Question: Ironwood Company manufactures a variety of

> See Clear Company manufactures clear plastic CD cases. It applies variable overhead based on the number of machine hours used. Information regarding See Clear’s overhead for the month of December follows: During December, See Clear had

> Haines Manufacturing Company (HMC) bases its fixed overhead rate on practical capacity of 30,000 units per year. Budgeted and actual results for the most recent year follow: Required: Calculate the following for HMC: 1. Fixed overhead rate based on pract

> Amber Company produces iron table and chair sets. During October, Amber’s costs were as follows: Required: 1. Calculate the total cost of purchases for October. 2. Compute the direct materials price variance based on quantity purchased.

> Lamp Light Limited (LLL) calculates a fixed overhead rate based on budgeted fixed overhead of $32,400 and budgeted production of 24,000 units. Actual results were as follows: Required: Calculate the following for LLL: 1. Fixed overhead rate based on budg

> Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information from LLL’s standard cost card follows: During August, LLL had the following actual results: Required: Compute

> Refer to the information presented in E9–8 for Parker Plastic. Required: Prepare the journal entry to record the following for Parker Plastic: 1. Direct materials costs and related variances. Assume the company purchases raw materials a

> Refer to the information presented in E9–8 for Parker Plastic. Required: Calculate Parker Plastic’s fixed overhead spending and volume variances and its over- or underapplied fixed overhead. Data from E9-8: Parker Pla

> Refer to the information presented in E9–8 for Parker Plastic. Required: Calculate Parker Plastic’s variable overhead rate and efficiency variances and its over- or underapplied variable overhead. Data from E9-8: Park

> Ironwood Company manufactures cast-iron barbeque cookware. During a recent windstorm, I lost some of its cost accounting records. Ironwood has managed to reconstruct portions of its standard cost system database but is still missing a few pieces of infor

> In addition to the information in E8–5 through E8–8 regarding Shadee Corp., the following data are available: ∙ Selling costs are expected to be 6 percent of sales. ∙ Fixed administrative expenses per month total $1,200. Required: Prepare Shadee’s sellin

> Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $300,000. Estimated direct labor

> Refer to E8–5 through E8–7 for Shadee Corp. Use the information and solutions presented to complete the requirements. Required: 1. Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $2.) 2. Prepare Sha

> Refer to the information in E8–5 for Shadee Corp. Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour. Required: Prepare Shadee’s direct labor budget for May and June. Data from E8-5: Shadee Corp. exp

> Refer to the information in E8–5 for Shadee Corp. Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 30 closures on hand on

> Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shadee’s beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 60 units. R

> Complete the following table:

> Organize the following budgets in order of preparation by placing the number before it. Indicate how each budget would be affected by a sales forecast that is overstated. Cash budget. Selling and administrative expense budget. Manufacturing overhead budg

> Paul’s Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 60 percent of their fees in the month the service is provided. In the month foll

> Refer to the information in E8–21 through E8–22 for Galactic Inc. Use the information and solutions presented to complete the requirements. Required: 1. Determine Galactic’s budgeted manufacturing cost per drone. (Note: assume that fixed overhead per uni

> Refer to the information in E8–21 for Galactic Inc. Each unit requires 3 direct labor hours and Galactic’s hourly labor rate is $15 per hour. The company’s variable overhead is $4.00 per unit produced and its fixed overhead is $5,500 per month. Required

> Galactic Inc. manufactures flying drone toys. Sales units for January, February, March, April and May were 300, 280, 352, 312, and 380 respectively. Required: 1. The company’s policy for ending finished goods is 25 percent of next month’s sales. Prepare

> Donna is a cost accountant for Northwind Corp. She is very efficient and hard-working; however, she occasionally transposes numbers when recording transactions. While working late recently, Donna accidentally recorded $19,000 of advertising cost instead

> Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce via the Internet across the United States. To keep costs down, CGC maintains a warehouse, but no showroom or retail sales outlets. CGC has the following i

> Use the following terms to complete the sentences that follow. Terms may be used once, more than once, or not at all: Capital expenditures budget Participative Budgetary slack Operating budgets Control Planning Sales forecast Budgeted income statement Bu

> Shamrock Shades operates in mall kiosks throughout the southwestern United States. Shamrock purchases sunglasses from bulk discounters and sells the sunglasses in the mall kiosks. Shamrock is in the process of budgeting for the coming year and has projec

> Martin Clothing Company is a retail company that sells hiking and other outdoor gear specially made for the desert heat. It sells to individuals as well as local companies that coordinate adventure getaways in the desert for tourists. The following infor

> McFarland Company makes 60 percent of its sales in cash. Credit sales are collected as follows: 60 percent in the month of sale and 40 percent in the month following the sale. McFarland’s budgeted sales for upcoming months follow: Requi

> Walter Company has the following information for the month of March: Walter pays wages and other cash expenses in the month incurred. Manufacturing overhead includes $1,200 for machinery depreciation, but the amount for selling and administrative expense

> Ceder Company has compiled the following data for the upcoming year: ∙ Sales are expected to be 15,000 units at $41.00 each. ∙ Each unit requires 2 pounds of direct materials at $2.00 per pound. ∙ Each unit requires 1.5 hours of direct labor at $15.00 pe

> The following information is available for Pioneer Company: ∙ Sales price per unit is $95. ∙ November and December, sales were budgeted at 3,100 and 3,600 units, respectively. ∙ Variable costs are 11 percent of sales (6 percent commission, 2 percent adve

> Alleyway Corp. manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for October follow: Two departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follows: H

> Croy Inc. has the following projected sales for the next five months: Croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. Direct materials cost $3.10

> Manufacturing costs can be classified into three categories—direct materials, direct labor, and manufacturing overhead. Over the years, manufacturing companies have changed significantly with advances in technology and the automation of many manufacturin

> Refer to information in E8–5 for Shadee Corp. It expects the following unit sales for the third quarter: Sixty percent of Shadee’s sales are cash. Of the credit sales, 50 percent is collected in the month of the sale,

> Use the information and solutions from E8–5 through E8–9 for Shadee Corp. Required: Prepare Shadee’s budgeted income statement for the months of May and June. Data from E8-9: In addition to the information in E8–5 through E8–8 regarding Shadee Corp., th

> Samantha is the production manager for Wentworth Company. Each year, she is involved in the company’s budgeting process. Company President Leslie has asked Samantha to submit the facility’s budgeted production for the upcoming year. Leslie’s typical proc

> MSI’s educational products are currently sold without any supplemental materials. The company is considering the inclusion of instructional materials such as an overhead slide presentation, potential test questions, and classroom bullet

> MSI is considering eliminating a product from its ToddleTown Tours collection. This collection is aimed at children one to three years of age and includes “tours” of a hypothetical town. Two products, The Pet Store Par

> MSI is considering outsourcing the production of the handheld control module used with some of its products. The company has received a bid from Monte Legend Co. (MLC) to produce 10,000 units of the module per year for $16 each. The following information

> MSI has been approached by a fourth-grade teacher from Portland about the possibility of creating a specially designed game that would be customized for her classroom and environment. The teacher would like an educational game to correspond to her classr

> The following are a number of statements concerning relevant versus irrelevant costs and benefits. Complete each statement by providing the missing term or phrase. 1. _____ are costs that have already been incurred and are not relevant to future decisio

> Maria Turner has just graduated from college with a degree in accounting. She had planned to enroll immediately in the master’s program at her university but has been offered a lucrative job at a well-known company. The job is exactly w

> Assume you need to buy a new vehicle. The junker that you paid $5,000 for two years ago has a current value of $1,500. You have narrowed the choice down to a used 2008 Jeep Cherokee with a blue book value of $8,000 and a new Hyundai Elantra with a sticke

> For each of the following independent cases (A–E), compute the missing values in the table:

> Listed below are a number of statements concerning management’s decision-making process. Identify whether each statement is correct or incorrect. For all incorrect statements, indicate how to correct the statement. 1. The final step in management’s decis

> The following is a list of decisions and an associated cost or benefit that may or may not be relevant to the decision. For each situation, state whether the associated cost or benefit is relevant to the related decision. If a cost or benefit is irreleva

> Cordova’s marketing department has determined the following demand for its products: Required: Given the company’s limited resource and expected demand, compute how many units of each product Cordova should produce to

> Cordova manufactures three types of stained-glass window, cleverly named Products A, B, and C. Information about these products follows: Cordova currently is limited to 40,000 labor hours per month. Required: Assuming an infinite demand for each of Cordo

> Wholesome Dairy processes milk. The cost of the milk processing is $1,250,000. Wholesome is looking to increase its net income and is exploring the possibility of expanding its products to include cream and/or ice cream. It takes 1 gallon of milk to make

> Anderson Publishing has two divisions: Book Publishing & Magazine Publishing. The Magazine division has been losing money for the last 5 years and Anderson is considering eliminating that division. Anderson’s information about the t

> Frannie Fans currently manufactures ceiling fans that include remotes to operate them. The current cost to manufacture 10,000 remotes is as follows: Frannie is approached by Lincoln Company which offers to make the remotes for $18 per unit. Required: 1.

> Refer to E7–6 through E7–9. Required: Identify at least three qualitative factors that MSI should consider when making each decision. Data from E7-6: MSI has been approached by a fourth-grade teacher from Portland abo

> Match each of the terms by inserting the appropriate definition letter in the space provided. Not all definitions will be used. A. Examination of alternatives focusing on costs that change between alternatives. B. A cost that has the potential to influen

> Suppose that your brother, Raymond, recently bought a new laptop computer for $800 to use in his land surveying business. After purchasing several add-on components for $400, he realized that they are not compatible with the laptop and, therefore, he c

> Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.50 per mile driven. Joyce has determined that if she drives 3,300 miles in a month, her total operating cost is $875. If she drives 4,400 miles in a month, her total operatin

> Match the definitions with the most appropriate term. Terms may be used once, more than once, or not at all. Description: 1. Buffer zone that identifies how much sales can drop before the business suffers a loss. 2. An investment in technology that incre

> Izzy Ice Cream has the following price and cost information: Required: 1. Determine Izzy’s break-even point in units and sales dollars. 2. Determine how many sundaes must be sold to generate a profit of $6,000. 3. Calculate Izzyâ&

> Refer to the information in E6–5 regarding Sandy Bank. Required: 1. Suppose that Sandy Bank raises its selling price to $675 per canoe. Calculate its new breakeven point in units and in sales dollars. 2. If Sandy Bank sells 650 canoes,

> Sandy Bank, Inc., makes one model of wooden canoe. Partial information for it follows: Required: 1. Complete the preceding table. 2. Suppose Sandy Bank sells its canoes for $550 each. Calculate the contribution margin per canoe and the contribution margi

> Refer to the information for Cove’s Cakes in E6–3. Required: 1. Calculate Cove’s new break-even point under each of the following independent scenarios: a. Sales price increases by $1.00 per cake. b.

> Cove’s Cakes is a local bakery. Price and cost information follows: Required: 1. Determine Cove’s break-even point in units and sales dollars. 2. Determine the bakery’s margin of safety if it currentl

> Erin Shelton, Inc., wants to earn a target profit of $800,000 this year. The company’s fixed costs are expected to be $1,000,000 and its variable costs are expected to be 60 percent of sales. Erin Shelton, Inc., earned $700,000 in profit last year. Requi

> Refer to the information in E6–22 for Juniper Corp. Suppose Juniper has improved its manufacturing process and expects total variable costs to decrease by 20 percent. The company expects sales revenue to remain stable at $400,000. Requi

> Juniper Corp. makes three models of insulated thermos. Juniper has $400,000 in total revenue and total variable costs of $240,000. Its sales mix is given below: Required: 1. Calculate the (overall) weighted-average contribution margin ratio. 2. Determine

> Noteworthy, Inc., produces and sells small electronic keyboards. Assume that you have the following information about Noteworthy’s costs for the most recent month. Required: Determine each of the following for Noteworthy: 1. Total produ

> Refer to the information in E6–20 for Tiago. Suppose the product mix has shifted to 40/30/30. Required: 1. Determine the new weighted-average contribution margin per unit. 2. Determine the number of units of each product that Tiago must

> Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Required: 1. Determine the weighted-average contribution margin per unit. 2. Determine the number of units of each product that Tiago must sell to break eve

> On the graph presented, match each element to its appropriate description. Element: Point A Area G Area C Line H Line I Area B Area F Axis E Axis D Description: 1. Break-even point 2. Number of units of activity 3. Loss zone 4. Total cost 5. Total revenu

> Refer to the information presented in E6–18 for Biscayne’s Rent-A-Ride. Required: 1. Determine Biscayne’s new break-even point in each of the following independent scenarios: a. Product mix is 40/60.

> Biscayne’s Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows: Biscayne’s total fixed cost is $18,500 per month. Required: 1. Determine the contribution margin per rental day

> Tommy’s Tile Service is planning on purchasing new tile cleaning equipment that will improve their ability to remove tough stains from ceramic tiles. The company’s contribution margin is 30 percent and its current break-even point is $250,000 in sales re

> Refer to the information in E6–15 for Remo Company and Angelo Inc. Required: 1. Calculate each company’s degree of operating leverage. 2. Explain why companies with the same total sales and net operating income can hav

> Remo Company and Angelo Inc. are separate companies that operate in the same industry. Following are variable costing income statements for the two companies showing their different cost structures: Required: 1. Briefly describe the similarities and diff

> Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: Required: 1. Calculate Lobster Trap’s break-even sales dollars before and after automation.

> Dublin Company and Gary Corp. have degrees of operating leverage of 4.5 and 2.7, respectively. Both companies have net income of $80,000. Required: 1. Without performing any calculations, discuss what the degrees of operating leverage tell us about the t

> Blockett Company makes automobile sunshades and incurs the costs listed in the table below. Required: Use an X to categorize each of the following costs. You may have more than one X for each item.

> Refer to the information regarding Dana’s Ribbon World in E6–11. Required: 1. Suppose Dana’s would like to generate a profit of $800. Determine how many rosettes it must sell to achieve this target pr

> Dana’s Ribbon World makes award rosettes. Following is information about the company: Required: 1. Determine how many rosettes Dana’s must sell to break even. 2. Calculate the break-even point in sales dollars. 3. Prep

> Last month, Laredo Company sold 450 units for $25 each. During the month, fixed costs were $2,520 and variable costs were $9 per unit. Required: 1. Determine the unit contribution margin and contribution margin ratio. 2. Calculate the break-even point in

> Suppose your sister works for a small real estate office as a receptionist. Her employer might be forced to lay off several employees. The employer explained that the company was not “breaking even” and that layoffs would start next month unless things c

> Refer to the information in E5–7 regarding Mountain Dental. Required: 1. Perform a least-squares regression using Mountain’s activity and cost information and state the linear cost equation (y = a + bx). 2. Explain wha

> Refer to the information in E5–7 regarding Mountain Dental. Required: 1. Create a scattergraph using Mountain’s activity and cost information and draw a line on the graph that you believe has the best fit. 2. Using thi

> Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months: Required: 1. Use the high-low method to estimate total fixed cost and variable cost per cavity

> Morning Dove Company’s owner, Sylvester, believes that he can sell 2,000 birdbaths during the month of April and has predicted a net operating income of $6,820 as shown in the following contribution margin statement: Required: Explain t

> Refer to the information for Morning Dove Company in E5–4. Suppose it sells each birdbath for $25. Required: 1. Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. 2. Prepare a contribution margi

> Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0 to 1,500 units, and monthly production costs for the production of 500 units follow. Morning Dove

> The following information is available for Wonderway, Inc., for 2018: Required: Calculate each of the following costs for Wonderway: 1. Direct labor. 2. Manufacturing overhead. 3. Prime cost. 4. Conversion cost. 5. Total manufacturing cost. 6. Period exp

> Match each of the following graphs to the correct cost behavior. Cost Behavior 1. Variable cost per unit. 2. Total variable cost. 3. Fixed cost per unit. 4. Total fixed cost. 5. Total mixed cost.

> Tempe Office Services and Supplies (TOSS) provides various products and services in the Tempe Research Park, home to numerous high-tech and bio-tech companies. Making color copies is one of its most popular and profitable services. The controller perform

> The following information pertains to the first year of operation for Crystal Cold Coolers Inc.: Required: Prepare Crystal Cold’s full absorption costing income statement and variable costing income statement for the year.

> Your friend, Manuel Rodriguez, has been working as a staff accountant for Williams Company, a small local manufacturing company. His job responsibilities to date have entailed several aspects of financial accounting: preparing monthly financial statement

> Bethany Link delivers parts for several local auto parts stores. She charges clients $0.75 per mile driven. She has determined that if she drives 2,100 miles in a month, her average operating cost is $0.55 per mile. If Bethany drives 4,200 miles in a mon

> Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.50 per mile driven. Joyce has determined that if she drives 3,300 miles in a month, her total operating cost is $875. If she drives 4,400 miles in a month, her total operatin

> Steve Silversmith produces unique and exclusive sterling silver rings, pendants, buckles, and chains. Steve pays one supervisor to oversee the work performed by several part-time silversmiths. He pays each silversmith to work 20 hours per week or 40 hou

> Refer to the information presented in E5–17 for Riverside. Each of the following scenarios is a variation of Riverside’s original data. Required: Prepare Riverside’s contribution margin income stateme

> Starcups Coffee Company is launching a new sustainability initiative that would reward customers for purchasing a reusable cup. During the cup promotion, customers would pay an extra $1.00 for the reusable cup and would receive a 25 percent discount each

> Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Required: 1. Complete the preceding table. 2. Identify three costs that would be classified as fixed costs and three that would be classified as variable costs for Rivers

> For each of the following independent cases (A through E), compute the missing values in the table:

> Suppose you are a sales manager for Books on Wheels, Inc., which makes rolling book carts often used by libraries. The company is considering adding a new product aimed at university students. The new product will be a small, collapsible, wheeled tote

> Weir Company (a fictional company) uses straight-line depreciation for its property, plant, andequipment, which, stated at cost, consisted of the following: Weir’s depreciation expenses for 20X1 and 20X0 were $55,000 and $50,000, respec