Questions from Financial Accounting

Q: The contribution margin ratio of the Parts Department of Buffalo Valley Repair

The contribution margin ratio of the Parts Department of Buffalo Valley Repair is 40 percent. Traceable fixed costs of the Parts Department average $80,000 per year, and the department’s projected rev...

Q: Categorize the following transfer prices as being market based, negotiated,

Categorize the following transfer prices as being market based, negotiated, or cost based. a. The market price of a widget is $25, the cost is $15, and the actual transfer price is $22, the market pri...

Q: What is an activity base and why is it important in analyzing

What is an activity base and why is it important in analyzing cost behavior?

Q: Hilgen Hotel & Spa is located in beautiful Sydney, Australia.

Hilgen Hotel & Spa is located in beautiful Sydney, Australia. Hilgen operates three profit centers: the hotel, a restaurant, and a spa. The complex occupies 100,000 square feet and has 250 employees....

Q: For each of the following costs associated with a chain of bicycle

For each of the following costs associated with a chain of bicycle stores, decide if the cost is common or traceable to (1) the store departments (repairs and sales), (2) each store, or (3) the compan...

Q: The president of Cold Moo Ice Cream Company, a chain of

The president of Cold Moo Ice Cream Company, a chain of ice cream stores in the Midwest, was unhappy with the actual six-month profit figures for the company recently prepared by the CFO. The presiden...

Q: Electro Systems manufactures relays and currently sells 200,000 units annually

Electro Systems manufactures relays and currently sells 200,000 units annually to producers of electronic equipment. Mac Scott, president of the company, anticipates a 20 percent increase in the cost...

Q: The production manager at Branford Industries is investigating the cause of unfavorable

The production manager at Branford Industries is investigating the cause of unfavorable materials and labor variances that occurred in the previous month. Standards are based on normal or expected pro...

Q: Environmental Services, Inc., performs various tests on wells and septic

Environmental Services, Inc., performs various tests on wells and septic systems. A few of the company’s business transactions occurring during August are described as follows. 1. On August 1, the co...

Q: Spotty Corporation applied $12,600 of manufacturing overhead to production

Spotty Corporation applied $12,600 of manufacturing overhead to production during the month. Its actual overhead costs for the month were $14,700. The cost accountant reports that Spotty’s unfavorable...