Questions from Cost Management

Q: Macalister Corporation is developing departmental overhead rates based on direct labor hours

Macalister Corporation is developing departmental overhead rates based on direct labor hours for its two production departments—Molding and Assembly. The Molding Department employs 2...

Q: Farleigh Petroleum, Inc., is a small company that acquires high

Farleigh Petroleum, Inc., is a small company that acquires high-grade crude oil from low-volume production wells owned by individuals and small partnerships. The crude oil is processed in a single ref...

Q: Welcome Inns is a chain of motels serving business travelers in New

Welcome Inns is a chain of motels serving business travelers in New Mexico and southwest Texas. The chain has grown from one motel several years ago to five motels. In 20x1, the owner of the company d...

Q: Sonimad Sawmill, Inc. (SSI), purchases logs from independent

Sonimad Sawmill, Inc. (SSI), purchases logs from independent timber contractors and processes them into the following three types of lumber products: 1. Studs for residential construction (e.g., walls...

Q: Jean and Tom Perritz own and manage Happy Home Helpers, Inc

Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On avera...

Q: Assume that Sunny Lane, Inc., uses the weighted average method

Assume that Sunny Lane, Inc., uses the weighted average method of joint cost allocation and has assigned the following weights to the four grades of peaches: Total joint cost is $18,000. Required: 1....

Q: House Corporation Board (HCB) of Tri-Gamma Sorority is

House Corporation Board (HCB) of Tri-Gamma Sorority is responsible for the operation of a two story sorority house on the State University campus. HCB has set a normal capacity of 60 women. At any giv...

Q: Ponderosa, Inc., produces wiring harness assemblies used in the production

Ponderosa, Inc., produces wiring harness assemblies used in the production of semi-trailer trucks. The wiring harness assemblies are sold to various truck manufacturers around the world. Projected sal...

Q: Bernard Creighton is the controller for Creighton Hardware Store. In putting

Bernard Creighton is the controller for Creighton Hardware Store. In putting together the cash budget for the fourth quarter of the year, he has assembled the following data. a. Sales July (actual) $1...

Q: Laghari Company makes and sells high-quality glare filters for microcomputer

Laghari Company makes and sells high-quality glare filters for microcomputer monitors. John Tanaka, controller, is responsible for preparing Laghari’s master budget and has assembled...