Questions from Cost Accounting

Q: Sandy Smith, managing director of the Calgary Consulting Group, is

Sandy Smith, managing director of the Calgary Consulting Group, is examining how overhead costs behave with changes in monthly professional labour-hours billed to clients. Assume the following histori...

Q: Garvin Corporation manufactures a children’s bicycle, model CT8. Garvin currently

Garvin Corporation manufactures a children’s bicycle, model CT8. Garvin currently manufactures the bicycle frame. During 2016, Garvin made 30,000 frames at a total cost of $900,000. Ryan Corporation h...

Q: Young Clothing allocates fixed manufacturing overhead to each suit using budgeted direct

Young Clothing allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing labour-hours (DMLH) per suit. Data pertaining to fixed manufacturing overhead costs for June 2015...

Q: Dave Ladouceur owns a catering company that prepares banquets and parties for

Dave Ladouceur owns a catering company that prepares banquets and parties for both individual and business functions throughout the year. His business is seasonal, with a heavy schedule during the sum...

Q: Jill Goldstein has been collecting data over the last year in an

Jill Goldstein has been collecting data over the last year in an effort to understand the cost drivers of distribution costs at Waterloo Corporation, a manufacturer of brass door handles. Distribution...

Q: Answer the following questions. 1. A company has an

Answer the following questions. 1. A company has an inventory of 1,000 assorted parts for a line of missiles that has been discontinued. The inventory cost is $88,000. The parts can be either (a) rema...

Q: 1. Ewing Computers makes 5,000 units of a circuit

1. Ewing Computers makes 5,000 units of a circuit board, CB76, at a cost of $230 each. Variable cost per unit is $180 and fixed cost per unit is $50. HT Electronics offers to supply 5,000 units of CB7...

Q: An employee in the accounting department of a certain business was moving

An employee in the accounting department of a certain business was moving a personal computer from one room to another. As he came alongside an open stairway, he slipped and let the computer get away...

Q: Sanchez Corporation runs two convenience stores, one in Vancouver and one

Sanchez Corporation runs two convenience stores, one in Vancouver and one in Surrey. Operating income for each store in 2015 is as follows: The equipment has a zero disposal value. In a senior manag...

Q: The Auto Wash Company has just today paid for and installed a

The Auto Wash Company has just today paid for and installed a special machine for polishing cars at one of its several outlets. It is the first day of the company’s fiscal year. The machine costs $20,...