Questions from Cost Management

Q: Refer to the data in Exercise 9-15. Required

Refer to the data in Exercise 9-15. Required: 1. Compute overhead variances using a two-variance analysis. 2. Compute overhead variances using a three-variance analysis. 3. Illustrate how the two- and...

Q: Chypre, Inc., produces a cologne mist using a solvent mix

Chypre, Inc., produces a cologne mist using a solvent mix (water and pure alcohol) and aromatic compounds (the scent base) that it sells to other companies for bottling and sale to consumers. Chypre d...

Q: Chypre, Inc., purchased the amount used of each direct material

Chypre, Inc., purchased the amount used of each direct material input on May 2 for the following actual prices: solvent mix for $5.20 per gallon, and aromatic compound for $8,010 per gallon. Required:...

Q: Redfield Company uses two types of direct labor for the manufacturing of

Redfield Company uses two types of direct labor for the manufacturing of its products: fabricating and assembly. Redfield has developed the following standard mix for direct labor, where output is mea...

Q: Samson Company produces paper towels. The company has established the following

Samson Company produces paper towels. The company has established the following direct materials and direct labor standards for one case of paper towels: Paper pulp (4 lbs. @ $0.30) $ 1.20 Labor (1.8...

Q: The expected costs for the Maintenance Department of Stazler, Inc.,

The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): $64,900 per year Variable costs (supplies): $1.35 per maintenance hour E...

Q: Madison Company uses the following rule to determine whether direct labor efficiency

Madison Company uses the following rule to determine whether direct labor efficiency variances ought to be investigated. A direct labor efficiency variance will be investigated anytime the amount exce...

Q: Janson, Inc., uses a standard costing system. The predetermined

Janson, Inc., uses a standard costing system. The predetermined overhead rates are calculated using practical capacity. Practical capacity for a year is defined as 100,000 units requiring 20,000 stand...

Q: Brewster Company manufactures elderberry wine. Last year, Brewster earned operating

Brewster Company manufactures elderberry wine. Last year, Brewster earned operating income of $192,000 after income taxes. Capital employed equaled $2.3 million. Brewster is 45 percent equity and 55 p...

Q: Xenold, Inc., manufactures and sells cooktops and ovens through three

Xenold, Inc., manufactures and sells cooktops and ovens through three divisions: Home, Restaurant, and Specialty. Each division is evaluated as a profit center. Data for each division for last year ar...