Managerial Accounting



Item Name

Assume that manufacturing overhead for Goldratt Company in the p

Assume that manufacturing overhead for Goldratt Company in the previous exercise consisted of the following activities and costs: Setup (1,000 setup hours) ………………………………… $144,000 Production scheduling (400 batches) …………………….. 60,000 Production engineering (60 change orders) ………………. 120,000 Supervision (2,000 direct labor hours)...

Assume that Nestle Purina is considering the replacement of its

Assume that Nestle Purina is considering the replacement of its traditional canned dog food with dog food packaged in either resealable plastic containers or in disposable foil-lined pouches. Although either alternative will produce significant cost savings and marketing benefits, limitations on available shelf space in stores require management to select only one alternative. Cash flow...

Assume that Nortel manufactures specialty electronic circuitry t

Assume that Nortel manufactures specialty electronic circuitry through a unique photoelectronic process. One of the primary products, Model ZX40, has a standard labor time of 0.5 hour and a standard labor rate of$13.50 per hour. During February, the following activities pertaining to direct labor for ZX40 were recorded: Direct labor hours used …………………………. 2,180 Direct labor...

Assume that Panasonic Company has determined its estimated total

Assume that Panasonic Company has determined its estimated total manufacturing overhead cost for one of its plants to be $198,000, consisting of the following activity cost pools for the current month: Total direct labor hours used during the month were 8,000. Panasonic produces many different electronic products, including the following two products produced during the current month: Required a....

Assume that Pennington Group, a manufacturer of fine casual outd

Assume that Pennington Group, a manufacturer of fine casual outdoor furniture, allocates Human Resources Department costs to the producing departments (Cutting and Welding) based on number of employees; Facilities Department costs are allocated based on the amount of square footage occupied. Direct department costs, labor hours, and square footage data for the four departments for October are as...

Assume that Phillips Petroleum uses a standard cost system for

Assume that Phillips Petroleum uses a standard cost system for each of its refineries. For the Tulsa refinery, the monthly fixed overhead budget is $21,000,000 for a planned output of 10,000,000 barrels. For September, the actual fixed cost was $22,000,000 for 10,800,000 barrels. The Tulsa refinery's capacity is 11,900,000 barrels. Required a. Determine the fixed overhead budget variance. b. If...

Assume that Springs Industries. Inc., operates its Charlotte pla

Assume that Springs Industries. Inc., operates its Charlotte plant using a combination of hourly and incentive wage programs for production employees. The guaranteed minimum wage is $14 per hour but with incentive outputs, the wage can increase to $22 per hour. For dye processing, the standard output per hour is 1,000 pounds of yarn processed and dyed. During June, the dye process had an average...

Assume that the Assembly Department of Applied Materials' Texas

Assume that the Assembly Department of Applied Materials' Texas plant prepares its budget using the incremental approach for both fixed and variable costs. For 2010 assume that the following costs were incurred for the production of 100,000 units. Direct materials ………………………………. $240,000 Direct labor …………………………………… 600,000 Supervision...

Assume that the best cost driver that Sony has for

Assume that the best cost driver that Sony has for variable factory overhead in the assembly department is machine hours. During April, the company budgeted 480,000 machine hours and $5,000,000 for its Texas plant's assembly department. The actual variable overhead incurred was $5,200,000, which was related to 500,000 machine hours. Required a. Determine the variable overhead spending variance....

Assume that the following predictions were made for 2009 for

Assume that the following predictions were made for 2009 for one of the plants of Milliken & Company: Total manufacturing overhead for the year ........................ $40,000,000 Total machine hours for the year ........................................ 2,000,000 Actual results for February 2009 were as follows: Manufacturing overhead ......................................................