Questions from Cost Accounting

Q: Clemson Company prepares its budgets on the basis of standard

Clemson Company prepares its budgets on the basis of standard costs. A responsibility report is prepared monthly showing the differences between master budget and actual results. Variances are analyze...

Q: Kitchen Supply, Inc. (KSI), manufactures three types of flatware: institutional,

Kitchen Supply, Inc. (KSI), manufactures three types of flatware: institutional, standard, and silver. It applies all indirect costs according to a predetermined rate based on direct labor-hours. A co...

Q: The following information is available for year 1 for Dancer

The following information is available for year 1 for Dancer Components:Sales revenue (300,000 units) . . . . . . $5,700,000Manufacturing costsMaterials . . . . . . . . . . . . . . . . . . . . . . . ....

Q: Pickle Motorcycles, Inc. (PMI), manufactures three motorcycle models: a cruising

Pickle Motorcycles, Inc. (PMI), manufactures three motorcycle models: a cruising bike (Route 66), a street bike (Main Street), and a starter model (Alley Cat). Because of the different materials used,...

Q: Huron Furniture is considering updating its cost system to an

Huron Furniture is considering updating its cost system to an activity-based costing system and is interested in understanding the effects. The company’s cost accountant has identifi...

Q: House Station, Inc., is a nationwide hardware and furnishings chain.

House Station, Inc., is a nationwide hardware and furnishings chain. The manager of the House Station Store in Portland is evaluated using ROI. House Station headquarters requires an ROI of 10 percent...

Q: Pharmaceutical firms, oil and gas companies, and other ventures inevitably

Pharmaceutical firms, oil and gas companies, and other ventures inevitably incur costs on unsuccessful investments in new projects (e.g., new drugs or new wells). For oil and gas firms, a debate conti...

Q: Cameron Parts has the following data from year 1 operations,

Cameron Parts has the following data from year 1 operations, which are to be used for developing year 2 budget estimates:Sales revenue (12,500 units). . . . . . . . $ 1,119,000Manufacturing costsMater...

Q: Chander, Inc., manufactures cloth shopping bags. The controller is preparing

Chander, Inc., manufactures cloth shopping bags. The controller is preparing a budget for the coming year and asks for your assistance. The following costs and other data apply to bag production:Direc...

Q: MTI makes three types of lawn tractors: M3100, M4100, and

MTI makes three types of lawn tractors: M3100, M4100, and M6100. In the past, it allocated overhead to products using machine-hours. Last year, the company produced 10,000 units of M3100, 17,500 units...