Surma Incorporated makes a single product-a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted fixed manufacturing overhead$233,940 Budgeted production (a) 35,000units Standard hours per unit (b) 1.20machine-hours Budgeted hours (a) × (b) 42,000machine-hours Actual production (a) 33,000units Standard hours per unit (b) 1.20machine-hours Standard hours allowed for the actual production (a) × (b) 39,600machine-hours Actual fixed manufacturing overhead$214,940 Actual hours 40,000machine-hours ?The fixed component of
the predetermined overhead rate is closest to:
A. $6.68 per machine-hour
B. $6.51 per machine-hour
C. $5.57 per machine-hour
D. $5.43 per machine-hour
Answer: C
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Richard wants to know how his company handles late lunches but does not want to ask anyone. Instead, he watches others take late lunches and observes the manager’s reaction. Richard is
a. using surveillance. b. observing. c. spying. d. indirectly questioning.
In accrual accounting, net income is defined as
A) Revenues ? Expenses + Gains + Losses B) Revenues ? Expenses C) Revenues ? Expenses + Gains ? Losses D) increase in net assets from nonowner transactions
Briefly describe any three specific pricing tactics discussed in the text
What will be an ideal response?
Data flow diagrams
a. depict logical tasks that are being performed, but not who is performing them b. illustrate the relationship between processes, and the documents that flow between them and trigger activities c. represent relationships between key elements of the computer system d. describe in detail the logic of the process