Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Boshar Plastic Factory incurred the following costs to produce 10.000 plastic chairs in 2018. Direct Materials RO 15,000 Direct Labor 25,000 Variable Manufacturing Overhend 5,000

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Boshar Plastic Factory incurred the following costs to produce 10.000 plastic chairs in 2018. Direct Materials RO 15,000 Direct Labor 25,000 Variable Manufacturing Overhend 5,000 Fixed Manufacturing Overhead 60,000 Ibra Manufacturing has offered to supply the chairs for RO 7 per unit. An analysis of the overhead costs has identified that if the chairs are purchased, Boshar Plastic Factory would eliminate RO 20,000 of fixed costs. The total cost to buy the chairs is: Select one: O a. 175,000 O b. None of the answers are correct O c. 110,000 O d. 70,000 O e 100,000 5 Ibra Seafood Restaurant had the following data for the month of February: Revenue Purchases of fish Rent Cook's salary Packaging supplies (plastic, paper) Salaries of other employees Insurance on delivery vehicles RO 125,000 21,000 10,000 3,500 15,000 48,000 8,900 The total net income is: Select one: a. 89,000 O b. 54,600 O c. 70,400 d. 18,600 e. None of the answers are correct. Units Fixed Profit Selling Prica/unit Variable Costs/unit Contribution Margin (total) Sold Costs (loss) R040 (a) 10 000 R0100 000 R 80 000 (6) 8 3 (c 75 000 (d) 14 8 3 000 (3000) 21 1200 60 000 28 000 (h). 11 1000 0 5 500 (500) The answer for (g) is: Select one: O a. 50 O b. 3,300 O c. 71 O d. 21 O e. None of the answers are correct. Clear my choice 3 Operating Departments Dental Maternity 300,000 150,000 Al Raffah Hospital had the following departmental data: Support Departments Administration Cleaning Direct overhead costs 400,000 600,000 Expected Activity: Square Meters 100,000 600,000 Service Hours 10,000 12,000 Number of Doctors 90 60 200,000 200,000 4,000 6,000 30 10 *The Administration department allocates direct costs based on square meters *The Cleaning department allocates direct costs based on service hours Under the step-down method, the Administration costs of should be allocated as follows: Select one: O a. None of the answers are correct O b. 300,000 for dental and 100,000 for maternity O c. 100,000 for dental and 400,000 for maternity O d. 350,000 for dental and 350,000 for maternity e. 300,000 for dental and 400,000 for maternity 2 Units Profit Selling Price/unit Variable Costs/unit Contribution Fixed Margin (total) Costs Sold (loss) RO 40 10 000 R0100 000 RO80 000 (b) 8 3 (c)___ 75 000 (d) 14 8 (1) 3 000 (3 000) 21 1 200 60 000 28 000 (h) 11 1 000 0) 5500 (500) The answer for (b) is: Select one: O a. None of the answers are correct. O b. 40,000 O c. 100,000 O d. 10,000 7 e. 180,000 Al Bayan Fishing Co estimates that variable costs will be 60% of sales and fixed costs will total OMR 3,000,000. The selling price of the product is OMR 8, and 900,000 units will be sold. The margin of safety in units is: Select one a. 22,500 b.937500 c. None of the answers are correct d. 950,000 O e. 570,000 6 Units Contribution Fled Profit Selling Price/unit Variable Costs/unit Sold Margin (total) Costs loss) HO 40 10 000 RO100 000 RO HO 000 (6) (c) 75 000 (d) 0 14 3000 (3 000) is) 21 1 200 60 000 28 000 11 (1). 1000 5 500 (500) The answer for (c) is: Select one: O a. 25,000 b. 5 O c. 11,000 d. 15,000 e. None of the answers are correct 4 Units Profit Selling Price/unit Variable Costs/unit Contribution Fixed Margin (total) costs Sold floss) R040 10 000 R0100 000 B080000 (b). 00 75 000 (d) 14 8 3 000 (3.000) iBl 21 1 200 60.000 28 000 (h) 11 1.000 5 500 (500) The answer for (h) is: Select one 0 a. 60,000 Obo c. 28,000 d. None of the answers are correct. 10 e. 23,000 Sur Factory has the following monthly production data for 2018: Sales January 20,300 Admin Costs RO 24,000 20,900 15,800 February March 20,500 April 15,300 28,400 20,800 28,800 May 25,300 Using the High-Low method, the total cost function (equation) is: Select one: O a. TC = 7,860 + 0.8 Q O b. None of the answers are correct. O c. TC = 9,500+ 0.8 Q O d. TC = 9,500 +0.75 Q O e. TC = 8,500 + 800 Q 9 Al Bayan Fishing Co. estimates that variable costs will be 60% of sales and fixed costs will total OMR 3,000,000. The selling price of the product is OMR 8, and 950,000 units will be sold. The total net income is: of Select one: O a. 40,000 b. 7,600,000 C 37,500 O d. None of the answers are correct e. 100,000 8 Variable Units Profit Selling Price/unit Contribution Feed Margin (total) Costs Costa/unit Sold flow) FO 40 10 000 R0100 000 RO 80 000 3 (c) 75 000 (d) 14 8 3.000 (3 000) 21 1 200 60 000 28 000 th 11 1000 (1) 5 500 (500) The answer for (a) is Select one: a. 30 O b. 20 c. None of the answers are correct. O d. 25 11 O 0.15 Direct Operating Costs Number of Employees Machine Hours Square Meters Support Departments Selling Admin RO 3,000 RO 6,000 2 6 400 1,000 2,000 Operating Departments Trucks Cars RO 12,000 RO 18,000 10 300 700 4,000 6,000 200 The direct costs for the selling department are allocated on the basis of Machine Hours The direct costs for the admin department are allocated on the basis of Number of Employees. Under the step-down method, the Selling costs of should be allocated as follows: Select one: a RO 12,000 for trucks and RO 18,000 for cars b. RO 1,500 for trucks and RO 3,750 for cars c. None of the answers are correct d. RO 750 for selling, RO 1,500 for trucks and RO 3,750 for cars . RO 1,500 for trucks and RO 3,750 for cars 12 Al Bayan Fishing Co. estimates that variable costs will be 60% of sales and fixed costs will total OMR 3,000,000. The selling price of the product is OMR 8, and 950,000 units will be sold. The break-even point in sales (Dollars/Omani Riyals) is: Select one: O a None of the answers are correct O b.7,600,000 c. 570,000 d. 937,500 e. 7,500,000 13 Al Raffah Hospital had the following departmental data: Operating Departments Dental Maternity 300,000 150,000 Support Departments Administration Cleaning Direct overhead costs 400,000 600,000 Expected Activity: Square Meters 100,000 600,000 Service Hours 10,000 12,000 Number of Doctors 90 60 200,000 200,000 6,000 4,000 30 10 *The Administration department allocates direct costs based on square meters *The Cleaning department allocates direct costs based on service hours Under the step-down method, the allocation base percentages for square meters should be Select one a, 50% for administration, 20% for dental and 30% for maternity b. 50% for dental and 50% for maternity c. None of the answers are correct d. 40% for dental and 60% for maternity e. 20% for dental and 30% for maternity 16 Bonhar Plastic Factory incurred the following costs to produce 10,000 plastic chairs in 2018, Direct Materials RO 15,000 Direct Labor 25,000 Variable Manufacturing Overhead 5.000 Fixed Manufacturing Overhead 60.000 Ibra Manufacturing has offered to supply the chairs for RO 7 per unit. An analysis of the overhead costs has identified that if the chairs are purchased, Boshne Plastic Factory would eliminate RO 20,000 of fixed costs. If the company choses to buy the chairs, the total fixed overhead cost is: Select one: O a 110,000 O b. None of the answers are correct O c. 40,000 d. 70,000 e. 60,000 14 Bosbar Plastic Factory incurred the following costs to produce 10.000 plastic chairs in 2018. Direct Materials RO 15,000 Direct Labor 25,000 Variable Manufacturing Overhead 5,000 Fixed Manufacturing Overhead 60,000 Ibra Manufacturing has offered to supply the chairs for RO 7 per unit. An analysis of the overhend costs has identified that if the chairs are purchased, Boskar Plastic Factory would eliminate RO 20,000 of fixed costs The total cost to make the chairs is: Select one: O a: 70,000 O b. None of the answers are correct O c. 175,000 d. 110,000 O e. 100,000 15

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Richard Lewis, David Pendrill

5th Edition

0273622919, 978-0273622918

More Books

Students also viewed these Accounting questions

Question

Find k such that f(x) = x 3 - kx 2 + kx + 2 has the factor x 2.

Answered: 1 week ago