ACCT 434 Midterm Exam ( New ) For more course tutorials visit www . uophelp . com
into production . Each new design will require $ 300 in setup costs . ∙ The parchment grade card product line incurred $ 75,000 in development costs and is expected to be produced over the next four years . …………… ( Points : 254 . ( TCO 8 ) Novacar Company manufactures automobiles . The red car division sells its red cars for $ 25,000 each to the general public . The red cars have manufacturing costs of $ 12,500 each for variable and $ 5,000 each for fixed costs . The division ' s total fixed manufacturing costs are $ 25,000,000 at the normal volume of 5,000 units . ……………………………. ( Points : 25 ) 5 . ( TCO 11 ) For supply item LK , Boatman Company has been ordering 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 gathered the following information : Annual demand in units 250 Days used per year 250 Lead time , in days 13 Ordering costs $ 100 =========================================
ACCT 434 Midterm Exam ( New ) For more course tutorials visit www . uophelp . com
Multiple Choice 10 9 Essay 4 Question 1 . Question : ( TCO 1 ) Which of the following is a sign that an ABC system may be useful ? Question 2 . Question : ( TCO 1 ) Merriamn Company provides the following ABC costing information : Activities Total Costs Activity-cost drivers Account inquiry hours $ 400,000 10,000 hours Account billing lines $ 280,000 4,000,000 lines