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Question 9 Shane is the manager of the shower screen manufacturing department in a home construction...

Question 9

  1. Shane is the manager of the shower screen manufacturing department in a home construction business. Which cost would not be classed as a direct cost of the shower screen manufacturing process?

    a.

    Wages of the office staff

    b.

    Wages of the tradesmen

    c.

    Glass for the shower panes

    d.

    Steel for the shower frames

    e.

    All of the options are direct costs

Question 10

  1. Using the data below to perform a vertical analysis, the % value assigned to gross profit (rounded to the nearest whole amount) is:

    Sales revenue

    $240,000

    Cost of sales

    $159,000

    Gross profit

    $81,000

    Operating expenses

    $51,000

    Profit before tax

    $30,000

    Tax expense

    $3,000

    Profit after tax

    $27,000

    a.

    34

    b.

    270

    c.

    300

    d.

    100

    e.

    51

Question 11

  1. The capital investment measures that overcome the problem of the time value of money are:

    a.

    NPV and IRR

    b.

    NPV and ARR

    c.

    IRR and ARR

    d.

    NPV and PP

    e.

    ARR and PP

Question 13

  1. From the following data calculate the estimated cash received from total sales during the month of May. Total sales for April, $40 000; May, $18 000. Cash sales are 60% of total sales and credit sales are 40% of total sales in each month.
    Credit sales are normally settled in the following pattern: 20% in the month of sale and 80% in the month following the sale.

    a.

    $35 600

    b.

    $12 240

    c.

    $34 000

    d.

    $25 040

    e.

    $18 000

Question 14

  1. Jaxon Ltd currently allocates overhead costs based on direct labour-hours (DLH). Jaxon Ltd budgeted the following costs and activities for the current year 2020: total overhead $1,050,000; total labour cost $1,680,000; total machine hours 60,000 MH; and total direct labour hours 210,000 DLH.

    What is the current OH rate Jaxon Ltd uses to allocate OH costs?

    a.

    $17.50/DLH                                        

    b.

    $28/DLH

    c.

    $8/DLH

    d.

    a)      $5/DLH                                                                                        

    e.

    Unable to be determined from the information given

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