Questions from Cost Management

Q: Kraft Bakeries introduced in 2022 a new line of frozen apple pie

Kraft Bakeries introduced in 2022 a new line of frozen apple pie. For 2022, sales by quarter were as follows: 11,000 units, 16,000 units, 15,000 units, and 20,000 units. Because of aggressive marketin...

Q: Janice Interiors installs custom interiors for luxury mobile homes. In its

Janice Interiors installs custom interiors for luxury mobile homes. In its most recent negotiation with the union, the firm proposed to share productivity gains in direct labor equally with the union....

Q: Family Medical Care (FMC) is a family medical practice with

Family Medical Care (FMC) is a family medical practice with 6 physicians, a nursing staff of 8 to 10 nurses, and an administrative staff that varies from 4 to 7 personnel. Rajat Patel, the chief physi...

Q: Robinson Company has two products, A and B. Robinson’s budget

Robinson Company has two products, A and B. Robinson’s budget for August follows: On September l, these operating results for August were reported: Required: 1. For each product,...

Q: Jay Banning, CEO and a major stockholder of Banning Inc.,

Jay Banning, CEO and a major stockholder of Banning Inc., was unhappy with its operating results for the past year. The company manufactures two environmentally friendly, industrial-caliber cleaning m...

Q: Margot’s Ice Cream operates several stores in a major metropolitan city and

Margot’s Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the current year follow: Required: 1. Compute these varia...

Q: TransPacific Airlines (TPA) budgeted 80 million passenger miles, or

TransPacific Airlines (TPA) budgeted 80 million passenger miles, or 5 percent of the total market for the year just completed, at a contribution margin of 40 cents per mile. The budgeted average price...

Q: Diane’s Designs is a small business run out of its owner’s house

Diane’s Designs is a small business run out of its owner’s house. For the past 6 months, the company has been selling two products, a welcome sign and a birdhouse....

Q: Tall Pines Brewery (TPB) makes two specialty beers in its

Tall Pines Brewery (TPB) makes two specialty beers in its microbrewery: Golden Ale and Dark Ale. Both beers sell for the same price per case in the U.S. market and in the export market. The latter mar...

Q: Clippers Inc. (CI) manufactures two types of garden clippers

Clippers Inc. (CI) manufactures two types of garden clippers. A light-duty model, called the “half-inch,” is intended for clipping branches and stems up to one-half...