At a sales volume of 40,000 units, Lonnie Company's total fixed costs are $40,000 and total variable costs are $60,000. The relevant range is 30,000 to 50,000 units.If Lonnie were to sell 50,000 units, the total expected cost per unit would be: (Round intermediate calculations to 2 decimal places.)
A. $2.30
B. $2.20
C. $2.00
D. $2.50
Answer: A
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Adelberg Corporation makes two products: Product A and Product B. Annual production and sales are 1000 units of Product A and 800 units of Product B. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.8 direct labor-hours per unit and Product B requires 0.5 direct labor-hours per unit. The total estimated overhead for next period is $125,320.The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools--Activity 1, Activity 2, and General Factory--with estimated overhead costs and expected activity as follows: Expected
ActivityActivity Cost PoolEstimated Overhead CostsProduct AProduct BTotalActivity 1$52,000?1300?700?2000?Activity 2 26,880?1400?700?2100?General Factory 46,440?800?400?1200?Total$125,320? (Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor-hours.)The overhead cost per unit of Product B under the activity-based costing system is closest to: A. $38.80 B. $20.30 C. $42.60 D. $53.30
If a drawer is negligent and contributes to the forgery or alteration of a check, the ________.
A. bank is liable to the drawer for the amount B. check is not payable from the customer's account C. bank must pay the instrument out of its own funds D. bank can charge the drawer for the amount
Someone who ______ you ignores you and goes about her business as if you were not present.
A. disconfirms B. dislikes C. rejects D. confirms
An agency relationship can be created
a. by the conduct of the parties. b. only by the meeting of all the standards of contract law. c. only by a written agreement. d. only if the agent is paid.