Questions from General Accounting

Q: Instant Image Inc. manufactures color laser printers. Model J20 presently

Instant Image Inc. manufactures color laser printers. Model J20 presently sells for $460 and has a product cost of $230, as follows: Direct materials …………………. $175 Direct labor……………………………. 40 Factory...

Q: Youngstown Glass Company manufactures three types of safety plate glass: large

Youngstown Glass Company manufactures three types of safety plate glass: large, medium, and small. All three products have high demand. Thus, Youngstown Glass is able to sell all the safety glass it c...

Q: CardioTrainer Equipment Company manufactures stationary bicycles and treadmills. The products are

CardioTrainer Equipment Company manufactures stationary bicycles and treadmills. The products are produced in the Fabrication and Assembly production departments. In addition to production activities,...

Q: Artscape Inc. is considering the purchase of automated machinery that is

Artscape Inc. is considering the purchase of automated machinery that is expected to have a useful life of five years and no residual value. The average rate of return on the average investment has be...

Q: BriteLite Inc. manufactures entry and dining room lighting fixtures. Five

BriteLite Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated activity costs and activity bases are...

Q: a. How is a predetermined factory overhead rate calculated?

a. How is a predetermined factory overhead rate calculated? b. Name three common bases used in calculating the rate.

Q: H.J. Heinz Company uses standards to control its materials

H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (3,128 pounds) has the following standards: The actual materials in a batch may vary from the standard...

Q: Portable Power Company expects to operate at 80% of productive capacity

Portable Power Company expects to operate at 80% of productive capacity during July. The total manufacturing costs for July for the production of 25,000 batteries are budgeted as follows: Direct mate...

Q: Light Force Inc. produces and sells lighting fixtures. An entry

Light Force Inc. produces and sells lighting fixtures. An entry light has a total cost of $180 per unit, of which $100 is product cost and $80 is selling and administrative expenses. In addition, the...

Q: Green Thumb Garden Tools Inc. produces and sells home and garden

Green Thumb Garden Tools Inc. produces and sells home and garden tools and equipment. A lawn mower has a total cost of $230 per unit, of which $160 is product cost and $70 is selling and administrativ...