Questions from Cost Accounting


Q: Broadway Printers operates a printing press with a monthly capacity of 2

Broadway Printers operates a printing press with a monthly capacity of 2,000 machine-hours. Broadway has two main customers: Taylor Corporation and Kelly Corporation. Data on each customer for January...

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Q: Air Pacific has leased a single jet aircraft that it operates between

Air Pacific has leased a single jet aircraft that it operates between Vancouver and the Fiji Islands. Only tourist-class seats are available on its planes. An analyst has collected the following infor...

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Q: The Pastel Company must reach a make/buy decision with respect

The Pastel Company must reach a make/buy decision with respect to a highvolume, easily made metal tool, RG1. Sean Gray, the cost analyst, estimates the following costs and production information for t...

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Q: The TechMech Company produces and sells 6,000 modular computer desks

The TechMech Company produces and sells 6,000 modular computer desks per year at a selling price of $500 each. Its current production equipment, purchased for $1,500,000 and with a five-year useful li...

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Q: OmniSport’s Plastics Department is currently manufacturing 5,000 pairs of skates

OmniSport’s Plastics Department is currently manufacturing 5,000 pairs of skates annually, making full use of its machine capacity. Presented below are the selling price and costs as...

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Q: Pendleton Engineering makes cutting tools for metal-working operations. It

Pendleton Engineering makes cutting tools for metal-working operations. It makes two types of tools: R3, a regular cutting tool, and HP6, a high-precision cutting tool. R3 is manufactured on a regular...

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Q: Oxford Engineering manufactures small engines. The engines are sold to manufacturers

Oxford Engineering manufactures small engines. The engines are sold to manufacturers who install them in such products as lawn mowers. The company currently manufactures all the parts used in these en...

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Q: Mazzoli Brothers is an auto repair shop. Mazzoli’s cost accounting system

Mazzoli Brothers is an auto repair shop. Mazzoli’s cost accounting system tracks two cost categories: direct labour (working on the cars) and direct materials (parts). Mazzoli uses a...

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Q: The new CEO of Roile Manufacturing has asked for a variety of

The new CEO of Roile Manufacturing has asked for a variety of information about the operations of the firm from last year. The CEO is given the following information, but with some data missing: Tota...

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Q: Cutler Electronics makes a Blu-ray player, CE100, which

Cutler Electronics makes a Blu-ray player, CE100, which has 80 components. Cutler sells 7,000 units each month for $70 each. The costs of manufacturing CE100 are $45 per unit, or $315,000 per month. M...

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