Waterway Industries is unsure of whether to sell its product assembled or unassembled The unit cost of the unassembled product is $24 and Waterway would sell it for $53 The cost to assemble the product is estimated at $16 per unit and the company believes the market would support a price of $67 on the assembled unit What decision should Waterway make Sell before assembly, the company will be better off by $2 per unit Process further, the company will be better off by $13 per unit Sell before assembly, the company will be better off by $14 per unit Process further, the company will be better off by $22 per unit Bonita Industries is considering the replacement of a piece of equipment with a newer model The following data has been collected Old Equipment New Equipment Purchase price $162000 $272000 Accumulated depreciation 64800 0 Annual operating costs 216000 189000 If the old equipment is replaced now, it can be sold for $80000 Both the old equipments remaining useful life and the new equipments useful life is 5 years The company uses straight line depreciation with a zero salvage value for all of its assets The net advantage (disadvantage) of replacing the old equipment with the new equipment is $(57000) $(110000) $272000 $54000 Santana Company produces tanning lotion The following information is provided concerning its standard cost system for the year Standard data is as follows budgeted production, 4,500 units budgeted fixed overhead, $6 30 per labor hour budgeted variable overhead, $4 50 per labor hour labor, 24 minutes $12 per hour Actual data is as follows actual production, 4,400 units labor worked, 1,600 hours totaling $24,000 actual overhead, $19,600 How much is the overhead controllable variance $160 U $592 U $340 U $2,320 U none of the above

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Waterway Industries is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $24 and Waterway would

Waterway Industries is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $24 and Waterway would sell it for $53. The cost to assemble the product is estimated at $16 per unit and the company believes the market would support a price of $67 on the assembled unit. What decision should Waterway make?

Sell before assembly, the company will be better off by $2 per unit.

Process further, the company will be better off by $13 per unit.

Sell before assembly, the company will be better off by $14 per unit.

Process further, the company will be better off by $22 per unit.

Bonita Industries is considering the replacement of a piece of equipment with a newer model. The following data has been collected:

	Old Equipment	New Equipment
Purchase price	$162000	$272000
Accumulated depreciation	64800	- 0 -
Annual operating costs	216000	189000

If the old equipment is replaced now, it can be sold for $80000. Both the old equipment’s remaining useful life and the new equipment’s useful life is 5 years. The company uses straight-line depreciation with a zero salvage value for all of its assets.

The net advantage (disadvantage) of replacing the old equipment with the new equipment is

$(57000)

$(110000)

$272000

$54000

Santana Company produces tanning lotion. The following information is provided concerning its standard cost system for the year. Standard data is as follows: budgeted production, 4,500 units? budgeted fixed overhead, $6.30 per labor hour? budgeted variable overhead, $4.50 per labor hour? labor, 24 minutes @ $12 per hour. Actual data is as follows: actual production, 4,400 units? labor worked, 1,600 hours totaling $24,000? actual overhead, $19,600. How much is the overhead controllable variance?

$160 U

$592 U

$340 U

$2,320 U

none of the above