Hudson Inc.

Hudson Inc. has the following information available for September:

Beginning Ending

Raw materials $ 8,000 $ 5,000

Work-in-process 30,000 40,000

Finished goods 7,000 3,000

Raw materials purchased $ 25,000

Direct labor costs 70,000

Manufacturing overhead costs 30,000

Administrative costs 12,000

Marketing costs 6,000

Refer to the Hudson Inc. information above. Total nonmanufacturing costs for September are:

1. $113,000.
2. $43,000.
3. $18,000.
4. $161,000.

65.

Hudson Inc.

Hudson Inc. has the following information available for September:

Beginning Ending

Raw materials $ 8,000 $ 5,000

Work-in-process 30,000 40,000

Finished goods 7,000 3,000

Raw materials purchased $ 25,000

Direct labor costs 70,000

Manufacturing overhead costs 30,000

Administrative costs 12,000

Marketing costs 6,000

Refer to the Hudson Inc. information above. Cost of goods manufactured for September is:

1. $133,000.
2. $115,000.
3. $118,000.
4. $136,000.

________ refers to the relative proportion of fixed and variable costs in a company.

a. Tax structure

b. Income structure

c. Sales structure

d. Cost structure

57. ________ leverage describes the effects that fixed costs have on operating income as changes occur in the units sold.

a. Operating

b. Combined

c. Financing

d. Buyout

58. A company operating near the breakeven point will have a ________.

a. high level of financial leverage

b. low level of financial leverage

c. low level of operating leverage

d. high level of operating leverage

59. Which of the following would be an irrelevant cost?

1. Costs that are avoidable.
2. Future costs that differ among alternatives.
3. Benefits foregone by choosing one alternative over another.
4. Costs that have already been incurre

60. Which of the following should not be taken into account in decision-making?

1. Ethical considerations
2. Irrelevant costs
3. Risk
4. Opportunity costs

61. Which of the following statements is true regarding ethics in decision-making?

1. Since most business decisions are simply a matter of economics, ethical considerations should be ignored.
2. Managerial accountants do not face ethical issues.
3. Business managers will always agree on ethical choices.
4. Decision-making can have an ethical as well as an economic impact.