ACCT 434 Final Exam Set 3 For more course tutorials visit www . uophelp . com
The blue car division has been unable to meet the demand for its cars this year . It has offered to buy 1,000 cars from the red car division at the full cost of $ 16,000 . The red car division has excess capacity and the 1,000 units can be produced without interfering with the outside s 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 )