7 Assume a company started and completed numerous jobs during Julyone of which was Job Z. The company uses two departmental predetermined overhead rates. The rate in the Machining Department is based on machine-hours and the rate in the Assembly Department is based on direct labor-hours. The following additional information from the month of July is available for the company as a whole and for Jobs Z: Machining Assembly Estimated total fixed manufacturing overhead $ 48,000 $ 30,000 Estimated variable manufacturing overhead per machine-hour $ 1.50 Estimated variable manufacturing overhead per direct labor-hour $ 2.00 Estimated total machine-hours to be used 12,000 Estimated total direct labor hours to be worked 10,000 Job Z Machining Assembly Direct materials $ 2,350 $ 2,400 Direct labor $ 200 $ 900 Machine-hours 40 Direct labor-hours 60 If Job Z contains 56 units, the unit product cost for Job Z is closest to: rev: 04_27_2020_QC_CS-208650, 06_15_2020_QC_CS-208650 Garrison 17e Rechecks 2020-06-22 Multiple Choice $112.55 $113.45 $113.55 $113.75

23

COTB MC Qu. 15-75 (Static) Assume the following excerpts from...

Assume the following excerpts from a companys balance sheet:

	Beginning Balance				Ending Balance
Property, plant, and equipment	$	3,500,000			$	3,750,000
Long-term investments	$	950,000			$	1,100,000

During the year, the company sold a piece of equipment for $200,000. The equipment originally cost $500,000 and had accumulated depreciation of $290,000. The company did not sell any long-term investments during the period. Based solely on the information provided, the companys net cash provided by (used in) investing activities would be:

Multiple Choice

• $(700,000).

• $700,000.

• $(100,000).

• $100,000.

24

Which of the following statements is true with respect to operating activities?

Multiple Choice

• They generate cash inflows and outflows related to acquiring or disposing of noncurrent assets.

• They generate cash flows and outflows related to borrowing from and repaying principal to creditors and completing transactions with the companys owners.

• They generate cash inflows and outflows related paying dividends to stockholders and paying interest to lenders.

• They generate cash inflows and outflows related to revenue and expense transactions that affect net income.