Questions from Cost Accounting


Q: Gardendale Associates offers landscape consultations, where they provide design advice and

Gardendale Associates offers landscape consultations, where they provide design advice and plans to residential customers. A single consultation is priced at $750. The variable costs of a consultation...

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Q: Georgeland Cycles makes and sells two models of electric bicycles. The

Georgeland Cycles makes and sells two models of electric bicycles. The Commuter (a folding model) sells for $2,500 and the Tour-X (a fat-tire trail model) sells for $4,500. Unit variable costs for the...

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Q: Grixdale Tax Services prepares taxes for individuals. Grixdale offers a simplified

Grixdale Tax Services prepares taxes for individuals. Grixdale offers a simplified pricing model with two alternatives for taxpayers: Standard Deduction (Standard) or Itemized Deductions (Itemized). P...

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Q: Pierson Pet Products produces two models of dog beds: Basic and

Pierson Pet Products produces two models of dog beds: Basic and Custom. Price, cost, and expected sales volume data for the two models are as follows: Required The total fixed costs for the company ar...

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Q: Nardin Outfitters has the capacity to produce 12,000 of its

Nardin Outfitters has the capacity to produce 12,000 of its special arctic tents per year. The company is currently producing and selling 5,000 tents per year at a selling price of $900 per tent. The...

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Q: Parkview Fish Tacos sells tacos for $4.50 each.

Parkview Fish Tacos sells tacos for $4.50 each. The cost of each taco follows: One of Parkview’s regular customers asked the company to fill a special order of tacos at a selling pri...

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Q: Dwight Furniture makes desks specially designed for small spaces, such as

Dwight Furniture makes desks specially designed for small spaces, such as studio apartments and extended-stay hotels. Each desk sells for $110 (without chair). The cost of each desk follows: The local...

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Q: Alpena Corporation manufactures smartphone and tablet cases. The following is the

Alpena Corporation manufactures smartphone and tablet cases. The following is the cost of each unit. Decatur Devices has approached Alpena with an offer to buy 3,000 cases at a price of $17.50 each fo...

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Q: Schweizer Products produces smart thermostats for home heating, ventilation, and

Schweizer Products produces smart thermostats for home heating, ventilation, and air-conditioning (HVAC) systems and markets them to vendors who sell them under their own label. The cost of one of its...

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Q: Refer to the data for Rowe Tool and Die (RTD)

Refer to the data for Rowe Tool and Die (RTD) in Exercise 4-26. Suppose RTD’s capacity is limited to 50,000 units per quarter. Endicott will not accept any quantity other than the 10...

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