13) Sheridan Companyincurs the following costs to produce11700units of a subcomponent:

An outside supplier has offered to sellSheridanthe subcomponent for $2.85a unit.

IfSheridanaccepts the offer, it could use the production capacity to produce another product that would generate additional income of $3600. The increase (decrease) in net income from accepting the offer would be

a. $846.

b. $8046.

c. $(846).

d. $(3600).

14) Crane Companyproduces5000units of part A12E. The following costs were incurred for that level of production:

IfCranebuys the part from an outside supplier, $10000of the fixed overhead is avoidable.

If the outside supplier offers a unit price of $58, net income will increase (decrease) by

a. $(20000).

b. $(30000).

c. $105000.

d. $85000.

16) Sheridan Companymanufactures widgets. Embree Company has approachedSheridanwith a proposal to sell the company widgets at a price of $120000for100000units.Sheridanis currently making these components in its own factory. The following costs are associated with this part of the process when100000units are produced:

The manufacturing overhead consists of $16000of costs that will be eliminated if the components are no longer produced bySheridan. FromSheridan's point of view, how much is the incremental cost or savings if the widgets are bought instead of made?

a. $14000incremental cost

b. $14000incremental savings

c. $30000incremental cost

d. $30000incremental savings

17) A master budget consists of

a. interrelated financial budgets and operating budgets.

b. all the accounting journals and ledgers used by a company.

c. an interrelated long-term plan and operating budgets.

d. financial budgets and a long-term plan.

20) Coronado Industriesbudgets on an annual basis for its fiscal year. The following beginning and ending inventory levels are planned for the fiscal year of July 1, 2016 to June 30, 2017:

Three kilos of raw materials are needed to produce each unit of finished product. IfCoronado Industriesplans to produce490000units during the 2016-2017 fiscal year, how many kilos of materials will the company need to purchase for its production during the year?

a. 1470000

b. 1469000

c. 1474000

d. 1467000

21)

If the required direct materials purchases are30000pounds, the direct materials required for production is three times the direct materials purchases, and the beginning direct materials are three and a half times the direct materials purchases, what are the desired ending direct materials in pounds?

a. 75000

b. 15000

c. 45000

d. 30000

22) Marigold Corp.is planning to sell900boxes of ceramic tile, with production estimated at670boxes during May. Each box of tile requires44pounds of clay mix and a0.25hour of direct labor. Clay mix costs $0.40per pound and employees of the company are paid $22per hour. Manufacturing overhead is applied at a rate of110% of direct labor costs.Marigoldhas4700pounds of clay mix in beginning inventory and wants to have3600pounds in ending inventory.

What is the total amount to be budgeted in pounds for direct materials to be purchased for the month?

a. 30580

b. 38500

c. 28380

d. 29480

26) Not-for-profit entities

a. utilize responsibility accounting in trying to minimize the cost of providing services.

b. do not use responsibility accounting.

c. utilize responsibility accounting in trying to maximize net income.

d. have only noncontrollable costs.