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1) The Careless Whisper Company has 400 obsolete desk calculators that are carried in inventory at a total cost of $26,800. If these calculators are

1) The Careless Whisper Company has 400 obsolete desk calculators that are carried in inventory at a total cost of $26,800. If these calculators are upgraded at a total cost of $10,000, they can be sold for a total of $30,000. As an alternative, the calculators can be sold in their present condition for $11,200.

A.

What is the sunk cost in this situation?

B.

What is the net advantage or disadvantage to the company from upgrading the calculators?

C.

Assume that Careless Whisper decides to upgrade the calculators. At what selling price per unit would the company be as well off as if it just sold the calculators in their present condition?

2)

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Side Hustle Inc. employs a standard cost system in which direct materials inventory is carried at standard cost. Side Hustle has established the following standards for the prime costs of one unit of product: Standard Standard Standard Quantity Price Cost Direct Materials 6 kilograms $ 3.50/kilogram $21.00 Direct Labour 1.3 hours $11.00/hour $14.30 $35.30 During March, Side Hustle purchased 165,000 kilograms of direct materials at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Side Hustle manufactured 25,000 units of product during March, using 151,000 kilograms of direct materials and 32,000 direct labour hours. A. What was the price variance for the direct materials acquired by the company during March? B. What was the direct materials quantity variance for March? C. What was the direct labour rate variance for March

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