Questions from Survey Accounting


Q: a. What are the two variances between the actual cost and

a. What are the two variances between the actual cost and the standard cost for direct materials? b. Discuss some possible causes of these variances.

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Q: A new assistant controller recently said: “All the assembly workers

A new assistant controller recently said: “All the assembly workers in this plant are covered by union contracts, so there should be no labor variances.” Was the controller’s remark correct? Discuss....

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Q: Orwell Industries is considering selling excess machinery with a book value of

Orwell Industries is considering selling excess machinery with a book value of $300,000 (original cost of $950,000 less accumulated depreciation of $650,000) for $145,000 less a 5% brokerage commissio...

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Q: A condensed income statement by product line for Garcia Beverages Inc.

A condensed income statement by product line for Garcia Beverages Inc. indicated the following for Melon Cola for the past year: Sales ……………………………………. $ 3,750,000 Cost of goods sold …………………. (2,250,0...

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Q: The condensed product-line income statement for Dinner Ware Company is

The condensed product-line income statement for Dinner Ware Company is as follows: Fixed costs are 40% of the cost of goods sold and 18% of the selling and administrative expenses. Dinner Ware assum...

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Q: The Charles Schwab Corporation (SCHW) is one of the more

The Charles Schwab Corporation (SCHW) is one of the more innovative brokerage and financial service companies in the United States. The company provided information about its major busi...

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Q: On the basis of the following data, the general manager of

On the basis of the following data, the general manager of Sandals Industries Inc. decided to discontinue Children’s Sandals because it reduced operating income by $65,000. What is t...

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Q: Warm Space Inc. manufactures electric space heaters. While the CEO

Warm Space Inc. manufactures electric space heaters. While the CEO, Gwen Willis, is visiting the production facility, the following conversation takes place with the plant manager, Tyra Chastain: Gwen...

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Q: Watts Technologies Company has been purchasing carrying cases for its portable tablets

Watts Technologies Company has been purchasing carrying cases for its portable tablets at a delivered cost of $6.50 per unit. The company, which is currently operating below full capacity, charges fac...

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Q: Wisconsin Arts of Milwaukee employs five people in its Publication Department.

Wisconsin Arts of Milwaukee employs five people in its Publication Department. These people lay out pages for pamphlets, brochures, and other publications for the productions. The pages are delivered t...

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