Page 1: Which of the following is irrelevant when deciding to upgrade a company's heating and air conditioning system? 1 2 3 > a) the productivity of the old equipment compared to that of the new equipment 5 b) the safety of the new equipment compared to the old equipment 7 8 9 c) the purchase price of the old equipment compared to the purchase price of the new equipment 10 11 12 d) the energy efficiency of the old equipment versus the energy efficiency of the new equipment 13 14 15 16 17 18 19 20 21 Question 14 (Mandatory) (5 points) In a make or buy decision, the costs involved in buying will include: a) The charge from the vendor, plus the depreciation of any equipment you were unable to sell when making the change from making to buying. O) All of your manufacturing overhead, since it did not change when you decided to buy c) The charge from the vendor for the product. MacBook Air D View THIL TUI YUSUNO Page 1: 1 3 2 Question 7 (5 points) Analyzing a variance can help a business to: 4 5 6 a) Learn who is responsible for a budgeting error. b) Learn who should be blamed for unfavorable variances. 7 B 9 10 11 12 c) Know when to hire or lay off employees or find lower priced sources for materials, 13 14 15 d) Learn whether a variance is significant and if the budget needs to be updated or any improvements need to be made in business operations. 16 17 18 19 20 21 Question 8 (5 points) Meow Products Ltd. produces and sells scratching posts for cats. In the current year, the company had expected to sell 35,000 products but actually produced and sold 20,000 products. The following information is available regarding the standard cost to produce a single product: Direct materials: 1.5 feet @ $2.00 per foot. In the current year, 50,000 feet of material were purchased and used at a cost of $1.50 per foot. Refer to the Meow Products Ltd. information above. The company's direct materials quantity variance for the current year is: MacBook Air 44 20 FI * # $ 4 % 5 & 7 8 6 3