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Management Accounting

Practice exam problems - managerial cost accounting

Use the following information for the next 2 questions. Direct Direct Direct Materials Labor Cost Labor Hours Job 400 $200 $800 40 Job 401 250 200 10 Job 402 500 600 32 O'Hare Sisters Manufacturing uses job costing and applies overhead using a normal costing system using direct labor hours as the allocation base. This p

Managerial Accounting - Basic CVP Analysis

The Fashion Shoe Company operates a chain of women shoe shops around the country. The shops carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a substantial commission on each pair of shoes sold (in addition to a small basic salary) in order to encourage them to be aggressive in

New machinery was installed to replace a number of employees, who were paid an extra month's wages and dismissed. This amount was added to the cost of the machinery. Discuss the propriety of the charge. If it was improper, describe the proper treatment.

New machinery was installed to replace a number of employees, who were paid an extra month's wages and dismissed. This amount was added to the cost of the machinery. Discuss the propriety of the charge. If it was improper, describe the proper treatment.

Techniques for evaluating managerial performance

Chapter 23 introduces other techniques for evaluating managerial performance. The concept of decentralization and its relationship to responsibility accounting will be explained. You will learn how to calculate and interpret return on investment and residual income. Finally, you will study approaches used to establish the price

Cost Allocation 7-8 Jolsen International

7th edition of Accounting for decision making and control, Jerold Zimmerman. Chapter 7 questions 7-8 Jolsen International: Jim Shoe, chief executive officer of Jolsen International, a multinational textile conglomerate, has recently een evaluating the profitability of one of the company's subsidiaries, Pride Fashions, I

Forging Department: Cost Per Equivalent Units

The following information concerns production in the Forging Department for June. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $54,590 of direct materials. ACCOUNT Work in Process - Forging

Management accounting practice problems

Study guide questions...attached. Question 1 Knapple Company has a variable cost percentage of 35% on a product that sells for $25 per unit. Fixed costs are $40,000. Knapple wants to know how many units must be sold (a) to break even and (b) to earn a profit of $12,000. Ignore income taxes. Question 2 Baldw

First stage allocation of overhead costs for Advanced Products

Advanced Products Corporation has supplied the following data from its activity-based costing system: Overheard Cost Wages and salaries................................$300,000 Other overhead costs.............................100,000 Total overhead costs............................$400,000 Activity Cost Pool

Relevant Cost and Issue of Capacity

Poor decision making may result when acceptable prices are determined by adding a fixed percentage to the "full cost" of a product when that "full cost" includes a unitized fixed cost. The lesson is that any selling price above the contribution margin will add to the wealth of the firm. This being the case, is there a danger in

Management Accounting (Winter Games Case Study)

Winter Games manufactures a competitive line of skis and sells its skis to retailers at a price of $225 per pair. Based on an annual volume of 5,000 pairs, the cost per pair is $185: Direct labor ($75 per pair) $375,000 Direct material ($60 per pair $300,000 Overhead Fixed* $100,000 Varia

Comparison of Alternative Joint-Cost-Allocation Methods

The Chocolate Factory manufactures and distributes chocolate products. It purchases cocoa beans and processes them into two intermediate products: Chocolate-powder liquor base and Milk-chocolate liquor base. These two intermediate products become separately identifiable at a single split off point. Every 1,500 pounds of cocoa be

Management accounting: Morgan Co, Sweet Shoppe Creamery

At the end of 2011, Morgan Company had two jobs still in process with a total balance of $2,500. According to the respective job cost sheets the jobs had $600 and $650 in direct materials costs and $200 and $50 in direct labor costs. What overhead rate is Morgan using? A. 25% of direct labor costs. B. 50% of direct material

Managerial Accounting for CH Industries: Calculation of variances

Please see attached file for better format. Instructions: You may work this in Excel or as a solution in this word document. Be sure to label your file with your name in the title. The following standard costs were developed for one of the products of CH Industries: STANDARD COST CARD PER UNIT Direct materials

Cost per equivalent unit; costs assigned to products

The part 3 answer is not matching the the check answer. Please help. Cost per equivalent unit; costs assigned to products. Fairfax Company uses weighted-average process costing to account for its production costs. Direct labor is added evenly throughout the process. Direct materials are added at the beginning of the proces

Airline pricing structure; Cost accounting exercise 1-9

Airlines are well known for using complex pricing structures. For example, it is often (but not always) less expensive to buy a ticket in advance than it is on the day of the flight. However, if the airline offered this lower ("discount") fare for all seats, it could not remain in business. Why offer fares with different prices?

Conversion - Managerial Accounting for Moravia Company

Moravia Company processes and packages cream cheese. The following data have been compiled for the month of April. Conversion activity occurs uniformly throughout the production process. Work in process, April 1-10,000 units: Direct material: 100% complete, cost of ..........................................................

Best Cost Driver

How a Company cans choose the Best Cost Driver? Give an explanation and an example.

Identifying Variable Costs

commission paid to Avon representatives recurring advertising cost by a physicians office the cost of hardware installed on sailboat the cost of rent on a deVry facility shipping cost from a book distribution center Insurance on a factory assembly facility wages paid to temporary personnel depreciation of assembly line fa

Cost Data for Financial Reporting and Special Order Decisions

Better format attached MA17-43 Cost Data for Financial Reporting and Special Order Decisions Friendly Greeting Card Company produces a full range of greetings cards sold through pharmacies and department stores. Each card is designed by independent artists. A production master is then prepared for each design. The production

Standard Cost, Overhead Rate and Price Variance


Managerial Accounting: Chicken Bones

Ganong Bros. Ltd., located in St. Stephen, New Brunswick, is Canada's oldest independent candy company. Its products are distributed worldwide. In 1885, Ganong invented the popular "chicken bone," a cinnamon flavored, pink, hard candy jacket over a chocolate center. The home page of Ganong, listed on the next page, includes info

Outside Supplier, Production Budget, Overhead Rates, & Price

Question 1 Solomon Company manufactures 20,000 components per year. The manufacturing cost per unit of the components is as follows: Direct materials $10 Direct labor 14 Variable overhead 6 Fixed overhead 8 Total unit cost $38 Assume that the fixed overhead reflects the cost of S

Cash Conversion Cycle

13. Your consulting firm was recently hired to improve the performance of Shin-Soenen Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate. As one part of your analysis, you want to determine the firm's cash conversion cycle. Using the following information and a 365-day year, wh

Managerial Accounting and Market Costs of Goods

PLEASE DON'T OMIT ANY OF THE QUESTIONS. THANK YOU 1. Write (T) for True and (F) for False on the blank space before the number: ____ [1a.] Factory heating and air conditioning should be considered a product cost in a manufacturing operation. ____ [1b.] In a manufacturing company, cost of goods manufactured consists

Managerial Economics - Supply and Demand for lawyer's salaries in the future

The Wall Street Journal reported that recent law school graduates were having a very difficult time obtaining jobs in the legal profession. Many law schools said that 10 to 20 percent of their graduates still had not found jobs. The historical average had been 6 to 8 percent. Many recent graduates were taking jobs outside law at