DEVRY ACCT 505 WEEK 6 QUIZ LATEST 2016
To Download tutorial
Copy and Paste below Link into your Browser
for any inquiry email
us at ( essayblue@gmail.com )
Devry ACCT 505 Week 6
Quiz latest 2016
(TCO D) Return on investment (ROI) is equal to the
margin multiplied by
(TCO D) For which of the following decisions are
opportunity costs relevant?
(TCO D) Last year, the House of Orange had sales of
$826,650, net operating income of $81,000, and operating assets of $84,000 at
the beginning of the year and $90,000 at the end of the year. What was the
company’s turnover, rounded to the nearest tenth?
(TCO D) Data for December concerning Dinnocenzo
Corporation’s two major business segments-Fibers and Feedstocks-appear below:
|
Sales revenues,
Fibers
|
$870,000
|
|
Sales revenues,
Feedstocks
|
$820,000
|
|
Variable expenses,
Fibers
|
$426,000
|
|
Variable expenses,
Feedstocks
|
$344,000
|
|
Traceable fixed
expenses, Fibers
|
$148,000
|
|
Traceable fixed
expenses, Feedstocks
|
S156,000
|
Common fixed expenses totaled $314,000 and
were allocated as follows: $129,000 to the Fibers business segment and $185,000
to the Feedstocks business segment.
Required:
Prepare a segmented income statement in the
contribution format for the company. Omit percentages; show only dollar amounts.
(TCO D) Wryski Corporation had net operating income of
$150,000 and average operating assets of $500,000. The company requires a
return on investment of 19%.
Required:
i. Calculate the company’s current return on
investment and residual income.
ii. The company is investigating an investment
of $400,000 in a project that will generate annual net operating income of
$78,000. What is the ROI of the project? What is the residual income of the
project? Should the company invest in this project?
(TCO D) Tjelmeland Corporation is considering dropping
product S85U. Data from the company’s accounting system appear below.
|
Sales
|
$360,000
|
|
Variable Expenses
|
$158,000
|
|
Fixed Manufacturing
Expenses
|
$119,000
|
|
Fixed Selling and
Administrative Expenses
|
$94,000
|
All fixed expenses of the company are fully
allocated to products in the company’s accounting system. Further investigation
has revealed that $55,000 of the fixed manufacturing expenses and $71,000 of
the fixed selling and administrative expenses are avoidable if product S85U is
discontinued.
Required:
i. According to the company’s accounting
system, what is the net operating income earned by product S85U? Show your
work!
ii. What would be the effect on the company’s
overall net operating income of dropping product S85U? Should the product be
dropped?
(TCO D) Fouch Company makes 30,000 units per year of a
part it uses in the products it manufactures. The unit product cost of this
part is computed as follows.
|
Direct Materials
|
$15.70
|
|
Direct Labor
|
$17.50
|
|
Variable
Manufacturing Overhead
|
$4.50
|
|
Fixed Manufacturing
Overhead
|
$14.60
|
|
Unit Product Cost
|
$52.30
|
An outside supplier has offered to sell the
company all of these parts it needs for $51.90 a unit. If the company accepts
this offer, the facilities now being used to make the part could be used to
make more units of a product that is in high demand. The additional
contribution margin on this other product would be $219,000 per year.
If the part were purchased from the outside
supplier, all of the direct labor cost of the part would be avoided. However,
$6.20 of the fixed manufacturing overhead cost being applied to the part would
continue even if the part were purchased from the outside supplier. This fixed
manufacturing overhead cost would be applied to the company’s remaining
products.
Required:
i. How much of the unit product cost of $52.30
is relevant in the decision of whether to make or buy the part?
ii. What is the net total dollar advantage
(disadvantage) of purchasing the part rather than making it?
iii. What is the maximum amount the company
should be willing to pay an outside supplier per unit for the part if the
supplier commits to supplying all 30,000 units required each year?
(TCO D) Biello Co. manufactures and sells medals for
winners of athletic and other events. Its manufacturing plant has the capacity
to produce 15,000 medals each month; current monthly production is 14,250
medals. The company normally charges $115 per medal. Cost data for the current
level of production are shown below.
|
Variable Costs
|
||
|
Direct Materials
|
$969,000
|
|
|
Direct Labor
|
$270,750
|
|
|
Selling and
Administrative
|
$270,075
|
|
|
Fixed Costs
|
||
|
Manufacturing
|
$370,550
|
|
|
Selling and
Administrative
|
$89,775
|
|
The company has just received a special
one-time order for 600 medals at $102 each. For this particular order, no
variable selling and administrative costs would be incurred. This order would
also have no effect on fixed costs.
Required:
Should the company accept this special order?
Why?
Comments
Post a Comment