Question

Hi, you able to assist I am trying to compare?

Question 3

Try-Us-First Motors manufactures and sells off-road vehicles. The September sales were $6,000,000. Monthly design costs are $112,000 and rework is running at $75,000 per month. Its painting department is fully automated and requires substantial inspection to keep the machines operating properly. An improperly painted vehicle is very expensive to correct, and inspection hours for the 8,000 vehicles painted in September totaled 2,000 hours by 14 employees, who earn an average of $28 an hour. Ten litres of paint were used on average for each vehicle. The standard amount of paint per vehicle is nine litres. The cost of inspection for September was equal to the budgeted amount of $56,000.

What are appraisal costs as a percentage of sales?

Select one:

A. 0.93%

B. 1.87%

C. 2.20%

D. 1.25%

E. 2.80%

Question 4

At the Todd Company, the cost of the personnel department has always been charged to the various departments based upon the number of employees. Recently, opinions gathered from the department managers indicated that the number of new hires might also be a predictor of personnel costs to be assigned. Total personnel costs are $320,000.

Department Department Department
Cost Driver A B C
Number of employees 30 270 100
Number of new hires 8 12 5


If the number of employees is considered the cost driver, what amount of personnel costs will be allocated to Department A?

Select one:

A. $102,400

B. $40,000

C. $50,000

D. $10,667

E. $24,000

Question 5

Presented below is the production data for the last six months of the year for the mixed costs incurred by Wagner Company.

Month	Cost	Units
July	$24,450	8,200
August	20,120	6,400
September	32,400	10,600
October	44,200	15,000
November	29,000	9,600
December	36,680	13,200

The total cost at an operating level of 10,000 units would be

Select one:

A. $42,550.

B. $21,416.

C. $31,136.

D. $46,625.

E. $30,200

Answer 1