outfitters operates a large outdoor clothing and equipment store with three

Mountain Outfitters operates a large outdoor clothing and equipment store with three main product lines: clothing, equipment, and shoes. Mountain Outfitters operates at capacity and allocates selling,...

Q: Hale Specialties manufactures, among other things, woolen blankets for the

Hale Specialties manufactures, among other things, woolen blankets for the athletic teams of the two local high schools. The company sews the blankets from fabric and sews on a logo patch purchased fr...

Q: US Apparel (USA) manufactures plain white and solid-colored

US Apparel (USA) manufactures plain white and solid-colored T-shirts. Budgeted inputs include the following: Budgeted sales and selling price per unit are as follows: USA has the opportunity to swit...

Q: The Chen Corporation manufactures and sells two products: Thingone and Thingtwo

The Chen Corporation manufactures and sells two products: Thingone and Thingtwo. In July 2016, Chen’s budget department gathered the following data to prepare budgets for 2017: The...

Q: “A branch office or business segment that shows negative operating income

“A branch office or business segment that shows negative operating income should be shut down.” Do you agree? Explain briefly.

Q: Smart Video Company is a manufacturer of videoconferencing products. Maintaining the

Smart Video Company is a manufacturer of videoconferencing products. Maintaining the videoconferencing equipment is an important area of customer satisfaction. A recent downturn in the computer indust...

Q: Paula Beane owns a restaurant franchise that is part of a chain

Paula Beane owns a restaurant franchise that is part of a chain of “southern homestyle” restaurants. One of the chain’s popular breakfast items is biscuits and gravy. Central Warehouse makes and freez...

Q: Animal Gear Company makes two pet carriers, the Cat-allac

Animal Gear Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller. Information for the two products for the mo...