Question: Why would a firm use a balanced

> An examination of the accounting records of Clowney Company disclosed a high contribution margin ratio and production at a level below maximum capacity. Based on this information, suggest a likely means of improving income from operations. Explain.

> The following data were summarized from the accounting records for Jersey Coast Construction Company for the year ended June 30, 20Y8: Prepare divisional income statements for Jersey Coast Construction Company. Cost of goods sold: Service departmen

> Identify the following costs as a prime cost (P), conversion cost (C), or both (B) for a magazine publisher: a. Paper used for the magazine b. Wages of printing machine employees c. Glue used to bind magazine d. Maintenance on print

> Partially completed budget performance reports for Garland Company, a manufacturer of light duty motors, follow: a. Complete the budget performance reports by determining the correct amounts for the lettered spaces. b. Compose a memo to Cassandra Reid,

> Based on T_Kong Industries’ data in Exercise 24-20, assume that a transfer price of $160 has been established and that 50,000 units of materials are transferred, with no reduction in the Components Division’s current sales. a. How much would T_Kong Indu

> Roanoke Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (5,200 bars) are as follows: Determine the standard direct materials cost per bar of

> Alpha University wants to monitor the efficiency and quality of its course registration process. a. Identify three input and three output measures for this process. b. Why would Alpha University use nonfinancial measures for monitoring this process?

> Diamond Inc. is an Internet retailer of woodworking equipment. Customers order wood- working equipment from the company, using an online catalog. The company processes these orders and delivers the requested product from its warehouse. The company wants

> In applying the high-low method of cost estimation to mixed costs, how is the total fixed cost estimated?

> The following data were taken from the records of Griggs Company for December: Administrative expenses …………………………………………………………..$100,800 Cost of goods sold (at standard) …………………………………………………..550,000 Direct materials price variance—unfavorable ……………………………

> The Assembly Department produced 5,000 units of product during March. Each unit required 2.20 standard direct labor hours. There were 11,500 actual hours used in the Assembly Department during March at an actual rate of $17.60 per hour. The standard dire

> The management of Advanced Alternative Power Inc. is considering two capital investment projects. The estimated net cash flows from each project are as follows: The wind turbines require an investment of $887,600, while the biofuel equipment requires a

> Cioffi Manufacturing Company incorporates standards in its accounts and identifies variances at the time the manufacturing costs are incurred. Journalize the entries to record the following transactions: a. Purchased 2,450 units of copper tubing on acco

> The management of Style Networks Inc. is considering two TV show projects. The estimated net cash flows from each project are as follows: After Hours requires an investment of $913,600, while Sun Fun requires an investment of $880,730. No residual value

> Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 20,000 hours for production: Tannin has available 25,000 hours of monthly productive capacity

> First United Bank Inc. is evaluating three capital investment projects using the net present value method. Relevant data related to the projects are summarized as follows: Instructions 1. Assuming that the desired rate of return is 15%, prepare

> Social Circle Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follows: Each product requires an investment of $125,000. A rate of 10% has been selected for the net present value analysis.

> The capital investment committee of Ellis Transport and Storage Inc. is considering two investment projects. The estimated income from operations and net cash flows from each investment are as follows: Each project requires an investment of $368,000. Str

> Renaissance Capital Group is considering allocating a limited amount of capital investment funds among four proposals. The amount of proposed investment, estimated income from operations, and net cash flow for each proposal are as follows: The company&ac

> Melinda Stoffers owns and operates ABC Print Co. During February, ABC incurred the following costs in acquiring two printing presses. One printing press was new, and the other was purchased from a business that recently file

> Junck Company has sales of $550,000, and the break-even point in sales dollars is $385,000. Determine the company’s margin of safety as a percent of current sales.

> During May, Bergan Company incurred factory overhead costs as follows: indirect materials, $8,800; indirect labor, $6,600; utilities cost, $4,800; and factory depreciation, $9,000. Journalize the entry to record the factory overhead incurred during May

> Liu Inc. has sales of $48,500,000, and the break-even point in sales dollars is $31,040,000. Determine the company’s margin of safety as a percent of current sales

> Westminster Co. reports the following data: Determine Westminster Co.’s operating leverage. Sales $875,000 Variable costs Contribution margin 425,000 $450,000 Fixed costs 150,000 $300,000 Income from operations

> SungSam Enterprises reports the following data: Determine SungSam Enterprises’s operating leverage Sales $340,000 Variable costs Contribution margin 180,000 $160,000 Fixed costs B0,000 S B0,000 Income from operations

> Scrushy Company sells a product for $150 per unit. The variable cost is $110 per unit, and fixed costs are $200,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of

> Identify the following costs as a prime cost (P), conversion cost (C), or both (B) for an automobile manufacturer: a. Wages of employees that operate painting equipment b. Wages of the plant manager c. Steel d. Oil used for assembly

> Ramirez Inc. sells a product for $80 per unit. The variable cost is $60 per unit, and fixed costs are $2,000,000. Determine (a) the break-even point in sales units and (b) the break- even point in sales units if the company desires a target profit of $

> Elrod Inc. sells a product for $75 per unit. The variable cost is $45 per unit, while fixed costs are $48,000. Determine (a) the break-even point in sales units and (b) the break- even point if the selling price were increased to $95 per unit.

> Bigelow Inc. sells a product for $800 per unit. The variable cost is $600 per unit, while fixed costs are $1,200,000. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $850 per unit.

> The manufacturing costs of Carrefour Enterprises for three months of the year follow: Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost Total Cost Units Produced July $300,000 2,700 units August Septe

> The manufacturing costs of Ackerman 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 Total Cost Units Produced January $1,900,000 2,250,000 2

> The following are inputs and outputs to the copying process of a copy shop: Number of employee errors Number of times paper supply runs out Copy machine downtime (broken) Number of pages copied per hour Number of customer complaints Percent of jobs done

> Dvorak Company produced 1,000 units that require 5 standard pounds per unit at $2.50 standard price per pound. The company actually used 4,500 pounds in production. Journalize the entry to record the standard direct materials used in production.

> Bellingham Company produced 15,000 units that require 2.5 standard pounds per unit at $3.75 standard price per pound. The company actually used 36,000 pounds in production. Journalize the entry to record the standard direct materials used in production.

> Dvorak Company produced 1,000 units of product that required 3 standard hours per unit. The standard fixed overhead cost per unit is $0.60 per hour at 3,500 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance

> Bellingham Company produced 15,000 units of product that required 4 standard hours per unit. The standard fixed overhead cost per unit is $1.15 per hour at 58,000 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume varian

> Blumen Textiles Corporation began April with a budget for 90,000 hours of production in the Weaving Department. The department has a full capacity of 100,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the begi

> Dvorak Company produced 1,000 units of product that required 3 standard hours per unit. The standard variable overhead cost per unit is $1.40 per hour. The actual variable factory overhead was $4,000. Determine the variable factory overhead controllable

> Bellingham Company produced 15,000 units of product that required 4 standard hours per unit. The standard variable overhead cost per unit is $0.90 per hour. The actual variable factory overhead was $52,770. Determine the variable factory overhead control

> Prepare an income statement through gross profit for Dvorak Company for the month ended July 31 using the variance data in Practice Exercises 23-1B through 23-4B. Assume that Dvorak sold 1,000 units at $90 per unit.

> Prepare an income statement through gross profit for Bellingham Company for the month ended March 31 using the variance data in Practice Exercises 23-1A through 23-4A. Assume that Bellingham sold 15,000 units at $172 per unit.

> Dvorak Company produces a product that requires 3 standard hours per unit at a standard hourly rate of $17 per hour. If 1,000 units required 2,800 hours at an hourly rate of $16.50 per hour, what is the direct labor (a) rate variance, (b) time variance

> Bellingham Company produces a product that requires 4 standard hours per unit at a standard hourly rate of $20 per hour. If 15,000 units required 61,800 hours at an hourly rate of $19.85 per hour, what is the direct labor (a) rate variance, (b) time va

> Dvorak Company produces a product that requires 5 standard pounds per unit. The standard price is $2.50 per pound. If 1,000 units required 4,500 pounds, which were purchased at $3.00 per pound, what is the direct materials (a) price variance, (b) quant

> Bellingham Company produces a product that requires 2.5 standard pounds per unit. The standard price is $3.75 per pound. If 15,000 units required 36,000 pounds, which were purchased at $4.00 per pound, what is the direct materials (a) price variance, (

> The following are inputs and outputs to the cooking process of a restaurant: Number of times ingredients are missing Number of customer complaints Number of hours kitchen equipment is down for repairs Number of server order mistakes Percent of meals prep

> What is the objective of transfer pricing?

> In a decentralized company in which the divisions are organized as investment centers, how could a division be considered the least profitable even though it earned the largest amount of income from operations?

> The capital investment committee of Nature’s Portrait Landscaping Company is considering two capital investments. The estimated income from operations and net cash flows from each investment are as follows: Each project requires an inve

> What is the major shortcoming of using income from operations as a performance measure for investment centers?

> Differentiate between centralized and decentralized operations.

> When using the negotiated price approach to transfer pricing, within what range should the transfer price be established?

> On July 1, Coastal Distribution Company is considering leasing a building and buying the necessary equipment to operate a public warehouse. Alternatively, the company could use the funds to invest in $740,000 of 5% U.S. Treasury bonds that mature in 14 y

> Would the use of standards be appropriate in a nonmanufacturing setting such as a fast-food restaurant?

> A new assistant controller recently was heard to re- mark: “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.

> What are the two variances between the actual cost and the standard cost for direct materials?

> What are the basic objectives in the use of standard costs?

> a. Describe the two variances between the actual costs and the standard costs for factory overhead. b. What is a factory overhead cost variance report?

> Wiki Wiki Company has determined that the variable overhead rate is $4.50 per direct labor hour in the Fabrication Department. The normal production capacity for the Fabrication Department is 10,000 hours for the month. Fixed costs are budgeted at $60,00

> Two items are omitted from each of the following three lists of cost of goods sold data from a manufacturing company income statement. Determine the amounts of the missing items, identifying them by letter Finished goods inventory, June 1 Cost of go

> Clearcast Communications Inc. is considering allocating a limited amount of capital investment funds among four proposals. The amount of proposed investment, estimated income from operations, and net cash flow for each proposal are as follows: The compa

> The following information is available for Ethtridge Manufacturing Company for the month ending July 31: Cost of direct materials used in production……………………. $1,150,000 Direct labor……………………………………………………………………. 966,000 Work in process inventory, July 1………

> Two items are omitted from each of the following three lists of cost of goods manufactured statement data. Determine the amounts of the missing items, identifying them by letter $ 41,650 Work in process inventory, August1 Total manufacturing costs

> The budget director of Birds of a Feather Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for January: a. Estimated sales

> Partial balance sheet data for Diesel Additives Company at August 31 are as follows: Prepare the Current assets section of Diesel Additives Company’s balance sheet at August 31. Finished goods inventory $ 89,400 9,000 348,200 Suppl

> Four types of eco-efficiency measures are identified below. Match the following descriptions to the proper eco-efficiency measures: 1. Energy erficiency 2. Fuel efficiency 3. Material use efficiency a. Cost savings from recycling and reusing waste an

> A partial list of the costs for Wisconsin and Minnesota Railroad, a short hauler of freight, follows. Classify each cost as either indirect or direct. For purposes of classifying each cost, use the train as the cost object. a. Cost to lease (rent) railro

> From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences: a. The phase of the management process that uses process information to eliminate the source of problems in a process so that the proc

> From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences: a. Advertising costs are usually viewed as (period, product) costs. b. Feedback is often used to (improve, direct) operations. c. Payme

> Which of the following items are properly classified as part of factory overhead for Ford Motor Company, a maker of heavy automobiles and trucks? a. Plant manager’s salary at Buffalo, New York, stamping plant, which manufactures auto and truck subassemb

> Indicate whether the following costs of Procter & Gamble , a maker of consumer products, would be classified as direct materials cost, direct labor cost, or factory overhead cost: a. Resins for body wash products b. Scents and fragrances used in making

> Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 20,000 hours of productive capacity in the department: Assuming that the estima

> How does the sales mix affect the calculation of the break-even point?

> The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for March is summarized as follows: a.

> Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead cost: a. Wheels b. Glass used in the vehicle’s windshield c. Wages of assembly line worker

> TAC Industries sells heavy equipment to large corporations and to federal, state, and local governments. Corporate sales are the result of a competitive bidding process, where TAC competes against other companies based on selling price. Sales to the gove

> Todd Lay just began working as a cost accountant for Enteron Industries Inc., which manufactures gift items. Todd is preparing to record summary journal entries for the month. Todd begins by recording the factory wages as follows: Wages Expense ……………….

> RIRA Company makes attachments such as backhoes and grader and bulldozer blades for construction equipment. The company uses a job order cost system. Management is concerned about cost performance and evaluates the job cost sheets to learn more about the

> Carol Creedence, the plant manager of the Clearwater Company’s Revival plant, has prepared the following graph of the unit costs from the job cost reports for the plant’s highest volume product, Product CCR: Carol is

> As an assistant cost accountant for Mississippi Industries, you have been assigned to re­ view the activity base for the predetermined factory overhead rate. The president, Tony Favre, has expressed concern that the over ­

> Prepare a cost of goods sold budget for Daybook Inc. using the information in Practice Exercises 22-3A and 22-4A. Assume the estimated inventories on January 1, 20Y6, for finished goods and work in process were $28,000 and $16,500, respectively. Also ass

> Magnolia Candle Inc. budgeted production of 74,200 candles in 20Y4. Each candle requires molding. Assume that 12 minutes are required to mold each candle. If molding labor costs $14.00 per hour, determine the direct labor cost budget for 20Y4.

> Daybook Inc. budgeted production of 403,500 personal journals in 20Y6. Each journal requires assembly. Assume that eight minutes are required to assemble each journal. If assembly labor costs $13.00 per hour, determine the direct labor cost budget for 20

> Magnolia Candle Inc. budgeted production of 74,200 candles in 20Y4. Wax is required to produce a candle. Assume that eight ounces (one-half of a pound) of wax is required for each candle. The estimated January 1, 20Y4, wax inventory is 2,500 pounds. The

> Which of the three methods of inventory costing—FIFO, LIFO, or weighted average cost—will in general yield an inventory cost most nearly approximating current replacement cost?

> Midwest Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $132,000 with a $16,000 residual value and a 10-year life. The equipment will replace one employee who has an average wage of $

> Both Austin Company and Hill Company had the same unit sales, total costs, and income from operations for the current fiscal year; yet, Austin Company had a lower break-even point than Hill Company. Explain the reason for this difference in break-even po

> Daybook Inc. budgeted production of 403,500 personal journals in 20Y6. Paper is required to produce a journal. Assume six square yards of paper are required for each journal. The estimated January 1, 20Y6, paper inventory is 40,400 square yards. The desi

> Magnolia Candle Inc. projected sales of 75,000 candles for 20Y4. The estimated January 1, 20Y4, inventory is 3,500 units, and the desired December 31, 20Y4, inventory is 2,700 units. What is the budgeted production (in units) for 20Y4?

> Daybook Inc. projected sales of 400,000 personal journals for 20Y6. The estimated January 1, 20Y6, inventory is 20,000 units, and the desired December 31, 20Y6, inventory is 23,500 units. What is the budgeted production (in units) for 20Y6?

> The director of marketing for Starr Computer Co., Megan Hewitt, had the following discussion with the company controller, Cam Morley, on July 26 of the current year: Megan: Cam, it looks like I’m going to spend much less than indicated on my July budget

> Domino’s Pizza L.L.C. operates pizza delivery and carry-out restaurants. The annual report describes its business as follows: We offer a focused menu of high-quality, value-priced pizza with three types of crust (Hand- Tossed, Thin Crust, and Deep Dish)

> A bank manager of City Savings Bank Inc. uses the managerial accounting system to track the costs of operating the various departments within the bank. The departments include Cash Management, Trust, Commercial Loans, Mortgage Loans, Operations, Credit C

> Children’s Hospital of the King’s Daughters Health System in Norfolk, Virginia, introduced a new budgeting method that allowed the hospital’s annual plan to be updated for changes in operating plans. For example, if the budget was based on 400 patient-da

> Timbuk 3 Company has the following information for March: Cost of direct materials used in production…………$21,000 Direct labor…………………………………………………….... 54,250 Factory overhead…………………………………………….…35,000 Work in process inventory, March 18……………………. 7,500 Wor

> The city of Milton has an annual budget cycle that begins on July 1 and ends on June 30. At the beginning of each budget year, an annual budget is established for each depart- ment. The annual budget is divided by 12 months to pr

> If the unit cost of direct materials is decreased, what effect will this change have on the break-even point?

> Hit-n-Run Food Trucks, Inc. owns and operates food trucks (mobile kitchens) throughout the West Coast. The company’s employees have varying wage levels depending on their experience and length of time with the company. Employees work eight-hour shifts an

> Welcome Inn Hotels is considering the construction of a new hotel for $90 million. The expected life of the hotel is 30 years, with no residual value. The hotel is expected to earn revenues of $26 million per year. Total expenses, including depreciation,