Questions from Cost Accounting

Q: Roletter Company makes and sells artistic frames for pictures of weddings,

Roletter Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Bob Anderson, the controller, is responsible for preparing Roletter’...

Q: The Jerico store of Jiffy Mart, a chain of small neighborhood

The Jerico store of Jiffy Mart, a chain of small neighborhood convenience stores, is preparing its activity-based budget for January 2021. Jiffy Mart has three product categories: soft drinks (35% of...

Q: Jiffy Mart has a Kaizen (continuous improvement) approach to budgeting

Jiffy Mart has a Kaizen (continuous improvement) approach to budgeting monthly activity costs for each month of 2021. Each successive month, the budgeted cost-driver rate decreases by 0.4% relative to...

Q: Amira Ltd is a trading company that sells mobile phones. The

Amira Ltd is a trading company that sells mobile phones. The opening cash balance on January 1 was expected to be £30,000. The sales budgeted were as follows: Analysis of records shows th...

Q: Abeka Bakery Company had opening inventory of 14,800 units and

Abeka Bakery Company had opening inventory of 14,800 units and closing inventory of 17,500 units. Profits based on marginal costing were £315,250 while overhead absorption rate was £5.20 unit. What is...

Q: Daytona Wheels is a Japanese tire manufacturer. For August 2021,

Daytona Wheels is a Japanese tire manufacturer. For August 2021, it budgeted to manufacture and sell 3,000 tires at a variable cost of $74 per tire and total fixed costs of $54,000. The budgeted selli...

Q: L’Accessorio, an Italian manufacturer of leather belts, budgeted prices for

L’Accessorio, an Italian manufacturer of leather belts, budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per luxury belt&ac...

Q: Dartford Enterprises Ltd manufactures just one product line of scientific calculators for

Dartford Enterprises Ltd manufactures just one product line of scientific calculators for engineers. The current standard cost of one unit of the product is as follows: During last month, due to an un...

Q: The Alpha Company manufactures designer jewelry for jewelry stores. A new

The Alpha Company manufactures designer jewelry for jewelry stores. A new accountant intern at Alpha Company has accidentally deleted the calculations on the company’s variance analy...

Q: McKenzie Ltd produces chairs and employs three workers. The staff normally

McKenzie Ltd produces chairs and employs three workers. The staff normally work 40 hours per week for €12 per hour (including social security). It takes four hours for a worker to produce a cabinet: i...