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“Evans Company is considering rebuilding and selling used alternators for automobiles. The company estimates that the net cash flows (sales less cash operating expenses) arising from the rebuilding and sale of the used alternators would be as follows (numbers in parentheses indicate an outflow): Years 1-10 $100,000 Year 11 (30,000) Year 12 110,000 Evans Company would purchase production equipment costing $275,000 now to use in the rebuilding of the alternators. The equipment would have a 12-year life and a $25,000 salvage value. The company’s cost of capital is 10%. 104. The present value of the net cash flows (sales less cash operating expenses) arising from the rebuilding and sale ofthe alternators (rounded to the nearest dollar) is: a. $602,820. b. $625,980. c. $639,090. d. $660,090.”,”3Present Value of Net Cash Flows= PV of Annuity $100,000 for 10 years at 10%- PV of 30,000 for 10 years at 10% + PV of 110,000 for 12 years= 100,000 x 6.145 = $614,500- 30,000 x 0.350 = (10,500)+ 110,000 x .319 = 35,000Total $639

Managerial Accounting

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“The Madison Company produces three products with the following costs and selling prices: Product A B C Selling price per unit $15 $20 $20 Variable cost per unit 8 10 12 Contribution margin per unit $ 7 $10 $ 8 Direct labor hours per unit 1 1.5 2 Machine hours per unit 3.5 2 2.5 103. If Madison has a limit of 15,000 machine hours but no limit on units produced or direct labor hours, then the three products should be produced in the order: a. A, B, C. b. B, C, A. c. A, C, B. d. C, A, B.”,”2. The three products should be produced in the order:Contribution Margin per Machine Hour: A = 15 / 3.5 = 4.29 B = 20 / 2 = 10 C = 20 / 2.5 = 8The three products should be produced in the order: B,C

Managerial Accounting

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“Pardoe, Inc., manufactures a product called Product A. The company uses a standard cost system and has established the following standards for one unit of Product A: Standard Standard Price Standard Quantity or Rate Cost Direct materials 1.5 pounds $3 per pound $4.50 Direct labor 0.6 hours $6 per hour 3.60 Variable overhead 0.6 hours $1.25 per hour .75 $8.85 ÍÍÍÍÍ During March 19×3, the following activity was recorded by the company relative to the production of Product A: I. The company produced 3,000 units during the month. II. A total of 8,000 pounds of material were purchased at a cost of $23,000. III. There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,000 pounds of material remained in the warehouse unused. IV. The company employs 10 people to work on the production of Product A. During March, each worked at an average of 160 hours at a rate of $6.50 per hour. In the past, the 10 persons employed in the production of Product A consisted of four senior workers and six assistants. During March, the company experimented with five senior workers and five assistants. V. Variable overhead is assigned to Product A on the basis of direct labor-hours. Variable overhead costs during March totaled $1,800.101. The variable overhead efficiency variance for March is: a. $1,050 F. b. $1,050 U. c. $250 F. d. $250 U.”

Managerial Accounting

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“Pardoe, Inc., manufactures a product[…]

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“Pardoe, Inc., manufactures a product called Product A. The company uses a standard cost system and has established the following standards for one unit of Product A: Standard Standard Price Standard Quantity or Rate Cost Direct materials 1.5 pounds $3 per pound $4.50 Direct labor 0.6 hours $6 per hour 3.60 Variable overhead 0.6 hours $1.25 per hour .75 $8.85 ÍÍÍÍÍ During March 19×3, the following activity was recorded by the company relative to the production of Product A: I. The company produced 3,000 units during the month. II. A total of 8,000 pounds of material were purchased at a cost of $23,000. III. There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,000 pounds of material remained in the warehouse unused. IV. The company employs 10 people to work on the production of Product A. During March, each worked at an average of 160 hours at a rate of $6.50 per hour. In the past, the 10 persons employed in the production of Product A consisted of four senior workers and six assistants. During March, the company experimented with five senior workers and five assistants. V. Variable overhead is assigned to Product A on the basis of direct labor-hours. Variable overhead costs during March totaled $1,800.100. The variable overhead spending variance for March is: a. $200 U. b. $600 U. c. $600 F. d. $200 F.”

Managerial Accounting

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“Pardoe, Inc., manufactures a product[…]

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“Pardoe, Inc., manufactures a product called Product A. The company uses a standard cost system and has established the following standards for one unit of Product A: Standard Standard Price Standard Quantity or Rate Cost Direct materials 1.5 pounds $3 per pound $4.50 Direct labor 0.6 hours $6 per hour 3.60 Variable overhead 0.6 hours $1.25 per hour .75 $8.85 ÍÍÍÍÍ During March 19×3, the following activity was recorded by the company relative to the production of Product A: I. The company produced 3,000 units during the month. II. A total of 8,000 pounds of material were purchased at a cost of $23,000. III. There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,000 pounds of material remained in the warehouse unused. IV. The company employs 10 people to work on the production of Product A. During March, each worked at an average of 160 hours at a rate of $6.50 per hour. In the past, the 10 persons employed in the production of Product A consisted of four senior workers and six assistants. During March, the company experimented with five senior workers and five assistants. V. Variable overhead is assigned to Product A on the basis of direct labor-hours. Variable overhead costs during March totaled $1,800.99. The labor efficiency variance for March is: a. $5,040 U. b. $1,200 U. c. $1,200 F. d. $5,040 F.”,”3Labor Efficiency Variance =Actual Hours at Standard Rate – Standard hours Allowed at Standard Rate= (10 x 160 x 6) – (300 x .6) x 6= $1

Managerial Accounting

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“Pardoe, Inc., manufactures a product[…]

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“Pardoe, Inc., manufactures a product called Product A. The company uses a standard cost system and has established the following standards for one unit of Product A: Standard Standard Price Standard Quantity or Rate Cost Direct materials 1.5 pounds $3 per pound $4.50 Direct labor 0.6 hours $6 per hour 3.60 Variable overhead 0.6 hours $1.25 per hour .75 $8.85 ÍÍÍÍÍ During March 19×3, the following activity was recorded by the company relative to the production of Product A: I. The company produced 3,000 units during the month. II. A total of 8,000 pounds of material were purchased at a cost of $23,000. III. There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,000 pounds of material remained in the warehouse unused. IV. The company employs 10 people to work on the production of Product A. During March, each worked at an average of 160 hours at a rate of $6.50 per hour. In the past, the 10 persons employed in the production of Product A consisted of four senior workers and six assistants. During March, the company experimented with five senior workers and five assistants. V. Variable overhead is assigned to Product A on the basis of direct labor-hours. Variable overhead costs during March totaled $1,800. 96. The labor rate variance for July was: a. $800 favorable. b. $4,640 unfavorable. c. $3,840 unfavorable. d. $800 unfavorable.”

Managerial Accounting

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“Pardoe, Inc., manufactures a product[…]

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“Pardoe, Inc., manufactures a product called Product A. The company uses a standard cost system and has established the following standards for one unit of Product A: Standard Standard Price Standard Quantity or Rate Cost Direct materials 1.5 pounds $3 per pound $4.50 Direct labor 0.6 hours $6 per hour 3.60 Variable overhead 0.6 hours $1.25 per hour .75 $8.85 ÍÍÍÍÍ During March 19×3, the following activity was recorded by the company relative to the production of Product A: I. The company produced 3,000 units during the month. II. A total of 8,000 pounds of material were purchased at a cost of $23,000. III. There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,000 pounds of material remained in the warehouse unused. IV. The company employs 10 people to work on the production of Product A. During March, each worked at an average of 160 hours at a rate of $6.50 per hour. In the past, the 10 persons employed in the production of Product A consisted of four senior workers and six assistants. During March, the company experimented with five senior workers and five assistants. V. Variable overhead is assigned to Product A on the basis of direct labor-hours. Variable overhead costs during March totaled $1,800.95. The materials quantity variance for July was: a. $10,500 unfavorable. b. $6,000 favorable. c. $4,500 unfavorable. d. $6,750 unfavorable.”,”3Material Quantity Variance:Actual Quantity Used at Standard – Standard Quantity Allowed at Standard Rate 6000 x 3 – (3000 x 1.5) x 3 18,000 – 13,500 = $4,500 UActual Quantity at Standard – Standard Quantity allowed at Standard Rate18,000 – 13,500 = $4,500 UActual Quantity at Standard – Standard Quantity allowed at Standard Rate18,000 – 13,500 = $4

Managerial Accounting

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“Pardoe, Inc., manufactures a product[…]

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