Questions from Cost Management

Q: In an attempt to improve budgeting, the controller for Engersol,

In an attempt to improve budgeting, the controller for Engersol, Inc., has developed a flexible budget for overhead costs. Engersol, Inc., makes two types of products, commercial floor cleaners and ho...

Q: At the end of the year, Engersol, Inc., actually

At the end of the year, Engersol, Inc., actually produced 305,000 units of the commercial cleaner and 120,000 of the deluxe model. The actual overhead costs incurred were: Maintenance $ 56,900 Power 1...

Q: Olympus, Inc., manufactures three models of mattresses: the Sleepeze

Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are 15,000 for the Sleepeze, 12,000 for the Plushette, and 5,000 for t...

Q: Next year, Bob’s Bistro expects to produce 50,000 units

Next year, Bob’s Bistro expects to produce 50,000 units and sell 50,500 units at a price of $20.00 each. Beginning inventory of finished goods is $13,000, and ending inventory of finished goods is exp...

Q: Jackson Products produces a barbeque sauce using three departments: Cooking,

Jackson Products produces a barbeque sauce using three departments: Cooking, Mixing, and Bottling. In the Cooking Department, all materials are added at the beginning of the process. Output is measure...

Q: Suppose Gene determines that next year’s Sales Division activities include the following

Suppose Gene determines that next year’s Sales Division activities include the following: Research—researching current and future conditions in the industry Shippin...

Q: Quincy Farms is a producer of items made from farm products that

Quincy Farms is a producer of items made from farm products that are distributed to supermarkets. For many years, Quincy’s products have had strong regional sales on the basis of brand recognition. Ho...

Q: During the year, Vandy Company produced 280,000 components for

During the year, Vandy Company produced 280,000 components for industrial metal working machinery. Vandy’s direct materials and direct labor standards per unit are as follows: Direct materials (3.70 l...

Q: Berner Company produces a dark chocolate candy bar. Recently, the

Berner Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy: Direct materials (8.2 oz. @ $0.09) $0.738 Direct labor (0.07 hr. @ $...

Q: Oerstman, Inc., uses a standard costing system and develops its

Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 120,000 units requiring 480,000 direc...