Questions from General Accounting

Q: The Flynn Insurance Company developed standard times for processing claims. When

The Flynn Insurance Company developed standard times for processing claims. When a claim was received at the processing center, it was first reviewed and classified as simple or complex. The standard...

Q: Founders State Bank developed a standard for teller staffing that provided for

Founders State Bank developed a standard for teller staffing that provided for one teller to handle 15 customers per hour. During June, the bank averaged 50 customers per hour and had five tellers on...

Q: Graystone’s production budget for September called for making 60,000 units

Graystone’s production budget for September called for making 60,000 units of a single product. The firm’s production standards allow one-half of a machine hour per...

Q: Presented here are the original overhead budget and the actual costs incurred

Presented here are the original overhead budget and the actual costs incurred during April for Piccolo Inc. Piccolo’s managers relate overhead to direct labor hours for planning, con...

Q: Petro Motors Inc. (PMI) produces small gasoline-powered

Petro Motors Inc. (PMI) produces small gasoline-powered motors for use in lawn mowers. The company has been growing steadily over the past five years and is operating at full capacity. PMI recently co...

Q: The segmented income statement for XYZ Company for the year ended December

The segmented income statement for XYZ Company for the year ended December 31, 2022, follows: The company is concerned about the performance of product A, and you have been asked to analyze the situat...

Q: Cowboy Recording Studio is considering the investment of $140,000

Cowboy Recording Studio is considering the investment of $140,000 in a new recording equipment. It is estimated that the new equipment will generate additional cash flow of $21,000 per year for each y...

Q: The transactions affecting the stockholders’ equity accounts of DeZurik Corp.

The transactions affecting the stockholders’ equity accounts of DeZurik Corp. for the year ended June 30, 2023, are summarized here: 1. 160,000 shares of common stock were issued at $21.25 per share....

Q: TopCap Co. is evaluating the purchase of another sewing machine that

TopCap Co. is evaluating the purchase of another sewing machine that will be used to manufacture sport caps. The invoice price of the machine is $98,000. In addition, delivery and installation costs w...

Q: Tablerock Corp. is interested in reviewing its method of evaluating capital

Tablerock Corp. is interested in reviewing its method of evaluating capital expenditure proposals using the accounting rate of return method. A recent proposal involved a $100,000 investment in a mach...