Questions from Managerial Accounting

Q: POD Incasements manufactures protective cases for MP3 players. During November,

POD Incasements manufactures protective cases for MP3 players. During November, the company’s workers clocked 800 more direct labor hours than the flexible budget amount of 25,000 hours to complete 10...

Q: Hunter Family Instruments makes cellos. During the past year, the

Hunter Family Instruments makes cellos. During the past year, the company made 6,400 cellos even though the budget planned for only 5,600. The company paid its workers an average of $15 per hour, whic...

Q: Carson Construction Consultants performs cement core tests in its Greenville laboratory.

Carson Construction Consultants performs cement core tests in its Greenville laboratory. The following standard costs for the tests have been developed by the company’s controller, Landon Carson, base...

Q: Sommers Irrigation, Inc. is known throughout the world for its

Sommers Irrigation, Inc. is known throughout the world for its H2O-X high-capacity water pump, used in irrigation systems. The pump’s standard cost is as follows. The companyâ&...

Q: Russell Marks shook his head in disbelief as he and operations manager

Russell Marks shook his head in disbelief as he and operations manager Tom Hanover reviewed the month’s flexible budget performance report. “How did you manage to make such a poor showing last month?”...

Q: Attacus Company manufactures deep-sea fishing rods, which it distributes

Attacus Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The following data are taken from the budget prepared at the beginning of the y...

Q: Lexi Belcher picked up the monthly report that Irvin Santamaria left on

Lexi Belcher picked up the monthly report that Irvin Santamaria left on her desk. She smiled as her eyes went straight to the bottom line of the report and saw the favorable variance for operating inc...

Q: Pressure Reducers, Inc. produces and sells lumbar support cushions for

Pressure Reducers, Inc. produces and sells lumbar support cushions for office chairs using a special foam that molds to a person’s back. Since all products are made to order, the onl...

Q: Stratton, Ltd. manufactures shirts, which it sells to customers

Stratton, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirts is as follows. Sandy Robison, operations mana...

Q: After graduating from dental school two years ago, Dr. Lauren

After graduating from dental school two years ago, Dr. Lauren Farish purchased the dental practice of a long-time dentist who was retiring. In January of this year she had to replace the outdated auto...