Questions from General Accounting

Q: Serviflow manufactures products that move and measure various fluids, ranging from

Serviflow manufactures products that move and measure various fluids, ranging from water to high viscosity polymers, corrosive or abrasive chemicals, toxic substances, and other difficult pump in medi...

Q: Adrian and Pells (AP) is an advertising agency that uses

Adrian and Pells (AP) is an advertising agency that uses flexible budgeting for both planning and control. One of its clients, Troika Toys, asked AP to prepare an ad campaign for a new toy. APâ&...

Q: Barry’s Fashions operates a Downtown Store and a Mall Store. Both

Barry’s Fashions operates a Downtown Store and a Mall Store. Both department stores use three centralized, corporate service departments (human resources, maintenance, and informatio...

Q: Specialized Surgical Instruments (SSI) manufactures four surgical implants. SSI

Specialized Surgical Instruments (SSI) manufactures four surgical implants. SSI uses an absorption costing system to allocate manufacturing overhead to its four products. Direct labor hours are used a...

Q: Pyramid Products manufactures a large number of home and commercial cleaning products

Pyramid Products manufactures a large number of home and commercial cleaning products at its plant in Oshkosh, Wisconsin. This plant, which employs about 450 people, produces floor waxes, cleaners, ba...

Q: Mastich Counters manufactures a material used to fabricate kitchen counters. It

Mastich Counters manufactures a material used to fabricate kitchen counters. It is a very durable, high-fashion, and expensive product that is installed in luxury homes. The manufacturing process is c...

Q: A firm that purchases electric power from the local utility is considering

A firm that purchases electric power from the local utility is considering the alternative of generating its own electricity. The current cost of obtaining the firm’s electricity from its local utilit...

Q: The sales department of a cellular phone company pays its salespeople $

The sales department of a cellular phone company pays its salespeople $1,500 per month plus 25 percent of each new subscriber’s first month’s billings. A new subscriber’s first-month bill averages $80...

Q: Janitorial services is one of five service departments in a firm that

Janitorial services is one of five service departments in a firm that allocates service department costs using the step-down allocation method. Janitorial services is currently the third service depar...

Q: Sue Young sells fax machines for Fast Fax. There are two

Sue Young sells fax machines for Fast Fax. There are two fax machines: model 700 and model 800. At the beginning of the month, Sue’s sales budget is as follows: At the end of the mon...