========================================= ACCT 434 Final Exam Set 3
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ales of 5,000. The 6,000 volume is within the division ' s relevant oper ating range. 5.( TCO 11) For supply item LK, Boatman Company has been orderin g 125 units based on the recommendation of the salesperson who call s on the company monthly. The company has hired a new purchasing agent, who wants to start using the economic-orderquantity method and its supporting decision elements. She has gather ed the following information: Annual demand in units 250 Days used per year 250 Lead time, in days 13 Ordering costs $ 100 Annual unit carrying costs $ 20
========================================= ACCT 434 Final Exam Set 3
For more course tutorials visit www. uophelp. com
ACC 434 Final Exams 1.( TCO 1) a significant limitation of activitybased costing is the( Points: 5) 2.( TCO 1) Ireland Company produces a special spray nozzle. The bu dgeted indirect total cost of inserting the spray nozzle is $ 180,000. T he budgeted number of nozzles to be inserted is 80,000. What is the b udgeted indirect cost allocation rate for this activity?( Points: 5) 3.( TCO 2) Overhead costs have been increasing due to all of the follo wing except( Points: 5) 4.( TCO 2) Information pertaining to Brenton Corporation ' s sales reve nue is presented in the following table:
February March April Cash Sales $ 160,000 $ 150,000 $ 120,00
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