Questions from Cost Management


Q: The Bangor Manufacturing Company produces mechanical toy robots that are typically produced

The Bangor Manufacturing Company produces mechanical toy robots that are typically produced in batches of 250 units. Prior to the current year, the company’s accountants used a standard cost system wi...

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Q: Glavine & Co. produces a single product, each unit of

Glavine & Co. produces a single product, each unit of which requires three direct labor hours (DLHs). Practical capacity (for setting the factory overhead application rate) is 30,000 DLHs, on an a...

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Q: ACME manufacturing is a low-cost producer of a single,

ACME manufacturing is a low-cost producer of a single, commodity product: RGL-01. Standard overhead cost information for one unit of this product is presented below: Required: 1. Calculate the fixed...

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Q: Ashley Technology Inc. manufactures a scrambling device for cellular telephones.

Ashley Technology Inc. manufactures a scrambling device for cellular telephones. The device’s main component is a delicate part, CT140. CT140 is easily damaged and requires careful h...

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Q: Use the data for Ashley Technology Inc. in Problem 16-

Use the data for Ashley Technology Inc. in Problem 16-41 to complete the following requirements: Required: 1. Compute the partial financial productivity ratios for direct materials and direct labor f...

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Q: Use the data for Ashley Technology Inc. in Problem 16-

Use the data for Ashley Technology Inc. in Problem 16-41 to complete the following requirements. Also assume that fixed manufacturing costs are $50 million in both 2021 and 2022. Required: 1. Compute...

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Q: In the fourth quarter of last year, Colditz Company embarked on

In the fourth quarter of last year, Colditz Company embarked on a major effort to improve productivity. It redesigned products, reengineered manufacturing processes, and offered productivity improveme...

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Q: Katrina Design has decided to experiment with two alternative manufacturing approaches,

Katrina Design has decided to experiment with two alternative manufacturing approaches, identified as MF and LI, for producing men’s fashions. The firm expects the total demand to be...

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Q: Textron Manufacturing Inc. assembles industrial testing instruments in two departments,

Textron Manufacturing Inc. assembles industrial testing instruments in two departments, assembly and testing. Operating data for the current and prior years follow: The firm assembled and tested 20,...

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Q: The following data were obtained from the 2016 financial statements for two

The following data were obtained from the 2016 financial statements for two U.S. automakers (in millions of dollars): Required: 1. Calculate and interpret total productivity in dollars for the two a...

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