Questions from General Accounting

Q: Hartford Company manufactures five products in a single production facility. The

Hartford Company manufactures five products in a single production facility. The company uses activity cost pools to allocate indirect costs. The following activities have been identified following an...

Q: Refer to exercise 11.15. For each activity, name

Refer to exercise 11.15. For each activity, name a cost driver that might be used to assign activity costs to products. In exercise 11.15 Hartford Company manufactures five products in a single produ...

Q: The Skin Care Company has one product line that is unprofitable.

The Skin Care Company has one product line that is unprofitable. What circumstances might cause the entity’s overall profit to be lower if the unprofitable product line was eliminated?

Q: What are avoidable costs and why are they important in decision making

What are avoidable costs and why are they important in decision making?

Q: Fruits on High Ltd uses three activity cost pools to assign costs

Fruits on High Ltd uses three activity cost pools to assign costs to customers in order to assess customer profitability. Each activity cost pool has a unique cost driver to apply indirect costs to cu...

Q: Megan Mitchell has recently graduated from a business school and joined the

Megan Mitchell has recently graduated from a business school and joined the family business as an accountant. At the first management meeting with production, marketing and sales, a great deal of time...

Q: Benson Manufacturing estimates the following activity for the coming year.

Benson Manufacturing estimates the following activity for the coming year. • Expected production 23 000 units • Expected direct labour hours 1750 hours • Expected manufacturing overhead $92 000. Manuf...

Q: Refer to exercise 11.20. Benson Manufacturing’s total direct labour

Refer to exercise 11.20. Benson Manufacturing’s total direct labour cost was $470 000 (2350 hours × $100 per hour). There was no direct labour cost variance. In exercise 11.20 Benson Manufacturing es...

Q: During 2022, Lavender Plantations Pty Ltd continued to grow. The

During 2022, Lavender Plantations Pty Ltd continued to grow. The manager decided to add detergents to its existing range of soap and candles. The management accountant, Nick Gee, expressed concern reg...

Q: A housekeeping support department budgets its costs at $20 000 per

A housekeeping support department budgets its costs at $20 000 per month plus $18 per hour. The estimated and actual hours for November provided by the housekeeping support department to three operati...