Unfavorable flexible budget variances for costs do not necessarily mean that costs are mismanaged if ________.

Question 7 options:

	high quality materials were used to reduce waste
	actual wage rate increases for labor union workers are not reflected in standard wage rates
	high quality materials were used to increase product quality
	all of the above

The following information is available for Discounted Supplies Inc. and its two divisions, Cheap Goods and Expensive Goods. Whole Cheap Expensive Company Goods Goods Net sales $100,000 $50,000 $50,000 Fixed costs controllable by Division Manager 16,500 12,500 4,000 Fixed costs not controlled by Division Manager 8,000 5,000 3,000 Variable costs: Cost of merchandise sold 24,500 17,500 7,000 Operating expenses 16,400 10,000 6,400 Unallocated costs 1,000 What is the contribution by segment for the Expensive Goods Division?

Question 9 options:

	$36,600
	$32,600
	$29,600
	$28,600

Question 10 (3 points)

Sonny Corporation and Cher Corporation are movie companies. Comparative data for 20X0 and 20X1 are given below: Sonny Cher Corporation Corporation Sales revenue 20X0 $8,000,000 $4,400,000 20X1 9,600,000 6,175,000 Number of employees 20X0 10,000 5,500 20X1 9,000 6,500 Assume that each 20X0 dollar is equivalent to 1.60 of each 20X1 dollar, due to inflation. Taking inflation into account, what is Sonny Corporation's 20X0 productivity measure in terms of revenue per employee?

Question 10 options:

	$1,600.00
	$1,083.08
	$1,422.22
	$1,280.00

Lou Company's records reveal the following: Division X Market price of finished component to outsiders $32 Variable costs per component $24 Contribution margin per component $8 Division Y Sale price of finished product $42 Variable costs: Division X(1 component) 24 Division Y Assembly 9 Division Y Packaging 4 Contribution margin per unit $5 The variable costs of Division Y will be incurred whether it buys from Division X or from an outside supplier. Division X wants to transfer the components to Division Y for $34 each. Division Y can buy the component for $32 per unit from an outside supplier. Division X has no excess capacity. The manager of Division Y should ________.

Question 11 options:

	buy the components from Division X at $34 each
	buy the components from an outside supplier for $33 each
	buy the components from the outside supplier for $32 each
	none of the above