Direct labor hours is an appropriate cost driver when:
A. production is automated.
B. production is labor-intensive.
C. overhead costs increase.
D. all of these answers are correct.
Answer: B
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Markov analysis provides a recommended decision
Indicate whether this statement is true or false.
The breakeven point in dollars can be computed by dividing the contribution margin into the variable operating costs
Indicate whether the statement is true or false
A(n) _____ is characterized by the researcher's altering one or more variables-such as price or package design--while observing the effects of those alterations on another variable (usually sales).
A. observation research project B. research problem C. experiment D. sampling frame E. correlation of facts study
Sevenbergen Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit$92Budgeted unit sales (all on credit): July 9,000August 11,300September 10,400October 10,800? Raw materials requirement per unit of output 4poundsRaw materials cost$1.00per poundDirect labor requirement per unit of output 2.8direct labor-hoursDirect labor wage rate$22.00per direct labor-hourVariable selling and administrative expense$1.50per unit soldFixed selling and administrative expense$70,000per month?Credit sales are collected: 40% in the month of the sale 60% in the following month?Raw materials purchases are paid: 30% in the month of purchase 70% in the
following month?The ending finished goods inventory should equal 20% of the following month's sales. The ending raw materials inventory should equal 30% of the following month's raw materials production needs.?The estimated direct labor cost for August is closest to: A. $684,992 B. $244,640 C. $465,000 D. $31,136