Questions from General Accounting

Q: Olympia Productions Inc. makes award medallions that are attached to ribbons

Olympia Productions Inc. makes award medallions that are attached to ribbons. Each medallion requires 18 inches of ribbon. The sales forecast for March is 4,000 medallions. Estimated beginning invento...

Q: Western Manufacturing produces a single product. The original budget for April

Western Manufacturing produces a single product. The original budget for April was based on expected production of 17,500 units; actual production for April was 16,600 units. The original budget and a...

Q: Following is a partially completed performance report for a recent week for

Following is a partially completed performance report for a recent week for direct labor in the binding department of a book publisher: The original budget is based on the expectation that 4,000 books...

Q: For the stamping department of a manufacturing firm, the standard cost

For the stamping department of a manufacturing firm, the standard cost for direct labor is $15 per hour, and the production standard calls for 1,000 stampings per hour. During February, 198 hours were...

Q: Smallman’s Garage uses standards to plan and control labor time and expense

Smallman’s Garage uses standards to plan and control labor time and expense. The standard time for an engine tune-up is 4 hours, and the standard labor rate is $20 per hour. Last week, 36 tune-ups wer...

Q: Four Seasons Industries has established direct labor performance standards for its maintenance

Four Seasons Industries has established direct labor performance standards for its maintenance and repair shop. However, some of the labor records were destroyed during a recent fire. The actual hours...

Q: At the beginning of its current fiscal year, Willie Corp.

At the beginning of its current fiscal year, Willie Corp.’s balance sheet showed assets of $67,600 and liabilities of $33,000. During the year, liabilities decreased by $5,000. Net i...

Q: Oakton Inc. manufactures end tables, armchairs, and other wood

Oakton Inc. manufactures end tables, armchairs, and other wood furniture products from high-quality materials. The company uses a standard costing system and isolates variances as soon as possible. Th...

Q: Fiberworks Company is a manufacturer of fiberglass toy boats. The company

Fiberworks Company is a manufacturer of fiberglass toy boats. The company has recently implemented a standard cost system and has designed the system to isolate variances as soon as possible. During t...

Q: The president of Eaglesway Inc. attended a seminar about the contribution

The president of Eaglesway Inc. attended a seminar about the contribution margin model and returned to her company full of enthusiasm about it. She requested that last year’s traditi...