Question

new five-year remaining life. A receive $38,000 for trading in the old 31. Rocko Inc has a machine with a book value of $50,000 and a machine is available at a cost of $85,000 and Rocko can also machine. The now five-year iMe. Should the machine be replaced? A Yes, because income will increase by $23,000 per year. machine will reduce variable manufacturing costs by $14,000 per year over B. Yes, because income will increase by $14,000 in total C. No, because the company will be $23,000 worse off in total. D. No, because the income will decrease by $14,000 per year. E. Rocko will be not be better or worse off by replacing the machine. 32. A company's flexible budget for 10,000 units of production reflects sales of $200.000: variable costs S40, produces and sells 13,000 units. A. $110,500. B. $85,000. 000: and fixed costs of $75,000. Calculate the expected level of operating income if the company C. $55,000. D. $100,000. E. $133,000. 33. Georgia, Inc. has collected the following data on one of its products. The direct materials quantity variance is: Direct materials standard (4 lbs. $1/lb.) Total direct materials cost variance-unfavorable $4 per finished unit $13,750 150,000 lbs. 30,000 units Actual direct materials used Actual finished units produced A. $30,000 unfavorable. B. $13,750 unfavorable. C. $16,250 favorable. D. $30,000 favorable. E. $13,750 favorable.

Answer 1

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