Cost Accounting

US Company sells products used in many manufacturing processes. The sales activity involves three activity areas: The following customer information is given: Which customer is most profitable? A. AX B. BY C. DZ D. They are equally profitable. XY Construction Company builds houses. Each job requires a bid. XY Company's bidding policy is to estimate the costs of materials, direct labor, and subcontractor costs. These are totaled and a markup is applied to cover overhead and profit. In the coming year, the company believes it will be the successful bidder on ten jobs with the following total revenues and costs: The residual will cover overhead and profits. Required: What is the markup percentage on total direct costs? A. 6% B. 5% c. 8% D. 17% Alfa Inc, bases its manufacturing overhead budget on budgeted direct labor hours. The direct labor budget indicates that 5,600 direct labor hours will be required in August. The variable overhead rate is $5.40 per direct labor hour. The company's budgeted fixed manufacturing overhead is $69,440 per month, which includes depreciation of $15,680. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: A. $53,760 B. $30,240 C. $84,000 D. 599,680 Persimmon Corp. manufactures car batteries in two models. The following information about Persimmon is provided for the month of August The budgeted average unit contribution margin is $24.50 Budgeted unit sales for the entire industry were 400,000 units of all model types, and actual unit sales for the industry were 500,000 units. What is the Market size variance? A. $60,000(F) B. $40,123(F) C. $51,450(F) D. $60,000(U) Bright Company developed the following budgeted life-cycle income statement for two proposed products. Each product's life cycle is expected to be two years. A 10 percent return on sales is required for new products. Because the proposed products did not have a 10 percent return on sales, the products were going to be dropped. Relative to Product B, Product A requires more research and development costs but fewer resources to market the product Sixty percent of the research and development costs are traceable to Product A, and 30 percent of the marketing costs are traceable to Product A If research and development costs and marketing costs are traced to each product, the life-cycle income for Product A would be. A Corporation produces and sells one product. The budgeted selling price per unit is $84. Budgeted unit sales for October, November, December, and January are 8,400,12,000,13,800, and 14,300 units, respectively. All sales are on credit with 40% collected in the month of the sale and 60% in the following month. The expected cash collections for November are closest to A. $705,600 B. $403,200 C. $826,560 D. $423,360