Paw-Paw Products Paw-Paw Products produces and sells flannel covered dogbeds. In the current year, Paw-Paw had expected to sell 8,000 beds but actually produced and sold 8,500 beds. The following information is available regarding the standard cost to produce a single dogbed: Direct materials: 5 yards at $1.50 per yard Direct labor: 40 minutes at $.20 per minute In the current year, 44,000 yards
of material were purchased and used at a cost of $1.60 per yard and 365,500 direct labor minutes were incurred at a cost of $.23 per minute. Refer to the Paw-Paw Products information above. The company's direct material usage variance for the current year is:
A) $3,750 U.
B) $2,250 U.
C) $6,000 U.
D) $6,650 U.
B
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Concerning the exchange rate index of the U.S. dollar, suppose that the dollar's real exchange rate index falls from 125 to 110. This means that
a. U.S. goods are less competitive on foreign markets. b. U.S. goods are more competitive on foreign markets. c. the dollar has appreciated against the currencies of its major trading partners. d. U.S. price levels are identical to its trading partners.
Which of the following is an example of related diversification?
A. Purchasing from different vendors B. Using a newer medium for advertising C. Developing a management information system D. Targeting another market segment E. Operating in similar locations
Budgeted sales commissions would appear on the:
A. selling, general and administrative budget and pro forma balance sheet B. sales budget and pro forma income statement C. sales budget and pro forma balance sheet D. selling, general and administrative budget and pro forma income statement
A product with a low perceived value is most likely to ________
A) fall within the fair value zone on a value map B) fall below the fair value line on a value map C) have a high market share D) have a low market share E) have delighted customers