Questions from Cost Management

Q: Davidson Corp. produces a single product: fireproof safety deposit boxes

Davidson Corp. produces a single product: fireproof safety deposit boxes for home use. The budget going into the current year anticipated a selling price of $55 per unit. Because of competitive pressu...

Q: Chapman Inc. sells a single product, Zud, which has

Chapman Inc. sells a single product, Zud, which has a budgeted selling price of $24 per unit and a budgeted variable cost of $12 per unit. Budgeted fixed costs for the year amount to $45,000. Actual s...

Q: Refer to Exhibit 14.8 and the accompanying discussion in the

Refer to Exhibit 14.8 and the accompanying discussion in the text. Demonstrate that the materials usage variance for PVC during October 2022 was $2,400F. Exhibit 14.8:

Q: Tasty Beverage Co. produces soft drinks, specializing in fruit drinks

Tasty Beverage Co. produces soft drinks, specializing in fruit drinks. They produce 5,000 cans of product per batch. Setup cost for each batch is $50 and each drink costs $0.10 to produce. What is the...

Q: Refer to Exhibit 14.8 and the accompanying discussion in the

Refer to Exhibit 14.8 and the accompanying discussion in the text. Demonstrate that the purchase price variance for PVC during October 2022 was $720U. Exhibit 14.8:

Q: Refer to Exhibit 14.8 and the accompanying discussion in the

Refer to Exhibit 14.8 and the accompanying discussion in the text. Demonstrate that the flexible budget variance for PVC during October 2022 was $1,680F. Exhibit 14.8:

Q: Mom’s Apple Pie Company uses a standard cost system. The standard

Mom’s Apple Pie Company uses a standard cost system. The standard direct labor time for each pie is 10 minutes. During the most recent month, the company produced and sold 6,000 pies. The standard dir...

Q: Refer to the data in Brief Exercise 14-21.

Refer to the data in Brief Exercise 14-21. (a) What was the direct labor rate variance for the month, rounded to 2 decimal places? (b) Was this variance favorable or unfavorable? Brief Exercise 14...

Q: Sipple Furniture’s master budget for the year includes $360,000

Sipple Furniture’s master budget for the year includes $360,000 for fixed supervisory salaries. Practical capacity, which is used to set the fixed overhead allocation rate, is 500 units per month. Sup...

Q: Baxter Corporation’s master budget calls for the production of 5,000

Baxter Corporation’s master budget calls for the production of 5,000 units per month and $144,000 indirect labor costs for the year. Baxter considers indirect labor as a component of variable factory...