Delaware Corp. prepared a master budget that included $21,360 for direct materials, $33,600 for direct labor, $18,000 for variable overhead, and $46,440 for fixed overhead. Delaware Corp. planned to sell 4,000 units during the period, but actually sold 4,300 units. What would Delaware's direct materials cost be if it used a flexible budget for the period based on actual sales?
A. $21,360
B. $22,962
C. $91,848
D. $19,870
Answer: B
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When responding to a customer's request for an adjustment, it is usually sensible to assume that
A) if you handle the situation well, the customer will be even more loyal than before. B) the customer's account of the situation is exaggerated. C) the customer is hostile. D) the customer is trying to pull a fast one. E) the customer will no longer do business with you, even if you grant the request.
A company had net cash flows from operations of $341,000, net income of $286,000 and average total assets of $1,850,000. The cash flow on total assets ratio equals:
A. 83.9% B. 646.9% C. 542.5% D. 15.5% E. 18.4%
Which of the following types of accounts are always increased with a debit?
a. Assets and expenses b. Revenues and liabilities c. Common stock and liabilities d. Revenues and assets
Conference Hotel Changes You manage a large hotel that is used by organizations and businesses for meetings and conferences. A recent storm has damaged part of your hotel, which means that you have fewer rooms available for meetings. You now have nearly
20 percent fewer guest rooms for conference participants and four less meeting rooms for smaller sessions. You estimate that room repairs will take nearly a month, but the Association of Intercultural Studies is scheduled to arrive for a three-day conference in two weeks and has booked all the rooms. Now there are not enough rooms for the conference. Required: As manager of the hotel, write a letter to the meeting manager for the association. Tell the manager the bad news regarding the damage to the rooms and provide an alternative of using rooms at a nearby hotel.