An example of a qualitative factor for the decision

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33) An example of a qualitative factor for the decision-making process is ________A) customer satisfactionas determined by written responses given by customers to surveyquestionsB) employee wages paid this weekC) number of clicks on a web site during a monthD) manufacturing overhead allocated to WIPAnswer:ADiff: 1
Objective:2AACSB:Analytical thinking34) Dantley's Furniture manufactures rustic furniture. The cost accounting systemestimates manufacturing costs to be $190 per table, consisting of 80% variable costs and20% fixed costs. The company has surplus capacity available. It is Back Forrest's policy toadd a 45% markup to full costs.Dantley's Furniture is invited to bid on a one-time-onlyspecial order to supply 180 rustic tables. What is the lowest price Dantley's Furnitureshould bid on this special order?BDiff: 2
Objective:2AACSB:Application of knowledge35) Dantley's Furniture manufactures rustic furniture. The cost accounting systemestimates manufacturing costs to be $240 per table, consisting of 75% variable costs and25% fixed costs. The company has surplus capacity available. It is Back Forrest's policy toadd a 45% markup to full costs.A large hotel chain is currently expanding and has decidedto decorate all new hotels using the rustic style. Dantley's Furniture Incorporated is invitedto submit a bid to the hotel chain. What is the lowest price per unit Dantley's Furnitureshould bid on this long-term order?D
Diff: 2
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Objective:2AACSB:Application of knowledge36) Zephram Corporation has a plant capacity of 200,000 units per month. Unit costs atcapacity are:Direct materials$6.00Direct labor5.00Variable overhead4.00Fixed overhead2.00Marketing—fixed6.00Marketing/distribution—variable4.60Current monthly sales are 190,000 units at $30.00 each. Q, Inc., has contacted ZephramCorporation about purchasing 2,500 units at $24.00 each. Current sales would not beaffected by the one-time-only special order. What is Zephram's change in operating profitsif the one-time-only special order is accepted?ADiff: 3
Objective:2AACSB:Application of knowledge
37) Which of the following is not true about one-time-only special orders?A) special orders would be accepted if they result in an increase in the contribution marginregardless of capacity and long-term implicationsB) along with other criteria, there must be excess capacity to accept an orderC) along with other criteria, there must not be significant long-term negative implicationsof accepting a special orderD) the impact on operating income of the acceptance of a special-order must be analyzedby management before making a final decisionAnswer:A
Diff: 1Objective:2AACSB:Analytical thinking

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Accounting Using Excel for Success
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Chapter 25 / Exercise 25-14
Accounting Using Excel for Success
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