Questions from Managerial Accounting


Q: Watonga Swimsuit Specialties Inc. makes fashionable women’s swimsuits. Its most

Watonga Swimsuit Specialties Inc. makes fashionable women’s swimsuits. Its most popular swimsuit, with the Sarong trade name, uses a standard fabric amount of six yards of raw material with a standard...

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Q: Watonga Swimsuit makes swimsuits. In Year 2, Watonga produced its

Watonga Swimsuit makes swimsuits. In Year 2, Watonga produced its most popular swimsuit, the Sarong, for a standard labor price of $33.60 per hour. The standard amount of labor was 1.0 hour per swimsu...

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Q: Cliff Dennis may become a rich man. He is the creative

Cliff Dennis may become a rich man. He is the creative force behind Amazing Drives, a new company. Amazing makes external drives that permit computer users to store large amounts of information on thu...

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Q: Shaffer Corporation makes mouse pads for computer users. After the first

Shaffer Corporation makes mouse pads for computer users. After the first year of operation, Peggy Shaffer, the president and chief executive officer, was eager to determine the efficiency of the compa...

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Q: Gould Manufacturing Company, which makes aluminum alloy wheels for automobiles,

Gould Manufacturing Company, which makes aluminum alloy wheels for automobiles, recently introduced a new luxury wheel that fits small sports cars. The company developed the following standards for it...

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Q: A fire destroyed most of Ordessa Products Corporation’s records. Megan Carey

A fire destroyed most of Ordessa Products Corporation’s records. Megan Carey, the company’s accountant, is trying to piece together the company’s operating results from salvaged documents. She discove...

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Q: At a professional conference just a few days ago, Carlos Santiago

At a professional conference just a few days ago, Carlos Santiago, the president of Ocala Corporation, learned how the concept of controllability relates to performance evaluation. In preparing to put...

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Q: Chad Bentley, president of Sabrin Corporation, evaluated the performance report

Chad Bentley, president of Sabrin Corporation, evaluated the performance report of the company’s production department. Mr. Bentley was confused by some arguments presented by Jeanne...

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Q: The mortgage division of Magee Financial Services Inc. is managed by

The mortgage division of Magee Financial Services Inc. is managed by a vice president who supervises three regional operations. Each regional operation has a general manager and several branches direc...

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Q: Sheridan Industries Inc. has five different divisions; each is responsible

Sheridan Industries Inc. has five different divisions; each is responsible for producing and marketing a particular product line. The electronics division makes cellular telephones, pagers, and modems...

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