Question
I REALLY APPRECIATE THE HELP YOU GUYS ARE THE BEST LOVE U GUYS FOR HELPING ME I really need your heelp please i beg accounting
I REALLY APPRECIATE THE HELP YOU GUYS ARE THE BEST LOVE U GUYS FOR HELPING ME
I really need your heelp please i beg accounting is hard i need to answer all questions just for once help please thanks
i have headache struggling
10.
Relevant costs are frequently called unavoidable costs.
True
False
11.
Centennial Tours is trying to decide which one of two tours it will introduce. The costs and revenues associated with each alternative are listed below:
Tour A | Tour B | |
Projected revenue | $8,000 | $11,000 |
Variable costs | 1,000 | 6,000 |
Fixed costs | 4,000 | 4,000 |
Profit | $ 3,000 | $ 1,000 |
What are the incremental (differential) costs of Tour B?
None of these.
$3,000
$4,000
$5,000
12.
Barr Company makes steel and titanium handle bars for bicycles. It requires approximately 1 hour of labor to make one handle bar of either type. During the most recent accounting period, Barr Company made 6,300 steel bars and 3,700 titanium bars. Setup costs amounted to $49,000. One batch of each type of bar was run each month. If a single company-wide overhead rate based on direct labor hours is used to allocate overhead costs to the two products, the amount of setup cost assigned to the steel bars will be:
$49,000.
$4,900.
$30,870.
$18,130.
13.
At the beginning of the year, Roach Company expected to incur $49,000 of overhead costs in producing 4,900 units of product. The direct material cost is $24 per unit of product. Direct labor cost is $34 per unit. During January, 450 units were produced. The total cost of the units made in January was:
$30,600
$26,100
$4,500
None of these answers is correct.
14.
Gleam Clean cleans and waxes floors for commercial customers. The company is presently operating at less than capacity with equipment and employees idle at times. The company recently received an order from a potential customer outside the company's normal geographic service region for a price of $23,000. The size of the proposed job is 36,000 square feet. The company's normal service costs are as follows:
Unit-level materials | $0.32 per square foot |
Unit-level labor | $0.39 per square foot |
Unit-level variable overhead | $0.22 per square foot |
Facility-level overhead | Allocated at $0.24 per square foot |
If the company accepts the special offer:
The company will earn $11,480 on the job.
The company will lose $2,560 on the job.
The company will lose $19,120 on the job.
The company will lose $10,480 on the job.
15.
Great Products Company currently outsources a relay switch that is a component in one of its products. The switches cost $36 each. The company is considering making the switches internally at the following projected annual production costs:
Unit-level material cost | $6 |
Unit-level labor cost | $5 |
Unit-level overhead | $4 |
Batch-level set-up cost (5,000 units per batch) | $41,000 |
Product-level supervisory salaries | $45,500 |
Allocated facility-level costs | $36,000 |
The company expects an annual need for 5,000 switches. If the company makes the product, it will have to utilize factory space currently being leased to another company for $3,100 a month. If the company decides to make the parts, total costs will be:
$18,700 more than if the switches are purchased.
$36,000 less than if the switches are purchased.
$54,700 more than if the switches are purchased.
$26,800 less than if the switches are purchased.
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