Scholfield Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below:Activity Cost PoolActivity MeasureActivity RateSupporting assemblyDirect labor-hours (DLHs)$6.55per DLHProcessing batchesNumber of batches$138.20per batchProcessing ordersNumber of orders$52.60per orderServing customersNumber of customers$1,191.00per customerThe cost of serving customers, $1,191.00 per customer, is the cost of serving a customer for one year.Latif Corporation buys only one of the company's products which Scholfield Enterprises sells for $15.60 per unit. Last year Latif Corporation ordered a total of 1,100 units of this
product in 2 orders. To fill the orders, 7 batches were required. The direct materials cost is $7.85 per unit and the direct labor cost is $1.90 per unit. Each unit requires 0.10 DLHs.According to the ABC system, the total cost of the activity "Supporting assembly" for this customer this past year was closest to:
A. $110.00
B. $720.50
C. $0.66
D. $7,205.00
Answer: B
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Stiller Company, an 80% owned subsidiary of Leo Company, purchased land from Leo on March 1, 2017, for $75,000. The land originally cost Leo $60,000. Stiller reported net income of $125,000 and $140,000 for 2017 and 2018, respectively. Leo uses the equity method to account for its investment.On a consolidation worksheet, having used the equity method, what adjustment would be made for 2018 regarding the land transfer?
A. Debit investment in Stiller for $15,000. B. Credit retained earnings for $15,000. C. Debit retained earnings for $50,000. D. Debit retained earnings for $15,000. E. Credit retained earnings for $50,000.
Cost of goods manufactured equals
A) the cost of direct materials used in production B) the product cost of goods completed during the current period C) the product cost of goods sold during the current period D) the cost remaining in ending work in process inventory
If a maximization linear programming problem consists of all less-than-or-equal-to constraints with all positive coefficients and the objective function consists of all positive objective function coefficients,
then rounding down the linear programming optimal solution values of the decision variables will ________ result in a(n) ________ solution to the integer linear programming problem. A) always, optimal B) always, non-optimal C) never, non-optimal D) sometimes, optimal
Brand preference means customers usually choose the brand over other brands, perhaps out of habit or past experience.
Answer the following statement true (T) or false (F)