Questions from Management Accounting

Q: Explain how income could fall even though the unit sales level rises

Explain how income could fall even though the unit sales level rises.

Q: Following are the variances for Fine Products Manufacturing Company for the month

Following are the variances for Fine Products Manufacturing Company for the month of March. Assume that the price variance for direct materials is calculated at the time of purchase and that the amoun...

Q: The following data represents the flexible budget for Mountain Mist Brewery,

The following data represents the flexible budget for Mountain Mist Brewery, a boutique brewery that manufactures and sells boutique ales. Overall, the increase in the final price of beer has contri...

Q: Sunset Solar installs solar panels throughout Australia. The accountants estimated the

Sunset Solar installs solar panels throughout Australia. The accountants estimated the market size to be 2 million solar panels with Sunset Solar hoping to achieve 5% market share. The static budget s...

Q: Following is information about Pine Furniture’s direct labour hours and wages last

Following is information about Pine Furniture’s direct labour hours and wages last period. Required (a) Calculate the direct labour efficiency variance. (b) Calculate the direct la...

Q: The Neon Manufacturing Company is a joint venture between Australian and Chinese

The Neon Manufacturing Company is a joint venture between Australian and Chinese firms with an assembly plant located in Beijing. The company’s managers expected to produce 20 000 units of product in...

Q: South Clinic charges its patients on the basis of actual direct costs

South Clinic charges its patients on the basis of actual direct costs incurred plus fixed costs at the rate of $40 per hour. The fixed cost rate of $40 per hour is based on the assumption of 6000 pati...

Q: Glen’s Landscaping Supplies uses a standard costing system to allocate overhead costs

Glen’s Landscaping Supplies uses a standard costing system to allocate overhead costs. The accountant estimated 8500 hours as the volume to develop standard overhead rates. Budgeted...

Q: The following data for Kitchen Tile Company relates to the production of

The following data for Kitchen Tile Company relates to the production of 18 000 tiles during the past month. The entity allocates fixed overhead costs at a standard rate of $19 per direct...

Q: Each of the costs below is incurred by Fairgood & Hernandez,

Each of the costs below is incurred by Fairgood & Hernandez, a small CPA firm. Required Identify whether each of the following costs most likely relates to an (i) organisation- sustaining activity,...