Questions from Cost Accounting

Q: ABC Inc. desires to maintain a capital structure of 80%

ABC Inc. desires to maintain a capital structure of 80% equity and 20% debt. They currently have an effective tax rate of 30%. The company’s cost of equity capital is 12%. To obtain their debt financi...

Q: It is the end of 2017. Z-Var Corporation began

It is the end of 2017. Z-Var Corporation began operations in January 2016. The company is so named because it has no variable costs (Zero VARiable). All its costs are fixed; they do not vary with outp...

Q: Cooking Whiz manufactures premium food processors. The following are some manufacturing

Cooking Whiz manufactures premium food processors. The following are some manufacturing overhead data for Cooking Whiz for the year ended December 31, 2017: Budgeted number of output units: 915 Plan...

Q: Cooking Whiz manufactures premium food processors. The following are some manufacturing

Cooking Whiz manufactures premium food processors. The following are some manufacturing overhead data for Cooking Whiz for the year ended December 31, 2017: Budgeted number of output units: 915 Plan...

Q: Best Around, Inc., is a manufacturer of vacuums and uses

Best Around, Inc., is a manufacturer of vacuums and uses standard costing. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of budgeted machine-hours. In 2017, bu...

Q: Consider the following two situations—cases A and B— independently

Consider the following two situations—cases A and B— independently. Data refer to operations for April 2017. For each situation, assume standard costing. Also assum...

Q: Wilson Products uses standard costing. It allocates manufacturing overhead (both

Wilson Products uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of standard direct manufacturing labor-hours (DLH). Wilson Products develo...

Q: Audrina’s Fleet Feet, Inc., produces dance shoes for stores all

Audrina’s Fleet Feet, Inc., produces dance shoes for stores all over the world. While the pairs of shoes are boxed individually, they are crated and shipped in batches. The shipping...

Q: The Roller Bag Company manufactures extremely light and rolling suitcases. It

The Roller Bag Company manufactures extremely light and rolling suitcases. It was one of the first companies to produce rolling suitcases and sales have increased for the past several years. In 2017,...

Q: Cheney & Partners, a Quebec based public accounting partnership, specializes

Cheney & Partners, a Quebec based public accounting partnership, specializes in audit services. Its job-costing system has a single direct-cost category (professional labor) and a single indirect-...