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