devry acct244 week 1 and week 2 homework es

| June 14, 2016

Question
(TCO 3) Which of the following activities would NOT be considered a value-added activity?

Production

Marketing

Accounting

Distribution

:

Question 2. Question :

(TCO 3) The continual process of measuring a company’s own products, services, or activities against competitors’ performances is called:

performance measure.

benchmarking.

budgeting.

responsibility center.

lean accounting.

Question 3. Question :

(TCO 3) The field of accounting that depends on generally accepted accounting principles (GAAP) is called:

cost accounting.

financial accounting.

managerial accounting.

responsibility accounting.

international accounting.

Question 4. Question :

(TCO 3) MoreForLess Company had revenues of $2,000,000 while costs were $1,500,000. In the next year, MoreForLess will be introducing a new product line that will generate $200,000 in sales revenues and $160,000 in costs. Assuming no changes are expected for the other products, the differential operating profit for the next year is:

$540,000.

$200,000.

$160,000.

Question 5. Question :

(TCO 3) Jay’s Limo Service provides transportation services in and around Centerville. Its profits have been declining, and management is planning to add a package delivery service that is expected to increase revenue by $300,000 per year. The total cost to lease additional delivery vehicles from the local dealer is $70,000 per year. The present manager will continue to supervise all services. Due to expansion, however, the labor costs and utilities will increase by 40%. Rent and other costs will increase by 20%.

Jay’s Limo Service

Annual Income Statement

Before Expansion

Sales revenue

$980,000

Costs:

Vehicle leases

420,000

Labor

300,000

Utilities

60,000

Rent

80,000

Other costs

70,000

Manager’s salary

110,000

Total costs

$1,040,000

Operating profit (loss)

$(60,000)

What are the total differential costs that will incur as a result of the expansion?

$70,000

$214,000

$230,000

$244,000

week 2

(TCO 1) Larcker Manufacturing’s cost accountant has provided you with the following information for January operations:

Direct materials

$105 per unit

Fixed manufacturing overhead costs

$675,000

Sales price

$395 per unit

Variable manufacturing overhead

$60 per unit

Direct labor

$120 per unit

Fixed marketing and administrative costs

$585,000

Units produced and sold

30,000

Variable marketing and administrative costs

$24 per unit

What is the full absorption cost per unit?

$247.50

$309.00

$307.50

$285.00

Question 2. Question :

(TCO 1) Larcker Manufacturing’s cost accountant has provided you with the following information for January operations:

Direct materials

$105 per unit

Fixed manufacturing overhead costs

$675,000

Sales price

$395 per unit

Variable manufacturing overhead

$60 per unit

Direct labor

$120 per unit

Fixed marketing and administrative costs

$585,000

Units produced and sold

30,000

Variable marketing and administrative costs

$24 per unit

What is the variable manufacturing cost?

$351.00

$84.00

$309.00

$285.00

Question 3. Question :

(TCO 6) Madison Inc. is considering the introduction of a new energy drink with the following price and cost characteristics:

Sales price

$3.00 per unit

Variable costs

$1.00 per unit

Fixed costs

$450,000 per month

How many units must Madison sell per month to break even?

CORRECT 225,000 units

150,000 units

450,000 units

112,500 units

Question 4. Question :

(TCO 6) Madison Inc. is considering the introduction of a new energy drink with the following price and cost characteristics:

Sales price

$4.00 per unit

Variable costs

$1.00 per unit

Fixed costs

$480,000 per month

How many units must Madison sell per month to make an operating profit of $150,000?

50,000 units

160,000 units

630,000 units

210,000 units

Question 5. Question :

(TCO 6) You have been provided with the following information:

Per Unit

Total

Sales

$20

$60,000

Less variable expenses

8

24,000

Contribution margin

12

36,000

Less fixed expenses

30,000

Operating profit

$ 6,000

If sales decrease 200 units, by how much will fixed expenses have to be reduced in order to maintain the current operating profit of $6,000?

$2,400

$4,000

$6,000

$27,600

Order your essay today and save 20% with the discount code: ESSAYHELP
Order your essay today and save 20% with the discount code: ESSAYHELPOrder Now