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11) Craig's Cola was to manufacture 1,000 cases of cola next week. The accountant provided the following analysis of total manufacturing costs. VariableCoefficientStandard Errort-Value Constant10071.941.39 Independent Variable20091.742.18 r2 = 0.82 What is the estimated cost of producing the 1,000 cases of cola? A) $200,100 B) $72,032 C) $100,200 D) $9,000 E) $91,812 12) What common.
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11) Which of the following represents a qualitative factor? A) any nonfinancial factor B) historical costs C) relevant costs D) the timing of variable costs E) an outcome that cannot be measured in numerical terms 12) A one-time-only special order decision A) should consider only long-term costs and benefits. B) must still consider short-term and long-term costs and.
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Answer the following question(s) using the information below.   Central Medical Supply Inc., a manufacturer of medical testing equipment, has $240,000 worth of an obsolete line of testing equipment. The obsolete equipment can be adapted to fit another line of testing equipment at a cost of $64,000; the market value would then.
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36) Axle and Wheel Manufacturing is approached by a European customer to fill a one-time-only special order for a product similar to one offered to domestic customers. The following per unit data apply for sales to regular customers: Direct materials$33 Direct labour15 Variable manufacturing support24 Fixed manufacturing support52 Total manufacturing costs$124 Markup (50%)62 Targeted selling price$186 Axle and.
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  11.1   Distinguish relevant from irrelevant information in decision situations. 1) A decision model is a formal method of making a choice that uses only quantitative analyses. 11.2   Identify the differences among relevant costs for short-term and long-term production output decisions. 1) The purpose of evaluating performance in the decision process is to provide.
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41) Ralph's Mufflers manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Model XModel YModel Z Selling price$160$180$200 Direct materials606060 Direct labour ($20 per hour)303040 Variable support costs ($10 per machine-hour)102020 Fixed support costs404040 a.For each model, compute the contribution margin.
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11.5   Explain the theory of constraints and how to manage "bottlenecks." 1) The theory of constraints describes methods of reducing bottlenecks by identifying and reducing fixed costs previously viewed as variable. 2) The theory of constraints analyzes fixed costs and considers short-run costs to be variable costs. 3) In a manufacturing operation, the.
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11) The theory of constraints is more useful than activity-based costing in long-run decisions. 12) A company would subordinate all bottleneck production to non-bottleneck machines when A) the bottleneck resource was temporarily unused. B) setup time on the non-bottleneck machine is higher than on the bottleneck machine. C) setup time on the non-bottleneck machine.
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Answer the following question(s) using the information below. Jim's 5-year-old Geo Prizm requires repairs estimated at $3,000 to make it road worthy again. His friend, Julie, suggested that he should buy a 5-year-old used Honda Civic instead for $3,000 cash. Julie estimated the following costs for the two cars: Geo Prizm Honda Civic Acquisition.
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19) Harry's Picture manufactures various picture frames. Each new employee takes 5 hours to make the first picture frame and 4 hours to make the second. The manufacturing overhead charge per hour is $20. Required: a.What is the learning-curve percentage, assuming the cumulative average method? b.What is the time needed to build 8.
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10.9   Discuss the interpretation of regression models. 1) Statistical significance of independent variables is determined by comparing the t-value to a threshold called degrees of freedom. 2) The standard error of the estimated coefficient indicates whether a relationship exists between the predictor variable and the outcome variable that cannot be attributed to.
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7) Local Steel Construction Company produces two products, steel and wood beams. Steel beams have a unit contribution margin of $200, and wood beams have a unit contribution margin of $150. The demand for steel beams exceeds Local Steel Construction Company's production capacity, which is limited by available direct labour.
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Match the description with the appropriate term. A) specification analysis B) standard error of the regression C) Durbin-Watson statistic D) t-value E)  heteroscedasticity F) autocorrerlation G) homoskedasticity H) goodness of fit I) economic plausibility J) constant variance of residuals 30) Measures how large the value of the estimated coefficient is relative to its standard error. 31) The testing of the assumptions of.
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The Door Company manufactures doors. Classify each of the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs. A) Appraisal B) External failure C) Internal failure D) Prevention 49) Retesting of reworked products 50) Downtime due to quality problems 51) Analysis of the cause of defects in production 52) Depreciation of test.
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11.3   Contrast relevant and irrelevant costs and revenue as well as quantitative and qualitative information influencing pricing decisions. 1) Quantitative factors are always expressed in financial terms. 2) If a manufacturer chooses to continue purchasing direct materials from a supplier because of the on-going relationship that has developed over the years, the.
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11) The Gameshop manufactures specialized board games. Management is attempting to search for ways to reduce costs and is considering two alternatives for an upcoming project of special games that must be delivered to the customer in 12 months' time. Management agreed to the special project job as they have.
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25) Carl Clarkson and Lenny Lenid have been assigned to review the costs of quality at the Sprotton Chemicals Ltd. for the month of September. All amounts are in thousands (000's). Cost ItemAmount Product testing$350 Clean up of toxic spills within the plant$14,200 Employee training$200 Quality Engineering$675 Supplies used in testing$500 Statistical Process Control$1,750 Payments on lawsuits from.
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11.6   Explain why the book value of equipment is irrelevant in equipment replacement decisions. 1) The financial measures used to evaluate a manager's performance should be consistent with the decision model. 2) The gain or loss on the disposal of a machine is a relevant factor when considering replacing the machine if.
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A client in another province needs immediate help in solving a personnel training problem in the shipping department. Match each activity on the basis of its relationship with this consulting engagement. Items may have multiple classifications. A) Irrelevant Costs B) Opportunity Cost C) Opportunity, Irrelevant Costs D) Sunk Costs E) Relevant Costs F) Sunk, Irrelevant Costs 47).
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Answer the following question(s) using the information below. Speedy Dress Manufacturing has two workstations, cutting and finishing. The cutting station is limited by the speed of operating the cutting machine. Finishing is limited by the speed of the workers. Finishing normally waits for work from cutting. Each department works an eight-hour.
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12.1   Discuss the major influences on pricing decisions. 1) The three major influences on pricing decisions are: costs, competitors, and customers. 2) Managers have little discretion in setting prices in market situations which are not competitive. 3) In less competitive markets where products can be differentiated by their features the pricing decision depends.
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25) Brix, Inc., prepares frozen food for fast-food restaurants. It has two workstations, cooking and assembly. The cooking station is limited by the cooking time of the food. Assembly is limited by the speed of the workers. Assembly normally waits on food from cooking. Because the demand has increased in.
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18) The management accountant for the Chocolate S'more Company has prepared the following income statement for the most current year: ChocolateOther CandyFudgeTotal Sales$40,000$25,000$35,000$100,000 Cost of goods sold26,00015,00019,00060,000 Contribution margin$14,000$10,000$16,000$40,000 Delivery and ordering costs2,0003,0002,0007,000 Rent (per sq. metre used*)3,0003,0002,0008,000 Allocated corporate costs5,0005,0005,00015,000 Corporate profit$4,000$(1,000)$7,000$10,000 * The company pays for the entire space and allocates based on sq. metres used. Required: a.Do.
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Use the information below to answer the following question(s). Northwoods manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $90 per table, consisting of 80% variable costs and 20% fixed costs. The company has surplus capacity available. It is Northwoods' policy to add a 50% markup to full.
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15) Hasselhoff Camera is considering eliminating Model EOS1 from its camera line because of losses over the past quarter. The past three months of information for model EOS1 is summarized below: Sales (1,000 units)$250,000 Manufacturing costs: Direct materials90,000 Direct labour ($15 per hour)80,000 Support100,000 Operating loss($20,000) Support costs are 70% variable and the remaining 30% is.
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21) The contribution per machine-hour is A) $18 for Standard, $20 for Premium. B) $54 for Standard, $80 for Premium. C) $15 for Standard, $16 for Premium. D) $6 for Standard, $5 for Premium. E) $5 for Standard, $6 for Premium. 22) If there are 496 machine-hours available per week, how many rockers of each model.
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10.10   Describe a learning curve model. 1) In the incremental unit-time learning model, the incremental unit time decreases by a constant percentage each time the cumulative quantity of units produced is doubled. 2) A learning curve measures the effect of learning on efficiency. 3) Plotting learning curve observations is helpful in selecting.
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Answer the following question(s) using the information below. Gerry's Generator Supply is approached by Mr. Gladstone, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. Gerry's Generator Supply has excess capacity. The following per unit data apply for sales to.
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12.2   Understand how companies make short-run pricing decisions. 1) Special orders increase income if the revenue from the order exceeds the incremental variable and fixed costs incurred to fill the order. 2) In deciding whether to accept a special sales order, any fixed costs that would remain unchanged are considered irrelevant data. 3).
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11.7   Appendix 11A: Linear Programming 1) Linear programming is a tool that maximizes total contribution margin of a mix of products with multiple constraints. 2) Which of the following is NOT one of the steps involved in linear programming? A) determining the objective B) determining the technical coefficients C) computing the optimal solution D) determining.
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11.4   Explain the opportunity-cost concept and why it is used in decision making. 1) Opportunity cost is the contribution to income that is recognized through the use of limited resources available in the best alternative. 2) Quantitative factors are relevant, and qualitative factors are irrelevant, in making outsourcing decisions. 3) If the $17,000.
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32) A corporation can measure its quality performance by using financial or nonfinancial measures of quality. Discuss the merits of each method and whether the use of one precludes the use of the other. 33) Wilson's Language School manufactures CDs and DVDs to teach English as a Second Language. Wilson has.
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21) A paper company manufactures cardboard boxes. Because the efforts of manufacturing are approximately equal between labour and machinery, management is considering other possible cost drivers. By considering different cost drivers, it is anticipated that the estimating process can be improved. The following cost estimating equations with their r, values.
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38) Nall Custom Pool Inc. needs 10,000 units of a certain part for its manufacturing process. It can buy the part from Wholesale Pool Supplies and Equipment for $53. Nall's plant can manufacture the part for the following costs per unit: Direct materials$6 Direct manufacturing labour24 Variable manufacturing overhead12 Fixed manufacturing overhead15 Total$57 If Nall buys.
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11) Managers tend to favour the alternative that makes their performance look best. This leads to conflicts between which of the following? A) the status quo and the chosen alternative B) the decision model and the performance evaluation model C) the constraining factor and the performance evaluation model D) gathering the required information and.
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24) The new cost analyst in your accounting department has just received a computer-generated report that contains the results of a simple regression program for cost estimation. The summary results of the report appear as follows: VariableCoefficientStandard Errort-Value Constant$35.92$16.022.24 Independent Variable$563.80$205.402.74 r2 = 0.75 Required: a.What is the cost estimation equation according to.
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32) Lewis Auto Company manufactures a part for use in its production of automobiles. When 10,000 items are produced, the costs per unit are: Direct materials$12 Direct manufacturing labour60 Variable manufacturing overhead24 Fixed manufacturing overhead32 Total$128 Monty Company has offered to sell Lewis Auto Company 10,000 units of the part for $120 per unit. The.
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27) Newton Company used linear regression analysis to obtain the following output: Payroll Department Cost Explained by Number of Employees Constant$5,800 Standard error of Y estimate630 r2 0.8924 Number of observations20 X coefficient$1.902 Standard error of coefficient0.0966 Required: a.What is the total fixed cost? b.What is the variable cost per employee? c.Prepare the linear cost function. d.What is the coefficient of determination?.
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39) Are relevant revenues and relevant costs the only information needed by managers to select among alternatives? Explain using examples. 40) A restaurant is deciding whether it wants to update its image or not. It currently has a cozy appeal with loyal customers. The outdated décor that is still in.
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29) Car Parts Company manufactures a part for use in its production of automobiles. The costs per unit when 10,000 items are produced are: Direct materials$6 Direct manufacturing labour30 Variable manufacturing overhead12 Fixed manufacturing overhead16 Total$64 Auto Company has offered to sell to Car Parts Company 10,000 units of the part for $60. The plant facilities.
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Nidek manufactures sport swear. Classify each of the following quality costs as prevention, appraisal, internal failure or external failure. A) External failure B) Internal failure C) Appraisal D) Prevention 35) Disposal of spoiled work in process 36) Downtime due to quality problems 37) Expediting work to meet delivery schedule 38) Field testing 39) Maintaining a complaint department 40) Product liability 41).
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