Questions from Managerial Accounting

Q: Southern Tier Heating, Inc., installs heating systems in new homes

Southern Tier Heating, Inc., installs heating systems in new homes built in the southern tier counties of New York state. Jobs are priced using the time and materials method. The president of Southern...

Q: Omaha Synthetic Fibers Inc. specializes in the manufacture of synthetic fibers

Omaha Synthetic Fibers Inc. specializes in the manufacture of synthetic fibers that the company uses in many products such as blankets, coats, and uniforms for police and firefighters. The company has...

Q: Sounds Fine, Inc., manufactures two models of stereo speakers.

Sounds Fine, Inc., manufactures two models of stereo speakers. Cost estimates for the two models for the coming year are as follows: Each stereo speaker requires 10 hours of direct labor. Each Basic M...

Q: Andrew and Fulton, Inc., uses 780 tons of a chemical

Andrew and Fulton, Inc., uses 780 tons of a chemical bonding agent each year. Monthly demand fluctuates between 50 and 80 tons. The lead time for each order is one month, and the economic order quanti...

Q: The management of Niagara National Bank is considering an investment in automatic

The management of Niagara National Bank is considering an investment in automatic teller machines. The machines would cost $124,200 and have a useful life of seven years. The bank’s controller has est...

Q: The supervisor of the county Department of Transportation (DOT) is

The supervisor of the county Department of Transportation (DOT) is considering the replacement of some machinery. This machinery has zero book value but its current market value is $800. One possible...

Q: The chief ranger of the state’s Department of Natural Resources is considering

The chief ranger of the state’s Department of Natural Resources is considering a new plan for fighting forest fires in the state’s forest lands. The current plan uses eight fire-control stations, whic...

Q: Refer to the data in the preceding problem 16-41.

Refer to the data in the preceding problem 16-41. Required: Use the incremental-cost approach to prepare a net-present-value analysis of the chief ranger’s decision between the interior fire-control...

Q: Washington County’s Board of Representatives is considering the construction of a longer

Washington County’s Board of Representatives is considering the construction of a longer runway at the county airport. Currently, the airport can handle only private aircraft and sma...

Q: Refer to the data given in the preceding problem 16-45

Refer to the data given in the preceding problem 16-45. Required: 1. Prepare a net-present-value analysis of the proposed long runway. 2. Should the County Board of Representatives approve the runway...