Questions from Cost Accounting

Q: Brunswick Home Remodelers (BHM) uses a job order cost system

Brunswick Home Remodelers (BHM) uses a job order cost system. The following debits (credits) appeared in Work-in-Process Inventory for April: BHM applies overhead to production at a predetermined rate...

Q: Jason’s Custom Tooling (JCT) uses a job order cost system

Jason’s Custom Tooling (JCT) uses a job order cost system and applies overhead using a predetermined overhead rate based on direct labor costs. The following debits (credits) appeare...

Q: Audubon, Inc. uses a predetermined factory overhead rate based on

Audubon, Inc. uses a predetermined factory overhead rate based on machine-hours. For October, Audubon recorded $4,500 in overapplied overhead, based on 34,100 actual machine-hours worked and actual ma...

Q: Wanda Instrumentation produces navigational equipment for ships, aircraft (both staffed

Wanda Instrumentation produces navigational equipment for ships, aircraft (both staffed and drones), and land vehicles. The parts are produced to specification by their customers. Depending on the cus...

Q: Refer to the information in Exercise 7-41. The controller

Refer to the information in Exercise 7-41. The controller at Wanda Instrumentation chose direct materials cost as the allocation base in Year 2, based on what the financial staff thought reflected the...

Q: Heidt Cleaning Services (HCS) is a local custodial service company

Heidt Cleaning Services (HCS) is a local custodial service company serving both the residential and commercial markets. The owner is considering dropping the commercial clients because that business s...

Q: In October, Temptations Event Planners (TEP) planned events for

In October, Temptations Event Planners (TEP) planned events for two clients. TEP worked 140 hours for Ward Corporation and 240 hours for Girardin Industries. TEP bills clients at the rate of $350 per...

Q: Farnsworth Executive Coaching (FEC) offers services to firms in advising

Farnsworth Executive Coaching (FEC) offers services to firms in advising executives on improving productivity and leadership. For August, FEC worked 660 hours for Grace Corporation and 390 hours for T...

Q: Queenston Professional Support (QPS) provides professional services (IT,

Queenston Professional Support (QPS) provides professional services (IT, payroll and billing, and so on) to firms requiring temporary help in those areas. QPS bills clients for its various services ba...

Q: Clarita Contracting builds roads, tunnels, bridges, and other transportation

Clarita Contracting builds roads, tunnels, bridges, and other transportation infrastructure. The following are the budgeted costs and time (months) to a given stage of completion for a project to upgr...