Questions from Managerial Accounting

Q: Spelzig Company manufactures radio-controlled toy cars. Spelzig has developed

Spelzig Company manufactures radio-controlled toy cars. Spelzig has developed the following flexible budget for overhead for the coming year. Activity level is measured in direct labor hours. The fa...

Q: Stillwater Designs is considering a new Kicker speaker model: Solo X18

Stillwater Designs is considering a new Kicker speaker model: Solo X18, which is a large and expensive subwoofer (projected price is $760 to distributors). The company controls the design specificatio...

Q: Quarterly budgeted overhead costs for two different levels of activity follow.

Quarterly budgeted overhead costs for two different levels of activity follow. The 2,000 level was the expected level from the master budget. The actual activity level was 1,700 hours. Required: 1....

Q: Fernando’s is a tiny sandwich shop just off the State University campus

Fernando’s is a tiny sandwich shop just off the State University campus. Customers enter and place their orders at a small counter area. All orders are take-out because there is no s...

Q: Explain how overhead is assigned to production when a predetermined overhead rate

Explain how overhead is assigned to production when a predetermined overhead rate is used.

Q: Carly Davis, production manager, was upset and puzzled by the

Carly Davis, production manager, was upset and puzzled by the latest performance report, which indicated that she was $100,000 over budget. She and her staff had worked hard to beat the budget. Now sh...

Q: Billy Adams, controller for Westcott Inc., prepared the following budget

Billy Adams, controller for Westcott Inc., prepared the following budget for manufacturing costs at two different levels of activity for 2014: During 2014, Westcott employees worked a total of 80,00...

Q: At the beginning of last year, Jean Bingham, controller for

At the beginning of last year, Jean Bingham, controller for Thorpe Inc., prepared the following budget for conversion costs at two levels of activity for the coming year: During the year, the compan...

Q: Moleno Company produces a single product and uses a standard cost system

Moleno Company produces a single product and uses a standard cost system. The normal production volume is 120,000 units; each unit requires five direct labor hours at standard. Overhead is applied on...

Q: Extrim Company produces monitors. Extrim’s plant in San Antonio uses a

Extrim Company produces monitors. Extrim’s plant in San Antonio uses a standard costing system. The standard costing system relies on direct labor hours to assign overhead costs to production. The dir...