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Accounting Three Problems

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QUESTION 1;1. Vision Tester, Inc., a manufacturer of optical glass, began operations on February 1 of the current year. During this time, the company produced 900,000 units and sold 800,000 units at a sales price of $12 per unit. Cost information for this year is shown below.;Given this information, which of the following is true?;a.;Net income under variable costing will exceed net income under absorption costing by $50,000.;b.;Net income under absorption costing will exceed net income under variable costing by $50,000.;c.;Net income will be the same under both absorption and variable costing.;d.;Net income under variable costing will exceed net income under absorption costing by $60,000.;e.;Net income under absorption costing will exceed net income under variable costing by $60,000.;QUESTION 2;1. Which of the following best describes costs assigned to the product under the absorption costing method?;Direct labor (DL);Direct materials (DM);Variable selling and administrative;Variable manufacturing overhead;Fixed selling and administrative;Fixed manufacturing overhead;a.;DL, DM, variable selling and administrative costs and variable manufacturing overhead.;b.;DL, DM, and variable manufacturing overhead.;c.;DL, DM, variable manufacturing overhead, and fixed manufacturing overhead.;d.;DL and DM.;e.;DL, DM, fixed selling and administrative, and fixed manufacturing overhead.;QUESTION 3;1. A company is currently operating at 80% capacity producing 5,000 units. Current cost information relating to this production is shown in the table below.;The company has been approached by a customer with a request for a 100 unit special order. What is the minimum per unit sales price that management would accept for this order if the company wishes to increase current profits?;a.;Any amount over $34 per unit.;b.;Any amount over $20 per unit.;c.;Any amount over $14 per unit.;d.;Any amount over $9 per unit.;e.;Any amount over $5 per unit.

 

Paper#80484 | Written in 18-Jul-2015

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