Blog

Gallerani Corporation has received a request for a special order of 6,000 units of product A90 for $21.2 each. Product A90’s unit product cost is $16.20, determined as follows: direct materials 6.10 direct labor 4.20 variable manufacturing overhead 2.30 fixed manufacturing overhead 3.60 unit product cost 16.20 Direct labor is a variable cost. The special order would have no effect on the company’s total fixed manufacturing overhead costs. The customer would like modifications made to product A90 that would increase the variable costs by $4.20 per unit and that would require an investment of $21,000 in special molds that would have no salvage value.This special order would have no effect on the company’s other sales. The company has ample spare capacity for producing the special order. If the special order is accepted, the company’s overall net operating income would increase (decrease) by:

A good description of “cost of goods manufactured” is the recorded cost of the:

At a volume of $20,000 direct labor hours, Tirso company incurs $50,000 in factory overhead costs, including $10,000 in fixed costs. Assuming that this activity is within the relevant range, if volume increases to 25,000 direct labor hours, Tirso Company would expect to incur total factory overhead costs of:

The purpose of a flexible budge is to:

When the activity level is expected to decline within the relevant range, what effects would be anticipated with respect to each of the following?

The book value of old equipment is not a relevant cost in an equipment replacement decision.

Supreme Celery Corporation manufactures four celery based products. Floods and fire on the west coast are going to cause a shortage of celery for Supreme next month. Information related to the four celery products that it produces are shown below. The numbers relate to the cost per case and the amount of celery per case of product:   Jelly Cracker Spread Soup Snack Bars Sales prices 40 32 35 65 Variable costs 34 22 27 50 Pounds of celery required 18 20 28 38 To maximize profit next month, in what order would it be best for Supreme to schedule production (first to last)?

When a dental sealant is placed, the technique

Which of the following statements about microabrasion is true?

When tooth enamel first begins to demineralized, what is one of the corrective measures that can be taken to stimulate remineralization?