MCQ questions

Q7. The cost of inventory reported on the balance sheet may include all the following EXCEPT: (4 Marks) Wages of the plant supervisor. Depreciation of the factory equipment. Customer-service costs. The cost of parts used in the manufacturing process. DOW} Q8. A company manufactures washing machines. The budgeted output is 1,500 washing machines each accounting period. The standard cost of each washing machine includes 0.25 hours of direct labour at f16 an hour. The following information is available for a particular accounting period: 1,350 washing machines were made 340 hours of labour were worked at the cost of $5, 100 What are the labour rate and labour efficiency variances? (5 Marks) A Labour rate f340 favourable; labour efficiency $40 favourable. Labour rate f1,360 favourable; labour efficiency f160 favourable. Labour rate f1,360 favourable; labour efficiency f160 adverse. Labour rate E340 favourable; labour efficiency $40 adverse.09. A company has a contribution margin ratio of 35%. They are contemplating an advertising campaign that will cost 25,000. If sales increase by 75,000, what will be the impact on the company's profit? (4 Marks) It will increase by 1,250 It will decrease by 1,250 It will increase by 17,500 It will decrease by 17,500 DOW)