Question 1 2 pts Tisdale Company is considering a plan to discontinue their widgets line, which produces revenues of $250,000 and costs of $400,000 (75% variable, 25% fixed). The effect on net income of no longer manufacturing widgets is a: $150,000 increase. $0 $50,000 increase. $50,000 decrease. 2 pts Question 4 Which of the following is NOT true of joint costs? They involve a common raw material or manufacturing process. They are sunk costs in deciding whether to process a joint product further before selling it, or to sell it in its condition at split off They are incurred after the point where the joint products split off from each other. Management can use differential analysis to decide whether to process a joint product further. Question 10 2 pts Lucas Company produces 16,000 units, operating at 80 percent of capacity. Spielberg Corp. offers to buy 4,000 units at $20 per unit. Coppola, Inc. wants 3,000 units at $25 per unit. If Lucas' variable costs are $10 per unit, which offer should it accept and what will be the effect on net income? Spielberg, $80,000 increase Coppola, $45,000 increase Coppola, $75,000 increase Spielberg, $40,000 increase Question 14 2 pts The projected income statement is typically: not prepared. All of the other answers are incorrect. prepared prior to the projected balance sheet. prepared after the projected balance sheet. 2 pts Question 16 The Steuben Company expects purchases for 2017 to be $160,000 in the first quarter, $240,000 in the second quarter, $190,000 in the third quarter, and $300,000 in the last quarter. All purchases are made on credit. 90% of purchases are paid for in the quarter purchased. 10% are paid for in the quarter following purchase. Other cash expenses paid each quarter are: taxes, $40,000; wages, $120,000; rent, $16,000; interest, $4,000; and miscellaneous, $3,000. If the company plans to pay a $21,000 cash dividend in the third quarter of 2017, planned cash disbursements in the third quarter will be: $423,000 $436,000 $399,000 $493,000 Question 17 2 pts $399,000 $493,000 2 pts Question 17 The Stanley Company expects its sales to be $100,000 for the first quarter of 2017. It estimates that sales will increase by $10,000 each quarter. Based on past experience, it estimates that 60% of each quarter's sales will be charged by the customer, 75% of which will be collected in that same quarter and 25% of which will be collected in the following quarter. The beginning balance in the Accounts Receivable account is $14,400, all of which will be collected in cash in the first quarter. What amount of the Accounts Receivable will be collected in the fourth quarter? $12,900 $97,500 $58,500 $76,500 D Question 18 2 pts True False 2 pts Question 21 Roberto Corporation has a December 31, 2016, Accounts Receivable balance of $100,000 of which $80,000 applies to December's sales. Sales for January 2017 are budgeted at $400,000. 75% of sales are collected in the month of sale, 20% in the following month, and 5% in the second following month. Which of the following statements is TRUE? Sales for November 2016 were $400,000. All of the other answers are true. Sales for December 2016 were $320,000. Collections of receivables during January will be $384,000. 2 pts D Question 22 Imported From Sa... New folder (54,518 unread) -.. myFsC Question 22 2 pts The following report compares budgeted and actual costs and production for the milling department of the Stuart Company for the month of July 2016: Materials, direct labor, and supplies are considered completely variable costs. Maintenance was originally budgeted at $6,000 plus $0.07 per unit of output. Using the data given above to evaluate the performance of the milling department in the month of July, which of the fol lowing statements is TRUE? All of the other answers are true. There is actually an unfavorable variance for direct labor of $2,600. OThere is actually an unfavorable variance for materials of $2,400. There is actually an unfavorable variance in maintenance costs incurred of $2,280