Questions from General Accounting

Q: Mordica Company identifies three activities in its manufacturing process: machine setups

Mordica Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $150,000, $325,000, and $87,50...

Q: Weisman, Inc. uses activity-based costing as the basis

Weisman, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats. Compute the activity-based overhead rates using the following budgeted data fo...

Q: Rich Novelty Company identified the following activities in its production and support

Rich Novelty Company identified the following activities in its production and support operations. Classify each of these activities as either value-added or non value added. (a) Machine setup. (...

Q: Mendle and Kiner is an architectural firm that is contemplating the installation

Mendle and Kiner is an architectural firm that is contemplating the installation of activity-based costing. The following activities are performed daily by staff architects. Classify these activities...

Q: For Flynn Company, variable costs are 70% of sales,

For Flynn Company, variable costs are 70% of sales, and fixed costs are $195,000. Management’s net income goal is $75,000. Compute the required sales in dollars needed to achieve management’s target n...

Q: For Stevens Company, actual sales are $1,000,

For Stevens Company, actual sales are $1,000,000 and break-even sales are $840,000. Compute (a) the margin of safety in dollars and (b) the margin of safety ratio.

Q: Deines Corporation has fixed costs of $480,000. It

Deines Corporation has fixed costs of $480,000. It has a unit selling price of $6, unit variable costs of $4.40, and a target net income of $1,500,000. Compute the required sales in units to achieve i...

Q: Howser Company’s fixed overhead costs are $4 per unit, and

Howser Company’s fixed overhead costs are $4 per unit, and its variable overhead costs are $8 per unit. In the first month of operations, 50,000 units are produced, and 48,000 units are sold. Write a...

Q: For Lodes Company, the relevant range of production is 40–

For Lodes Company, the relevant range of production is 40–80% of capacity. At 40% of capacity, a variable cost is $4,000 and a fixed cost is $6,000. Diagram the behavior of each cost within the releva...

Q: For Hunt Company, a mixed cost is $15,000

For Hunt Company, a mixed cost is $15,000 plus $18 per direct labor hour. Diagram the behavior of the cost using increments of 500 hours up to 2,500 hours on the horizontal axis and increments of $15,...