50 MCQ Practice 50 MCQ Practice 23) The following information pertains to Mayberry Corporation Beginning inventory Ending inventory Production Selling price per unit Direct labour per unit Direct materials per unit Variable overhead per unit Fixed overhead 1,000 un 6,000 unit 10,000 units $125 540 20 10 $300,000 6 14,000 Module Book Variable selling and admin, costs per unit Fixed selling and admin. costs What is the value of the ending inventory using the absorption costing method? 3) $240,000 b) $360,000 27) Yenti Ltd. uses 20,000 units of a part each year. The cost of placing one order is $45, the cost of carrying one unit in inventory for a year is $5. Yenti Ltd. currently orders 1,000 units at a time. What is the total inventory-related cost of the current policy of Yenti Ltd.? 6606 a) $3,400 b) $2,500 c) $3,000 $4,500 28) Using the information from Question 27. Compute the total inventory-related costs of Yenti Ltd. under the economic order quantity (EOQ) policy. a) $3,000 b) $3,400 c) $900 d) $2,500 29) A responsibility centre in which a manager is responsible for both revenues and costs is a/(an). cost centre 9606 a) b) profit centre c) investment centre d) revenue centre 30) The Auto Division of Big Department Store had a net operating income of $560,000, a net asset base of $4,000,000, and a required rate of return of 12%. Sales for the period totalled $3,000,000. The residual income for the period is a) $480,000 b) $360,000 c) $120,000 d) $80,000