Final Exam

1. The amount of fixed factory costs applied to the product during the first 6 months under absorption costing is? A. Over-applied by $20,000.            C. Under-applied by $40,000. B.Equal to the fixed costs incurred.   D.  Under-applied by $80,000. 2. Reported net income (or loss) for the first 6 months under absorption costing is? A. $160,000         B.  $0                       C.  $40,000                 D.  $(40,000) 3. Reported net income (or loss) for the first 6 months under variable costing is? A. $180,000      B.  $40,000                 C.  $0                          D.  $(180,000)

Suppose that you are the manager of a studio cafe, and you are planning to invest on a new camera and a coffee maker designed to increase the productivity of your employees and output (services) produced. Your analyst provided you the following information: Complete the table below.   Current Situation Projected Sales and Profit Incremental Revenues and Costs Total Revenue Php1,500,000 Php1,800,000           Variable Cost 575,000 425,000           Direct Fixed Costs 625,000 700,000           Indirect Fixed Costs 100,000 100,000           Profit       Should the new camera and coffee maker be purchased? Explain your answer based on the incremental analysis.

Revenue at a major smartphone manufacturer was $1.3 billion for the 9 months ending March 2 up 86 percent over revenues for the same period last year. Management attributes the increase in revenues to a 10o percent increase in shipments. Despite a 32 percent drop in the average blended selling price of its line of phones.  Given the information, is it surprising that the company's revenue increased when it decreased the average selling price of its phones?

True/False: 1. Implicit costs are those costs, which have been incurred in the past and cannot be recovered bycurrent decisions.2. It is possible for the economic profit and accounting profit to be equal to one another.3. If Ed<1, an increase in price leads to higher revenue.4. In the long run, at least some of the inputs should be variable.5. Production is a transformation of resources in to goods and services.

upon graduating with an accounting degree, you open your own accounting firm of which you are the sole employee. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of RM60,000 annually. Last year you earned a total revenue of RM100,000. Rent and supplies last year were RM50,000. 2.1) Your annual economic costs are

Management believes it can sell a new product for $8.50. The fixed costs of production are                estimated to be $6,000, and the variable costs are $3.20 a unit. Complete the following table at the given levels of output and the relationships between quantity and fixed costs, quantity and variable costs, and quantity and total costs. Quantity Total Revenue Variable Costs Fixed Costs Total Costs Profits (Loss) 0           500           1,000           1,500           2,000           2,500           3,000               Determine the break-even level using the above table and use the following Equation to confirm the break-even level of output. PQB = FC + VQB PQB - VQB = FC QB (P-V) = FC QB = FC         P-V What would happen to the total revenue schedule, the total cost schedule, and the break-even level of output if management determined that fixed costs would…

Superior Metals Company has seen its sales volume decline over the last few years as the result of rising foreign imports. In order to increase sales (and hopefully, profits), the firm is considering a price reduction on luranium--a metal that it produces and sells. The firm currently sells 60,000 pounds of luranium a year at an average price of $10 per pound. Fixed costs of producing luranium are $250,000. Current variable costs per pound are $5. The firm has determined that the variable cost per pound could be reduced by $.50 if production volume could be increased by 10 percent (fixed costs would remain constant). The firm's marketing department has estimated the arc elasticity of demand for luranium to be 1.5.   a) How much would Superior Metals have to reduce the price of luranium in order to achieve a 10 percent increase in the quantity sold?   b) What would the firm's (i) total revenue, (ii) total cost, and (iii) total profit be before and after the price…

H13). Importance of Understanding Cost Behavior Patterns Recognizing and understanding cost behavior patterns serve multiple purposes within a company. What are at least 4 of them and explain.

27. Which of the four characteristics of general purpose technologies have the least impact on productivity.A. It must have a WIDE SCOPE for improvement and elaborationB. It must be APPLICABLE across a broad range of usesC. It must have a POTENTIAL USE in a wide variety of products and processesD. It must have strong COMPLEMENTARITIES with existing or potential new technologies

How would you approach this issue if you were the manager in charge of sourcing raw materials for LEGO? How would PESTEL analysis inform your actions? What PESTEL challenges is LEGO trying to address by changing the raw materials used in its products? Explain what favorable PESTEL factors support LEGO’s efforts. for the lego project

1. mary williams, owner of Williams products, is evaluating whether to introduce a new product line. after thinking through the production process and the costs of raw materials and new equipment, williams estimates the variable costs of each unit produced and sold at $6 and the fixed costs per year at $60,000       a. if the selling price is set at $18 each, how many units must be produced and sold for williams to break even? use both graphic and algebraic approaches to get your answer        b. williams forecasts sales of 10,000 units for the first year if the selling price is set at $14 each. what would be the total contribution to profits from this new product during the first year?         c. if the selling price is set at $12.50, williams forecasts that first-year sales would increase to 15,000 units. which pricing strategy ($14 or $12.50) would result in the greater total contribution to profits?        d. what other considerations would be crucial to the final decision about…

2. Benson Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and processes them into two different products: chicken drumsticks and chicken steak. From a standard batch of 14,000 pounds of raw chicken that costs $7,450, the company produces two parts: 2,500 pounds of drumsticks and 4,500 pounds of breast for a processing cost of $2,466. The chicken breast is further processed into 3,700 pounds of steak for a processing cost of $1,700. The market price of drumsticks per pound is $1.40 and the market price per pound of chicken steak is $3.70. If Benson decided to sell chicken breast instead of chicken steak, the price per pound would be $2.20. a-3. If the drumsticks are producing a loss, should that product line be eliminated? The drumstick product line             be eliminated. b-1. Reallocate the joint cost to the joint products, drumsticks and breasts, using relative market values as the allocation base.     Total cost…

Siam Manufacturing has implemented several programs to improve its productivity. President and producer of Thai tea instant, has been able, with his current equipment, to produce 12,500 units this year and 10,500 units for last year. In this year, their product requires 13,200 labor hours, utilities of S8,250, and capital of $88,000 to process. For last year, their product requires 12,000 labor hours, utilities of $7,600, and capital of $83,000 to process. They have asked you to evaluate the firm's productivity by comparing this year's performance with last year's.                                               Last year            This YearOutput                                 10,500 units      12,500 unitsLabor hours                       12,000                  13,2000Utilities                                 $7,600                  $8,250Capital                                   $83,000              $88,000what is the multi-factor percent change this year vs last year

Seastrand Oil Company produces two grades of gasoline: regular and high octane. Both gasolines are produced by blending two types of crude oil. Although both types of crude oil contain the two important ingredients required to produce both gasolines, the percentage of important ingredients in each type of crude oil differs, as does the cost per gallon. The percentage of ingredients A and B in each type of crude oil and the cost per gallon are shown.   Crude Oil Cost Ingredient A Ingredient B 1 $0.10 20% 60% 2 $0.15 50% 30%   Each gallon of regular gasoline must contain at least 40% of ingredient A, whereas each gallon of high octane can contain at most 50% of ingredient B. Daily demand for regular and high-octane gasoline is 800,000 and 600,000 gallons, respectively. How many gallons of each type of crude oil should be used in the two gasolines to satisfy daily demand at a minimum cost? Round your answers to the nearest whole number. Round the answers for cost to the nearest…

Thelma has a long term lease on her cotton farm with an annual lease payment of $10,000. Prior to planting in the spring of 2020, she predicts that she will have $5000 left after paying all of her costs except for the annual lease payment. In this case, what should Thelma do?Select one:a. continue to operate because total revenue exceeds total costb. shut down and experience an accounting loss of $5000c. continue to operate even though she predicts an accounting loss of $5000d. exit the market and experience an accounting loss of $10,000

Definition of economic costs Hubert lives in Houston and runs a business that sells guitars. In an average year, he receives $722,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $422,000; he also pays wages and utility bills totaling $268,000. He owns his showroom; if he chooses to rent it out, he will receive $1,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Hubert does not operate this guitar business, he can work as an accountant, receive an annual salary of $42,000 with no additional monetary costs, and rent out his showroom at the $1,000 per year rate. No other costs are incurred in running this guitar business. Identify each of Hubert’s costs in the following table as either an implicit cost or an explicit cost of selling guitars.   Implicit Cost Explicit Cost The rental income Hubert could receive if he chose to rent out his showroom       The…

The total cost (CT) of Holdins-up is CT = 4q2 + 4q + 16CT = 4q2 + 4q + 16. Get the fixed cost (CF) and the variable cost (CV) of the company. CF=4q^2+4; CV=16 CF=16;CV=4q^2+4q CF=0;CV=4q^2+4q+16 CF=4q^2+4q; CV=0

Round off your final answer to whole #.   A company produces and sells a consumer product and is able to control the demand by varying the selling price. The approximate relationship between price and demand is p=45 + 2700/D - 5000/D2 for D > 1 The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $38 per unit. What is the number of units that should be produced and sold each month to maximize profit?

Q48 Marginal cost is defined as the... a. Change in total cost resulting from an additional unit of output. b. Cost of an additional unit of a variable factor of production. c. Difference between average total cost and average variable cost. d. Change in fixed cost resulting from an additional unit of output. e. Cost per unit when the firm is operating at capacity. Clear my choice