QUESTION 15
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
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
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
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
A comparison of actual to standard costs |
||
Segment margin |
||
Return on investment |
||
Earnings per share |
QUESTION 20
Direct costs |
||
Indirect costs |
||
Uncontrollable costs |
||
Segment costs |
Question 15
Correct answer------------Increase by $37,500.
Working
Calculation of Additional Cost of Order | ||
Per Unit | Total | |
Direct material | $ 48.00 | $ 24,000 |
Direct labor | $ 90.00 | $ 45,000 |
Variable manufacturing overheads | $ 62.00 | $ 31,000 |
Total Additional cost due to acceptance of order | $ 200.00 | $ 100,000 |
.
financial advantage (disadvantage) of accepting the special order | |
Additional Revenue from offer (500 x $275) | $ 137,500 |
Less: Total Additional cost due to acceptance of offer | $ 100,000 |
Financial Advantage | $ 37,500 |
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