Questions from Managerial Accounting

Q: Litwin Industries had sales in 2019 of $5.6 million

Litwin Industries had sales in 2019 of $5.6 million (800,000 units) and a gross profit of $1,344,000. Management is considering two alternative budget plans to increase its gross profit in 2020. Prepa...

Q: The following data are for the operations of Zoë's Fashion Footwear Ltd

The following data are for the operations of Zoë's Fashion Footwear Ltd., a retail store: Prepare a merchandise purchases budget and a budgeted income statement. 1. Sales Forecast—2020 April …………………....

Q: The Big Boy Company is in a seasonal business and prepares quarterly

The Big Boy Company is in a seasonal business and prepares quarterly budgets. Its fiscal year runs from July 1 through June 30. Production occurs only in the first quarter (July to September), but sa...

Q: Return on investment is often expressed as follows: Compare and

Return on investment is often expressed as follows: Compare and contrast performances under ROI and residual income. Instructions a. Explain the advantages of breaking down the ROI calculation into t...

Q: Oakley Company estimates that 360,000 direct labour hours will be

Oakley Company estimates that 360,000 direct labour hours will be worked in the packaging department during 2020. Based on that, it has calculated the following budgeted manufacturing overhead cost da...

Q: Finesse Company manufactures tablecloths. Sales have grown rapidly over the past

Finesse Company manufactures tablecloths. Sales have grown rapidly over the past two years. As a result, the president has installed a budgetary control system for 2020. The following data were used i...

Q: Ranier Corporation manufactures a single product. The standard cost per unit

Ranier Corporation manufactures a single product. The standard cost per unit of the product is shown below: Calculate variances. Direct materials—1.5 kg of plastic at $8 per kilogram ………….. $12.00 Di...

Q: Sasha Clothiers is a small company that manufactures oversize suits. The

Sasha Clothiers is a small company that manufactures oversize suits. The company uses a standard cost accounting system. In May 2020, it produced 11,200 suits. Calculate variances and identify signifi...

Q: Milberg Co. uses absorption costing and standard costing to improve cost

Milberg Co. uses absorption costing and standard costing to improve cost control. Calculate variances. In 2020, the total budgeted overhead rate was $1.55 per direct labour hour. When preparing the bu...

Q: Harbaugh Manufacturing company uses a standard cost accounting system. In 2020

Harbaugh Manufacturing company uses a standard cost accounting system. In 2020, 45,000 units were produced. Each unit took several kilograms of direct materials and two standard hours of direct labou...