I'm having some difficulty and was wondering if I could get some help answering these questions on the doc attached. Thanks in advance!

Your Name Here Final Exam: Ch 18 - 25 You must completely answer all questions - carefully read the questions to ensure the entire question is answered. 7 Questions: 6 essays; plus 1 Problem Ch 18 to 25 Please try to complete the exam in one sitting. Save the exam file as a word document with your name in the file name; such as Robert_Half_Final_Exam. UMUC - ACCT 301 Final Exam Due Sunday, 15 October 2017 This exam is to be completed without the assistance of any other person. You may use only the resources provided by your instructor for this class. I pledge on my honor that I have not given or received any unauthorized assistance on this examination. In addition, I pledge that I will not disclose to, or discuss the contents of this examination with, students who have not taken it. _________________________________________________________________________ Signed (your typed name will suffice as a signature) Answer all questions! Prepare and present calculations for partial credits for questions with calculations and presentations. Page 1 of 3 Your Name Here Final Exam: Ch 18 - 25 Final Exam Ch 18 - 25 - (include your name in the file name as well as the document header) Q1 WLS Company currently makes a key component for their tractors in house. The costs are as follows: Per Unit Direct Materials Direct Labor Allocated Overhead $ 4.00 6.00 10.00 Total Cost $20.00 If the component is purchased from an outside vendor the company will reduce their overhead costs by 80%. What is the maximum purchase price the company should consider to move to an outside vendor without respect to any other issue? (present calculations for partial credit). Label your answer. Q2 What issues should be considered when making decisions about outsourcing and eliminating the production of a key sub assembly for products manufactured by a company? Your answer should be presented as a bulleted list. Q3 What issues should be considered when deciding whether to eliminate a product line? Your answer should discuss the issues of profitability and include the concept of the contribution format income statement as well as the effect on sales for the company. Q4 Explain how using a predetermined overhead rate can affect profits and losses? That is, why might the predetermined overhead be inaccurate when compared to the actual results of the activities affected by the predetermined overhead rate? Your answer should begin by explaining how a predetermined overhead rate is calculated and conclude with why there would be variances from the original estimated values in the calculation (do not discuss any variables except those directly related to the predetermined overhead rate calculation). Page 2 of 3 Your Name Here Final Exam: Ch 18 - 25 Q5 Explain the rationale for the starting point for a manufacturing company's budget? That is, what is the first budget and why is that important? How does it affect all remaining budgets? Q6 When considering how much of a product to produce or acquire for the period, describe the specific items you would use in the calculation? Your answer should be based on the budget chapter as well as on the basic formula related to inventory, discussed at various points throughout our class. Q7 Explain the high low method including its calculation and the cost formula for total cost. Your answer should include how it is calculated, what purpose it serves, and what issues may arise regarding the accuracy of the resulting conclusion regarding costs. Page 3 of 3