Question
QUESTION 15 If West Star received a special order for 500 computers at a price of $275, what will be the effect on the company's
QUESTION 15
- If West Star received a special order for 500 computers at a price of $275, what will be the effect on the company's profit if the order is accepted? (Assume that other variables do not change).
Direct materials | $48 | ||
Direct labor | $90 | ||
Variable manufacturing overhead | $62 | ||
Direct fixed manufacturing overhead | $40 | ||
Indirect fixed manufacturing overhead | $40 | ||
Increase $7,500 |
| ||
Increase $17,500 |
| ||
$37,500 |
| ||
$2,500 |
|
QUESTION 16
- Newell Company presently has three product lines: paper, stamps, and computer ribbons The company is considering discontinuing the stamp line. Given the following information, if Newel discontinues the stamp line, what would the net income be?
Sales revenue | $48,000 | ||
Variable costs | ($30,000) | ||
Direct fixed costs | ($12,000) | ||
Indirect fixed costs | ($9,000) | ||
|
| ||
Not Loss | ($3,000) | ||
Increase by $3,000 |
| ||
Decrease by $6,000 |
| ||
Decrease by $9,000 |
| ||
Decrease by $12,000 |
|
QUESTION 17
- How much cash will be needed to pay the following general and administrative expenses?
Advertising expense | $4,500 | ||
Executive salaries expense | $10,000 | ||
Depreciation expense | $5,250 | ||
Amortization of patent | $1,225 | ||
Interest expense | $750 | ||
$15,250
|
| ||
$20,500
|
| ||
$21,725 |
| ||
None of the above |
|
QUESTION 18
- Using the following infomration relating to Royal One Company's operations for the monht of July, determine the labor rate variance.
Actual quanity of materials used | 11,000 pounds | ||
Standard quantity of materials used | 10,000 pounds | ||
Actual price of materials | $4.00 | ||
Standard price of materials | $3.80 | ||
Actual direct labor hours | 20,000 | ||
Standard direct labor hours | 21,000 | ||
Actual direct labor rate | $7.50 | ||
Standard direct labor rate | $7.00 | ||
$10,000 unfavorable
|
| ||
$10,000 favorable |
| ||
$10,500 unfavorable |
| ||
$10,500 favorable |
|
QUESTION 19
- Profit center managers are most often evaluaed on the basis of:
A comparison of actual to standard costs | ||
Segment margin | ||
Return on investment | ||
Earnings per share |
QUESTION 20
- Costs that a manager cannot adjust are called;
Direct costs | ||
Indirect costs | ||
Uncontrollable costs | ||
Segment costs |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started