Information for the local division of Winston Products follows: Contribution Margin $800,000 Controllable Margin $610,000 Operating Income $483,000 Average Operating Assets $3,200,000 Minimum rate of return 12.5% The ROI for this division is: O a. 19% O b. 15% O c. 23% O d. 25% What criteria must be met in order to consider the work of factory employees to be direct labour? O a. It must be materially associated with converting materials into products. O b. It must be promptly associated with converting materials into products, O c. It must be physically associated with converting materials into products. O d. It must be periodically associated with converting materials into products. ABC Manufacturing uses standard costing with manufacturing overhead applied based on direct labour hours (DLH). Overhead cost information is presented below: Input Cost per Unit Variable $7.20 per DLH 36 Fixed $9.60 per DLH 48 Total $ 84 Normal capacity for total manufacturing overhead per month is 20,000 DLH, with budgeted FOH at $192,000. During the most recent month 3,900 units were produced; 20,050 DLH were used and actual FOH was $195,500. What was the FOH spending variance? O a. 3,020 U O b. 3,500 U OC. 4,800 F 0 d. 8,300U DEF Company estimates its sales at 70,000 units in the first quarter and that sales will increase by 7000 units each quarter over the year. They have, and desire, a 10% ending inventory of finished goods. Each unit sells for $2. 30% of the sales are for cash. 80% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the 2nd quarter are budgeted at O a. 152,040 O b. 151,400 O c. 150,020 O d. 149,880 Hargrow Inc. makes and sells a single product: buckets. It takes 3.00 kilograms of plastic to make one bucket. Budgeted production of buckets for the next three months is as follows: August 90,000 units, September 75,000 units, October 65,000 buckets. The company wants to maintain monthly ending inventories of plastic equal to 10% of the following month's production needs. On August 31, 50,000 kilograms of plastic were on hand. The cost of plastic is $0.50 per kilogram. How much is the ending inventory of plastic to be reported on the company's balance sheet at September 30? O a. 111,000 Ob. 9,750 O c. 29,250 O d. 11,250 The Dilly Company (DC) began operations on December 1, 2021. All sales are credit sales with 50% collected in the month of sale, 40% in the month following and 10% in the second month following the sale. DC has estimated sales at $1,800,000 for December, $1,500,000 for January, $1,700,000 for February and $1,600,000 for March. The estimated cash collections from customers in the month of February will be? O a. 1,450,000 O b. 1,510,000 Oc. 1,630,000 O d. 1,640,000