A 19800 b 21949 c 22500 d 23051 66 a companys master

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a. $19,800. b. $21,949. c. $22,500. d. $23,051. 66. A company’s master budget for the year planned for the manufacture and sale of 5,600 toys for ¥750,000 in revenue, ¥400,000 in variable expenses, and ¥255,000 in fixed expenses. By the end of the year, the company had only manufactured and sold 4,500 toys for ¥650,000 in revenue, ¥375,000 in variables expenses, and ¥195,000 in fixed expenses. What is the operating income variance for the company for the year? a. ¥15,000 unfavorable. b. ¥25,000 favorable. c. ¥75,000 unfavorable. d. ¥100,000 unfavorable.
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452 67. A company uses the calendar year as its financial results reporting time period. On May 31 of the prior year, the company committed to a plan to sell a line of business. As a result, the operation of this line of business and cash flows will be eliminated from the company’s operations, and the company will have no significant continuing involvement with the line of business subsequent to the disposal. For the period January 1 through May 31of the prior year, the line of business had revenues of $1,000,000 and expenses of $1,600,000. The assets of the line of business were sold on November 30, at a loss for which no tax benefit is available. In its income statement for the year ended December 31of prior year, how should the company report the line of business operations from January 1 through May 31? a. $600,000 should be reported as part of the loss on disposal of a component. b. $600,000 should be reported as an extraordinary loss. c. $600,000 should be included in the determination of income or loss from operations of a discontinued component. d. $1,000,000 and $1,600,000 should be included with revenues and expenses, respectively, as part of continuing operations. 68. All of the following statements in regard to management’s report on internal controls over financial reporting in accordance with the Sarbanes-Oxley Act are true except that the report must a. include a statement of management’s responsibility for establishing effective internal controls over financial reporting. b. include a statement that the design of the internal controls is the responsibility of the company’s audit committee. c. assess the effectiveness of the company’s internal controls over financial reporting, as of the end of the period. d. be attested to by an independent auditor. 69. A company has just completed construction of a new computer facility. To limit unauthorized access to this facility, which one of the following is the most effective procedure that the company can implement? a. Data encryption. b. Access control software. c. Input controls. d. Biometric identification system.
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453 70. A company is currently performing a cost of quality analysis of one of its facilities. The following are costs compiled by the facility accountant. Inspection $1,500 Warranty repair 2,800 Testing of new materials 400 Product testing 950 Spoilage 645 Scrap 150 Preventive equipment maintenance 590 Liability claims 1,870 Rework 1,285 Total internal failure cost is a. $2,080.
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