Questions from Managerial Accounting

Q: Lafleur Corporation needs to set a target price for its newl designed

Lafleur Corporation needs to set a target price for its newl designed product, M14-M16. The following data relate to it: Use cost-plus pricing to determine various amounts. These costs are based on...

Q: Berg and Son Ltd. builds custom-made pleasure boats that

Berg and Son Ltd. builds custom-made pleasure boats that range in price from $10,000 to $250,000. For the past 30 years, Mr. Berg Sr. has determined the selling price of each boat by estimating the co...

Q: Bolus Computer Parts Ltd. is setting a selling price on a

Bolus Computer Parts Ltd. is setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting dep...

Q: St-Cyr’s Electronic Repair Shop has budgeted the following time and

St-Cyr’s Electronic Repair Shop has budgeted the following time and material for 2020: Use time-and-material pricing to determine bill. St-Cyr’s budgets 5,000 hou...

Q: Ampro Inc. has two divisions. Division A makes and sells

Ampro Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Determine minimum transfer price under different situations. Each desk has a re...

Q: Schuman Corporation produces microwave units. The following per-unit cost

Schuman Corporation produces microwave units. The following per-unit cost information is available: direct materials $36; direct labour $24; variable manufacturing overhead $18; fixed manufacturing ov...

Q: Gorham Manufacturing's sales slumped badly in 2020. For the first

Gorham Manufacturing's sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 60,000 units of p...

Q: Wordsmith is a publishing company with several different book lines. Each

Wordsmith is a publishing company with several different book lines. Each line has contracts with different authors. The company also owns a printing operation called Pronto Press. The book lines and...

Q: Zapp Manufacturing Company makes various electronic products. The company is divided

Zapp Manufacturing Company makes various electronic products. The company is divided into autonomous divisions that can either sell to internal units or sell externally. All divisions are located in b...

Q: Wood Inc. manufactures wood poles. Wood Inc. has two

Wood Inc. manufactures wood poles. Wood Inc. has two responsibility centres, harvesting and sawing, which are both evaluated as profit centres. The harvesting division does all the harvesting operatio...