Questions from Managerial Accounting

Q: International Fabrics has budgeted overhead costs of $955,000.

International Fabrics has budgeted overhead costs of $955,000. It has allocated overhead on a plant-wide basis to its two products (wool and cotton) using direct labour hours, which are estimated to b...

Q: Mega Electronix sells television sets and Blu-ray DVD players.

Mega Electronix sells television sets and Blu-ray DVD players. The business is divided into two divisions along product lines. A variable cost income statement for a recent quarter's activity is prese...

Q: Alonzo Inc. manufactures two products: car wheels and truck wheels

Alonzo Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, YuYu Ortega, has developed the following informa...

Q: Shady Lady sells window coverings to both commercial and residential customers.

Shady Lady sells window coverings to both commercial and residential customers. The following information relates to its budgeted operations for the current year: Assign overhead using traditional cos...

Q: Galavic Corporation manufactures snowmobiles in its Blue Mountain plant. It has

Galavic Corporation manufactures snowmobiles in its Blue Mountain plant. It has budgeted the following costs for the first quarter's operations. Identify activity cost pools and cost drivers. Instru...

Q: Sassafras Inc. has conducted an analysis of overhead costs related to

Sassafras Inc. has conducted an analysis of overhead costs related to one of its product lines using a traditional costing system (volume based) and an activity-based costing system. Following are its...

Q: Peter Catalano's Verde Vineyards, in the Niagara Peninsula, produces three

Peter Catalano's Verde Vineyards, in the Niagara Peninsula, produces three varieties of wine: merlot, viognier, and pinot noir. His winemaster, Kyle Pohle, has identified the following activities as c...

Q: During the current month, Dalmar Company incurs the following manufacturing costs

During the current month, Dalmar Company incurs the following manufacturing costs: Prepare journal entries for manufacturing costs. 1. Purchased raw materials of $16,000 on account. 2. Incurred factor...

Q: Fontillas Instrument, Inc. manufactures two products: missile range instruments

Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, it produced 50 range instruments and 300 pressure gauges and incurred estimated...

Q: H&Y Company uses four activity pools to apply overhead to

H&Y Company uses four activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs to the product. The activities and related overhead cost...