Quiz 12-solution

Quiz 12-solution - [ACCT3104] MANAGERIAL COSTING AND...

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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 Wen Chaw Seow Submitted 8/29/08 12:49 AM Name quiz 1 12th edn Status Completed Score 28 out of 30 points Time Elapsed 0 hours, 58 minutes, and 41 seconds out of 1 hours and 5 minutes allowed. Instructions
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Question 1 1 out of 1 points When deciding whether to discontinue a segment of a business, relevant costs include all of the following EXCEPT: Selected Answer: future administrative costs that will continue Question 2 1 out of 1 points Opportunity cost(s): Selected Answer: of a resource with excess capacity is zero Question 3 1 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. Should Stephans make or buy the subassemblies? What is the difference between the two alternatives?
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Selected Answer: Make; savings = $5,000 Question 4 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: Existing vanNew van Original cost $100,000 $180,000 Annual operating cost $ 35,000 $ 20,000 Accumulated depreciation $ 60,000 Current salvage value of the existing van $ 45,000 Remaining life 10 years 10 years Salvage value in 10 years $ 0 $ 0 Annual depreciation $ 4,000 $ 18,000 If Flowers For Everyone replaces the existing delivery van with the new one, over the next 10 years operating income will: Selected Answer: increase by $150,000 Question 5 1 out of 1 points A computer system installed last year is an example of a(n): Selected Answer: sunk cost Question 6 1 out of 1 points
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The cost to produce Part A was $10 per unit in 20X3 and in 20X4 it has increased to $11 per unit. In 20X4, Supplier XYZ has offered to supply Part A for $9 per unit. For the make-or-buy decision: Selected Answer: differential costs are $2 per unit Question 7 0 out of 1 points Answer the following questions using the information below: Grant's Kitchens is approached by Ms. Tammy Wang, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers: Direct materials $455 Direct labor 300 Variable manufacturing support 45 Fixed manufacturing support 100 Total manufacturing costs 900 Markup (60%) 540
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Quiz 12-solution - [ACCT3104] MANAGERIAL COSTING AND...

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