PLEASE HELP ME ANSWER ALL QUESTIONS THANKS! im begging struggling by 10/28/15 10:00 pm

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12.

Barr Company makes steel and titanium handle bars for bicycles. It requires approximately 1 hour of labor to make one handle bar of either type. During the most recent accounting period, Barr Company made 6,900 steel bars and 3,100 titanium bars. Setup costs amounted to $43,000. One batch of each type of bar was run each month. If a single company-wide overhead rate based on direct labor hours is used to allocate overhead costs to the two products, the amount of setup cost assigned to the steel bars will be:

$4,300.

$29,670.

$13,330.

$43,000.

13.

The Ted Company is considering eliminating the following product line:

	Product AXP
Sales	$59,000
Less variable costs:
Raw materials	34,500
Direct labor	12,600
Contribution margin	$11,900
Less fixed costs:
Production costs allocated to products	18,800
Profit (loss)	$(6,900)

What amount of cost is avoidable if Ted outsources production of this product?

$47,100

$6,900

$65,900

$40,200

14.

Scott Tools produces a variety of scissors and other cutting instruments at its Statesboro manufacturing plant. The plant is highly automated and uses an activity-based costing system to allocate overhead costs to its various product lines. The company expects to produce 31,000 total units during the current period. The costs and cost drivers associated with four activity cost pools are given below:

ACTIVITIES:	UNIT	BATCH	PRODUCT	FACILITY
	LEVEL	LEVEL	LEVEL	LEVEL
Cost	$75,000	?	$24,000	$279,000
Cost Driver	5,000 labor hrs	140 set ups	% of use	31,000 units

Production of 2,000 units of a pipe-cutting tool required 500 labor hours, 17 setups, and consumed 30 % of the product sustaining activities and resulted in an overhead allocation of $35,420. What amount of batch-level overhead costs was expected during the period? (Do not round intermediate calculations.)

$2,720

$22,400

$32,700

None of these answers is correct.

15.

Great Products Company currently outsources a relay switch that is a component in one of its products. The switches cost $33 each. The company is considering making the switches internally at the following projected annual production costs:

Unit-level material cost	$8
Unit-level labor cost	$7
Unit-level overhead	$6
Batch-level set-up cost (9,000 units per batch)	$40,000
Product-level supervisory salaries	$45,000
Allocated facility-level costs	$35,000

The company expects an annual need for 9,000 switches. If the company makes the product, it will have to utilize factory space currently being leased to another company for $3,000 a month. If the company decides to make the parts, total costs will be:

$48,000 more than if the switches are purchased.

$35,000 less than if the switches are purchased.

$13,000 more than if the switches are purchased.

$32,000 less than if the switches are purchased.

16.

Breezy Company is disposing of equipment that was originally purchased for $310,000 and has $121,000 of accumulated depreciation to date. The same equipment would cost $430,000 to replace. What is the total amount of sunk cost?

$189,000

$430,000

$310,000

$121,000

17.

Sea Island Company is trying to decide which one of two alternatives it will accept. The costs and revenues associated with each alternative are listed below:

	Alternative A	Alternative B
Projected revenue	$155,000	$190,000
Unit-level costs	29,000	40,000
Batch-level costs	16,500	28,000
Product-level costs	19,000	21,000
Facility-level costs	14,000	16,500

What is the differential revenue for this decision?

$190,000

$35,000

$155,000

$60,000

18.

Serious Safety Products currently outsources an electrical switch that is a component in its sprinkler systems. The switches are purchased for $26 each. The company is considering making the switches internally and has conducted a study to determine the costs involved. The costs below are projected annual production costs:

Unit-level material cost	$7
Unit-level labor cost	$6
Unit-level overhead	$5
Batch-level cost (9,000 units per batch)	$9,000
Product-level supervisory salaries	$39,500
Allocated facility-level costs	$24,000

Assume that the company needs 18,000 of the switches, which would be produced in three batches. Assume also that the company will still be operating within the relevant range. If Serious Safety decides to make the parts under these conditions, the total relevant costs will be:

$405,500.

$396,500.

$372,500.

$381,500.

19.

The Clear Music Company produces and sells a desktop speaker for $270. The company has the capacity to produce 67,000 speakers each period. At capacity, the costs assigned to each unit are as follows:

Unit level costs	$130
Product level costs	$32
Facility level costs	$22

The company has received a special order for 18,000 speakers. If this order is accepted, the company will have to spend $27,000 on additional costs. Assuming that no sales to regular customers will be lost if the order is accepted, at what selling price will the company be indifferent between accepting and rejecting the special order? (Do not round your intermediate calculations. Round your final answer to two decimal places.)

$131.50

$181.50

$142.00

$139.00

20.

Gleam Clean cleans and waxes floors for commercial customers. The company is presently operating at less than capacity with equipment and employees idle at times. The company recently received an order from a potential customer outside the company's normal geographic service region for a price of $26,000. The size of the proposed job is 39,000 square feet. The company's normal service costs are as follows:

Unit-level materials	$0.35 per square foot
Unit-level labor	$0.42 per square foot
Unit-level variable overhead	$0.25 per square foot
Facility-level overhead	Allocated at $0.27 per square foot

If the company accepts the special offer:

The company will lose $4,030 on the job.

The company will lose $24,310 on the job.

The company will lose $13,780 on the job.

The company will earn $12,350 on the job.

21.

Max bought a ticket to the championship baseball game for $125. Someone approaches him outside the stadium and offers him $275 for his ticket. If Max decides to go to the game, instead of selling his ticket, how much does it cost Max to go to the game?

$275

$150

$125

None of the above

22.

Lucinda purchased a raffle ticket for $27. Just before the grand prize drawing two people tried to buy her ticket. The first person offered $120, and another offered $155. What is Lucinda's opportunity cost of keeping the raffle ticket?

$155

$147

$54

$182