An outside supplier has offered to sell Mason the component for $13.

1. Devry ACCT 244 Week 3 and 5 Homework Latest Just Click on Below Link To Download This Course: https://www.devrycourses.com/product/devry-acct-244-week-3-and-5-homework-latest/ Or Email us help@devrycourses.com Devry ACCT 244 Week 3 and 5 Homework Latest (TCO 5) Mason Industries manufactures 20,000 components per year. The manufacturing cost of the cowmonents was determined as follows: Direct materials $80,000 Direct labor $120,000 Variable overhead $55,000 Fixed overhead $40,000 An outside supplier has offered to sell Mason the component for $13. If Mason purchases the component from the outside supplier, fixed costs would be reduced by $10,000. Should Mason accept the offer? Yes, because the differential costs decrease by $10,000. Yes, because the differential costs decrease by $5,000. No, because the differential costs increase by $10,000. No, because the differential costs increase by $5,000. Question 2. Question : (TCO 5) The following information relates to a product produced by Henry Company: Direct materials $13 Direct labor 10 Variable overhead 8 Fixed overhead 11 Unit cost $42 Fixed selling costs are $1,000,000 per year. Variable selling costs of $3 per unit sold are added to cover the transportation cost.Although production capacity is 500,000 units per year, Henry expects to produce only 400,000 units next year. The product normally sells for $50 each. A customer has offered to buy 50,000 units for $38 each. The customer will pay the transportation charge on the units purchased. If Henry accepts the special order, the effect on income would be a: $750,000 increase.

2. $350,000 increase. $200,000 increase. $100,000 increase. Points Received: 5 of 5 Comments: Question 3. Question : (TCO 5) The operations of Click Corporation are divided into the North Division and the South Division.Projections for the next year are as follows: North Division South Division Total Sales $720,000 340,000 $1,060,000 Variable costs 215,000 158,000 373,000 Contribution margin $505,000 $182,000 $687,000 Direct fixed costs 173,000 146,000 319,000 Segment margin $332,000 $36,000 $368,000 Allocated common costs 90,000 68,000 158,000 Operating income (loss) $242,000 $(32,000) $210,000 If the South Division was dropped, the operating income for Click Corporation, as a whole, would be: $264,000. $174,000. $242,000. $210,000. Question 4. Question : (TCO 3) Mount Company incurred a total cost of $8,600 to produce 400 units of pulp. Each unit of pulp required five direct labor hours to complete. What is the total fixed cost if the variable cost was $1.50 per direct labor hour? $1,700 $3,000 $5,600 $8,000 Question 5. Question : (TCO 3) The controller of Joy Co has requested a quick estimate of the manufacturing supplies needed for the Morton Plant for the month of July, when production is expected to be 470,000

3. units to meet the ending inventory requirements and sales of 475,000 units. Joy Co’s budget analyst has the following actual data for the last three months. Using the high-low method to develop a cost estimating equation, the estimate of the needed manufacturing supplies for July would be: $681,500. $688,750. $749,180. $752,060. Points Received: 5 of 5 Comments: Question 1. Question : (TCO 2) Mark Corporation estimates its manufacturing overhead to be $110,000 and its direct labor costs to be $220,000 for Year 1. The actual direct labor costs for the year include: Job 301 $60,000 Job 302 82,000 Job 303 98,000 The actual manufacturing overhead was $121,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs by using predetermined rates. What was the over- or underapplied manufacturing overhead for Year 1? $11,000 overapplied $11,000 underapplied $1,000 overapplied $1,000 underapplied Points Received: 5 of 5 Comments: Question 2. Question : (TCO 2) The journal entry to record the actual manufacturing overhead costs for indirect material is: a b c d

4. e Question 3. Question : (TCO 2) Cedar Company estimates its manufacturing overhead to be $700,000 and its direct labor costs to be $560,000 for Year 2. Cedar worked on the following three jobs for the year: Job Status Direct Labor Costs Job 2-1 Completed and sold $195,000 Job 2-2 Completed by not sold 325,000 Job 2-3 In progress 130,000 Actual manufacturing overhead for Year 2 was $822,000. Manufacturing overhead is applied on the basis of direct labor costs. How much of the underapplied overhead should be allocated to finished goods? $2,850 $1,900 $4,750 $9,500 Question 4. Question : (TCO 2) In order to compute equivalent units of production using the FIFO method of process costing, work for the period must be broken down to units: completed during the period and units in ending inventory. started during the period and units transferred out during the period. completed from beginning inventory, started and completed during the month, and units in ending inventory. processed during the period and units completed during the period. Question 5. Question : (TCO 2) The Finishing Department had 5,000 incomplete units in its beginning Work- in-Process Inventory, which were 100% complete as to materials and 30% complete as to conversion costs. 15,000 units were received from the previous department. The ending Work-in-Process Inventory consisted of 2,000 units, which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing. What are the equivalent units of production for the conversion costs during the period? 14,500 15,100 16,500 17,100 Download File Now