Questions from Cost Management

Q: Snyder Company produced 90,000 units during its first year of

Snyder Company produced 90,000 units during its first year of operations and sold 87,000 at $21.80 per unit. The company chose practical activity—at 90,000 units—to compute its predetermined overhead...

Q: The following information pertains to Vladamir, Inc., for last year

The following information pertains to Vladamir, Inc., for last year: Beginning inventory, units 1,320 Units produced 100,000 Units sold 101,000 Variable costs per unit: Direct materials $ 8.00 Direct...

Q: Jellison Company had the following operating data for its first two years

Jellison Company had the following operating data for its first two years of operations: Variable costs per unit: Direct materials 4.00 Direct labor $ 2.90 Variable overhead 1.50 Fixed costs per year:...

Q: San Mateo Optics, Inc., specializes in manufacturing lenses for large

San Mateo Optics, Inc., specializes in manufacturing lenses for large telescopes and cameras used in space exploration. As the specifications for the lenses are determined by the customer and vary con...

Q: Haysbert Company provides management services for apartments and rental units. In

Haysbert Company provides management services for apartments and rental units. In general, Haysbert packages its services into two groups: basic and complete. The basic package includes advertising va...

Q: Sulert, Inc., produces and sells gel-filled ice packs

Sulert, Inc., produces and sells gel-filled ice packs. Sulert’s performance report for April follows: Required: 1. Calculate the contribution margin variance and the contribution mar...

Q: Gasconia Company produces three models of a product. Actual results from

Gasconia Company produces three models of a product. Actual results from last year are as follows: Gasconia had budgeted the following amounts: Required: 1. Calculate the contribution margin variance....

Q: Johnston Company cleans and applies powder coat paint to metal items on

Johnston Company cleans and applies powder coat paint to metal items on a job-order basis. Johnston has budgeted the following amounts for various overhead categories in the coming year. In the coming...

Q: Dana Baird was manager of a new Medical Supplies Division. She

Dana Baird was manager of a new Medical Supplies Division. She had just finished her second year and had been visiting with the company’s vice president of operations. In the first y...

Q: Bill Fremont, division controller and CMA, was upset by a

Bill Fremont, division controller and CMA, was upset by a recent memo he received from the divisional manager, Steve Preston. Bill was scheduled to present the division’s financial performance at head...