Questions from Managerial Accounting

Q: For the year ending December 31, 2020, Sanjay Company accumulates

For the year ending December 31, 2020, Sanjay Company accumulates the following data for the plastics division, which it operates as an investment centre: contribution margin—$700,000 budgeted, $715,0...

Q: For its three investment centres, Stahl Company accumulates the following data

For its three investment centres, Stahl Company accumulates the following data: Calculate the return on investment (ROI) for each centre. Calculate return on investment using ROI formula.

Q: Diane Buswell is preparing the 2020 budget for one of Current Designs'

Diane Buswell is preparing the 2020 budget for one of Current Designs' rotomoulded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the following uni...

Q: Valdez Company uses standards and budgets. For the year, estimated

Valdez Company uses standards and budgets. For the year, estimated production of product X is 500,000 units. The total estimated costs for materials and labour are $1.3 million and $1.7 million, respe...

Q: Hideo Company accumulates the following data concerning raw materials in making one

Hideo Company accumulates the following data concerning raw materials in making one unit of finished product: (1) Price—net purchase price $2.50, freight in $0.40, and receiving and handling $0.25. (2...

Q: Labour data for making one unit of finished product in Hideo Company

Labour data for making one unit of finished product in Hideo Company are as follows: (1) Price—hourly wage rate $15.00, payroll taxes $0.95, and fringe benefits $1.50. (2) Quantity—actual production...

Q: Sprague Company’s standard materials cost per unit of output is $10

Sprague Company’s standard materials cost per unit of output is $10 (2 kg × $5.00). During July, the company purchases and uses 3,200 kg of materials costing $16,160 in making 1,500 units of finished...

Q: Talbot Company’s standard labour cost per unit of output is $22

Talbot Company’s standard labour cost per unit of output is $22 (2 hours × $11.00 per hour). During August, the company incurs 2,100 hours of direct labour at an hourly cost of $10.80 per hour in maki...

Q: H&X Co. uses a standard job cost system with

H&X Co. uses a standard job cost system with a normal capacity of 25,000 direct labour hours. H&X Co. produces 12,000 units, which cost $185,700 for direct labour (23,000 hours), $27,525 for variable...

Q: Using the data in BE12.6, calculate the fixed overhead

Using the data in BE12.6, calculate the fixed overhead spending (budget) variance. Calculate overhead budget variance. Data from BE12.6: H&X Co. uses a standard job cost system with a normal capacity...