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Question 233 pts

Shawn Incorporated planned to produce 3,000 units of its single product, Megatron, during November. The standard specifications for one unit of Megatron include six pounds of material at $0.30 per pound. Actual production in November was 3,100 units of Megatron. The accountant computed a favorable materials price variance of $380 and an unfavorable materials quantity variance of $120. Based on these variances, one could conclude that:

Group of answer choices

more materials were purchased than were used.

the actual cost of materials was less than the standard cost.

more materials were used than were purchased.

the actual usage of materials was less than the standard allowed.

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Flag question: Question 24

Question 243 pts

Which of the following is true about discontinuing an unprofitable customer?

Group of answer choices

It will eliminate all corporate costs assigned to, and may result in losing more revenues relative to, costs saved.

It will eliminate all costs assigned to, and may result in gaining more revenues relative to, costs saved.

It will not eliminate all costs assigned to, and may result in losing more revenues relative to, costs saved.

It will not eliminate all corporate costs assigned to, and may result in gaining more revenues relative to, costs saved.

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Flag question: Question 25

Question 253 pts

Ball 85 Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000 units of this part are as follows:

Direct materials	$89,000
Direct labor	$125,000
Variable factory overhead	$59,000
Fixed factory overhead	$139,000
Total costs	$412,000

Of the fixed factory overhead costs, $58,000 is avoidable.

Assuming no other use of their facilities, the highest price that Ball 85 should be willing to pay for 12,000 units of the part is:

Group of answer choices

$412,000

$273,000

$331,000

$353,000

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Flag question: Question 26

Question 263 pts

Kinkaid's Fine Cutlery manufactures two models: Standard and Premium. Weekly demand is estimated to be 100 units of the Standard Model and 72 units of the Premium Model. The following per unit data apply:

	Standard	Premium
Contribution margin per unit	$24	$30
Number of machine hours required	3	5

If there are 495 machine hours available per week, how many of each model should Kinkaid produce to maximize profits?

Group of answer choices

100 units of Standard and 39 units of Premium

45 units of Standard and 72 units of Premium

100 units of Standard and 72 units of Premium

83 units of Standard and 50 units of Premium