Quiz 7-solution

Quiz 7-solution - [ACCT3104] MANAGERIAL COSTING AND CONTROL...

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[ACCT3104] MANAGERIAL COSTING AND CONTROL (ST LUCIA AND IPSWICH). SEMESTER 2, 2008 (ACCT3104S_5860IPX) > ASSESSMENT > QUIZZES > REVIEW ASSESSMENT: QUIZ 1 12TH EDN Review Assessment: quiz 1 12th edn
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User Ai Yung Lau Submitted 8/28/08 5:47 AM Name quiz 1 12th edn Status Completed Score 21 out of 30 points Time Elapsed 0 hours, 42 minutes, and 46 seconds out of 1 hours and 5 minutes allowed. Instructions
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Question 1 0 out of 1 points Answer the following questions using the information below: Stephans Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials $ 1.00 Direct labor 10.00 Variable overhead 5.00 Fixed overhead 8.00 Total $24.00 Bill Company has contacted Stephans with an offer to sell them 5,000 of the subassemblies for $22.00 each. Stephans will eliminate $25,000 of fixed overhead if it accepts the proposal. What are the relevant costs for Stephans? Selected Answer: $80,000 Question 2 1 out of 1 points Answer the following questions using the information below: Denly Company has three products, A, B, and C. The following information is available: Product AProduct BProduct C Sales $60,000 $90,000 $24,000 Variable costs 36,00048,00015,000 Contribution margin 24,000 42,000 9,000 Fixed costs: Avoidable 9,000 18,000 6,000 Unavoidable 6,0009,0005,400 Operating income $ 9,000 $15,000 $ (2,400) Denly Company is thinking of dropping Product C because it is reporting a loss. Assuming Denly drops Product C and does not replace it, operating income will:
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Selected Answer: decrease by $3,000 Question 3 1 out of 1 points Answer the following questions using the information below: Braun's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Model X Model Y Model Z Selling price $50 $60 $70 Direct materials 6 6 6 Direct labor ($12 per hour) 12 12 24 Variable support costs ($4 per machine-hour) 4 8 8 Fixed support costs 10 10 10 Which model has the greatest contribution margin per unit? Selected Answer: Model Y Question 4 1 out of 1 points An example of a quantitative factor for the decision-making process is: Selected Answer: manufacturing overhead Question 5 1 out of 1 points A relevant revenue is a revenue that is a(n):
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Selected Answer: future revenue Question 6 1 out of 1 points Answer the following questions using the information below: Flowers For Everyone is considering replacing its existing delivery van with a new one. The new van can offer considerable savings in operating costs. Information about the existing van and the new van follow:
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Quiz 7-solution - [ACCT3104] MANAGERIAL COSTING AND CONTROL...

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