Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 9, Problem 1CMA
MinnOil performs oil changes and other minor maintenance services on cars and trucks. The company advertises that all services are performed within 15 minutes each. On a recent Saturday, 160 cars were serviced, resulting in the following labor variances: rate, $19 unfavorable; efficiency (time), $14 favorable. If MinnOil’s standard labor rate is $7 per hour, determine the actual wage rate per hour and the actual hours worked.
Expert Solution & Answer

Trending nowThis is a popular solution!

Students have asked these similar questions
Using the same case, calculate the independent effects of a 2 percent increase in Gross Margin, a 2 percent decrease in the Tax
Rate, and a 5 percent decrease in Sales.
Colossal Chemical Corporation
Year Ended December 31, 2021
($000,000 omitted)
Base
Case
2% Increase in Gross Margin
2% Decrease in Tax Rate
5% Decrease in Sales
Sales
$2,110 $
$
+A
Cost of goods sold
1,456
Selling, general, and
administrative
274
expense
Depreciation
160
Research and
46
development
Total costs and
$1,936 $
1A
expenses
Operating Income
174
Interest expense
39
Earnings before
$135 $
$
Income Taxes
Provision for Income
Taxes
Net Income
24
$ 111 $
6A
6A
+A
6A
Solve
What does anti-dilutive mean? How might a security be anti-dilutive with respect to its potential impact on EPS?
Chapter 9 Solutions
Managerial Accounting
Ch. 9 - What are the basic objectives in the use of...Ch. 9 - What is meant by reporting by the principle of...Ch. 9 - What are the two variances between the actual cost...Ch. 9 - The materials cost variance report for Nickols...Ch. 9 - A. What are the two variances between the actual...Ch. 9 - Prob. 6DQCh. 9 - Would the use of standards be appropriate in a...Ch. 9 - A. Describe the two variances between the actual...Ch. 9 - At the end of the period, the factory overhead...Ch. 9 - If variances are recorded in the accounts at the...
Ch. 9 - Direct materials variances Bellingham Company...Ch. 9 - Direct labor variances Bellingham Company produces...Ch. 9 - Factory overhead controllable variance Bellingham...Ch. 9 - Factory overhead volume variance Bellingham...Ch. 9 - Standard cost journal entries Bellingham Company...Ch. 9 - Prob. 6BECh. 9 - Crazy Delicious Inc. produces chocolate bars. The...Ch. 9 - Prob. 2ECh. 9 - Salisbury Bottle Company manufactures plastic...Ch. 9 - The following data relate to the direct materials...Ch. 9 - De Soto Inc. produces tablet computers. The...Ch. 9 - Standard direct materials cost per unit from...Ch. 9 - H.J. Heinz Company uses standards to control its...Ch. 9 - Direct labor variances The following data relate...Ch. 9 - Glacier Bicycle Company manufactures commuter...Ch. 9 - Ada Clothes Company produced 40,000 units during...Ch. 9 - Prob. 11ECh. 9 - Direct materials and direct labor variances At the...Ch. 9 - Flexible overhead budget Leno Manufacturing...Ch. 9 - Prob. 14ECh. 9 - Factory overhead cost variances The following data...Ch. 9 - Thomas Textiles Corporation began November with a...Ch. 9 - Prob. 17ECh. 9 - Factory overhead cost variance report Tannin...Ch. 9 - Prob. 19ECh. 9 - Prob. 20ECh. 9 - Income statement indicating standard cost...Ch. 9 - Prob. 22ECh. 9 - Prob. 23ECh. 9 - Rosenberry Company computed the following revenue...Ch. 9 - Lowell Manufacturing Inc. has a normal selling...Ch. 9 - Shasta Fixture Company manufactures faucets in a...Ch. 9 - Flexible budgeting and variance analysis I Love My...Ch. 9 - Direct materials, direct labor, and factory...Ch. 9 - Factory overhead cost variance report Tiger...Ch. 9 - CodeHead Software Inc. does software development....Ch. 9 - Direct materials and direct labor variance...Ch. 9 - Flexible budgeting and variance analysis Im Really...Ch. 9 - Direct materials, direct labor, and factory...Ch. 9 - Factory overhead cost variance report Feeling...Ch. 9 - Prob. 5PBCh. 9 - Prob. 1COMPCh. 9 - Advent Software uses standards to manage the cost...Ch. 9 - Prob. 2MADCh. 9 - Prob. 3MADCh. 9 - Prob. 4MADCh. 9 - Ethics in action Dash Riprock is a cost analyst...Ch. 9 - Variance interpretation Vanadium Audio Inc. is a...Ch. 9 - MinnOil performs oil changes and other minor...Ch. 9 - Marten Company has a cost-benefit policy to...Ch. 9 - Prob. 3CMACh. 9 - JoyT Company manufactures Maxi Dolls for sale in...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- [The following information applies to the questions displayed below.] Delph Company uses job-order costing with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 50,000 machine-hours would be required for the period’s estimated level of production. It also estimated $910,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $1.80 per machine-hour. Because Delph has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following information to enable calculating departmental overhead rates: Molding Fabrication Total Machine-hours 20,000 30,000 50,000 Fixed manufacturing overhead cost $ 700,000 $ 210,000 $ 910,000 Variable manufacturing overhead cost per machine-hour $ 3.00 $ 1.00 During the year, the…arrow_forwardsolve the attached questionsarrow_forwardRespond the attached questionsarrow_forward
- Given the data, fill in the empty boxes.arrow_forwardJH and Joe corporations are members of a consolidated group. JH owns 10 shares of the marketable stock having $10,000 basis in total. In 2024, JH sells all the shares to Joe for $40,000. In 2025, Joe sells 5 shares of the stock to Ethan corporation, an unrelated entity outside the consolidated group, for $30,000. In 2026, Joe sells the other 5 shares of the stock to Young corporation, an unrelated entity outside the consolidated group, for $50,000. Explain and/or illustrate the timing of and extent to which JH’s intercompany item is taken into account for consolidated taxable income purposes.arrow_forwardScenario Bradburn Corporation was formed five years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Bradburn and is its current president. The corporation has been successful, but it currently is experiencing a shortage of funds. On June 10, 2026, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,000 notes, which are due on June 30, 2026, and September 30, 2026. Another note of $6,000 is due on March 31, 2027, but he expects no difficulty in paying this note on its due date. Brown explained that Bradburn’s cash flow problems are due primarily to the company’s desire to finance a $300,000 plant expansion over the next two fiscal years through internally generated funds. Review the attached income statement and balance sheet for the company and repond to the following questions: Calculations Calculate the current ratio for fiscal years 2025 and 2026. Calculate the…arrow_forward
- Splish Company reported the following amounts in the stockholders' equity section of its December 31, 2024, balance sheet. Preferred stock, 10%, $100 par (10,000 shares authorized, 1,800 shares issued) $180,000 Common stock, $5 par (94,000 shares authorized, 18,800 shares issued) Additional paid-in capital Retained earnings Total 94,000 131,000 478,000 $883,000 During 2025, Splish took part in the following transactions concerning stockholders' equity. 1. 2. Paid the annual 2024 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2024. Purchased 1,500 shares of its own outstanding common stock for $43 per share. Splish uses the cost method. 3. Reissued 800 treasury shares for land valued at $36,200. 4. Issued 540 shares of preferred stock at $104 per share. 5. 6. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $41 per share. Issued the stock dividend. 7.…arrow_forwardThe following data were taken from the balance sheet accounts of Marigold Corporation on December 31, 2024. $575,000 Current assets Debt investments (trading) 567,000 Common stock (par value $10) 535,000 Paid-in capital in excess of par 139,000 Retained earnings 802,000 Prepare the required journal entries for the following unrelated items. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in the order displayed in the problem statement.) a. A 5% stock dividend is (1) declared and (2) distributed at a time when the market price per share is $39. b. The par value of the common stock is reduced to $2 with a 5-for-1 stock split. C. A dividend is declared January 5, 2025, and paid January 25, 2025, in bonds held as an investment. The bonds have a book value of $101,000 and a fair value…arrow_forwardwhat type of hardware would a cpa use or requirearrow_forward
- The original sale of the $50 par value common shares of Swifty Company was recorded as follows: Cash Common Stock Paid-in Capital in Excess of Par Transactions: 278,400 240,000 38,400 (a) Bought 390 shares of common stock as treasury shares at $63. (b) Sold 140 shares of treasury stock at $60. (c) Sold 70 treasury shares at $68. Record the treasury stock transactions (given above) under the cost method. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)arrow_forwardThe original sale of the $50 par value common shares of Splish Company was recorded as follows: Cash Common Stock Paid-in Capital in Excess of Par 256,500 225,000 31,500 Transactions: (a) Bought 380 shares of common stock as treasury shares at $61. (b) Sold 100 shares of treasury stock at $59. (c) Sold 50 treasury shares at $67. Record the treasury stock transactions (given above) under the cost method. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)arrow_forwardIndicate the principal effects of a stock dividend versus a stock split on the issuing corporation. Respond in the spaces as follows: Change and No Change. Number of Shares Outstanding Par Value per Share Total Par Outstanding Stock Dividend Stock Split Retained Earnings Total Stockholders' Equity Composition of Stockholders' Equity > > > >arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College

Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub

Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,

Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY