Myers Corporation has the following data related

Myers Corporation has the following data related

Top of FormQuestion 4Myers Corporation has the following data related to direct materials costs for November: actual costsfor 5,000 pounds of material, $4.50? And standard costs for 4,800 pounds of material at $5.10 perpound. What is the direct materials price variance?""$3,000 favorable""$3,000 unfavorable""$2,880 favorable""$2,880 unfavorable"Question 5The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units ofproduct areStandard CostsDirect materials2,500 kilograms @ $8.50Actual CostsDirect materialsThe amount of the direct materials quantity variance is$875 favorable variance$850 unfavorable variance$850 favorable variance$875 unfavorable variance2,600 kilograms @ $8.75Question 6The following data relate to direct labor costs for the current period:Standard costs36,000 hours at $22.00Actual costs35,000 hours at $23.00What is the direct labor time variance?$36,000 unfavorable$35,000 unfavorable$23,000 favorable$22,000 favorableQuestion 7The formula to compute the direct labor rate variance is to calculate the difference betweenActual costs + (Actual hours × Standard rate)Actual costs Standard cost(Actual hours × Standard rate) Standard costsActual costs (Actual hours × Standard rate)Question 8"A company records its inventory purchases at standard cost but also records purchase price variances.The company purchased 5,000 widgets at $8.00 each, and the standard cost for the widgets is $7.60.Which of the following would be included in the journal entry?""debit Accounts Payable, $38,000""credit Direct Materials Price Variance, $2,000""debit Direct Materials Price Variance, $2,000""debit Accounts Payable, $2,000"Question 9Which of the following is a disadvantage of decentralization?Decisions made by one manager may negatively affect the profitability of the entirecompany.Decentralization helps retain quality managers.Managers closest to the operations make decisions.Managers are able to acquire expertise in their areas of responsibility.Question 10A responsibility center in which the department manager has responsibility for and authority over costsand revenues is called a(n)investment centerprofit centervolume centercost centerQuestion 11"Income from operations for Division L is $250,000, total service department charges are $400,000 andoperating expenses are $2,750,000. What are the revenues for Division L?""$650,000""$3,000,000""$3,400,000""$2,750,000"Question 12The following data are taken from the management accounting reports of Dulcimer Co.:Div. ADiv. BDiv. CIncome from operations$1,900,000$1,450,000$1,450,000Total service department charges1,700,0001,050,0001,100,000If an incentive bonus is paid to the manager who achieved the highest income from operations beforeservice department charges, it follows thatDivision A’s manager is given the bonusDivision B’s manager is given the bonusDivision C’s manager is given the bonusDivisions B and C’s managers divide the bonusQuestion 13The term used to describe expenses that are incurred by a specific department isindirect expensesmargin expensesdepartmental expensesdirect expensesQuestion 14The following financial information was summarized from the accounting records of Train Corporation forthe current year ended December 31:RailsDivisionLocomotiveDivisionCost of goods sold$ 47,200$30,720Direct operating expenses27,20020,040Sales108,000CorporateTotal78,000Interest expense$ 2,040General overhead18,160Income tax4,700The income from operations for the Rails Division is$60,800$33,600$8,700$21,150Question 15The profit margin for Central Division is 20% and the investment turnover is 2.8. What is the rate ofreturn on investment for Central Division?20%56%14%7.1%Question 16"Tom’s Tool Factory is an investment center and is responsible for all of its net income and the use of itsassets. This year, the invested assets totaled $475,000, and net income was $275,000. What is the rate ofreturn on assets?"57.9%172.3%5.0%115.0$Question 17The amount of increase or decrease in cost that is expected from a particular course of action ascompared with an alternative isperiod costproduct costdifferential costdiscretionary costQuestion 18The condensed income statement for a Fletcher Inc. for the past year is as follows:ProductFSalesGHTotal$300,000$210,000$340,000$850,000Costs:Variable costs$180,000$180,000$220,000$590,000Fixed costs50,00050,00040,000140,000Total costs$230,000$230,000$260,000$730,000Income (loss)$ 70,000$ (20,000)$ 80,000$120,000Management is considering the discontinuance of the manufacture and sale of Product G at thebeginning of the current year. The discontinuance would have no effect on the total fixed costs andexpenses or on the sales of Products F and H. What is the amount of change in net income for thecurrent year that will result from the discontinuance of Product G?$20,000 increase$30,000 increase$20,000 decrease$30,000 decreaseQuestion 19"Sage Company is operating at 90% of capacity and is currently purchasing a part used in itsmanufacturing operations for $15 per unit. The unit cost for the business to make the part is $20,including fixed costs, and $11, not including fixed costs. If 30,000 units of the part are normallypurchased during the year but could be manufactured using unused capacity, what would be the amountof differential cost increase or decrease from making the part rather than purchasing it?""$150,000 cost increase""$120,000 cost decrease""$150,000 cost increase""$120,000 cost increase"Question 20Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $30 perpound and costs $28 per pound to produce. Product C would sell for $55 per pound and would requirean additional cost of $31 per pound to produce. What is the differential cost of producing Product C?$30 per pound$55 per pound$28 per pound$31 per poundQuestion 21"Delaney Company is considering replacing equipment which originally cost $600,000 and which has$420,000 accumulated depreciation to date. A new machine will cost $790,000 and the old equipmentcan be sold for $8,000. What is the sunk cost in this situation?""$172,000""$180,000""$188,000""$290,000"Question 22"Lara Technologies is considering a cash outlay of $250,000 for the purchase of land, which it could leaseout for $35,000 per year. If alternative investments are available that yield a 12% return, the opportunitycost of the purchase of the land is""$35,000""$30,000""$250,000""$4,200"Question 23"Heston and Burton, CPA’s, currently work a five-day week. They estimate that net income for the firmwould increase by $75,000 annually if they worked an additional day each month. The cost associatedwith the decision to continue the practice of a five-day work week is an example of a(n)"differential revenuesunk costdifferential incomeopportunity costQuestion 24"Nighthawk Inc. is considering disposing of a machine with a book value of $22,500 and an estimatedremaining life of three years. The old machine can be sold for $6,250. A new machine with a purchaseprice of $68,750 is being considered as a replacement. It will have a useful life of three years and noresidual value. It is estimated that the annual variable manufacturing costs will be reduced from $43,750to $20,000 if the new machine is purchased. The net differential increase or decrease in cost for theentire three years for the new equipment is""$8,750 increase""$31,250 decrease""$8,750 decrease""$2,925 decrease"Question 25"Rowan Quinn Company manufactures kitchen appliances. Currently, it is manufacturing one of itscomponents at a variable cost of $40 and fixed costs of $15 per unit. An outside provider of thiscomponent has offered to sell Rowan Quinn the component for $45. Determine the best plan andcalculate the savings."$5 savings per unit if manufactured$5 savings per unit if purchased$10 savings per unit if manufactured$15 savings per unit if purchasedSave and SubmitClick Save and Submit to save and submit. Click Save All Answers to save all answers.Save and Submit1Bottom of Form_3447894_1_3447894_1


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