Questions from Cost Accounting

Q: Brabham Enterprises manufactures tires for the Formula I motor racing circuit.

Brabham Enterprises manufactures tires for the Formula I motor racing circuit. For August 2015, it budgeted to manufacture and sell 3,000 tires at a variable cost of $74 per tire and total fixed costs...

Q: Connor Company’s budgeted prices for direct materials, direct manufacturing labour,

Connor Company’s budgeted prices for direct materials, direct manufacturing labour, and direct marketing (distribution) labour per attaché case are $40, $8, and $12, res...

Q: Consider the following data collected for Blakes Construction Trailers:

Consider the following data collected for Blakes Construction Trailers: Required: Compute the rate, efficiency, and flexible-budget variances for direct materials and direct manufacturing labour.

Q: Peterson Foods manufactures pumpkin scones. For January 2015, it budgeted

Peterson Foods manufactures pumpkin scones. For January 2015, it budgeted to purchase and use 16,000 kilograms of pumpkin at $1.11 per kilogram; budgeted output was 60,000 scones. Actual purchases and...

Q: Differences in operating income between variable and absorption costing are due solely

Differences in operating income between variable and absorption costing are due solely to accounting for fixed costs.” Do you agree? Explain.

Q: What are the factors that affect the breakeven point under (a

What are the factors that affect the breakeven point under (a) variable costing and (b) absorption costing?

Q: Convad Company is one of the world’s leading corn refiners. It

Convad Company is one of the world’s leading corn refiners. It produces two joint products, corn syrup and corn starch, using a common production process. In July 2015, Convad report...

Q: Instant Foods produces two types of microwavable products—beef-flavoured

Instant Foods produces two types of microwavable products—beef-flavoured ramen and shrimp-flavoured ramen. The two products share common inputs such as noodles and spices. The produc...

Q: Sinclair Oil & Gas, a large energy conglomerate, jointly processes

Sinclair Oil & Gas, a large energy conglomerate, jointly processes purchased hydrocarbons to generate three nonsaleable intermediate products: ICR8, ING4, and XGE3. These intermediate products are...

Q: The Klein Company operates a simple chemical process to convert a single

The Klein Company operates a simple chemical process to convert a single material into three separate items, referred to here as X, Y, and Z. All three end products are separated simultaneously at a s...