Perkey Corporation has provided the following information: Cost per UnitCost per PeriodDirect materials$5.00 Direct labor$2.90 Variable manufacturing overhead$1.25 Fixed manufacturing overhead $21,000 Sales commissions$1.00 Variable administrative expense$0.55 Fixed selling and administrative expense $7,500 If 4,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:
A. $36,600.
B. $35,600.
C. $53,400.
D. $31,600.
Answer: D
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Equal Employment Opportunity implies at least two things: One is evaluation of candidates for jobs in terms of characteristics that really do make a difference between success and failure. What is the other?
What will be an ideal response?
The combined costs of holding inventory are called
A) opportunity costs. B) storage costs. C) carrying costs. D) stocking charges. E) maintenance costs.
Which of the following scenarios would be the most invisible to competitors?
A. Mongo Films fires its CEO and hires a new one. B. JTR, Ltd., opens a manufacturing plant in the Philippines. C. Sports Stuff, Ltd., lowers its prices on swimwear. D. High Grade, Inc., hires a new middle-manager for its Boston office. E. Spotless, Inc., starts a new line of natural bathroom cleaners.
Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $24,000 and will have a 6-year useful life and a $6,000 salvage value. Delivering prescriptions (which the pharmacy has never done before) should increase gross revenues by at least $28,000 per year. The cost of these prescriptions to the pharmacy will be about $22,000 per year. The pharmacy depreciates all assets using the straight-line method. The payback period for the auto is closest to (Ignore income taxes.):
A. 4 years B. 1.8 years C. 2 years D. 1.2 years