Quiz 10-solution

Quiz 10-solution - [ACCT3104] MANAGERIAL COSTING AND...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: [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 User Hwee Kee Tan Submitted 8/28/08 10:51 PM Name quiz 1 12th edn Status Completed Score 28 out of 30 points Time Elapsed 0 hours, 48 minutes, and 40 seconds out of 1 hours and 5 minutes allowed. Instructions Question 1 1 out of 1 points Answer the following questions using the information below: Konrade's Engine Company manufactures part TE456 used in several of its engine models. Monthly production costs for 1,000 units are as follows: Direct materials $ 40,000 Direct labor 10,000 Variable overhead costs 30,000 Fixed overhead costs 20,000 Total costs $100,000 It is estimated that 10% of the fixed overhead costs assigned to TE456 will no longer be incurred if the company purchases TE456 from the outside supplier. Konrade's Engine Company has the option of purchasing the part from an outside supplier at $85 per unit. If Konrade's Engine Company purchases 1,000 TE456 parts from the outside supplier per month, then its monthly operating income will: Selected Answer: decrease by $3,000 Question 2 1 out of 1 points Sunk costs: Selected Answer: are ignored when evaluating alternatives Question 3 1 out of 1 points Answer the following questions using the information below: Frederick, Inc., is considering replacing a machine. The following data are available: Replacement Old MachineMachine Original cost $45,000 $35,000 Useful life in years 10 5 Current age in years 5 0 Book value $25,000 Disposal value now $8,000 Disposal value in 5 years 0 0 Annual cash operating costs $7,000 $4,000 Which of the data provided in the table is a sunk cost? Selected Answer: the original cost of the old machine Question 4 1 out of 1 points When deciding to accept a one-time-only special order from a wholesaler, management should do all of the following EXCEPT: Selected Answer: verify past design costs for the product Question 5 0 out of 1 points Unit cost data can MOST mislead decisions by: Selected Answer: computing administrative costs Question 6 1 out of 1 points The sum of all the costs incurred in a particular business function (for example, marketing) is called the: Selected Answer: business function cost Question 7 1 out of 1 points Answer the following questions using the information below: Welch Manufacturing is approached by a European customer to fulfill a one- time-only special order for a product similar to one offered to domestic customers. Welch Manufacturing has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $40 Direct labor 20 Manufacturing support 35 Marketing costs 15 Fixed costs: Manufacturing support 45 Marketing costs 15 Total costs 170 Markup (50%) 85 Targeted selling price $255 What is the change in operating profits if the one-time-only special order for 1,000 units is accepted for $180 a unit by Welch? 1,000 units is accepted for $180 a unit by Welch?...
View Full Document

This note was uploaded on 10/21/2009 for the course ACCT 3104 taught by Professor Mrssandralazzarini during the One '09 term at Queensland.

Page1 / 15

Quiz 10-solution - [ACCT3104] MANAGERIAL COSTING AND...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online