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The controller for Traditional Manufacturing Inc. performed a trend analysis of the unit manufacturing costs of product T-2 for the month of March. Two patterns emerged; there was a gradual upward trend in the unit costs over the month for T-2 and there was an upward spike in unit costs on Fridays which did not carry over to Mondays. (The plant was closed on weekends.)
REQUIRED:
Part 1: What are some possible explanations for the gradual increase in unit manufacturing costs over the month? What information would you ask for to investigate the possible explanations?
Part 2: What are some possible explanations for the Friday upward spike in unit manufacturing costs? What information would you ask for to investigate the possible explanations?
Part 3: If manufacturing overhead is allocated using an annually predetermined overhead rate, how might a product have an increase in manufacturing overhead attached to it during a particular month or day?
When finished goods inventory decreases during a period, a manufacturing company's absorption costing net operating income for that period will usually be greater than its variable costing net operating income.
In 2012, Grossfeld Company has net credit sales of $1,600,000 for the year. It had a beginning accounts receivable (net) balance of $108,000 and an ending accounts receivable (net) balance of $120,000.
Determine the spending and efficiency variance for variable manufacturing overhead costs for the year.
An analysis of the accounts of Williams Company reveals the following manufacturing cost data for the month ended September 30, 2014.
Borkenstick makes a very popular undyed cloth sandal in one style, but in Regular and Deluxe. The Regular sandals have such soles and the Deluxe sandals have cloth covered wooden soles.
Should the Brinkers accept this offer right away? What quantitative factors and what operational, qualitative or strategic factors should Five-speed and Wilbur take into account in making this decision?
The company's investments consist of marketable equity securities of other corporations. Management does not intend to liquidate any investments in the coming year.
question roberta is an accountant employed by a local firm. in this year roberta incurs the subsequent unreimbursed
Rikki Company received proceeds of $188,000 on 10-year, 6% bonds issued on January 1, 2014. The bonds had a face value of $200,000, pay interest semi-annually on June 30 and December 31. Rikki uses the straight-line method of amortization. What is th..
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Suggest ways to improve the Kowal manufacturing Company's internal controls over hiring and payroll processing.
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