Questions from Managerial Accounting


Q: Gilliam Consulting LLP has three operating departments: tax, estate planning

Gilliam Consulting LLP has three operating departments: tax, estate planning, and small business. The company’s internal accounting and maintenance departments support the operating...

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Q: Willis Corporation, a book publisher, has two service departments:

Willis Corporation, a book publisher, has two service departments: editing and typesetting. Willis also has three operating departments: children’s fiction, youth fiction, and adult...

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Q: In recent years, the United States Postal Service (USPS)

In recent years, the United States Postal Service (USPS) has experienced declining revenues, largely due to the increase in digital communications such as e-mail. These declining revenues have led the...

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Q: Vega and Andersen LLP has three departments: auditing, tax,

Vega and Andersen LLP has three departments: auditing, tax, and information systems. The departments occupy 3,000 square feet, 2,500 square feet, and 2,500 square feet of office space, respectively. T...

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Q: In Year 3, Santo Corporation incurred direct manufacturing costs of $

In Year 3, Santo Corporation incurred direct manufacturing costs of $56 per unit and manufacturing overhead costs of $600,000. The production activity for the four quarters of Year 3 are as follows. R...

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Q: Kenta Manufacturing Company produced 800 units of inventory in January Year 2

Kenta Manufacturing Company produced 800 units of inventory in January Year 2. The company expects to produce an additional 7,200 units of inventory during the remaining 11 months of the year, for a t...

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Q: Trista Company manufactures three different sizes of automobile sunscreens: large,

Trista Company manufactures three different sizes of automobile sunscreens: large, medium, and small. Trista expects to incur $300,000 of overhead costs during the next fiscal year. Other budget infor...

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Q: Ascend Company makes three models of jump drives in its factory:

Ascend Company makes three models of jump drives in its factory: J512, J1G, and J4G. The expected overhead costs for the next fiscal year are as follows. Payroll for factory managers $ 150,000 Factory...

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Q: Omega Company makes household plastic bags in three different sizes: Snack

Omega Company makes household plastic bags in three different sizes: Snack, Sandwich, and Storage. The estimated direct materials and direct labor costs are as follows. Omega allocates two major overh...

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Q: Cornerstone Company’s annual factory depreciation is $630,000. Cornerstone

Cornerstone Company’s annual factory depreciation is $630,000. Cornerstone estimated it would operate the factory a total of 3,600 hours this year. The factory operated 300 hours in November and 200 h...

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