A.
Kingston Manufacturing has 30,000 labor hours available for producing X and Y. Consider the following information: Product X Product Y Required labor time per unit (hours) 3 4 Maximum demand (units) 7,666 9,666 Contribution margin per unit $ 6 $ 7 Contribution margin per labor hour $ 2.66 $ 1.56 If Kingston follows proper managerial accounting practices, which of the following production schedules should the company set? - Product X Product Y _ we units E 773 units 9,666 units l 7 we units 7,666 units 2, 256 units 7, 666 units 9,666 units Multiple Choice O Choice A O Choice B O Choice C O Choice D O Choice EGalveston Corporation has $216,000 ofjoint processing costs and is studying whether to process J and K beyond the splitoff point. Information about J and K follows. Product 3 Product K Tons produced 29,666 13,666 Separable variable processing costs beyond split-o-F-F $81,266 $117,666 Selling price per ton at split-o-F-F 15 58 Selling price per ton a-Fter additional processing 26 63 If Galveston desires to maximize total company income, what should the rm do with regard to Products J and K? _ r5 E_ c. There is not enough information to judge. I M E. Multiple Choice O Choice A O Choice B O Choice C O Choice D O Choice ECheyenne Enterprises manufactures Nuts and Bolts from a joint process (cost 2 $80,000). Five thousand pounds of Nuts can be sold at splitoff for $20 per pound; ten thousand pounds of Bolts can be sold at spliteoff for $15 per pound. For product costing purposes Cheyenne allocates joint costs using the relative sales value method. The amount ofjoint cost allocated to Nuts and Bolts, respectively, would be: M ultiple Choice $40,000 and $40,000. $48,000 and $32,000, $3 2,000 and $48,000, $40,000 and $32,000, $3 2,000 and $40,000, 00000 Howard Enterprises. which has three departments. recently reported the following results: A B C Sales revenue $15,666 $ 75,666 66,666 Less: Operating costs 14,166 92,566 74,866 Operating income (loss) 35 966 $(17,566) $(14,866) The company incurred variable operating costs as well as $36,000 of fixed operating costs. The $36000 amount was allocated to A, B. and C on the basis of sales revenue and is included in the cost gures noted above. Which department(s), if any, should be closed if none of the fixed operating costs can be avoided? \fIn early July, Colin Marks purchased a $80 ticket to the December 15 game of the Sarasota Shippers. Parking for the game was expected to cost approximately $32, and Marks would probably spend another $25 for a souvenir program and food. It is now December 14. The Shippers were having a miserable season and the temperature was expected to peak at 5 degrees on game day. Marks therefore decided to skip the game and took his wife to the movies. with tickets and dinner costing $59. The sunk cost associated with this decision situation is: Multiple Choice None of the answers is correct. $137, $59. $80, @0000 $21, Elkhorn, Inc., which has excess capacity. received a special order for 5,100 units at a price of $16 per unit. Currently, production and sales are anticipated to be 13,000 units without considering the special order. Budget information for the current year follows. Sales $266,666 Less: Cost of Goods Sold 195,666 Gross Margin $ 65,666 Cost of goods sold includes $39,000 of fixed manufacturing cost. If the special order is accepted, the company's income will
