Stephenson Company is trying to decide which one of two contracts it will accept. The costs and revenues associated with each are listed below: Contract X Contract ZContract Revenue$200,000 $260,000 Materials 10,000 10,000 Labor 88,000 120,000 Depreciation on Equipment 8,000 10,000 Cost Incurred for Consulting Advice 1,500 1,500 Allocated Portion of Overhead 5,000 3,000 The equipment was purchased last year and has no resale value. Which of these amounts is relevant for the selection of one contract over another?
A. Materials, consulting advice and allocated overhead
B. Contract revenue, labor costs and depreciation on equipment
C. Cost of consulting advice and allocated overhead
D. Contract revenue and labor costs
Answer: D
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a. True b. False Indicate whether the statement is true or false
Judd Company uses standard costs for its manufacturing division. Standards specify 0.1 direct labor hours per unit of product. The allocation base for variable overhead costs is direct labor hours. At the beginning of the year, the static budget for variable overhead costs included the following data:
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A) $15,000 U
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C) $3571 U
D) $4687 F
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How may the delphi technique be useful in the context of environmental scanning? Give an example.
What will be an ideal response?