Question
ONE : Mallorys Video Supply has changed its focus tremendously and as a result has dropped the selling price of DVD players from $50.5 to
ONE:
Mallorys Video Supply has changed its focus tremendously and as a result has dropped the selling price of DVD players from $50.5 to $37.0. Some units in the work-in-process inventory have costs of $30.0 per unit associated with them, but Mallory can only sell these units in their current state for $21.0 each. Otherwise, it will cost Mallory $11.5 per unit to rework these units so that they can be sold for $37.0 each. What is the profit/loss per unit if the units are processed further?
TWO:
Queen Industries uses a standard costing system in the manufacturing of its single product. It requires 2 hours of labor to produce 1 unit of final product. In February, Queen Industries produced 10,000 units. The standard cost for labor allowed for the output was $92,500, and there was an unfavorable direct labor time variance of $5,200. How many actual hours were worked ?
THREE:
Youngstown Construction plans to discontinue its roofing segment. Last year, this segment generated a contribution margin of $30,000 and incurred $68,000 in fixed costs. Discontinuing the segment will allow the company to avoid 45% of the fixed costs. What effect is expected to occur to the companys overall profit?
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