Questions from Managerial Accounting

Q: Beatrice Company estimates that unit sales of its lawn chairs will be

Beatrice Company estimates that unit sales of its lawn chairs will be 7,200 in October; 7,400 in November; and 7,100 in December. Prepare Beatrice’s sales budget for the fourth quarter assuming each u...

Q: Preston, Inc., manufactures wooden shelving units for collecting and sorting

Preston, Inc., manufactures wooden shelving units for collecting and sorting mail. The company expects to produce 480 units in July and 400 units in August. Each unit requires 10 feet of wood at a cos...

Q: Refer to the information in M8–6 for Preston, Inc

Refer to the information in M8–6 for Preston, Inc. Each unit requires 1.75 hours of direct labor, and labor wages average $9 per hour. Prepare Preston’s direct labor budget for July and August. Data...

Q: Becker Bikes manufactures tricycles. The company expects to sell 350 units

Becker Bikes manufactures tricycles. The company expects to sell 350 units in May and 480 units in June. Beginning and ending finished goods for May is expected to be 95 and 60 units, respectively. Ju...

Q: Refer to the information in M8–8 for Becker Bikes.

Refer to the information in M8–8 for Becker Bikes. Each unit requires 3 wheels at a cost of $5 per wheel. Becker requires 20 percent of next month’s material production needs on hand each month. July’...

Q: Use the following terms to complete the sentences that follow; terms

Use the following terms to complete the sentences that follow; terms may be used once, more than once, or not at all: Static Flexible Volume Spending Production manager Variable overhead rate Variable...

Q: Cambridge Manufacturing Company applies manufacturing overhead on the basis of machine hours

Cambridge Manufacturing Company applies manufacturing overhead on the basis of machine hours. At the beginning of the year, the company estimated its total overhead cost to be $325,000 and machine hou...

Q: Paradise Corp. has determined a standard labor cost per unit of

Paradise Corp. has determined a standard labor cost per unit of $12 (0.5 hour × $24 per hour). Last month, Paradise incurred 950 direct labor hours for which it paid $22,325. The company produced and...

Q: Beverly Company has determined a standard variable overhead rate of $2

Beverly Company has determined a standard variable overhead rate of $2.50 per direct labor hour and expects to incur 0.5 labor hour per unit produced. Last month, Beverly incurred 950 actual direct la...

Q: Cholla Company’s standard fixed overhead rate is based on budgeted fixed manufacturing

Cholla Company’s standard fixed overhead rate is based on budgeted fixed manufacturing overhead of $10,200 and budgeted production of 30,000 units. Actual results for the month of October reveal that...