The following data are taken from the management accounting reports of Dulcimer Co.: Div. A Div. B Div. C Income from operations $1,900,000 $1,450,000 $1,450,000 Total service department charges 1,700,000 1,050,000 1,100,000 If an incentive bonus is paid to
The following data are taken from the management accounting reports of Dulcimer Co.: Div. A Div. B Div. C Income from operations $1,900,000 $1,450,000 $1,450,000 Total service department charges 1,700,000 1,050,000 1,100,000 If an incentive bonus is paid to
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following data are taken from the management accounting reports of Dulcimer Co.:
If an incentive bonus is paid to the manager who achieved the highest income from operations before service department charges, it follows that
Div. A | Div. B | Div. C | |
Income from operations | $1,900,000 | $1,450,000 | $1,450,000 |
Total service department charges | 1,700,000 | 1,050,000 | 1,100,000 |
If an incentive bonus is paid to the manager who achieved the highest income from operations before service department charges, it follows that
a. Divisions B and C's managers divide the bonus
b. Division B's manager is given the bonus
c. Division A's manager is given the bonus
d. Division C's manager is given the bonus
When management seeks to achieve personal departmental objectives that may work to the detriment of the entire company, the manager is experiencing
a. budgetary slack
b. cushions
c. padding
d. goal conflict
The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below.
Product |
Number of Units |
Labor Hours Per Unit |
Machine Hours Per Unit |
Blinks | 1,073 | 4 | 4 |
Dinks | 1,859 | 2 | 9 |
All of the machine hours take place in the Fabrication department, which has an estimated
The Ramapo Company uses a single overhead rate to apply all overhead costs based on labor hours. What is the overhead cost per unit for Dinks?
a. $34.94
b. $331.65
c. $9.49
d. $43.68
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