Business - Accounting And Taxation: QuizDoc 4

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Cabell Products is a division of a major corporation. Last year the division had total sales of $25,320,000, net operating income of $1,924,320, and average operating assets of $6,000,000. The company's minimum required rate of return is 10%. The division's residual income is closest to:

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Robichau Inc. reported the following results from last year's operations: Sales$6,300,000Variable expenses 4,930,000Contribution margin 1,370,000Fixed expenses 803,000Net operating income$567,000Average operating assets$3,000,000 At the beginning of this year, the company has a $900,000 investment opportunity with the following characteristics: Sales$1,530,000 Contribution margin ratio 30% of salesFixed expenses$306,000 The company's minimum required rate of return is 20%. Last year's residual income was closest to:

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Cabell Products is a division of a major corporation. Last year the division had total sales of $25,320,000, net operating income of $1,924,320, and average operating assets of $6,000,000. The company's minimum required rate of return is 10%.The division's margin is closest to:

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Ferry Chemical uses a standard cost system to account for the costs of its production of Chemical X. Standards are 1.4 gallons of materials at $105 per gallon and 10 hours of labor at a standard wage rate of $12. During September, Ferry Chemical produced 2,600 gallons of Chemical X. Ferry Chemical purchased and used totaled 3,560 gallons at a total cost of $381,180. Payroll totaled $302,730 for 25,430 hours worked. Calculate the:a. direct materials price variance.b. direct materials quantity variance.c. direct labor rate variance.d. direct labor efficiency variance.

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Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: Sales$36,480,000 Net operating income$2,808,960 Average operating assets$8,000,000 The company's minimum required rate of return 16% The division's margin used to compute ROI is closest to:

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Which of the following statements best describes the impact of receiving boot in a §351 transaction?

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Baker charges its customers $60 per hour. The chief operating officer expected that the company would provide 40,000 hours of service to clients. However, the vice president for marketing argues that the actual number of hours may range from 36,000 to 44,000 hours. Baker's standard variable cost is $32.50 per hour, and its standard fixed cost is $750,000.Required:Prepare flexible budgets for 36,000, 40,000, and 44,000 hours.

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The consistency concept allows a company to use different accounting methods from period to period in order to maximize profits.

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Stokan Products, Inc., has a Antennae Division that manufactures and sells a number of products, including a standard antennae that could be used by another division in the company, the Aircraft Products Division, in one of its products. Data concerning that antennae appear below: Capacity in units 86,000Selling price to outside customers$63Variable cost per unit$22Fixed cost per unit (based on capacity)$18 The Aircraft Products Division is currently purchasing 5,000 of these antennaes per year from an overseas supplier at a cost of $57 per antennae.Assume that the Antennae Division is selling all of the antennaes it can produce to outside customers. What should be the minimum acceptable transfer price for the antennaes from the standpoint of the Antennae Division?

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The statement of stockholders' equity:

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The Wester Corporation produces three products with the following costs and selling prices: Product ABCSelling price per unit$21$12$32Variable cost per unit$11$7$18Fixed cost per unit$5$3$9Direct labor hours per unit 0.4 0.1 0.7Machine hours per unit 0.2 0.5 0.2The company has insufficient capacity to fulfill all of the demand for these three products.If machine hours are the constraint, then the ranking of the products from the most profitable to the least profitable use of the constrained resource is:

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Division A of Tripper Company produces a part that it sells to other companies. Sales and cost data for the part follow: Capacity in units 60,000unitsSelling price per unit$40per unitVariable costs per unit$28per unitFixed costs per unit at capacity$9per unit Division B, another division of Tripper Company, would like to buy this part from Division A. Division B is presently purchasing the part from an outside source at $38 per unit. If Division A sells to Division B, $1 in variable costs can be avoided. Assume that Division A is presently operating at capacity. According to the formula in the text, what is the lowest acceptable transfer price from the viewpoint of the selling division?

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Division A of Tripper Company produces a part that it sells to other companies. Sales and cost data for the part follow: Capacity in units 60,000unitsSelling price per unit$40per unitVariable costs per unit$28per unitFixed costs per unit at capacity$9per unit Division B, another division of Tripper Company, would like to buy this part from Division A. Division B is presently purchasing the part from an outside source at $38 per unit. If Division A sells to Division B, $1 in variable costs can be avoided. Assume that Division A has ample idle capacity to handle all of Division B's needs without any increase in fixed costs and without cutting into outside sales. According to the formula in the text, what is the lowest acceptable transfer price from the viewpoint of the selling division?

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Germano Products, Inc., has a Pump Division that manufactures and sells a number of products, including a standard pump that could be used by another division in the company, the Pool Products Division, in one of its products. Data concerning that pump appear below: Capacity in units 65,000Selling price to outside customers$98Variable cost per unit$36Fixed cost per unit (based on capacity)$44 The Pool Products Division is currently purchasing 10,000 of these pumps per year from an overseas supplier at a cost of $94 per pump. Assume that the Pump Division is selling all of the pumps it can produce to outside customers. Does there exist a transfer price that would make both the Pump and Pool Products Division financially better off than if the Pool Products Division were to continue

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Infinity Corporation acquired 80 percent of the common stock of an Egyptian company on January 1, 20X8. The goodwill associated with this acquisition was $18,350. Exchange rates at various dates during 20X8 follow: January 1, 20X81 E£=$0.1835 December 31, 20X81 E£= 0.1850 Average for 20X81 E£= 0.1840 Goodwill suffered an impairment of 20 percent during the year. If the functional currency is the Egyptian Pound, how much goodwill impairment loss should be reported on Infinity's consolidated statement of income for 20X8?

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Which cost is not recorded as part of the cost of a building?

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Which of the following is not one of the strategies of the financial perspective lens of the balanced scorecard?

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Which of the accounts below would ALL appear on the balance sheet.

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Which of the following statements is true about the Euro?

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Under the temporal method, inventory at net realizable value would be remeasured for the balance sheet at what rate?

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Brull Products, Inc., has a Sensor Division that manufactures and sells a number of products, including a standard sensor. Data concerning that sensor appear below: Capacity in units 56,000Selling price to outside customers$75Variable cost per unit$52Fixed cost per unit (based on capacity)$17 The Safety Products Division of Brull Products, Inc needs 6,000 special heavy-duty sensors per year. The Sensor Division's variable cost to manufacture and ship this special sensor would be $60 per unit. Because these special sensors require more manufacturing resources than the standard sensor, the Sensor Division would have to reduce its production and sales of standard sensors to outside customers from 56,000 units per year to 46,400 units per year. From the standpoint of the Sensor

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Royal Products, Inc., has a Connector Division that manufactures and sells a number of products, including a standard connector that could be used by another division in the company, the Transmission Division, in one of its products. Data concerning that connector appear below: Capacity in units 66,000Selling price to outside customers$69Variable cost per unit$21Fixed cost per unit (based on capacity)$35 The Transmission Division is currently purchasing 6,000 of these connectors per year from an overseas supplier at a cost of $65 per connector. What is the maximum price that the Transmission Division should be willing to pay for connectors transferred from the Connector Division?

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Royal Products, Inc., has a Connector Division that manufactures and sells a number of products, including a standard connector that could be used by another division in the company, the Transmission Division, in one of its products. Data concerning that connector appear below: Capacity in units 66,000Selling price to outside customers$69Variable cost per unit$21Fixed cost per unit (based on capacity)$35The Transmission Division is currently purchasing 6,000 of these connectors per year from an overseas supplier at a cost of $65 per connector.Assume that the Connector Division has enough idle capacity to handle all of the Transmission Division's needs. What should be the minimum acceptable transfer price for the connectors from the standpoint of the Connector Division?

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Zeilinger Products, Inc., has a Screen Division that manufactures and sells a number of products, including a standard screen that could be used by another division in the company, the Home Security Division, in one of its products. Data concerning that screen appear below: Capacity in units 40,000Selling price to outside customers$65Variable cost per unit$28Fixed cost per unit (based on capacity)$26 The Home Security Division is currently purchasing 8,000 of these screens per year from an overseas supplier at a cost of $58 per screen. Assume that the Valve Division is selling all of the valves it can produce to outside customers. From the standpoint of the Valve Division, what is the lost contribution margin if the valves are transferred internally rather than sold to outside

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Ebbs Products, Inc., has a Motor Division that manufactures and sells a number of products, including a standard motor. Data concerning that motor appear below: Capacity in units 86,000Selling price to outside customers$81Variable cost per unit$43Fixed cost per unit (based on capacity)$18 The Automotive Division of Ebbs Products, Inc needs 9,000 special heavy-duty motors per year. The Motor Division's variable cost to manufacture and ship this special motor would be $46 per unit. Because these special motors require more manufacturing resources than the standard motor, the Motor Division would have to reduce its production and sales of standard motors to outside customers from 86,000 units per year to 72,500 units per year.What is the total contribution margin on sales to outside

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Darden Company has cash of $40,000, accounts receivable of $60,000, inventory of $32,000, and equipment of $100,000. Assuming current liabilities of $48,000, this company's working capital is:

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Business - Accounting And Taxation: QuizDoc 4

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