Questions from Cost Accounting


Q: Total Body Inc. has a new promotional program that offers a

Total Body Inc. has a new promotional program that offers a free gift-wrapping service for its customers. Total’s customer-service division has practical capacity to wrap 7,500 gifts...

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Q: Gether Corporation manufactures appliances. It has four divisions: refrigerator,

Gether Corporation manufactures appliances. It has four divisions: refrigerator, stove, dishwasher, and microwave oven. Each division is located in a different city and the headquarters is located in...

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Q: Purdue Inc. manufactures tires for large auto companies. It uses

Purdue Inc. manufactures tires for large auto companies. It uses standard costing and allocates variable and fixed manufacturing overhead based on machine-hours. Required: For each independent scenar...

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Q: The Manes Company has two products. Product 1 is manufactured entirely

The Manes Company has two products. Product 1 is manufactured entirely in Division X. Product 2 is manufactured entirely in Division Y. To produce these two products, the Manes Company has two support...

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Q: Ransom Inc. and Downey Inc. are two small clothing companies

Ransom Inc. and Downey Inc. are two small clothing companies that are considering leasing a dyeing machine together. The companies estimated that in order to meet production, Ransom needs the machine...

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Q: Magnum T.A. Inc. specializes in the assembly and

Magnum T.A. Inc. specializes in the assembly and installation of high-quality security systems for the home and business segments of the market. The four departments at its highly automated state-of-t...

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Q: Black Gold Petroleum Company is engaged in all phases of exploring,

Black Gold Petroleum Company is engaged in all phases of exploring, refining, and marketing of oil and petrochemical products. To ensure full compliance with all applicable laws, the company has a leg...

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Q: Forber Bakery makes baked goods for grocery stores, and has three

Forber Bakery makes baked goods for grocery stores, and has three divisions: bread, cake, and doughnuts. Each division is run and evaluated separately, but the main headquarters incurs costs that are...

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Q: Bulldog Inc. is a large manufacturing company that runs its own

Bulldog Inc. is a large manufacturing company that runs its own electrical power plant from the excess steam produced in its manufacturing process. Power is provided to two production departments&acir...

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Q: Jason Miller and Eric Jackson would like to lease an office building

Jason Miller and Eric Jackson would like to lease an office building to open their separate law offices. The building has a total of 1,700 square metres of office space. Miller and Jackson need 1,000...

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