Questions from Cost Accounting

Q: Francois Chenier is the purchasing agent for Highlight Manufacturing Company. Marge

Francois Chenier is the purchasing agent for Highlight Manufacturing Company. Marge Belvedere is head of the production planning and control department. Every six months, Belvedere gives Chenier a gen...

Q: Duncan Company manufactures a variety of products in a variety of departments

Duncan Company manufactures a variety of products in a variety of departments, and evaluates departments and departmental managers by comparing actual costs and outputs relative to their budgets. Depa...

Q: Home Entertainment Centre (HEC) operates a large store in Halifax

Home Entertainment Centre (HEC) operates a large store in Halifax. The store has both a DVD section and a music section (compact discs, MP3 players, etc.). HEC reports revenues for the DVD section sep...

Q: Slopes Inc. manufactures and sells snowboards. Slopes manufactures a single

Slopes Inc. manufactures and sells snowboards. Slopes manufactures a single model, the Pipex. In the summer of 2015, Slopes’s accountant gathered the following data to prepare budget...

Q: The city of Riverside hired its first city manager four years ago

The city of Riverside hired its first city manager four years ago. She favoured a “management by objectives” philosophy and accordingly set up many profit responsibility centres, including a sanitatio...

Q: Stevie McQueen has run Lightning Car Detailing for the past 10 years

Stevie McQueen has run Lightning Car Detailing for the past 10 years. His static-budget and actual results for June 2015 are provided below. Stevie has one employee who has been with him for all 10 ye...

Q: For its manufacturing facility in Montreal, Quebec, Metalmoulder has a

For its manufacturing facility in Montreal, Quebec, Metalmoulder has a long-term contract with Osaka Metals. Metalmoulder manufactures large-scale machining systems that are sold to other industrial c...

Q: Grant Electric Inc. manufactures lamps. It has set up the

Grant Electric Inc. manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labour: Direct materials: 10 kg at $4.50/kg …………………………………...

Q: On May 1, 2015, Terra Company began the manufacture of

On May 1, 2015, Terra Company began the manufacture of a new internet paging device known as Flare. The company installed a standard costing system to account for manufacturing costs. The standard cos...

Q: Morro Bay Surfboards is a California company that manufactures fibreglass surfboards.

Morro Bay Surfboards is a California company that manufactures fibreglass surfboards. The standard cost of direct materials and direct manufacturing labour is $100 per board. This includes 20 kilogram...