Product huakin is one of the joint products in a

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34.Product HUAKIN is one of the joint products in a joint manufacturingprocess.Management is studying whether to sell HUAKIN at thesplit-off point or to process HUAKIN further into Product Ryan.Thefollowing data have been gathered:I.Selling price of HUAKIN.II.Variable cost of processing HUAKIN into Ryan.III.The avoidable fixed costs of processing HUAKIN into Ryan.IV.The selling price of Ryan.V.The joint cost of the process from which HUAKIN is produced.Which of the above items are relevant in a decision of whether tosell the HUAKIN as is or process it further into Ryan?A.I, II, and IV.C.II, III, and V.B.I, II, III, and IV.D.I, II, III, and V.CMA 1294
35.When deciding to accept a one-time only special order from awholesaler, management should do all of the following, except
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Chapter 6 / Exercise 45
College Algebra
Larson
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CPA REVIEW SCHOOL OF THE PHILIPPINESAUDITING PROBLEMS36.Which of the following statements about a make-or-buy decisionanalysis is not correct?
B.Available resources should be used as efficiently as possiblebefore outsourcing.C.The decision depends on whether the company is operating at orbelow the normal capacity.D.If the total relevant cost of production is less than the cost tobuy the item, it should be produced in-house.
Items 37 and 38 are based on the following information.Songer Sewing Machines uses one unit of a component part, the FootPedal, for each unit of its product.The cost to produce a unit of FootPedal is as follows:Direct materialsP500Materials handling50Direct labor950Factory overhead1,900Total cost per unitP3,400Materials handling cost is applied based on the cost of materials andpurchased components.Factory overhead is applied based on direct labor cost.Sixty percent(60%) of the applied factory overhead cost is fixed.Songer isconsidering to outsource the Foot Pedal.A supplier, Padyak Corp., amanufacturer of Foot Pedals, has offered to supply the part to Songerat a price of P2,200.Songer’s average requirement for Foot Pedals permonth is 500 units.Accordingly, Padyak can meet this requirementshould Songer decide to outsource this component part.

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College Algebra
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Chapter 6 / Exercise 45
College Algebra
Larson
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