Questions from Cost Accounting

Q: Gerhart Company manufactures wallets from fabric. In 2011, Gerhart made

Gerhart Company manufactures wallets from fabric. In 2011, Gerhart made 2,520,000 wallets using 2,000,000 yards of fabric. In 2011, Gerhart has capacity to make 3,307,500 wallets and incurs a cost of...

Q: Refer to the data for Problem 13-37. Assume the

Refer to the data for Problem 13-37. Assume the fabric costs $3.70 per yard in 2012 and $3.85 per yard in 2011. Required: 1. Compute Gerhart Company’s total factor productivity (TFP) for 2012. 2. Com...

Q: Dusty Rhodes, controller of Richfield Oil Company, is preparing a

Dusty Rhodes, controller of Richfield Oil Company, is preparing a presentation to senior executives about the performance of its four divisions. Summary data (dollar amounts in millions) related to th...

Q: Bizzan Manufacturing makes a component called P14-31. This component

Bizzan Manufacturing makes a component called P14-31. This component is manufactured only when ordered by a customer, so Bizzan keeps no inventory of P14-31. The list price is $100 per unit, but custo...

Q: Chicago Infonautics, Inc., produces handheld Windows CE™-compatible organizers

Chicago Infonautics, Inc., produces handheld Windows CEâ„¢-compatible organizers. Chicago Infonautics markets three different handheld models: Palm Pro is a souped-up version for the e...

Q: Chicago Infonautics’ senior vice president of marketing prepared his budget at the

Chicago Infonautics’ senior vice president of marketing prepared his budget at the beginning of the third quarter assuming a 25% market share based on total sales. The total handheld-organizer market...

Q: The Split Banana, Inc., operates a chain of Italian gelato

The Split Banana, Inc., operates a chain of Italian gelato stores. Although the Split Banana charges customers the same price for all flavors, production costs vary, depending on the type of ingredien...

Q: Phish Corporation is the largest manufacturer and distributor of novelty ice creams

Phish Corporation is the largest manufacturer and distributor of novelty ice creams across the East Coast. The company’s products, because of their perishable nature, require careful...

Q: Nature’s Best Nuts produces specialty nut products for the gourmet and natural

Nature’s Best Nuts produces specialty nut products for the gourmet and natural foods market. Its most popular product is Zesty Zingers, a mixture of roasted nuts that are seasoned wi...

Q: Trevor Joseph employs two workers in his guitar-making business.

Trevor Joseph employs two workers in his guitar-making business. The first worker, George, has been making guitars for 20 years and is paid $30per hour. The second worker, Earl, is less experienced, a...