a The controller is attempting to respond to the needs of internal users (operating and marketing managers) to cr
information that is most relevant to these users needs. The marketing manager may want to ensure that curre
prices cover not jus
Desrevisseau Inc., a manufacturing company, has provided the following data for the month of
August. The balance in the Work in Process inventory account was $10,000 at the beginning of
the month and $22,000 at the end of the month. During the month, the
Total direct material cost.
Plantwide cost driver rate =
4,000 direct labor hours
Cost of goods sold
Donner is more profitable and Carlson is unprofitable
b The sum of the commissi
a Operating income of 1,000 meals
Incremental revenue per meal.
Incremental cost per meal.
Incremental contribution margin per meal.
Number of meals
Increase in contribution margin and operating income.
Healthy Hearth will
Diltex Farm Supply is located in a small town in the rural west. Data regarding the store's
Sales are budgeted at $220,000 for November, $200,000 for December, and $210,000 for
Collections are expected to be 70% in the month
Capacity cost rate = $500,000/10,000 hours
= $50 per hour
b The activity-based cost associated with Division 1's customers is
(0.5 X 1,000 + 1.0 X 4,000) X $50 per hour
= 4,500 hours X $50 per hour
c The activity-based cost associated wi
a Quality Cost Report for Madrigal Company
Total sales were $120,000,000
Quality Cost Category
Statistical process control.
Research of customer needs.
Exhibit 2: Five Order Profitability
Cost of items purchased.
Shipping cartons, commercial
Process manual order.
Process line items, manual order
Validate EDI order.
Interest on receivable.
Kibodeaux Corporation makes a product with the following standard costs:
The company budgeted for production of 3,300 units in June, but actual production was 3,400
units. The company used 33,240 liters of direct material and 320 direct labor-h