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NEW QUESTION 25
Throughout June. Carroll Company purchased 75,000 pounds of raw materials at a cost of $303,750 and used
60 000 pounds of these purchases in production Carroll’s standards indicated that each unit of finished goods requires three pounds of material at a cost of $4 per pound Although Carroll had budgeted for 22,000 units of finished goods to be produced during June, only 19,800 units were actually made. The raw material price variance for June that would be most relevant when examining deviations from standard is
- A. $3,750 Unfavorable
- B. $2,970 Unfavorable
- C. $3,000 Unfavorable
- D. $3,300 Unfavorable
Answer: A
NEW QUESTION 26
A company uses the full cost method to determine transfer prices between business units The related data are shown below
Based on these data, what is the transfer price?
- A. $25.00
- B. $50.00
- C. $37.50.
- D. $22 50
Answer: A
NEW QUESTION 27
Trans Action inc. (TAI) is a multidivisional supplier of power train components to the automobile industry.
Following is selected information for the year just ended for each of the three divisions. Gear Axle and Housing.
The tai Board of Directors has decided to reward the employees or the divisions by allowing them to share in a bonus pool equal to S100.000 for each percentage point the return on investment (ROI) earned by their division exceeded the ROI of comparable firms as shown in the table below.
Rank the amounts in the bonus pools for the respective divisions from highest to lowest.
- A. Housing, Axle, Gear.
- B. Gear. Housing, Axle
- C. Axle, Gear, Housing
- D. Axle, Housing, Gear
Answer: A
NEW QUESTION 28
A company reported that its shareholders’ equity decreased in the recent year. This could occur if
- A. dividends paid were less than net income.
- B. dividends paid were greater than net income
- C. new common stock was sold for less than par value
- D. new common stock was sold for greater than par value
Answer: B
NEW QUESTION 29
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