ACCT 434 Dreams Come True /uophelp.com ACCT 434 Dreams Come True /uophelp.com | Page 41
Question 5. Question:( TCO 3) The conference method estimates cost functions Question 6. Question:( TCO 4) Relevant costs of a make-or-buy decision include all of the following EXCEPT Question 7. Question:( TCO 5) With a constraining resource, managers should choose the product with the ________. Question 8. Question:( TCO 5) Konrade ' s Engine Company manufactures part TE456 used in several of its engine models. Monthly production costs for 1,000 units are as follows: Direct materials $ 40,000 Direct labor 10,000 Variable overhead costs 30,000 Fixed overhead costs 20,000 Total costs $ 100,000 It is estimated that 10 % of the fixed overhead costs assigned to TE456 will no longer be incurred if the company purchases TE456 from the outside supplier. Konrade ' s Engine Company has the option of purchasing the part from an outside supplier at $ 85 per unit. If Konrade ' s Engine Company accepts the offer from the outside supplier, the monthly avoidable costs( costs that will no longer be incurred) total Question 9. Question:( TCO 3) The cost components of an air conditioner include $ 35 for the compressor, $ 11.50 for the sheetmolded compound frame, and $ 80 per unit for assembly. The factory machines and tools cost is $ 55,000. The company expects to produce 1,500 air conditioners in the coming year. What cost function best represents these costs? Question 10. Question:( TCO 4) Opportunity costs ========================================= ACCT 434 Week 4 Midterm Exam
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Question 5. Question:( TCO 3) The conference method estimates cost functions Question 6. Question:( TCO 4) Relevant costs of a make-or-buy decision include all of the following EXCEPT Question 7. Question:( TCO 5) With a constraining resource, managers should choose the product with the ________. Question 8. Question:( TCO 5) Konrade ' s Engine Company manufactures part TE456 used in several of its engine models. Monthly production costs for 1,000 units are as follows: Direct materials $ 40,000 Direct labor 10,000 Variable overhead costs 30,000 Fixed overhead costs 20,000 Total costs $ 100,000 It is estimated that 10 % of the fixed overhead costs assigned to TE456 will no longer be incurred if the company purchases TE456 from the outside supplier. Konrade ' s Engine Company has the option of purchasing the part from an outside supplier at $ 85 per unit. If Konrade ' s Engine Company accepts the offer from the outside supplier, the monthly avoidable costs( costs that will no longer be incurred) total Question 9. Question:( TCO 3) The cost components of an air conditioner include $ 35 for the compressor, $ 11.50 for the sheetmolded compound frame, and $ 80 per unit for assembly. The factory machines and tools cost is $ 55,000. The company expects to produce 1,500 air conditioners in the coming year. What cost function best represents these costs? Question 10. Question:( TCO 4) Opportunity costs ========================================= ACCT 434 Week 4 Midterm Exam