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Sailing Unlimited makes small sailboats. The average monthly demand is 50 boats. The plant operates 300 hours a month. It takes 3 hours to manufacture a boat once it is taken up for production. Each boat sells for $15,000 and consumes variable costs of $12,000. In addition to the variable costs, inventory carrying costs of $200 per boat per hour of manufacturing cycle time are also incurred by the company.
By incurring extra variable costs (primarily direct labor) of $500 per boat, the company will be able to reduce the manufacturing time for each boat from 3 hours to 2 hours. The average demand and the capacity will not change. Should the company implement this action?
Auditing standards discuss fraud in details. What is your impression of the auditor's responsibility to discover it? Do you make a distinction between responsibility regarding management fraud versus employee fraud?
After six months of operation, Brothers' Lawn Service had the following revenue and expense account balances:
In AT&Ts 2000 annual report, the company reported long-term deferred tax assets of $4,523,000,000 and current deferred tax assets of $1,791,000,000. What might contribute to AT&Ts need to record a valuation allowance?
lasted co. is planning to sell 400 hair dryers and produce 320 hair dryers during march. each hair dryer requires 600
heller corporation uses the weighted-average method in its process costing system. data concerning the first processing
Use the elements of the fraud triangle discussed in the chapter to identify internal control risks that should have influenced KPMG's position.
1 marvel company is considering the acquisition of two
The Marx Company issued $100,000 of 12% bonds on April 1, 2010 at face value. The bonds pay interest semiannually on January 1 and July 1. The bonds are dated January 1, 2010, and mature on January 1, 2015. The total interest expense related to th..
Wayne applies manufacturing overhead cost to jobs based on direct labor-hours, and the predetermined rate is $5.75 per direct labor-hour.
harriet pandel an employer is subject to fica taxes but exempt from futa and suta taxes. during last quarter of the
How are the tests of controls, substantive tests of transactions, and analytical procedures for the sales and collection cycle, payroll and personnel cycle, and acquisition and payment cycle similar? How do the cycles differ?
in its 2012 report volkswagen included the following cash-flow statement in millions20122011profit before
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