FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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What if the company actually spent $95,000 on
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- Would the pandemic and shortages could cause some companies to decide to use a different method of costing? If so, why and what method would they use?arrow_forwardWhy would staff costs increase with increase in revenue?arrow_forwardMake-or-Buy Decision Matchless Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $60 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 43% of direct labor cost. The fullly absorbed unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $29 Direct labor 22 Factory overhead (43 % of direct labor) 9.46 Total cost per unit $60.46 If Matchless Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 12% of the direct labor costs. a. Prepare a differential analysis dated February 24 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. If required, round your answers to two decimal places. If an amount is zero, enter "0". For those boxes in which you must…arrow_forward
- Which one of the following costs would not be inventoriable? Production electric bill Wages of forklift driver loading finished product onto delivery vans Plastic gloves worn by assembly line workers Wages of maintenance workers in a factoryarrow_forwardWhich one of the following statement is not correct? O Both fixed and variable costs influence short-term decision-making. O Short-term decision-making is all about analysing those costs that will change as a result of taking a particular action. O Opportunity costs are only considered when resources are limited. O Break-even analysis is used to determine how many units of a product or a service a business has to sell to cover all its costs.arrow_forward“Accumulation entries to Manufacturing Overhead normally are only made daily.” Is this true? Explain why or why not.arrow_forward
- How can poor quality be expensive to the firm, especially if low-cost raw materials are used to reduce cost of goods sold and raise net income?arrow_forwardA company's break-even point will not be changed by: a change in the selling price per unit. a change in the income tax rate. a change in the variable cost per unit. a change in total fixed costs.arrow_forwardWhich of the following is an example of a variable cost? a.Insurance on the production equipment b.Direct materials c.The production supervisor's salary d.Depreciation of the factory building e.None of thesearrow_forward
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