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A local science museum normally sells tickets to its museumfor $10 each. The daily maximum capacity of the museum is 1000 visitors. At the maximum capacity, fixed costs are $3.00 pervisitor and variable costs are $4.00 per visitor. A local schoolgroup has approached the museum wishing to purchase 50 special passes at a cost of $4.00 each. Assuming the museum has available capacity, should the museum accept the special order? Explain the factors you considered to arrive at your answer.
O'malley Corp. uses a weighted average process costing system. Material is added at the beginning of the production process and overhead is applied on the basis of direct labor.
What do you think is the more accurate basis of accounting?
The cash budget is especially important to a firm when: a. there is not a lot of confidence in the sales forecast. b. it has a relatively large amount of operating cash.
The cash and securities comprising a sinking fund established to redeem bonds at maturity in 2015 should be classified on the balance sheet as:
Making decision for discontinue production of subassemblies and purchase from an outside supplier.
Dr. Mark Skousen, in his article, "Raising Cain: Why the 9-9-9- Tax Plan is a Dangerous Policy", states that Republican Herman Cain has gotten quite a bit of publicity about his new 9-9-9 tax plan.
The following information is available for completed job: Direct materials,$60000; direct labor $ 90000,manufacturing overhead applied $ 45000, units produced 5000 units, units sold 4000 units. the cost of the finished goods on hand from this job ..
When the present value analysis of a proposed investment results in an indication the proposal has a rate of return greater than the cost of capital, the investment may not be made because:
Computer Parts, Inc., a manufacturer of computer chips, employs activity-based costing. The following budgeted data for each of the activity cost pools is provided below for the year 2010.
The plan has a $2,000 deductible, but his employer contributed $1,500 to Rex' s HAS. Rex withdrew only $800 from the HAS, and the account earned $50 interest during the year.
Lagerfield Company reported the following results from the sale of 5,000 hammers in May: sales $200,000, variable costs $120,000, fixed costs $60,000, and net income $20,000. Assume that Lagerfield increases the selling price of hammers by 10% on ..
With the number of workers currently employed, that means that the company is committed tp paying its direct labor work force at lease 5600 hours in total each month even if there is not enought work to keep them busy. Construct the direct labor b..
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