COST ACCOUNTING
16th Edition
ISBN: 9781323694008
Author: Horngren
Publisher: PEARSON C
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Textbook Question
Chapter 1, Problem 1.22E
Planning and control decisions. Gregor Company makes and sells brooms and mops. It takes the following actions, not necessarily in the order given. For each action (a–e), state whether it is a planning decision or a control decision.
- a. Gregor asks its advertising team to develop fresh advertisements to market its newest product.
- b. Gregor calculates customer satisfaction scores after introducing its newest product.
- c. Gregor compares costs it actually incurred with costs it expected to incur for the production of the new product.
- d. Gregor’s design team proposes a new product to compete directly with the Swiffer.
- e. Gregor estimates the costs it will incur to distribute 30,000 units of the new product in the first quarter of next fiscal year.
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Need answer the financial accounting question
What is the direct materials quantity variance on these general accounting question?
Cullumber Company uses a job-order cost system in each of its three manufacturing departments. Manufacturing overhead is applied
to jobs on the basis of direct labour cost in Department D, direct labour hours in Department E, and machine hours in Department K.
In establishing the predetermined overhead rates for 2022, the following estimates were made for the year.
Department
D
E
K
Manufacturing overhead
$1,280,000 $1,500,000 $840,000
Direct labour costs
$1,600,000 $1,312,500 $472,500
Direct labour hours
105,000
125,000
42,000
Machine hours
420,000
525,000
120,000
The following information pertains to January 2022 for each manufacturing department.
Department
D
E
K
Direct materials used
Direct labour costs
$147,000 $132,300 $81,900
$126,000 $115,500 $39,375
Manufacturing overhead incurred
$103,950 $128,600 $73,950
Direct labour hours
8,400
11,550
3,675
Machine hours
35,700
47,250
10,380
Your answer is partially correct.
Calculate the predetermined overhead rate for each department.…
Chapter 1 Solutions
COST ACCOUNTING
Ch. 1 - How does management accounting differ from...Ch. 1 - Management accounting should not fit the...Ch. 1 - How can a management accountant help formulate...Ch. 1 - Describe the business functions in the value...Ch. 1 - Explain the term supply chain and its importance...Ch. 1 - Management accounting deals only with costs. Do...Ch. 1 - How can management accountants help improve...Ch. 1 - Prob. 1.8QCh. 1 - Prob. 1.9QCh. 1 - What three guidelines help management accountants...
Ch. 1 - Prob. 1.11QCh. 1 - Prob. 1.12QCh. 1 - Prob. 1.13QCh. 1 - Prob. 1.14QCh. 1 - Prob. 1.15QCh. 1 - Which of the following is not a primary function...Ch. 1 - Value chain and classification of costs, computer...Ch. 1 - Prob. 1.18ECh. 1 - Value chain and classification of costs, fast-food...Ch. 1 - Key success factors. Dominion Consulting has...Ch. 1 - Key success factors. Vargas Construction Company...Ch. 1 - Planning and control decisions. Gregor Company...Ch. 1 - Planning and control decisions. Gavin Adams is the...Ch. 1 - Prob. 1.24ECh. 1 - Five-step decision-making process, service firm....Ch. 1 - Professional ethics and reporting division...Ch. 1 - Professional ethics and reporting division...Ch. 1 - Planning and control decisions, Internet company....Ch. 1 - Prob. 1.29PCh. 1 - Prob. 1.30PCh. 1 - Management accounting guidelines. For each of the...Ch. 1 - Prob. 1.32PCh. 1 - Prob. 1.33PCh. 1 - Budgeting, ethics, pharmaceutical company. Chris...Ch. 1 - Professional ethics and end-of-year actions. Linda...Ch. 1 - Professional ethics and end-of-year actions....Ch. 1 - Ethical challenges, global company environmental...
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