Questions from Cost Accounting

Q: Hanley asks his assistant to collect details on those costs included in

Hanley asks his assistant to collect details on those costs included in the $21,000 indirect-cost pool that can be traced to each individual job. After analysis, Wigan is able to reclassify $14,000 of...

Q: Wigan has two classifications of professional staff: partners and associates.

Wigan has two classifications of professional staff: partners and associates. Hanley asks his assistant to examine the relative use of partners and associates on the recent Widnes Coal and St. Helen&a...

Q: Allen’s Aero Toys makes two models of toy airplanes, fighter jets

Allen’s Aero Toys makes two models of toy airplanes, fighter jets, and cargo planes. The fighter jets are more detailed and require smaller batch sizes. The controller has asked you...

Q: Roxbury’s Radiology Center (RRC) performs X-rays, ultrasounds

Roxbury’s Radiology Center (RRC) performs X-rays, ultrasounds, CT scans, and MRIs. RRC has developed a reputation as a top Radiology Center in the state. RRC has achieved this status...

Q: Annie Warbucks runs a dance studio with childcare and adult fitness classes

Annie Warbucks runs a dance studio with childcare and adult fitness classes. Annie’s budget for the upcoming year is as follows: Other budget information follows: Required: 1. De...

Q: Pharmacare, Inc., a distributor of special pharmaceutical products, operates

Pharmacare, Inc., a distributor of special pharmaceutical products, operates at capacity and has three main market segments: a. General supermarket chains b. Drugstore chains c. Mom-and-Pop single-sto...

Q: Pacific Décor, Inc., designs, manufactures, and sells contemporary

Pacific Décor, Inc., designs, manufactures, and sells contemporary wood furniture. Ling Li is a furniture designer for Pacific. Li has spent much of the past month working on the design o...

Q: Pumpkin Bags (PB) is a designer of high quality backpacks

Pumpkin Bags (PB) is a designer of high quality backpacks and purses. Each design is made in small batches. Each spring, PB comes out with new designs for the backpack and for the purse. The company u...

Q: Uppervale Health Center runs two programs: drug addict rehabilitation and aftercare

Uppervale Health Center runs two programs: drug addict rehabilitation and aftercare (counseling and support of patients after release from a mental hospital). The center’s budget for...

Q: Nivag’s Netballs is a manufacturer of high quality basketballs and volleyballs.

Nivag’s Netballs is a manufacturer of high quality basketballs and volleyballs. Setup costs are driven by the number of batches. Equipment and maintenance costs increase with the num...