Acc – which of the following is an example of direct labor

1.Which of the following is an example of direct labor?
a. chef in a restaurant
b. janitor in a production plant
c. security guard for the factory
d. management accountant

2.If fixed costs increase, the breakeven point in units will
a. increase
b. decrease
c. remain the same
d. remain the same; however, contribution per unit will decrease

3.Which of the following is false?
a. favorable labor efficiency variance could result from using higher quality materials that result in fewer inspections.
b. a favorable labor rate variance could result from lower wage workers quitting
c. a favorable materials price variance could result from purchasing identical materials from another supplier at a lower price
d. an unfavorable materials usage variance could result from not efficiently utilizing raw materials, thus causing waste
e. all of these are false.

The manager of Alpha Division projects the following for next year:
Sales $100,000
Operating income $30,000
Operating assets $200,000
The manager can invest in an additional project that would require $30,000 investment in additional assets and would generate $4,200 of additional income. The company’s minimum rate of return is 12%

4.What is the residual income for Alpha Division without the additional investment?
a. $30,000
b. $24,000
c. $6,600
d. $4,200
e. $6,000

Color Pro uses part 87 a in the production of color printers. Unit manufacturing costs of part 87a are:
Direct materials $8.00
Direct labor 2
Variable overhead 1
Fixed overhead 4

ColorPro uses 100,000 units of 87a per year. Filbert Company has offered to sell ColorPro 100,000 units of 87a per year for $12.00. Fixed overhead is unavoidable.

5. Should ColorPro make or buy the part?
a. make the part because it will save $100,000 over buying it
b. buy the part because it will save $100,000 over making it
c. make the part because it will save $1,100,000 over buying it
d. buy the part because it will save 1,100,000 over making it
e. buy the part because it will save $300,000 over making it

6.Now suppose that ColorPro discovers that other costs will increase by $7,000 per year if the component is purchased rather than made internally. Should ColorPro make or buy the part?
a. make the part because it will save $100,000 over buying it
b. buy the part because it will save $100,000 over making it
c. make the part because it will save $107,000 over buying it
d. buy the part because it will save $107,000 over making it
e. make the part because it will save $10,000 over buying it

7.A firm is evaluating a project that has a net present value of $0 when a discount rate of 8 percent is used. A discount rate of 6 percent will result in
a. negative net present value
b. positive net present value
c. net present value of $0
d. The question cannot be answered based upon the information provided.

8.In calculating net cash from operating activities using the indirect method, an increase in accounts receivable during a period is 
a. deducted from net income
b. added to net income
c. ignored because it does not affect income
d. ignored because it does not affect expenses

9.In vertical analysis, line items on the income statement are generally expressed as a percentage of 
a. sales
b. net income
c. total assets
d cost of goods sold

10. Cash flows from operating activities, as reported on the statement of cash flows, would include:
a. receipts from the sale of investments.
b. net income
c. payments of dividends
d receipts from the issuance of common stock

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more