Which of the following is most likely to be categorized as an external failure cost?
A) the cost of testing a product before shipment
B) the cost of machinery maintenance to avoid breakdowns during production
C) the cost of lost future sales after a customer finds a defect in a product
D) the cost of inspection of materials to be used in production
C
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At the beginning of the year, Rangle Company expected to incur $54,000 of overhead costs in producing 6,000 units of product. The direct material cost is $20 per unit of product. Direct labor cost is $30 per unit. During January, 600 units were produced. The total cost of the units made in January was:
A. $5,400 B. $30,000 C. $35,400 D. None of the answers are correct.
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What will be an ideal response?
Suppose a college football coach makes a base salary of $2,400,000 a year ($200,000 per month). Employers are required to withhold a 6.2% Social Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum. Assuming the Social Security maximum base amount is $128,400, how much will be withheld during the year for the coach's Social Security and Medicare taxes? (Round your answers to the nearest dollar amount.)
A. $42,761. B. $183,600. C. $34,800. D. None of the other answer choices are correct.
A company reported net income of $225,000, net sales of $2,500,000, and average total assets of $2,100,000 for the current year. Calculate this company's profit margin, total asset turnover, and return on total assets.
What will be an ideal response?