haikovsky Manufacturing Company can make 100 units of a necessary component part with the following costs Direct Materials 80,000 Direct Labor 13,000 Variable Manufacturing Overhead 40,000 Fixed Manufacturing Overhead 27,000 If Tchaikovsky Manufacturing Company can purchase the component externally for $145,000 and only $4,000 of the fixed costs can be avoided, what is the correct make or buy decision? Select one: a. Make and save $20,000 b. Buy and save $20,000 c. Buy and save $8,000 d. Make and save $8,000 A company can produce and sell only one of the following two products. Machine Hours Contribution Margin Per Unit Product Required $30 $25 If the company has machine capacity of 4,000 hours, what is the total contribution margin of the product it should produce to maximize net income? Select one: a $50,000 b. $32,000. c. $48,000 d. $40,000 The difference between budgeted faced manufacturing overhead and faced manufacturing overhead applied to production based upon a predetermined rate is called the Select one: a. Fixed overhead price variance. b. Fixed overhead spending variance. c. Fixed overhead volume variance d. Manufacturing overhead rate variance In a flexible budget, costs that remain the same no matter what the output level, within the relevant range, are called: Select one: a. Variable costs. b. Budgeted costs. c. Fixed costs. d. Applied manufacturing overhead. # an investment center has a $15,000 controllable margin and $200,000 of sales, what average operating assets are needed to have a return on investment of 10%? Select one: a $200,000 O b. $150,000 O c. $ 20,000. d. $ 25,000 The investigation of a materials quantity variance usually begins in the: Select one: O a. Purchasing department. O b. Production department. c. Controller's department. O d. Sales department. Ravel Company manufactures a product with a unit variable cost of $50 and a unit sales price of $88. Fixed manufacturing costs were $240,000 when 10,000 units were produced and sold. The company has a one time opportunity to sell an additional 3,000 units at $70 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows: Select one: O a. Income would increase by $12,000. b. Income would increase by $60,000. c. Income would decrease by $12,000. d. Income would increase by $210,000. Tchaikovsky Manufacturing Company can make 100 units of a necessary component part with the following costs. Direct Materials 80,000 Direct Labor 13,000 Variable Manufacturing Overhead 40,000 Fixed Manufacturing Overhead 27,000 If Tchaikovsky Manufacturing Company purchases the component externally, $20,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying? Select one: a. $113,000. b. $160,000 O c. $153,000 d. $133,000
