Pick the Correct answer, show work 11. Last night, Shirley worked on her accounting homework for one and one half hours. During that time, she completed 6 problems. What is the cycle time for one problem? a. 15 minutes b. 90 minutes c. 4 minutes d. 10 minutes e. 6 minutes 12. A company is considering a special order for 1,000 units to be priced at $8.90 (the normal price would be $11.50). The order would require specialized materials costing $4.00 per unit. Direct labor and variable factory overhead would cost $2.15 per unit. Fixed factory overhead is $1.20 per unit. However, the company has excess capacity and acceptance of the order would not raise total fixed factory overhead. The warehouse, however, would have to add capacity costing $1,300. Which of the following is relevant to the special order? a. $11.50 normal selling price b. $1.20 fixed factory overhead per unit c. $7.35 spent on donuts and coffee d. $8.90 selling price per unit of special order e. none of these 13. Stein Company makes carpets. A customer wants to place a special order for 1,000 carpets in navy blue with the company logo woven in the middle, to be priced at $30 each. Normally, Stein would charge $60 per carpet for this type of order. Stein figures that yarn and backing will cost $12 per carpet, variable overhead (machining, electricity) is $5 per carpet, direct labor is $10 per carpet, and one setup will be required at $800 per setup. The set-up charge costs are 100% labor. Currently, the workers needed to set up for and make the carpets are working at Stein. Their wages will be paid whether or not the special order is accepted. Steins policy is to avoid layoffs to the extent possible. Which costs of the special order relate to flexible resources? a. yarn and backing b. yarn, backing and variable overhead c. depreciation on machinery d. yarn, backing, and direct labor e. yarn, backing, direct labor, and setup labor 14. Which of the following is a qualitative factor that Stein would consider in making the decision to accept or reject the special order? a. cost of yarn and backing b. cost of setup labor c. the no-layoff policy d. the use of machinery e. the machining and electricity 15. Which of the following is irrelevant to the special order decision? a. cost of yarn and backing b. direct labor cost c. machining and electricity cost d. $30 price e. all of these are relevant 16. If Stein accepts the special order, by how much will operating income increase or decrease? a. $13,000 increase b. $13,000 decrease c. $3,000 increase d. $3,000 decrease e. there will be no effect on operating income