Questions from General Accounting

Q: Scora, Inc., is preparing its master budget for the quarter

Scora, Inc., is preparing its master budget for the quarter ending March 31. It sells a single product for $50 per unit. Budgeted sales for the next four months follow. Prepare a sales budget for the...

Q: Beech Company produced and sold 105,000 units of its product

Beech Company produced and sold 105,000 units of its product in May. For the level of production achieved in May, the budgeted amounts were: sales, $1,300,000; variable costs, $750,000; and fixed cost...

Q: Explain in simple terms the notion of equivalent units of production (

Explain in simple terms the notion of equivalent units of production (EUP). Why is it necessary to use EUP in process costing?

Q: The following information describes a company’s usage of direct labor in a

The following information describes a company’s usage of direct labor in a recent period. Compute the direct labor rate and efficiency variances for the period.

Q: Fogel Co. expects to produce 116,000 units for the

Fogel Co. expects to produce 116,000 units for the year. The company’s flexible budget for 116,000 units of production shows variable overhead costs of $162,400 and fixed overhead costs of $124,000. F...

Q: Refer to the information from QS 23-18. Compute the

Refer to the information from QS 23-18. Compute the variable overhead spending variance and the variable overhead efficiency variance. Information from QS 23-18: Mosaic Company applies overhead using...

Q: Farad, Inc., specializes in selling used SUVs. During the

Farad, Inc., specializes in selling used SUVs. During the month, the dealership sold 50 trucks at an average price of $9,000 each. The budget for the month was to sell 45 trucks at an average price of...

Q: In a recent year, BMW sold 216,944 of its

In a recent year, BMW sold 216,944 of its 1 Series cars. Assume the company expected to sell 225,944 of these cars during the year. Also assume the budgeted sales price for each car was $30,000, and t...

Q: Brodrick Company expects to produce 20,000 units for the year

Brodrick Company expects to produce 20,000 units for the year ending December 31. A flexible budget for 20,000 units of production reflects sales of $400,000; variable costs of $80,000; and fixed cost...

Q: Refer to information in QS 23-3. Assume that actual

Refer to information in QS 23-3. Assume that actual sales for the year are $480,000, actual variable costs for the year are $112,000, and actual fixed costs for the year are $145,000. Prepare a flexib...