• Q : Volume-based cost drivers and activity-based cost drivers....
    Accounting Basics :

    What is the difference between volume-based cost drivers and activity-based cost drivers? Why do activity-based cost drivers provide more accurate allocations of overhead in an automated manufacturi

  • Q : What is the approximate internal rate of return....
    Accounting Basics :

    Humphrey, Inc. is considering purchasing equipment costing $30,000 with a 6-year useful life. The equipment will provide cost savings of $7,300 and will be depreciated straight-line over its useful

  • Q : What is the internal rate of return for project gray....
    Accounting Basics :

    Fehr Company is considering two capital investment proposals. Estimates regarding each project are provided below:

  • Q : By how much would gorgas profits change....
    Accounting Basics :

    By how much would Gorga's profits change if 15,000 of part QT34 are purchased from Roseland?

  • Q : Restore the account and record the cash collection....
    Accounting Basics :

    The company collects $5,000 subsequently on a specific account that had previously been determined to be uncollectible in the question above. Prepare the journal entry(ies) necessary to restore the

  • Q : What is the net present value for project gray....
    Accounting Basics :

    Fehr Company is considering two capital investment proposals. Estimates regarding each project are provided below:

  • Q : What is the cash payback period on the equipment....
    Accounting Basics :

    If the equipment is purchased, annual revenues are expected to be $90,000 and annual operating expenses exclusive of depreciation expense are expected to be $38,000. The straight-line method of depr

  • Q : Mail the check to the charitable organization....
    Accounting Basics :

    Monica writes a $1,000 check for a charitable contribution on December 28, 2011, but does not mail the check to the charitable organization until January 10, 2012. She takes a deduction in 2011.

  • Q : What is the annual rate of return expected....
    Accounting Basics :

    If the equipment is purchased, what is the annual rate of return expected on this equipment ?

  • Q : Eexpect to incur a small loss....
    Accounting Basics :

    Sue and Bill plan to open an accounting firm and expect to work full time in the firm. They expect to incur a small loss during their first year of operation and expect to be profitable after the fi

  • Q : What the income will be....
    Accounting Basics :

    Product A has a unit contribution margin of $16 and takes two machine hours to make and Product B has a unit contribution margin of $30 and takes three machine hours to make. If there are 1,000 mach

  • Q : Partnership or as an s corporation....
    Accounting Basics :

    Bob and Dave plan to start a business. Bob will contribute land and Dave will contribute services. Would you recommend this business be formed as a partnership or as an S corporation? Why?

  • Q : What will be total net incom....
    Accounting Basics :

    Abel Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows:  

  • Q : What will be total net income if the line is dropped....
    Accounting Basics :

    Abel Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows:

  • Q : What is the mean value of market capitalization....
    Accounting Basics :

    If 30% of the companies have market capitalization of $100 billion or over and the standard deviation is $25 billion, what is the mean value of market capitalization? Assume that market capitalizati

  • Q : What is the net advantage (disadvantage) of replacing....
    Accounting Basics :

    Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered:

  • Q : What should pratt do....
    Accounting Basics :

    Pratt Company has old inventory on hand that cost $12,000. Its scrap value is $16,000. The inventory could be sold for $40,000 if manufactured further at an additional cost of $12,000. What should P

  • Q : Straight-line method is used to allocate interest expense....
    Accounting Basics :

    Randell Company issues 7%, 10-year bonds with a par value of $150,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%, which implies a selling price

  • Q : What decision should nf toy make....
    Accounting Basics :

    NF Toy Company is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $30 and NF Toy would sell it for $65. The cost to assemble the product i

  • Q : Classifications of investments affect financial statements....
    Accounting Basics :

    How do the various classifications of investments affect financial statements? What is the rationale behind the different accounting methods for the various investment classifications?

  • Q : What is the correct make-or-buy decision....
    Accounting Basics :

    If Tex's Manufacturing Company can purchase the component externally for $110,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

  • Q : What will be the effect on net income....
    Accounting Basics :

    if the order were accepted. Garner has sufficient unused capacity to produce the 2,000 scales. If the special order is accepted, what will be the effect on net income?

  • Q : What is the coen''s volume overhead variance....
    Accounting Basics :

    During the year, 5,600 units wereproduced, 18,340 hours were worked, and the actual manufacturing overhead was $75,600. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing

  • Q : What is the coen''s controllable overhead variance....
    Accounting Basics :

    During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $75,600. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturin

  • Q : What is coen''s total overhead variance....
    Accounting Basics :

    During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $75,600. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturin

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