Multiple-Choice Osc a ch 1) The SP Corporation cost per mort this level of activity is 4.000 The Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead An outside supplier recently began producing a companhe motor The price offered to SP Corporation for this motoris 52 35. bei de die SP Corpo motors, there would be no other use for the production facilities and one of the fa decides to c t overhead cost could be avoided. Direct lahor is a vie w in this con . The ancial advantage (disadvantage) for the company as a result of making the m o ther than the the outside supplier would be A) S215,600 B) 5297.000 C) ( 500) D) 10 2) Given the following data: $ 1. 0 00 1440 Average operating assets Total liabilities Sales Contribution margin Net operating income 5150 164.540 Return on investment (ROI) is: C) 15.0% D) 12.9% A) 39.0% B) 16.0% 3) Largo Company recorded for the past year sales of $730,000 and average operating sets of 5292.000 D) 12.00% What is the margin that Largo Company needed to cam in order to achieve an Rol of 30 C) 13.00% B) 2.50% A) 30.00% 4) Suver Corporation has a standard costing system. The following data are available for an $ 60.000 2.00 7200 3000 pounds per pound Unfavorable Favorable $ Actual quantity of direct materials purchased Standard price of direct materials Material price variance Material quantity variance D) $2.12 per pound C) 52.00 per pound The actual price per pound of direct materials purchased in June was B) $1.88 per pound A) $2.10 per pound