Questions from Managerial Accounting


Q: Sun Motors Inc. operates as a decentralized multidivisional car company.

Sun Motors Inc. operates as a decentralized multidivisional car company. Its safety division buys most of its airbags from the airbag division. The airbag division’s incremental costs for manufacturin...

See Answer

Q: Chula Vista Pump Company makes irrigation pump systems. The company

Chula Vista Pump Company makes irrigation pump systems. The company is divided into several autonomous divisions that can either sell to internal units or sell externally. All divisions are located in...

See Answer

Q: Swayze Small Engine Repair charges $42 per hour of labour.

Swayze Small Engine Repair charges $42 per hour of labour. It has a material loading percentage of 40%. On a recent job to replace the engine of a riding lawn mower, Swayze worked 10.5 hours and used...

See Answer

Q: Heartland Engines is a division of EverGreen Lawn Equipment Company. Heartland

Heartland Engines is a division of EverGreen Lawn Equipment Company. Heartland makes engines for lawn mowers, snow blowers, and other types of lawn and garden equipment. It sells its engines to the co...

See Answer

Q: Comput Industries is a high-tech company in the United States

Comput Industries is a high-tech company in the United States with several subsidiaries, including Cancomput, which is located in Canada, and Heavencomput, which is located in another country with ver...

See Answer

Q: Garnett Printing Corp. uses a job-order cost system.

Garnett Printing Corp. uses a job-order cost system. The following data summarize the operations related to the first quarter's production: Prepare entries for manufacturing costs. 1. Materials purcha...

See Answer

Q: Love Inc. manufactures a line of men’s colognes and aftershave lotions

Love Inc. manufactures a line of men’s colognes and aftershave lotions. The manufacturing process is basically a series of mixing operations, with the addition of certain aromatic an...

See Answer

Q: Refer back to P9.51B, where we learned that Wamser

Refer back to P9.51B, where we learned that Wamser Corporation uses cost-plus pricing methods to set the target selling price of its product E2-D2. Because some managers prefer to work with absorption...

See Answer

Q: Santana Furniture Inc. is setting a target price on its newly

Santana Furniture Inc. is setting a target price on its newly designed leather recliner sofa. Cost data for the sofa at a budgeted volume of 3,000 units are as follows: Calculate various amounts using...

See Answer

Q: Poole Corporation has collected the following information after its first year of

Poole Corporation has collected the following information after its first year of sales. Net sales were $1.6 million on 100,000 units, selling expenses were $240,000 (40% variable and 60% fixed), dire...

See Answer