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Please find these multiple choice , they have the correct answer but I need you to show me how they found the answers ; I

Please find these multiple choice , they have the correct answer but I need you to show me how they found the answers ; I need rules and show me step by step .image text in transcribed

19. Allegiance, Inc. has $125,000 of inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell the goods "as is" for $45,000; alternatively, the goods can be cleaned and shipped to the firm's outlet center at a cost of $23,000. There the goods could be sold for $80,000. What alternative is more desirable and what is the relevant cost for that alternative? A. Sell "as is," $125,000. B. Clean and ship to outlet center, $23,000. C. Clean and ship to outlet center, $103,000. D. Clean and ship to outlet center, $148,000. E. Neither alternative is desirable, as both produce a loss for the firm. 20. In early July, Mike Gottfried purchased a $70 ticket to the December 15 game of the Chicago Titans. (The Titans belong to the Midwest Football League and play their games outdoors on the shore of Lake Michigan.) Parking for the game was expected to cost approximately $22, and Gottfried would probably spend another $15 for a souvenir program and food. It is now December 14. The Titans were having a miserable season and the temperature was expected to peak at 5 degrees on game day. Mike therefore decided to skip the game and took his wife to the movies, with tickets and dinner costing $50. The sunk cost associated with this decision situation is: A. $20. B. $50. C. $70. D. $107. E. some other amount. 21. In early July, Jim Lopez purchased a $70 ticket to the December 15 game of the Chicago Titans. (The Titans belong to the Midwest Football League and play their games outdoors on the shore of Lake Michigan.) Parking for the game was expected to cost approximately $22, and Lopez would probably spend another $15 for a souvenir program and food. It is now December 14. The Titans were having a miserable season and the temperature was expected to peak at 5 degrees on game day. Jim is thinking about skipping the game and taking his wife to the movies and dinner, at a cost of $50. The amount of sunk cost that should influence Jim's decision to spend some time with his wife is: A. $0. B. $20. C. $50. D. $70. E. some other amount. 25. Susan is contemplating a job offer with an advertising agency where she will make $54,000 in her first year of employment. Alternatively, Susan can begin to work in her father's business where she will earn an annual salary of $38,000. If Susan decides to work with her father, the opportunity cost would be: A. $0. B. $38,000. C. $54,000. D. $92,000. E. irrelevant in deciding which job offer to accept. 29. Two months ago, Victory Corporation purchased 4,500 pounds of Hydrol, paying $15,300. The demand for this product has been very strong since the acquisition, with the market price jumping to $4.05 per pound. (Victory can buy or sell Hydrol at this price.) The company recently received a special-order inquiry, one that would require the use of 4,200 pounds of Hydrol. Which of the following is (are) relevant in deciding whether to accept the special order? A. The 300-pound remaining inventory of Hydrol. B. The $4.05 market price. C. The $3.40 purchase price. D. 4,500 pounds of Hydrol. E. Two or more of the above factors are relevant. 31. Mueller has been approached about providing a new service to its clients. The company will bill clients $140 per hour; the related hourly variable and fixed operating costs will be $75 and $18, respectively. If all employees are currently working at full capacity on other client matters, the per-hour opportunity cost of being unable to provide this new service is: A. $0. B. $47. C. $65. D. $93. E. $140. 32. Snyder, Inc., which has excess capacity, received a special order for 4,000 units at a price of $15 per unit. Currently, production and sales are anticipated to be 10,000 units without considering the special order. Budget information for the current year follows. Cost of goods sold includes $30,000 of fixed manufacturing cost. If the special order is accepted, the company's income will: A. increase by $2,000. B. decrease by $2,000. C. increase by $14,000. D. decrease by $14,000. E. change by some other amount. 33. S'Round Sound, Inc. reported the following results from the sale of 24,000 units of IT-54: Rhythm Company has offered to purchase 3,000 IT-54s at $16 each. Sound has available capacity, and the president is in favor of accepting the order. She feels it would be profitable because no variable selling costs will be incurred. The plant manager is opposed because the "full cost" of production is $17. Which of the following correctly notes the change in income if the special order is accepted? A. $3,000 decrease. B. $3,000 increase. C. $12,000 decrease. D. $12,000 increase. E. None of these. 34. CompuTronics, a manufacturer of computer peripherals, has excess capacity. The company's Utah plant has the following per-unit cost structure for item no. 89: The traceable fixed administrative cost was incurred at the Utah plant; in contrast, the allocated administrative cost represents a "fair share" of CompuTronics' corporate overhead. Utah has been presented with a special order of 5,000 units of item no. 89 on which no selling cost will be incurred. The proper relevant cost in deciding whether to accept this special order would be: A. $40. B. $59. C. $61. D. $80. E. some other amount. 35. Gorski Corporation manufactures parts that are used in the production of washers and dryers. The following costs are associated with part no. 65: The company received a special-order inquiry from an appliance manufacturer in Spain for 15,000 units of part no. 65. Only $3 of fixed manufacturing will be incurred on the order, and the variable selling costs per unit will amount to only $5. Since Gorski has excess capacity, the minimum price that Gorski should charge the Spanish manufacturer is: A. $96. B. $99. C. $105. D. $108. E. some other amount. 37. Torrey Pines is studying whether to outsource its Human Resources (H/R) activities. Salaried professionals who earn $390,000 would be terminated; in contrast, administrative assistants who earn $120,000 would be transferred elsewhere in the organization. Miscellaneous departmental overhead (e.g., supplies, copy charges, overnight delivery) is expected to decrease by $30,000, and $25,000 of corporate overhead, previously allocated to Human Resources, would be picked up by other departments. If Torrey Pines can secure needed H/R services locally for $410,000, how much would the company benefit by outsourcing? A. $10,000. B. $35,000. C. $130,000. D. $155,000. E. Nothing, as it would be cheaper to keep the department open. 38. Song, a division of Carolina Enterprises, currently makes 100,000 units of a product that has created a number of manufacturing problems. Song's costs follow. If Song were to discontinue production, fixed manufacturing costs would be reduced by 70%. The relevant cost of deciding whether the division should purchase the product from an outside supplier is: A. $540,000. B. $594,000. C. $666,000. D. $720,000. E. $726,000. 39. Maddox, a division of Stanley Enterprises, currently performs computer services for various departments of the firm. One of the services has created a number of operating problems, and management is exploring whether to outsource the service to a consultant. Traceable variable and fixed operating costs total $80,000 and $25,000, respectively, in addition to $18,000 of corporate administrative overhead allocated from Stanley. If Maddox were to use the outside consultant, fixed operating costs would be reduced by 70%. The irrelevant costs in Maddox's outsourcing decision total: A. $17,500. B. $18,000. C. $25,000. D. $25,500. E. some other amount. 44. The Shoe Department at the El Paso Department Store is being considered for closure. The following information relates to shoe activity: If 70% of the fixed operating costs are avoidable, should the Shoe Department be closed? A. Yes, El Paso would be better off by $23,000. B. Yes, El Paso would be better off by $50,000. C. No, El Paso would be worse off by $13,000. D. No, El Paso would be worse off by $40,000. E. None of these. 45. Summers Corporation is composed of five divisions. Each division is allocated a share of Summers's overhead to make divisional managers aware of the cost of running the corporate headquarters. The following information relates to the Metro Division: If the Metro Division is closed, 100% of the traceable fixed operating costs can be eliminated. What will be the impact on Summers's overall profitability if the Metro Division is closed? A. Decrease by $200,000. B. Decrease by $500,000. C. Decrease by $2,100,000. D. Decrease by $2,400,000. E. None of these. 46. Ortega Interiors provides design services to residential and commercial clients. The residential services produce a contribution margin of $450,000 and have traceable fixed operating costs of $480,000. Management is studying whether to drop the residential operation. If closed, the fixed operating costs will fall by $370,000 and Ortega's income will: A. increase by $30,000. B. increase by $80,000. C. increase by $340,000. D. decrease by $80,000. E. decrease by $340,000. HiTech manufactures two products: Regular and Super. The results of operations for 20x1 follow. Fixed manufacturing costs included in cost of goods sold amount to $3 per unit for Regular and $20 per unit for Super. Variable selling expenses are $4 per unit for Regular and $20 per unit for Super; remaining selling amounts are fixed. 48. HiTech wants to drop the Regular product line. If the line is dropped, company-wide fixed manufacturing costs would fall by 10% because there is no alternative use of the facilities. What would be the impact on operating income if Regular is discontinued? A. $0. B. $10,400 increase. C. $20,000 increase. D. $39,600 decrease. E. None of these. 49. Disregard the information in the previous question. If HiTech eliminates Regular and uses the available capacity to produce and sell an additional 1,500 units of Super, what would be the impact on operating income? A. $28,000 increase B. $45,000 increase C. $55,000 increase D. $85,000 increase E. None of these. 54. Lido manufactures A and B from a joint process (cost = $80,000). Five thousand pounds of A can be sold at split-off for $20 per pound or processed further at an additional cost of $20,000 and then sold for $25 per pound. If Lido decides to process A beyond the split-off point, operating income will: A. increase by $10,000. B. increase by $20,000. C. decrease by $10,000. D. decrease by $20,000. E. increase by $5,000. 55. Lido manufactures A and B from a joint process (cost = $80,000). Ten thousand pounds of B can be sold at split-off for $15 per pound or processed further at an additional cost of $20,000 and later sold for $16. If Lido decides to process B beyond the split-off point, operating income will: A. increase by $10,000. B. increase by $20,000. C. decrease by $10,000. D. decrease by $20,000. E. decrease by $58,000. Laredo manufactures Nuts and Bolts from a joint process (cost = $80,000). Five thousand pounds of Nuts can be sold at split-off for $20 per pound; ten thousand pounds of Bolts can be sold at split-off for $15 per pound. For product costing purposes Laredo allocates joint costs using the relative sales value method. 56. The amount of joint cost allocated to Nuts would be: A. $32,000. B. $40,000. C. $48,000. D. $60,000. E. $80,000. 57. The amount of joint cost allocated to Bolts would be: A. $32,000. B. $40,000. C. $48,000. D. $60,000. E. $80,000. 58. The amount of joint cost allocated to Nuts and Bolts, respectively, would be: A. $32,000 and $40,000. B. $32,000 and $48,000. C. $48,000 and $32,000. D. $40,000 and $32,000. E. $40,000 and $40,000. 62. Wright Enterprises, which produces various goods, has limited processing hours at its manufacturing plant. The following data apply to product no. 607: Sales price per unit: $9.60 Variable cost per unit: $6.20 Process time per unit: 4 hours Management is now studying whether to devote the firm's limited hours to product no. 607 or to other products. What key dollar amount should management focus on when determining no. 607's "value" to the firm and deciding the best course of action to follow? A. $0.85. B. $2.40. C. $3.40. D. $6.20. E. $9.60. Smythe Manufacturing has 27,000 labor hours available for producing X and Y. Consider the following information: 63. If Smythe follows proper managerial accounting practices, how many units of Product X should it produce? A. 5,000. B. 1,500. C. 8,000. D. 4,500. E. 6,000. 64. If Smythe follows proper managerial accounting practices, how many units of Product Y should it produce? A. 8,000. B. 4,500. C. 6,000. D. 5,000. E. 1,500. 66. Buchnell Manufacturing has 31,000 labor hours available for producing M and N. Consider the following information: If Buchnell follows proper managerial accounting practices in terms of setting a production schedule, how much contribution margin would the company expect to generate? A. $31,450. B. $63,100. C. $66,700. D. $78,100. E. None of these. Johnstone Company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from the previous year follows. Fixed costs of $20,000 per year are presently allocated equally between both products. If the product mix were to change, total fixed costs would remain the same. 67. The contribution margin per machine hour for Floor Deodorizer is: A. $0.25. B. $2.00. C. $4.00. D. $5.00. E. $20.00

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