Questions from Cost Accounting

Q: Thunder Bolt, Inc., is a manufacturer of the very popular

Thunder Bolt, Inc., is a manufacturer of the very popular G36 motorcycles. The management at Thunder Bolt has recently adopted absorption costing and is debating which denominator-level concept to use...

Q: Mega-Air, Inc., manufactures a specialized snowboard made for

Mega-Air, Inc., manufactures a specialized snowboard made for the advanced snowboarder. Mega-Air began 2011 with an inventory of 240 snowboards. During the year, it produced 900 boards and sold 995 fo...

Q: The Pacific Corporation operates car rental agencies at more than 20 airports

The Pacific Corporation operates car rental agencies at more than 20 airports. Customers can choose from one of three contracts for car rentals of one day or less: Contract 1: $50 for the day Contract...

Q: Compaq Computer incurs the following costs: a. Electricity costs

Compaq Computer incurs the following costs: a. Electricity costs for the plant assembling the Presario computer line of products b. Transportation costs for shipping the Presario line of products to a...

Q: Lorenzo operates a car wash. Incoming cars are put on an

Lorenzo operates a car wash. Incoming cars are put on an automatic conveyor belt. Cars are washed as the conveyor belt carries them from the start station to the finish station. After a car moves off...

Q: Java Joe Coffees wants to find an equation to estimate monthly utility

Java Joe Coffees wants to find an equation to estimate monthly utility costs. Java Joe’s has been in business for one year and has collected the following cost data for utilities:...

Q: Gower, Inc., a manufacturer of plastic products, reports the

Gower, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2012. Gower, Inc., produced 75,000 unit...

Q: Laurie Daley is examining customer-service costs in the southern region

Laurie Daley is examining customer-service costs in the southern region of Capitol Products. Capitol Products has more than 200 separate electrical products that are sold with a six-month guarantee of...

Q: Terry Lawler, managing director of the Chicago Reviewers Group, is

Terry Lawler, managing director of the Chicago Reviewers Group, is examining how overhead costs behave with changes in monthly professional labor-hours billed to clients. Assume the following historic...

Q: Goldstein Corporation manufactures a children’s bicycle, model CT 8. Goldstein

Goldstein Corporation manufactures a children’s bicycle, model CT 8. Goldstein currently manufactures the bicycle frame. During 2012, Goldstein made 32,000frames at a total cost of $...