### Efficiency ratio and cost reduction target

Assignment Help Corporate Finance
##### Reference no: EM1315812

Overheads, efficiency ratio, cost reduction target - Multiple choice

1.  Tayla Industries has total budgeted fixed over head of \$100,000, and budgeted variable overhead of \$20 per unit for the coming period.  Expected sales are 40,000 units; expected production is 50,000 units; practical (maximum) capacity is 100,000 units.  If Tayla Industries uses a normal costing system and a plant wide predetermined overhead rate, the budgeted overhead per unit is

a.         \$22.50.

b.        \$22.00.

c.         \$21.00.

d.        None of the above (a, b, or c.).

2.  Chuckle's Toy Manufacturing has recently performed an activity-based costing analysis of one of its best-selling toys, the Main Man Robot. The analysis shows the following estimated monthly cost per 1,000 unit productions run:

 Currently feasible costs per month Expected monthly revenues \$300,000 Unit-level resources and activities \$   96,000 Batch-level resources and activities 20,000 Product-level resources and activities 40,000 Customer-level resources and activities 24,000 Facility-level resources and activities 70,000 Total feasible costs per month: \$250,000

Chuckle's management has targeted a required return of 20% of monthly revenues. To achieve its objective, Chuckle's monthly cost reduction target is:

a.         \$10,000

b.        \$50,000

c.         \$60,000

d.        \$0 - the company has already achieved its required return of 20%

3.  Timber Company does roadwork for municipalities.  They analyzed their business operations and found that the value added activities in paving a road take on average 90 minutes a day, and the nonvalue added activities take on average 390 minutes a day.   Timber improved their value added activities from 90 minutes to 150 minutes, and reduced their nonvalue added activities to 330 minutes.  Their efficiency ratio improved by

a.         12.5%

b.        31.25%

c.         40%

d.        66 2/3%

### Previous Q& A

#### Identifying local maximum, local minimum

Identifying local maximum, local minimum.

#### Analysis the graph of the derivative

Analysis the graph of the derivative.

#### What was the average cost per share

Calculate missing amounts in the comparative balance sheets and What was the average cost per share of the common stock purchased for the treasury during the month?

#### Find the derivative of the function

Find the derivative of the function by using quotient rule.

#### Chain rule of differentiation

Find the derivative of the given function by using chain rule of differentiation.

#### Evaluating financial statement data

Horizontal analysis is a technique for evaluating financial statement data and Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time

#### Find the derivative by using the differentiation rules

The derivative by using the differentiation rules

#### Limitation of internal control

Accounting accrual concept and revenue recognition - Multiple Choice and Which of the following is not a limitation of internal control?

#### Find the sheepskin''s 2006 net income

Accounting accrual concept and revenue recognition - Multiple Choice and What is Sheepskin's 2006 net income using cash basis accounting?

#### Accounts periods and basics concepts

Accounts periods and basics concepts - Multiple Choice questions and What is Sheepskin's 2006 net income using accrual accounting

### Similar Q& A

#### Differences between a company and a partnership

What are some of the key differences between a company and a partnership What decisions must be made, and what steps have to be taken, to incorporate the new company?

#### Calculate the balance of its investment in nye account

Assume that Jong used the equity method of accounting for its investment in Nye instead of the cost method. Calculate the balance of its "Investment in Nye" account.

#### Not-for profit analysis optimal patient level

Not-for Profit Analysis optimal patient level under different plans -  Calculate these levels under plan A

#### Stocks and bonds and risk analysis

Stocks and bonds and risk analysis multiple choice questions - the market allocates capital to companies based on

#### Determine the profitability of each product line

Assign administrative overhead costs to the two product lines based on ABC, using the cost drivers designated in the data provided above. Determine the profitability of each product line (in dollars and percentages)

#### Calculate the stock price of ibm

Calculate the stock price of IBM - Using the information of the present year to evaluate the current stock.

#### Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

#### Calculation of future value on a per dollar basis

Calculation of future value, on a per dollar basis, of each of the two interest payment options and compute the future value of the \$47 million bid using each option, and determine which is bigger.

#### Analysing financial actions

Analysing financial actions taken by Westpac Banking Corporation

#### Purpose an adjusted trial balance

Preparation of Adjusted Trail Balance form the trail balance and the adjustments - Purpose an adjusted trial balance

#### Multiple choice questions on jit

Multiple choice questions on JIT and actions are likely to reduce the length of a company's cash conversion cycle?

#### Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).