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)