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QUESTION 14 Cuevas Company produces magic swords. It uses units as the cost driver for overhead. The following information was provided concerning its standard cost
QUESTION 14 Cuevas Company produces magic swords. It uses units as the cost driver for overhead. The following information was provided concerning its standard cost system for 2014: Standard/Budgeted Data Material y lb. @ $15.00 per Labor 1.2 hrs. @ $12 per Fixed overhead $62,000 Variable $11 per unit overhead Production 2,000 units Actual Data Produced 12,100 units Materials 1,050 lbs. for $14,700 purchased Materials used 1,080 lbs. Labor worked 12,500 hrs. costing $29,375 Overhead $82,000 How much is the standard cost per unit? $21.90 $63.90 $69.00 $62.42 QUESTION 19 Which of the following statements is true? 1. Managers have a tendency to overinvest when return on investment is used as a performance measure. II. Managers have a tendency to underinvest when profit is used as a performance measure. Ol only Oll only O Both I and I Neither I nor II QUESTION 21 An adjustment is made to net income when calculating residual income to remove O noninterest-bearing current liabilities. interest and the related tax effect. O financing costs that the manager is able to control. O accounting distortions. QUESTION 24 Economic value added is residual income adjusted for noninterest-bearing current liabilities. interest and the related tax effect. financing costs that the manager is unable to control. accounting distortions
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