Question
From the following list of costs for a kitchen manufacturer, determine the amount of value-added cost. Moving component parts from warehouse to assembly line $
From the following list of costs for a kitchen manufacturer, determine the amount of value-added cost.
Moving component parts from warehouse to assembly line $ 5000
Assembling the kitchen cabinets $50 000
Moving materials to the factory oor because of stock-out $10 000
Assembling the microwave units $ 4000
Reworking faulty handles on doors $1000
Testing the operation of the microwave unit $ 2000
Select one:
A. $54 000
B. $58 000
C. $59 000
D. $57 000
2.
Richard's Division of Richard and Sons has the following data related to a particular period: Average invested capital $ 700 000 Imputed interest rate 10% Revenues $1 900 000 Variable costs $1 150 000 Fixed costs related solely to the division $ 673 000 Calculate the amount of residual income for the period. Select one: A. $680 000 B. $7000 C. $77 000 D. $70 000
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