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Variable-Overhead Efficiency Variance

You recently received the following note from the production supervisor of the company where you serve as controller. "I don't understand these crazy variable-overhead efficiency variances. My employees are very careful in their use of electricity and manufacturing supplies, and we use very little indirect labor. What are

General Accounting questions

Please help answer the following and provide references: 1. Can anyone explain why pension accounting is totally at the whim of the corporation? Given that they are free to select their anticipated growth on investment, it seems this figure could be jockeyed to suit the balance sheet. 2. I would like to have more clari

Calculate amounts/ Decision rule

You just graduated from XYZ University. You have applied for a job with the prestigious Abacus Management Consulting Corp. There are many qualified candidates; in order to narrow down the field the firm has assigned each applicant the following hypothetical case: Required: Supply the requested comments in each of the fo

Issuance of Debt Securities and Cash Paid

8. Hoover Industries Cash Flow (in millions) CASH RECEIVED FROM: Customers $ 1,800 Interest on investments 200 Sale of land 5,100 Sale of capital stock 600 Issuance of debt securities 2,000 CASH PAID FOR: Interest on debt $ 300 Income tax 80 Debt principal reduction 1,500 Purchase of equipment 3,000 P

Variable Cost Analysis

Monrad Corporation uses variable costing for internal reporting purposes. Its preadjusted trial balance for the year ended December 31 shows: Cost of goods sold (at variable cost) $750,000 Finished goods inventory (at variable cost) 75,000 Nonvariable product costs 462,000

Firm's Net Income

How would the following events (reported this year) affect your forecasts of a firm's future net income? An asset write-down A merger or acquisition The sale of a major division The initiation of dividend payments

Normal selling price

Burtis Company produces a number of products. In 2002, the selling price of Product A, whose sales are normally 10,000 units per year, was calculated as follows: Unit Costs Direct Material Costs.............................$ 4.00 Direct labor costs............................

INTEL expense for stock options under the fair value method

Can one of you help me please answer the following question: See attached 1- Intel reports the following information on its stock options incentive programs in its December 31, 2001 financial statement footnotes The company's stock option plans are accounted for under the intrinsic value recognition and measurement princ

High-Low Method and Predicting Cost

The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotel's business is highly seasonal, with peaks occuring during the ski season and in the summer. Month

Cost Accounting

4. Which of the following is not a name for indirect resources? A) Overhead costs B) Burden C) Direct costs D) Common costs 5. Which of the following companies would most likely use a job-order costing system? A) A textbook manufacturer B) A lumber company C) A paint manufacturer D) A sweater ma

Accounting for Deferred Income Taxes at Earl Co.

Earl Co. at the end of 2004, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $500,000 Estimated expenses deductible for taxes when paid 800,000 Extra depreciation (900,000) Taxable income $400,000 Estimated w

AGI and partnerships: calculate Teresa's AGI

9. Teresa, an attorney, earns $300,000 from her practice. During the year, she paid $50,000 to acquire a 20% interest in a partnership that produces a $200,000 loss ($40,000 distributive share to Teresa). She also receives $35,000 in interest and dividends on other investments. What is Teresa's AGI if she is a material participa

Accounting Theory

The purpose of this paper is to identify the objectives of financial reporting, the organizations and responsibilities of the standards setting process, and the authoritative sources of accounting information. My part of the paper i need to talk about Ethics in Financial Reporting and I have to identify at least three ethical ro

Annual Report Question/Analysis

A) How should you evaluate the firm's annual report in light of this footnote? In particular, how does this footnote affect your recommendation regarding the loan? Be very specific. b) In preparing for your meeting with the firm's president and CFO, what questions do you want to ask regarding this footnote? Be very detailed.

Vince's Woodworking - Accounting Objectives

1. Vince's Woodworking purchased a wood lathe on January 1, 20X3, at a cost of $45,000. At the time of purchase, the lathe was expected to have a five-year economic life and a residual value of $3,000. Vince's uses straight-line depreciation. At December 31, 20X5, before recording depreciation expense for 20X5, Vince estimated

Accounting Multiple Choice

A) Costs in a process cost system are traced to? Would it be: 1. Specific jobs 2. Specific customers 3. Specific production departments 4. Specific corporate administrators Not absolutely sure on a choice. B) Which of the following is a period cost? Would it be: 1. Manufacturing plant maintenance 2. Wages for pro

Accounting Problems

Problem A. The building maintenance department for Packard Manufacturing Corp. budgets annual costs of $3,000,000 based on the expected operating level for the coming year. The costs are allocated to two production departments. Packard Manufacturing Corp. is considering 2 allocation bases for assignment of costs to department

Accounting Questions

A) As manager of a house appliance store, indicate 2 costs that are controllable and 2 costs that are non-controllable. Next, explain why you would consider them controllable or non-controllable costs. B) As the manager of a restaurant, list 2 costs that may be considered fixed costs and 2 that may be considered variab

KMG Corporation - Gains and Losses

KMG Corporation is in the business of manufacturing and selling seasonal handcrafts and other decorative items. The company operates one retail shop in the Seattle area, and also rents space at the famous Pike Place Market at which it displays and sells its merchandise. The following transactions for KMG Corporation occ

Taxation Question

What makes the disposition of an asset a "capital gain" or "capital loss" instead of an ordinary gain or loss? Why do you think the distinction was written into the tax code? Why the distinction between long and short term?

The Assembly division of Canadian Car Company: Transfer pricing

The Assembly division of Canadian Car Company has offered to purchase 90,000 batteries from the Electrical division for $104 per unit. At a normal volume of 250,000 batteries per year, production costs per battery are as follows: Direct materials Direct mfg. labour Variable factory overhead Fixed mfg. overhead Total $40

Cost Accounting

The new manager of the insurance division does not understand how the company can have so many overhead rates for assigning costs to the activities of the company's life insurance underwriters. One rate schedule is used to calculate average assignable costs when agents write standard policies. Another rate schedule is applied wh

R&D Effectiveness of Ballard

In particular, review the Web Sites in the posting "Roadmaps" complete a Topic Summary by doing the following: a. Using a company of Ballard, create and defend a technology roadmap for that company based on the web site reading assigned. b. Describe the stages of technology development as demonstrated in the team's

Return on stock investments

One year ago, Mr. Seth Cohen invested $10,400 in 200 shares of First Industries, Inc., stock and just received a dividend of $600. Today, he sold the 200 shares at $54.25 per share. He is asking for your help to figure out: a. His capital gain; b. His total dollar return; c. His percentage return; and d. The stock's divide