Questions from Cost Management

Q: Foster Hancock is an accountant who is planning to open an accounting

Foster Hancock is an accountant who is planning to open an accounting firm in his hometown. He has heard that established accountants in town charge $65 per hour. That amount sounds good to Foster. In...

Q: Whang Construction Company is a general contractor that specializes in custom residential

Whang Construction Company is a general contractor that specializes in custom residential housing. Each job requires a bid that includes Whang’s direct costs and subcontractor costs...

Q: Many different businesses employ markup on cost to arrive at a price

Many different businesses employ markup on cost to arrive at a price. For each of the following situations, explain what the markup covers and why it is the amount that it is. a. Department stores hav...

Q: Carina Franks operates a catering company in Austin, Texas. Carina

Carina Franks operates a catering company in Austin, Texas. Carina provides food and servers for parties. She also rents tables, chairs, dinnerware, glassware, and linens. Estefan and Maria Montero ha...

Q: Otero Fibers, Inc., specializes in the manufacture of synthetic fibers

Otero Fibers, Inc., specializes in the manufacture of synthetic fibers that the company uses in many products such as blankets, coats, and uniforms for police and firefighters. Otero has been in busin...

Q: Mayfair Electric Utility has excess electrical generating capacity. In order to

Mayfair Electric Utility has excess electrical generating capacity. In order to utilize its excess capacity, Mayfair entered into a five-year contract with the U.S. government to sell Mayfair’s genera...

Q: Flaherty, Inc., has just completed its first year of operations

Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing basis are as follows: Manufacturing costs (per unit): Direct materials (4 lbs. @ $1.50) $ 6.00 Direc...

Q: Patterson Company produces wafers for integrated circuits. Data for the most

Patterson Company produces wafers for integrated circuits. Data for the most recent year are provided: Required: 1. Using the five most expensive activities, calculate the overhead cost assigned to ea...

Q: During its first year of operations, Snobegon, Inc. (

During its first year of operations, Snobegon, Inc. (located in Lake Snobegon, Minnesota), produced 40,000 plastic snow scoops. Snow scoops are oversized shovel-type scoops that are used to push snow...

Q: Data for Torleson Company are as follows: Budgeted price $

Data for Torleson Company are as follows: Budgeted price $15.00 Actual price $14.80 Budgeted quantity 1,450 Actual quantity sold 2,500 Required: 1. Calculate the sales price variance. 2. Calculate the...