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Problem 1: Joshwood Slovakia has recently joined Kerikeri Baggage Limited, a sister company of Queenstown Baggage Limited, as a Business Analyst. While going through last year's variance analysis report, he found that the company uses direct labour hours as the basis for applying variable manufacturing overhead costs. He also found that, last year, the company's labour efficiency variance was unfavourable. However, he noticed that variable overhead efficiency variance was missing in the last year's report. Joshwood wonders whether the last year's variable overhead efficiency variance was favourable or unfavourable. What do you think, and why?
The Bottle Division has sufficient capacity to meet all external market, What is the maximum amount Perfume Division would be willing to pay for the bottles?
Calculate the cash flows of the "incremental project" by subtracting the cash flows of the second project from the cash flows of the first project.
It is necessary for an auditor to require a cash flow statement. What are the objectives that can be accomplished by cash flow statement?
Do you think B&D should account for depreciation on its manufacturing equipment the same way Wal-Mart accounts for depreciation
Calculate the amount of over or under-allocated manufacturing overhead. Calculate Salt Company's manufacturing overhead rate
Compare how your company has done to the industry averages. Do you notice any trends that are positive or negative? Does anything look good or bad
How much will the company's operating income be increased or (decreased) if it prices the 1,000 units in the special order at $8 each?
A member of a group of medical practitioners is considering opening his own private medical practice. He estimates that if demand for his services is high he could realise a profit of $500,000. If demand is low he could lose $200,000.
Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing air problem in its mines.
Allocate the costs of the Administration Department first on the basis of employee-hours and then the costs of the Building Services Department on the basis of space occupied.
Why is ethical behavior important to business? What internal controls would you implement to help maintain control of your credit sales and accounts receivable?
What is predetermined overhead rate and how do use it? And what do compare it to to determine if its under or overapplied? Explain with example
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