ACCT 434 Final Exam Set 4 For more course tutorials visit www . uophelp . com
total fixed manufacturing costs are $ 105,000 at the normal volume of 70,000 units . The European Division has offered to buy 15,000 socks at the full cos t of $ 4 . The Athletic Division has excess capacity and the 15,000 unit s can be produced without interfering with the current outside sales of 70,000 . The 85,000 volume is within the division ' s relevant operating range . Explain whether the Athletic Division should accept the offer . Suppo rt your decision showing all calculations . ( Points : 25 ) 5 . ( TCO 11 ) For supply item LK , Boatman Company has been orderin g 125 units based on the recommendation of the salesperson who calls 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 =========================================
ACCT 434 Final Exam Set 4 For more course tutorials visit www . uophelp . com
FINAL EXAM – D 1 . ( TCO 1 ) Evaluating customer reaction of the trade-off of giving up some features of a product for a lower price would best fit which category of management decisions under activity-based management ? ( Points : 5 ) 2 . ( TCO 1 ) Danielle Company produces a special spray nozzle . The budgeted indirect total cost of inserting the spray nozzle is $ 180,000 . The budgeted number of nozzles to be inserted is 60,000 . What is the budgeted indirect cost allocation rate for this activity ? ( Points : 5 ) 3 . ( TCO 2 ) Fixed overhead costs include : ( Points : 5 )