1.Assuming that Rebecca has no inventory at the beginning of the period, what would be Rebecca's COGM/u...
Question:
1.Assuming that Rebecca has no inventory at the beginning of the period, what would be Rebecca's COGM/u for the quarter if the company produces and sells 50,000 dog coats?
a). 4.40
b). 5.05
c), 6.05
d). 6.15
2). Assuming that Rebecca has no inventory at the beginning of the period, what would be Rebecca's profit for the quarter if she produced and sold 50,000 coats?
a). 92500
b).125000
c). 150000
d). 152500
3). Assuming that Rebecca has no inventory at the beginning of the period, what would be Rebecca's COGM/u for the quarter if she produced 100,000 coats, but still sold 50,000 coats?
a). 4.40
b). 5.05
c). 6.05
d). 6.15
4). Assuming that Rebecca has no inventory at the beginning of the period, what would be Rebecca's profit for the quarter if she produced 100,000 coats, but still sold 50,000 coats?
a). 92500
b).125000
c). 150000
d). 152500
5).What does the bonus structure encourage Rebecca to do?
a). produce more units
b). produce fewer units
6) .True or False: If Rebecca were to produce 100,000 units, but still sell 50,000 units and the bonus structure was based on profits under a variable costing system, would she earn the bonus?
7). Under the full absorption costing system, what is the primary reason for the difference in profits between producing 50,000 units and producing 100,000 units holding constant sales at 50,000 units?
a). The commissions that must be paid
b). The npv of the project
c). less fixed overhead is recognized as an expense when productions is 100000 units.
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren