Managerial accounting

8. Lyons Company consists of two divisions, A and B. Lyons Company reported a contribution margin of $50,000 for Division A, and had a contribution margin ratio of 30% in Division B, when sales in Division B were $200,000. Net operating income for the company was and traceable fixed expenses were $40,000. Lyons Company's common fixed expenses ( $25,000 ) were: A. $85,000 B. $70,000 C. $45,000 D. $40,000 Show your work! 9. Lounsberry Inc. regularly material for which it paid $2,484 several weeks ago. If this were to be sold as is on the open uses material O55P and currently has in stock 360 liters of the market surplus material, it would fetch $6.35 per liter. New stocks of the material can be on the open market for $6.90 per liter, but it must be purchased in lots of 1,000 liters. as purchased You have been asked to determine the relevant cost of 800 liters of the material to be used in a job for a customer. The relevant cost of the 800 liters of material O55P is: A. $5,080 B. $5,322 C. $5,520 D. $6,900 Show your work! 10. (Ignore income taxes in this problem.) The following data pertain to an investment $18,955 Cost of the investment 5 years $5,000 $1.000 10e Life of the project. nnual cost savings.. Estimated salvage value Discount rate. E The net present value of the proposed investment is: ( A. $621 B. $3,355 C. S(3,430) D. $0 Show your work! Present value tables are in the next pages. Part IL. 7points each-5 questions 6 Marpie Company's budgeted production in units and budgeted raw materials purchases over the next three months are given below: January February March Budgeted production (in uaits) Badgeted ranw materials parchases (in pounds). 60,000 100,000 129.000 165,000 188.000 Two pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 30% of the following month's prodaction needs. The company is expected to have 36,000 pounds of raw materials on hand on January 1. Budgeted production for February should be: ( ) A. 105,000 units B. 82,500 units C. 150,000 units D. 75,000 units Show your work! 7. Hanson Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 17,000 units in its beginning work in process inventory that were 60% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $90,780. An additional 84,000 units were started into production during the month and 82,000 units were completed in the Welding Department and transferred to the next processing department. There were 19,000 units in the ending work in process inventory of the Welding Department that were 40 % complete with respect to conversion costs. A total of $690,780 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs is closest to: ( ) A. $6.707 B. $8.224 C. $8.900 D. $8.723 Show your work! 2