Management Accounting. 10 Multiple Choices. Only solutions needed. Ensure at least 8 of 10 are correct.

1. Zoota Ltd makes four products: Alta, Bepha, Delma and Gamta. The selling price and per unit costs are show below. Alta and Delma share the same factory; therefore, monthly rent is allocated equally between the two products. Other allocated monthly fixed costs include administrative costs, which are allocated based on a $2/unit charge. What will be the company's total fixed cost (excluding rent) after Delma is dropped? (Assuming that sales volume = production volume). Select one: A $30 000 B $40 000 C $50 000 D $60 000 2. RsQ_006Cartel Ltd has introduced a new product with a target price of $240 and a profit requirement of 33.3 per cent on sales. What is the target cost? Select one: A $120 B $160 C $180 D $200 3. Davison's incremental cost per unit associated with the special order is Select one: A $17. B $16. C $15. D $13. 4. If Victoria accepts the special order, the effect on income would be a Select one: A $60,000 increase. B $180,000 increase. C $420,000 increase. D $600,000 decrease. 5. Cruises, Inc., operates two divisions: a management division that owns and manages cruise ships in the Florida Keys and a repair division that operates a dry dock in Marble Sand Florida. The repair division works on company ships, as well as other largehull ships. The repair division has an estimated variable cost of $28.50 per laborhour. The repair division has a two backlog of work for outside ships. They charge $48.00 per hour for labor, which is standard for this type of work. The management division complained that it could hire its own repair workers for $30.00 per hour, including leasing an adequate work area. What is the maximum transfer price per hour that the management division should pay? Select one: A $28.50 B $30.00 C $39.00 D $46.50 6. Cruises, Inc., operates two divisions: a management division that owns and manages cruise ships in the Florida Keys and a repair division that operates a dry dock in Marble Sand Florida. The repair division works on company ships, as well as other largehull ships. The repair division has an estimated variable cost of $28.50 per laborhour. The repair division has a two backlog of work for outside ships. They charge $48.00 per hour for labor, which is standard for this type of work. The management division complained that it could hire its own repair workers for $30.00 per hour, including leasing an adequate work area. If the repair division had idle capacity, what is the minimum transfer price that the repair division should obtain? Select one: A $28.50 B $30.00 C $39.00 D $46.50 7. DeleteYou manufactures keyboards. The quality manager recently estimated that 40% of the keyboards sold last year had attracted complaints from customers regarding the poor quality materials used in the keyboards. As a result, she has decided to increase incoming material inspection: staff will now inspect 10% of incoming materials instead of 1% of incoming materials. What is the likely effect of this action? Select one: A External failure costs will increase B Internal failure costs will increase C Prevention costs will increase D Appraisal costs will decrease 8. The conventional view of quality loss is that: Select one: A There is no such thing as an external failure cost B There are costs associated with variable product quality within specified upper and lower control limits C There are no costs associated with variable product quality within specified upper and lower control limits D There is no such thing as an internal failure cost 10. Refer to the following Activity Cost $000s Machine operator recruitment costs 65 Machine breakdown repairs 50 Warranty repairs 24 Training costs for machine operators 58 Handling customer complaints 28 Quality testing 30 Predelivery inspection of finished goods 34 Inspection of warranty repair work 45 Rework of faulty goods found during inspection 58 Inspection of partially completed goods 60 The total cost of nonconformance is: Select one: A $7 000 B $108 000 C $205 000 D $160 000 10 .Lower sales due to poor product performance is an example of a(n) Select one: A prevention cost. B appraisal cost. C internal failure cost. D external failure cost