Questions from Managerial Accounting


Q: The loan department of Your Local Bank uses standard costs to determine

The loan department of Your Local Bank uses standard costs to determine the overhead cost of processing loan applications. During the current month, a fire occurred, and the accounting records for the...

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Q: Pink Martini Corporation is projecting a cash balance of $30,

Pink Martini Corporation is projecting a cash balance of $30,000 in its December 31, 2019, balance sheet. Pink Martini's schedule of expected collections from customers for the first quarter of 2020 s...

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Q: Jackson Company’s overhead rate was based on estimates of $200,

Jackson Company’s overhead rate was based on estimates of $200,000 for overhead costs and 20,000 direct labour hours. Jackson’s standards allow two hours of direct labour per unit produced. Productio...

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Q: Rondell Company uses a standard cost system. Indirect costs were budgeted

Rondell Company uses a standard cost system. Indirect costs were budgeted at $200,000 plus $15 per direct labour hour. The overhead rate is based on 10,000 hours. Actual results were: Standard direct...

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Q: Lovitz Company is planning to produce 2,000 units of a

Lovitz Company is planning to produce 2,000 units of a product in 2020. Each unit requires 3 kg of materials at $5 per kilogram and a half hour of labour at $15 per hour. The overhead rate is 70% of d...

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Q: Environmental Landscaping Inc. is preparing its budget for the first quarter

Environmental Landscaping Inc. is preparing its budget for the first quarter of 2020. The next step is to prepare a cash receipts schedule and a cash payments schedule. The following information has b...

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Q: Jay Levitt Company budgeted the following cost standards for the current year

Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg of plastic at $5 per kilogram) ………….. $10.00 Direct labour (2 hours at $12 per hour) ………………………………...

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Q: Imperial Landscaping plants grass seed as basic landscaping for business terrains.

Imperial Landscaping plants grass seed as basic landscaping for business terrains. During a recent month, the company worked on three projects (Ames, Korman, and Stilles). The company is interested in...

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Q: Archangel Corporation prepared the following variance report. / /

Archangel Corporation prepared the following variance report. / / Instructions Fill in the appropriate amounts or letters for the question marks in the report. Prepare an income statement for manage...

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Q: Carlos Company uses a standard cost accounting system. During January

Carlos Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances: In addition, 8,000 units of product were sold at $8 per unit. Each...

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