1) Scheney Company uses the weighted-average method in its process costing system. The company's work in process inventory on March 31 consisted of 30,000 units. The units in the ending work in process inventory were 100% complete with respect to materials and 60% complete with respect to labor and overhead. If the cost per equivalent unit for August was $3.50 for materials and $2.75 for labor and overhead, the total cost in the March 31 work in process inventory was:

Select one:

a. 187500

b. 187500

c. 105000

d. 49500

2)

Sound Systems reported the following results from the sale of 24,000 radios:

Sales	$528,000
Variable manufacturing costs	$288,000
Fixed manufacturing costs	$120,000
Variable selling costs	$52,800
Fixed administrative costs	$35,200

Sound Systems expects similar operating results during the current year. Rhythm Systems has offered to purchase 3,000 radios at $16 each. Sound Systems estimates approximately 5,000 additional units could be made with the capacity currently available in the factory. The owner of Sound Systems is in favour of accepting the order. She feels it would be profitable because no variable selling costs will be incurred. The plant manager is against acceptance because his full cost of production is $17.

Determine the change in profit if the special order is accepted.

Select one:

a. $3,000 decrease.

b. $3,000 increase.

c. $12,000 increase.

d. $12,000 decrease.

e. $36,000 decrease.

3)

Consider the following statements. Activity-based costing is more difficult in a service business because:

1. service businesses have a low proportion of overhead in their total costs.
2. service businesses tend to have a higher level of facility costs than most manufacturers.
3. it is often difficult to identify service activities because they are non-repetitive.

Which of the above statements is true?

Select one:

a. ii

b. i, ii and iii

c. i

d. ii and iii