Question: Krouse Company produces two products, forged putter

> At the beginning of the period, the Fabricating Department budgeted direct labor of $72,000 and equipment depreciation of $18,500 for 2,400 hours of production. The department actually completed 2,350 hours of production. Determine the budget for the dep

> Jorgensen Company has sales of $380,000,000, and the break-even point in sales dollars is $323,000,000. Determine Jorgensen Company’s margin of safety as a percent of current sales.

> Haywood Co. reports the following data: Sales …………………………………. $ 6,160,000 Variable costs ……………………. (4,620,000) Contribution margin ………….. $ 1,540,000 Fixed costs ………………………….. (440,000) Operating income………………. $ 1,100,000 Determine Haywood Co.’s operating

> Conley Company has fixed costs of $17,802,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow: The sales mix for products Yankee and Zoro is 80% and 20%, respectiv

> Beard Company sells a product for $15 per unit. The variable cost is $10 per unit, and fixed costs are $1,750,000. Determine (a) The break-even point in sales units and (b) The sales units required for the company to achieve a target profit of $400,000.

> Freese Inc. sells a product for $650 per unit. The variable cost is $455 per unit, while fixed costs are $4,290,000. Determine (a) The break-even point in sales units and (b) The break-even point if the selling price were increased to $655 per unit.

> Waite Company sells 250,000 units at $120 per unit. Variable costs are $78 per unit, and fixed costs are $8,175,000. Determine (a) The contribution margin ratio, (b) The unit contribution margin, and (c) Operating income.

> How does activity-based costing differ from the multiple production department factory overhead rate method?

> The manufacturing costs of Rosenthal Industries for the first three months of the year follow: Using the high-low method, determine (a) The variable cost per unit and (b) The total fixed cost.

> Man O’Fort Inc. produces two different styles of door handles, standard and curved. The door handles go through a joint production molding process costing $29,000 per batch and producing 2,000 standard door handles and 1,000 curved door handles at the sp

> Gary’s Grooves Co. produces two types of carving knives, one with a handle made of a polymer that looks like walnut wood and another with a handle made with a polymer that looks like red oak. The knives are made through a joint production molding process

> Blake’s Blacksmith Co. produces two types of shotguns, a 12-gauge and 20-gauge. The shotguns are made through a joint production process that ultimately produces 30 12-gauge shotguns and 20 20-gauge shotguns and costs a total of $4,000 per batch. After t

> Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assembly departments. The Janitorial and Security departments support the production of the toys. Costs from the Janitorial Department are allocated based on squ

> Bucknum Boys, Inc., produces hunting gear for buck hunting. The company’s main production departments are Molding and Finishing. Production of the hunting gear cannot be accomplished without the supporting tasks of Materials Management and meals for prod

> The costs per equivalent unit of direct materials and conversion in the Rolling Department of Kraus Steel Company are $750 and $120, respectively. The equivalent units to be assigned costs are as follows: The beginning work in process inventory on Octob

> In October, the cost of materials transferred into the Rolling Department from the Casting Department of Kraus Steel Company is $3,000,000. The conversion cost for the period in the Rolling Department is $462,600 ($275,000 factory overhead applied and $1

> How is sustainability distinguishable from corporate social responsibility?

> Why is the common measures bias especially prevalent in companies that use scorecard cascading?

> Under what two conditions would the multiple production department factory overhead rate method provide more accurate product costs than the single plantwide factory overhead rate method?

> In practice, items such as wood screws and glue used in the production of school desks and chairs would most likely be classified as: a. period costs. b. direct labor. c. factory overhead. d. direct materials.

> A firm has $100,000 in direct materials costs, $50,000 in direct labor costs, and $80,000 in overhead. Which of the following is true? a. Prime costs are $150,000; conversion costs are $180,000. b. Prime costs are $130,000; conversion costs are $150,000.

> A review of Plunkett Corporation’s accounting records revealed the following selected information for the previous year: Direct materials used ……………….... $ 56,000 Direct labor …………………………………. 179,100 Manufacturing overhead ………….….. 421,000 Selling expense

> Which of the following items would not be considered a manufacturing cost? a. Cream for an ice cream maker. b. Sales commissions for a car manufacturer. c. Plant property taxes for an ice cream maker. d. Tires for an automobile manufacturer.

> A sign of the successful implementation of a balanced scorecard is the presence of cause and effect relationships. An example of this success for a hotel is meeting the target of: a. Decreasing a customer’s check-in time, which causes an increase in the

> Which of the following statements best describes the performance elements found on most balanced scorecards? a. The balanced scorecard contains neither financial nor nonfinancial performance measures. b. The balance scorecard contains nonfinancial but no

> The balanced scorecard provides an action plan for achieving competitive success by focusing management attention on critical success factors. Which of the following is not one of the competitive success factors commonly found on the balanced scorecard?

> Which of the following statements regarding the balanced scorecard is not correct? a. It seeks to address the problems associated with traditional financial measures used to assess performance. b. The notion of value chain analysis plays a major role in

> External failure costs include all of the following costs except those related to: a. lost sales and lost customers. b. warranty obligations. c. product liability suits. d. product field testing.

> In measuring the cost of quality, which one of the following is considered an appraisal cost? a. Rework cost b. Product testing cost c. Warranty claims cost d. Equipment maintenance cost

> What are some of the dangerous tendencies of people who fall prey to the bias of motivated reasoning?

> When measuring the cost of quality, the cost of inspecting incoming raw materials is a(n): a. prevention cost. b. appraisal cost. c. internal failure cost. d. external failure cost.

> Leese Inc. has the following quality financial data for its most recent fiscal year. Rework costs ……………………………. $110,000 Warranty repair costs …………….….. 280,000 Product line inspection ………..….….. 95,000 Design engineering …………………… 300,000 Supplier evaluat

> Foster Manufacturing is analyzing a capital investment project that is forecast to produce the following cash flows and net income: The payback period of this project will be: a. 2.5 years. b. 2.6 years. c. 3.0 years. d. 3.3 years.

> Allstar Company invests in a project with expected cash inflows of $9,000 per year for four years. All cash flows occur at year-end. The required return on investment is 9%. If the project generates a net present value (NPV) of $3,000, what is the amount

> Staten Corporation is considering two mutually exclusive projects. Both require an initial outlay of $150,000 and will operate for five years. The cash flows associated with these projects are as follows: Staten’s required rate of retu

> Foster Manufacturing is analyzing a capital investment project that is forecasted to produce the following cash flows and net income: Using the present value tables provided in Appendix A, the internal rate of return (rounded to the nearest whole percen

> Oakes Inc. manufactured 40,000 gallons of Mononate and 60,000 gallons of Beracyl in a joint production process, incurring $250,000 of joint costs. Oakes allocates joint costs based on the physical volume of each product produced. Mononate and Beracyl can

> Aril Industries is a multiproduct company that currently manufactures 30,000 units of Part 730 each month for use in production. The facilities now being used to produce Part 730 have fixed monthly overhead costs of $150,000 and a theoretical capacity to

> Johnson Company manufactures a variety of shoes and has received a special one-time-only order directly from a wholesaler. Johnson has sufficient idle capacity to accept the special order to manufacture 15,000 pairs of sneakers at a price of $7.50 per pa

> In differential cost analysis, which one of the following best fits the description of a sunk cost? a. Direct materials required in the manufacture of a table b. Purchasing department costs incurred in acquiring material c. Cost of the forklift driver to

> What is the purpose of scorecard cascading?

> Morrison’s Plastics Division, a profit center, sells its products to external customers as well as to other internal profit centers. Which one of the following circumstances would justify the Plastics Division selling a product internally to another prof

> Manhattan Corporation has several divisions that operate as decentralized profit centers. At the present time, the Fabrication Division has excess capacity of 5,000 units with respect to the UT-371 circuit board, a popular item in many digital applicatio

> Most firms allocate corporate and other support costs to divisions and departments for all of the following reasons except to: a. remind profit center managers that earnings must be adequate to cover some share of the indirect costs. b. stimulate profit

> Sara Bellows, manager of the telecommunication sales team, has the following department budget: Billings – long distance …………. $350,000 Billings – phone card ………………… 75,000 Billings – toll free …………………… 265,000 Her responsibility center is best described

> JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT estimated variable factory overhead of $600,000 and fixed factory overhead of $400,000. JoyT uses a standard costing system, and factory overhead is allocated to

> Frisco Company recently purchased 108,000 units of raw material for $583,200. Three units of raw materials are budgeted for use in each finished good manufactured, with the raw material standard set at $16.50 for each completed product. Frisco manufactur

> Marten Company has a cost-benefit policy to investigate any variance that is greater than $1,000 or 10% of budget, whichever is larger. Actual results for the previous month indicate the following: The company should investigate: a. neither the material

> MinnOil performs oil changes and other minor maintenance services on cars and trucks. The company advertises that all services are performed within 15 minutes each. On a recent Saturday, 160 cars were serviced, resulting in the following labor variances:

> Ming Company has budgeted sales at 6,300 units for July, and desires to have 590 good units on hand on July 31. Inventory is 470 units on July 1. Ming has found from past experience that 10% of all units produced do not pass final inspection and must the

> What do strategy maps show, and how do they add value to the balanced scorecard?

> Hannon Retailing Company prices its products by adding 30% to its cost. Hannon anticipates sales of $715,000 in July, $728,000 in August, and $624,000 in September. Hannon’s policy is to have on hand enough inventory at the end of the month to cover 25%

> When compared to static budgets, flexible budgets: a. offer managers a more realistic comparison of budgeted and actual fixed cost items under their control. b. provide a better understanding of the capacity (volume) variances during the period being eva

> Bethany Company has just completed the first month of producing a new product but has not yet shipped any of this product. The product incurred variable manufacturing costs of $5,000,000, fixed manufacturing costs of $2,000,000, variable marketing costs

> Mill Corporation had the following unit costs for the recent calendar year: Inventory for Mill’s sole product totaled 6,000 units on January 1 and 5,200 units on December 31. When compared to variable costing income, Millâ€&

> Chassen Company, a cracker and cookie manufacturer, has the following unit costs for the month of June: Variable manufacturing cost ………………. $5.00 Variable marketing cost ………………………. 3.50 Fixed manufacturing cost …………………… 2.00 Fixed marketing cost ……………………

> Data for the last fiscal year for Merlene Company are as follows: *Denominator level of activity is 750 units for the year Actual selling and administrative costs equaled the budgeted amount, and there were no work in process inventories at the end of t

> Eagle Brand Inc. produces two products as follows: Eagle Brand has 1,000 lbs. of raw materials that can be used to produce Products X and Y. Which of the following alternatives should Eagle Brand accept to maximize the contribution margin? a. 100 units

> Bolger and Co. manufactures large gaskets for the turbine industry. Bolger’s per-unit sales price and variable costs for the current year are as follows: Sales price per unit …………………… $300 Variable costs per unit ………………… 210 Bolger’s total fixed costs ag

> Kimber Company has the following unit costs for the current year: Raw materials ……………………….…………….. $20.00 Direct labor …………………….…………………….. 25.00 Variable manufacturing overhead …………... 10.00 Fixed manufacturing overhead …….……….… 15.00 Total unit cost …………

> Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for the upcoming year. Past trends have indicated the following dollars were spent at three different levels of output: In establishing a budget for 14,000 uni

> How are strategic objectives and strategic initiatives different? How are they related?

> Tucariz Company processes Duo into two joint products, Big and Mini. Duo is purchased in 1,000-gallon drums for $2,000. Processing costs are $3,000 to process the 1,000 gallons of Duo into 800 gallons of Big and 200 gallons of Mini. The selling price is

> Breegle Company produces three products (B-40, J-60, and H-102) from a single process. Breegle uses the physical volume method to allocate joint costs of $22,500 per batch to the products. Based on the following information, which product(s) should Breeg

> Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing cost information for the next year: If Adam uses the step-down (sequential) method, beginning with the Maintenance Department, to allocate support depart

> Logo Inc. has two data services departments (Systems and Facilities) that provide support to the company’s three production departments (Machining, Assembly, and Finishing). The overhead costs of the Systems Department are allocated to

> Cynthia Rogers, the cost accountant for Sanford Manufacturing, is preparing a management report that must include an allocation of overhead. The budgeted overhead for each department and the data for one job are as follows: Using the departmental overhe

> Young Company is beginning operations and is considering three alternatives to allocate manufacturing overhead to individual units produced. Young can use a plantwide rate, departmental rates, or activity-based costing. Young will produce many types of p

> The Chocolate Baker specializes in chocolate baked goods. The firm has long assessed the profitability of a product line by comparing revenues to the cost of goods sold. However, Barry White, the firm’s new accountant, wants to use an a

> Pelder Products Company manufactures two types of engineering diagnostic equipment used in construction. The two products are based upon different technologies, X-ray and ultrasound, but are manufactured in the same factory. Pelder has computed the manuf

> A company is using process costing with the first-in, first-out (FIFO) method, and all costs are added evenly throughout the manufacturing process. If there are 5,000 units in beginning work in process inventory (30% complete), 10,000 units in ending wor

> Kimbeth Manufacturing uses a process cost system to manufacture dust density sensors for the mining industry. The following information pertains to operations for the month of May: The beginning inventory was 60% complete for materials and 20% complete

> What is the purpose of the performance perspectives of a balanced scorecard?

> Jones Corporation uses a first-in, first-out (FIFO) process cost system. Jones has the following unit information for the month of August: The equivalent units of production for conversion costs for the month of August were: a. 87,300 units. b. 88,000 u

> During December, Krause Chemical Company had the following selected data concerning the manufacture of Xyzine, an industrial cleaner: All materials are added at the beginning of processing in this department, and conversion costs are added uniformly dur

> Patterson Corporation expects to incur $70,000 of factory overhead and $60,000 of general and administrative costs next year. Direct labor costs at $5 per hour are expected to total $50,000. If factory overhead is to be applied per direct labor hour, how

> Lucy Sportswear manufactures a specialty line of T-shirts using a job order cost system. During March, the following costs were incurred in completing Job ICU2: direct materials, $13,700; direct labor, $4,800; administrative, $1,400; and selling, $5,600.

> John Sheng, a cost accountant at Starlet Company, is developing departmental factory overhead application rates for the company’s Tooling and Fabricating departments. The budgeted overhead for each department and the data for one job ar

> Baldwin Printing Company uses a job order cost system and applies overhead based on machine hours. A total of 150,000 machine hours have been budgeted for the year. During the year, an order for 1,000 units was completed and incurred the following: Direc

> Quetzal Inc. is a manufacturer of after-market parts for automobiles. The company has 23 support departments that provide services for 55 production departments. Quetzal management is looking to revamp the company’s outdated cost accounting system and is

> Gigabody, Inc., a nutritional supplement manufacturer, produces five lines of protein supplements. Each product line is managed separately by a senior-level product engineer who is evaluated, in part, based on his or her ability to keep costs low. The fi

> The fundamental concept behind strategic performance measurement systems is that an organization’s strategy can be represented by a set of performance measures. This basic concept of representing a complex idea (like strategy) with something more tangibl

> Young Manufacturing Company is a startup manufacturing firm looking to build and develop its balanced scorecard. Gunner Young, the company owner, has told you the following: Our company was built on the shoulders of our hard-working, diligent employees.

> What is the difference between a leading indicator and a lagging indicator?

> Blake & McKenzie Tax Services is a company serving 72 clients (as of the beginning of last month) that is working on reorganizing its balanced scorecard. Currently, the company has the following performance metrics: online client satisfaction rating, cli

> Biases like motivated reasoning and surrogation are very prevalent in the business world. Managers are often compensated and evaluated based on performance measures such as production costs and profit margin. Hence, when subjective decisions need to be m

> MGM Holdings (MGMB) operates Metro-Goldwyn-Mayer Studios Inc. and is a major producer and distributor of movie and television filmed entertainment. Regarding movies (films), MGM states, “Our feature films are exploited through a series of sequential dome

> CEO, Worthington Industries (WOR) (a high-technology steel company): “We try to find the best technology, stay ahead of the competition, and serve the customer. . . . We’ll make any investment that will pay back quickly … but if it is something that we r

> Some cost problems have been identified in the Assembly Department of Schumann Electronics Co., a consumer electronics company. The department’s budget performance report for the last quarter follows: The performance reports from the P

> In teams, find the website of a state that interests you. The web address may be of the form www.statename.gov or similar. For example, the website for the state of Ohio can be found at www.Ohio.gov. At the site’s home page, search for links to the state

> Bon Jager Inc. manufactures and sells medical devices used in cardiovascular surgery. The sales team consists of two salespeople, Dean and Martin. A contribution margin report by salesperson was prepared as follows: Write a brief memo to Anna Berenson,

> BendOR, Inc., manufactures control panels for the electronics industry and has just completed its first year of operations. The following discussion took place between the controller, Gordon Merrick, and the company president, Matt McCray: Matt: I’ve bee

> The Southern Division manager of Texcaliber Inc. is growing concerned that the division will not be able to meet its current period income objectives. The division uses absorption costing for internal profit reporting and had an appropriate level of inve

> Edward Seymour is a financial consultant to Cornish Inc., a real estate syndicate. Cornish finances and develops commercial real estate (office buildings) projects. The completed projects are then sold as limited partnership interests to individual inves

> How can the balanced scorecard be used to address CSR objectives?

> Somerset Inc. has finished a new video game, Snowboard Challenge. Management is now considering its marketing strategies. The following information is available: Two managers, James Hamilton and Thomas Seymour, had the following discussion of ways to in

> Timpanogos Clinical Laboratories Inc. manufactures two products: Mackalite and Jemmerite. These two products go through a joint production process costing $260,000 in materials, labor, and overhead. Though the production process is inseparable for both p

> Sunrise Suites and Nationwide Inns operate competing hotel chains across the region. Hotel capacity information for both hotels is as follows: Information on the number of guests for each hotel and the average length of visit for June were as follows:

> A recent annual report of Hilton Worldwide Holdings Inc. (HLT) and Marriott International Inc. (MAR) provided the following occupancy data for two recent years: a. Is the change in the occupancy rate favorable or unfavorable for Hilton Hotels? b. Is the

> Comfort Plus, Inc., has a hotel with 300 rooms in a metropolitan city. Its main competitor, Connors Hotel, has a hotel with 350 rooms in the same city. The following operating data are available for April for the two hotels: a. Determine the guest night