Question 1 (5 points) The balanced Scorecard measures only financial information only nonfinancial information both financial and nonfinancial information external and internal information Question 4 (5 points) Materials used by Square Yard Products Inc. in producing Division 3's product are currently purchased from outside suppliers at a cost of $5 per unit. However, the same materials are available from Division 6. Division 6 has unused capacity and can produce the materials needed by Division 3 at a variable cost of $3 per unit. A transfer price of $3.20 per unit is established, and 40,000 units of material are transferred, with no reduction in Division 6's current sales. How much will Division 3's income from operations increase? O $150,000 O $50,000 $32,000 $72,000 Question 6 (5 points) Miramar Industries manufactures two products: A and B. The manufacturing operation involves three overhead activities--production setup, material handling, and general factory activities. Miramar uses activity-based costing to allocate overhead to products. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities: Activity Production setup Material handling General overhead Cost $250,000 150,000 80,000 Activity Base Number of setups Number of parts Number of direct labor hours Each product's total activity in each of the three areas are as follows: Number of setups Number of parts Number of direct labor hours Product A 100 40,000 8,000 Product B 300 20,000 12.000 Material handling General overhead 150,000 80,000 Number of parts Number of direct labor hours Each product's total activity in each of the three areas are as follows: Number of setups Number of parts Number of direct labor hours Product A 100 40,000 8,000 Product B 300 20,000 12,000 What is the activity rate for material handling? $1.50 per part $3.75 per part $7.50 per part $2.50 per part Question 12 (5 points) The management of River Corporation is considering the purchase of a new machine costing $380,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability of this investment: Income from Operations Net Cash Flow Year 1 $20,000 595,000 2 20,000 95,000 3 20,000 95,000 4 20,000 95,000 5 20,000 95.000 The cash payback period for this investment is Year 1 $20,000 95,000 2 20,000 95,000 3 20,000 95,000 4 20,000 95,000 5 20.000 95,000 The cash payback period for this investment is 4 years 5 years 20 years 3 years
