Questions from Financial Accounting

Q: Zeta, Inc., produces handwoven rugs. Budgeted production is 5

Zeta, Inc., produces handwoven rugs. Budgeted production is 5,000 rugs per month, and the standard direct labor required to make each rug is 2 hours. All overhead is allocated based on direct labor ho...

Q: Mastrolia’s overhead spending variance is unfavorable by $900. The company’s

Mastrolia’s overhead spending variance is unfavorable by $900. The company’s cost accountant credited the Cost of Goods Sold account for $6,300 to close out any over- or underapplied overhead at the e...

Q: Nolan Mills uses a standard cost system. During May, Nolan

Nolan Mills uses a standard cost system. During May, Nolan manufactured 15,000 pillowcases, using 27,000 yards of fabric costing $3.05 per yard and incurring direct labor costs of $19,140 for 3,300 ho...

Q: Mountain Mabel’s is a small general store located just outside of Yellowstone

Mountain Mabel’s is a small general store located just outside of Yellowstone National Park. The store uses a periodic inventory system. Every January 1, Mabel and her husband close the store and take...

Q: Peter Corporation sells its products to a single customer. At the

Peter Corporation sells its products to a single customer. At the beginning of the current quarter, the company reports the following selected account balances. Peter’s management h...

Q: The following are nine global business terms used in this chapter.

The following are nine global business terms used in this chapter. Each of the following statements may describe one of these terms. For each statement, indicate the global business term described, o...

Q: For each of the following variances, briefly explain at least one

For each of the following variances, briefly explain at least one probable cause and indicate the department manager (if any) responsible for the variance. a. A favorable materials price variance. b....

Q: It may be easier to think about setting standards to help manage

It may be easier to think about setting standards to help manage manufacturing businesses, like the lumber business of Brice Mills, Inc., discussed in this chapter, than to help manage retail establis...

Q: Blue Dingo uses a standard costing system. The company’s standard costs

Blue Dingo uses a standard costing system. The company’s standard costs and variances for direct materials, direct labor, and factory overhead for the month of May are as follows. D...

Q: The cost accountant for Blue Pharmaceuticals has informed you that the company’s

The cost accountant for Blue Pharmaceuticals has informed you that the company’s materials quantity variance for the drug Allegro was exactly equal to its materials price variance fo...