Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Can you help me with question 2 and 4 please (1) 'All direct costs are variable'. (ii) Sunk costs are irrelevant when providing decision making
Can you help me with question 2 and 4 please
(1) 'All direct costs are variable'. (ii) "Sunk costs are irrelevant when providing decision making information'. Provide examples to illustrate your answers. Print Ink intends to use relevant costs as the basis of the selling price for a special order: the printing of a brochure. The brochure requires a particular type of paper that is not regularly used by Print Ink although a limited amount is in Print Ink's inventory, which was left over from a previous job, The cost when Print Ink bought this paper last year was 30 per ream and there are 100 reams in inventory. The brochure requires 250 reams. The current market price is 35 per ream, and the resale value of the paper in inventory is 15 per ream. 2. What is the relevant cost of the paper to be used in printing the brochure? "Budgeted performance is a better criterion than past performance for judging managers' Do you agree? Explain. 3. 4. Wallace prepared the following budgeted data based on sales forecast of 600,000: Variable Costs 1,600,000 Fixed Costs Direct materials C1,140,000 Direct labour Factory overhead Selling and administrative Administrative Expenses 900,000 360,000 (140,000 1,400,000 600,000 240,000 C60.000 3,900,000 Total What would be the amount of sales euro at the break-even point? What is meant by the term 'responsibility accounting? 5. The O'Neil company produces three products with the following costs and selling 6. prices: 40 Selling price per unit C30 C40 S20 412 Variable cost per unit C30 20 18 Contribution per unit 1.5 Direct labour hours per unit Machine hours per unit 1.5 1. Edit More (1) 'All direct costs are variable'. (ii) "Sunk costs are irrelevant when providing decision making information'. Provide examples to illustrate your answers. Print Ink intends to use relevant costs as the basis of the selling price for a special order: the printing of a brochure. The brochure requires a particular type of paper that is not regularly used by Print Ink although a limited amount is in Print Ink's inventory, which was left over from a previous job, The cost when Print Ink bought this paper last year was 30 per ream and there are 100 reams in inventory. The brochure requires 250 reams. The current market price is 35 per ream, and the resale value of the paper in inventory is 15 per ream. 2. What is the relevant cost of the paper to be used in printing the brochure? "Budgeted performance is a better criterion than past performance for judging managers' Do you agree? Explain. 3. 4. Wallace prepared the following budgeted data based on sales forecast of 600,000: Variable Costs 1,600,000 Fixed Costs Direct materials C1,140,000 Direct labour Factory overhead Selling and administrative Administrative Expenses 900,000 360,000 (140,000 1,400,000 600,000 240,000 C60.000 3,900,000 Total What would be the amount of sales euro at the break-even point? What is meant by the term 'responsibility accounting? 5. The O'Neil company produces three products with the following costs and selling 6. prices: 40 Selling price per unit C30 C40 S20 412 Variable cost per unit C30 20 18 Contribution per unit 1.5 Direct labour hours per unit Machine hours per unit 1.5 1. Edit MoreStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started