The CFO of Axis Manufacturing is evaluating the introduction of a new product. The costs of a recently completed marketing study for the new product and the possible increase in the sales of a related product made by Axis are best described (respectively) as follows: a. Opportunity cost b. Depreciation cost c. Sunk cost

3

Rathod

Four methods of completing a tax return and the time taken by each method are: A PC, one hour B Pocket calculator, 12 hours C Pocket calculator and paper and pencil, 12 hours D Pencil and paper, 16 hours The PC and its software cost $1,000, the pocket calculator costs $10, and the pencil and paper cost $1. If the wage rate is $5 an hour, the economically efficient method is If the wage rate is $50 an hour, the economically efficient method is A; B D; D B; B B; C If the wage rate is $500 an hour, the economically efficient method is

Dawson Toys, Limited, produces a toy called the Maze with the following standards: Direct materials: 7 microns per toy at $0.33 per micron Direct labor: 1.1 hours per toy at $6.80 per hour During July, the company produced 5,000 Maze toys. The toy's production data for the month are as follows: Direct materials: 79,000 microns were purchased at a cost of $0.29 per micron. 35,250 of these microns were still in inventory at the end of the month. Direct labor. 6,000 direct labor-hours were worked at a cost of $43,200. Required: 1. Compute the following variances for July: Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount. a. The materials price and quantity variances. b. The labor rate and efficiency variances. 1a. Material price variance 1a. Material quantity…

For the production of part R-193, two operations are being considered. The capital investment associated with each operation is identical. Operation 1 produces 2,000 parts per hour. After each hour, the tooling must be adjusted by the machine operator. This adjustment takes 20 minutes. The machine operator for Operation 1 is paid $20 per hour (this includes fringe benefits). Operation 2 produces 1,750 parts per hour, but the tooling needs to be adjusted by the operator only once every two hours. This adjustment takes 30 minutes. The machine operator for Operation 2 is paid $11 per hour (this includes fringe benefits). Assume an 8-hour workday. Further assume that all parts produced can be sold for $0.40 each. Should Operation 1 or Operation 2 be recommended?

Identify whether each of the following costs of Granite Construction, Inc., would be classified as direct labor, direct materials, manufacturing overhead, or as selling, general, and administrative costs. Hourly wages paid to backhoe operators. Crankcase oil used in construction machinery. PVC pipes used in a municipal sewer construction project. Depreciation of bulldozers and other construction equipment. Advertising costs. Steel beams used in the construction of an office building. Salaries paid to foremen responsible for supervising multiple construction projects. Legal costs. Gasoline used in trucks that haul construction equipment to various job sites. Hourly wages paid to masons and carpenters. Costs for accounting and tax services. The CEO’s salary. Rivets, screws, nuts, and bolts.

EconomicsDirection: Determine the benefits, costs & disbenefits of the following situations.

For the production of part R-193, two operations are being considered. The capital investment associated with each operation is identical. Operation 1 produces 2,100 parts per hour. After each hour, the tooling must be adjusted by the machine operator. This adjustment takes 15 minutes. The machine operator for Operation 1 is paid $24 per hour (this includes fringe benefits). Operation 2 produces 2,350 parts per hour, but the tooling needs to be adjusted by the operator only once every two hours. This adjustment takes 45 minutes. The machine operator for Operation 2 is paid $13 per hour (this includes fringe benefits). Assume an 8-hour workday. Further assume that all parts produced can be sold for $0.35 each. a. Should Operation 1 or Operation 2 be recommended? b. What is the basic tradeoff in this problem?

You have been asked to analyze the bids for 200 polished disks used in solar panels. These bids have been submitted by three suppliers: Thailand Polishing, India Shine, and Sacramento Glow. Thailand Polishing has submitted a bid of 2,400 baht. India Shine has submitted a bid of 2,400 rupee. Sacramento Glow has submitted a bid of $240. You check with your local bank and find that $1 = 10 baht and $1 = 8 rupee. The final destination for the disks is New Delhi, India and there is a 30% import tax. Thailand Polishing and Sacramento Glow are based outside of India and India Shine is based in India.