saint mgt430 module 7 case studymgt 430module 7 business and stakeholders case study 3455468

SAINT MGT430 MODULE 7  CASE STUDYMGT 430Module 7 Business and Stakeholders Case Study 7 For this module , you are required to submit case study 7,’’Discussion case : Big Fat Liability.’’ At the and of chapter 15 page 353.Americans are becoming increasingly obese .in fact ,six out of ten adults and nearly 15 percentOf children are over weight.not only do many Americans eat McDonalds, as well as other fast food chains , have been in the limelight in recent years . being subject to various lawsuits for‘’making people fat .’’ Should intividuals be responsible for their own weight,or is it incumbentUpon business , government,or society to intervene? Respond to Discussion Question 2and 4 Submit to the Dropbox byno Later than Sunday 11.59 PM. EST/EDT(This Dropbox is linked to turnitin.)Keep in mind to intergrate the Saint Leo University core, value of responsible stewardship .as it applies to the case.Responses for each case discussion question should be in paragraph form and be approximately 250-300 word in length.

29 for a lamp manufacturing company the cost of the insurance on its vehicles that d 3455456

29.
For a lamp manufacturing company, the
cost of the insurance on its vehicles that deliver lamps to customers is best
described as a:

A.
prime cost.
B.
manufacturing overhead
cost.
C.
period cost.
D.
differential (incremental) cost of a
lamp.

31.
The cost of leasing production equipment is classified as:
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A.
Option A
B.
Option B
C.
Option C
D.
Option D

32.

The
wages of factory maintenance personnel would usually be considered to be:

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3 of 73
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A.
Option A
B.
Option B
C.
Option C
D.
Option D

33.
Manufacturing overhead consists of:

A.
all manufacturing costs.
B.
indirect materials but
not indirect labor.
C.
all manufacturing costs,
except direct materials and direct labor.
D.
indirect labor but not indirect
materials.

34.
Which of the following should NOT be included as part of manufacturing overhead
at a company that makes office furniture?

A.
Sheet steel in a file cabinet made by
the company.
B.
Manufacturing equipment
depreciation.
C.
Idle time for direct
labor.
D.
Taxes on a factory building.

35.
Which of the following costs would not be included as part of manufacturing
overhead?

A.
Insurance on sales vehicles.
B.
Depreciation of
production equipment.
C.
Lubricants for
production equipment.
D.
Direct labor overtime premium.

36.
Conversion cost consists of which of the following?

A.
Manufacturing overhead cost.
B.
Direct materials and
direct labor cost.
C.
Direct labor cost.
D.
Direct labor and manufacturing overhead
cost.

37.
The advertising costs that Pepsi incurred to air its commercials during the
Super Bowl can best be described as a:

A.
variable cost.
B.
fixed cost.
C.
product cost.
D.
prime cost.

38.
Each of the following would be a period cost except:

A.
the salary of the company president’s
secretary.
B.
the cost of a general
accounting office.
C.
depreciation of a
machine used in manufacturing.
D.
sales commissions.

39.
Which of the following costs is an example of a period rather than a product
cost?

A.
Depreciation on production equipment.
B.
Wages of salespersons.
C.
Wages of production
machine operators.
D.
Insurance on production equipment.

40 which of the following would be considered a product cost for external financial 3455450

40.
Which of the following would be considered a product cost for external
financial reporting purposes?

A.
Cost of a warehouse used to store
finished goods.
B.
Cost of guided public
tours through the company’s facilities.
C.
Cost of travel necessary
to sell the manufactured product.
D.
Cost of sand spread on the factory floor
to absorb oil from manufacturing machines.

41.
Which of the following would NOT be treated as a product cost for external
financial reporting purposes?

A.
Depreciation on a factory building.
B.
Salaries of factory
workers.
C.
Indirect labor in the
factory.
D.
Advertising expenses.

42.
The salary of the president of a manufacturing company would be classified as
which of the following?

A.
Product cost
B.
Period cost
C.
Manufacturing overhead
D.
Direct labor

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4 of 73

43.
Conversion costs do NOT include:

A.
depreciation.
B.
direct materials.
C.
indirect labor.
D.
indirect materials.

44.
Last month, when 10,000
units of a product were manufactured, the cost per unit was $60. At this level
of activity, variable costs are 50% of total unit costs. If 10,500 units are
manufactured next month and cost behavior patterns remain unchanged the:

A.
total variable cost will remain
unchanged.
B.
fixed costs will
increase in total.
C.
variable cost per unit
will increase.
D.
total cost per unit will decrease.

45.
Variable cost:

A.
increases on a per unit basis as the
number of units produced increases.
B.
remains constant on a
per unit basis as the number of units produced increases.
C.
remains the same in
total as production increases.
D.
decreases on a per unit basis as the
number of units produced increases.

46.
Which of the following statements regarding fixed costs is incorrect?

A.
Expressing fixed costs on a per unit
basis usually is the best approach for decision making.
B.
Fixed costs expressed on
a per unit basis will decrease with increases in activity.
C.
Total fixed costs are
constant within the relevant range.
D.
Fixed costs expressed on a per unit
basis will increase with decreases in activity.

47.
The salary paid to the production manager in a factory is:

A.
a variable cost.
B.
part of prime cost.
C.
part of conversion cost.

D.
both a variable cost and a prime cost.

48.
Within the relevant range, variable cost per unit will:

A.
increase as the level of activity
increases.
B.
remain constant.
C.
decrease as the level of
activity increases.
D.
none of these.

49.
The term “relevant range” means the range of activity over which:

A.
relevant costs are incurred.
B.
costs may fluctuate.
C.
production may vary.
D.
the assumptions about fixed and variable
cost behavior are reasonably valid.

90 gabruk inc is a merchandising company last month the company s merchandise purcha 3455449

90. Gabruk
Inc. is a merchandising company. Last month the company’s merchandise purchases
totaled $88,000. The company’s beginning merchandise inventory was $15,000 and
its ending merchandise inventory was $13,000. What was the company’s cost of
goods sold for the month?

A.
$88,000
B.
$90,000
C.
$86,000
D.
$116,000

A partial
listing of costs incurred during December at Gagnier Corporation appears below:
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91.
The total of the period costs listed above for December is:

A.
$89,000
B.
$310,000
C.
$325,000
D.
$399,000

92.
The total of the manufacturing overhead costs listed above for December is:

A.
$325,000
B.
$635,000
C.
$89,000
D.
$40,000

93.
The total of the product costs listed above for December is:

A.
$310,000

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B.
$89,000
C.
$635,000
D.
$325,000

A partial
listing of costs incurred at Backes Corporation during November appears below:
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94.
The total of the manufacturing overhead costs listed above for November is:

A.
$348,000
B.
$31,000
C.
$592,000
D.
$77,000

95.
The total of the product costs listed above for November is:

A.
$77,000
B.
$348,000
C.
$592,000
D.
$244,000

96.
The total of the period costs listed above for November is:

A.
$244,000
B.
$321,000
C.
$348,000
D.
$77,000

Dickison
Corporation reported the following data for the month of December:
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97.
The conversion cost for December was:

A.
$107,000
B.
$142,000
C.
$111,000
D.
$178,000

98.
The prime cost for December was:

A.
$109,000
B.
$111,000
C.
$107,000
D.
$66,000

Management
of Mcentire Corporation has asked your help as an intern in preparing some key
reports for April. Direct materials cost was $64,000, direct labor cost was
$47,000, and manufacturing overhead was $75,000. Selling expense was $15,000
and administrative
expense
was $44,000.

99.
The conversion cost for April was:

A.
$186,000
B.
$100,000
C.
$128,000
D.
$122,000

80 at a volume of 10 000 units company p incurs 30 000 in factory overhead costs inc 3455448

80. At
a volume of 10,000 units, Company P incurs $30,000 in factory overhead costs,
including $10,000 in fixed costs. Assuming that this activity is within the
relevant range, if volume increases to 12,000 units, Company P would expect to
incur total factory overhead costs of:

A.
$36,000
B.
$34,000
C.
$30,000
D.
$32,000

81.
At an activity level of
4,400 units in a month, Goldbach Corporation’s total variable maintenance and
repair cost is $313,632 and its total fixed maintenance and repair cost is
$93,104. What would be the total maintenance and repair cost, both fixed and
variable, at an activity level of 4,600 units in a month? Assume that this
level of activity is within the relevant range.

A.
$420,992
B.
$425,224
C.
$415,980
D.
$406,736

82.

Supply costs at
Lattea Corporation’s chain of gyms are listed below:

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9 of 73
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Management
believes that supply cost is a mixed cost that depends on client-visits. Using
the high-low method to estimate the variable and fixed components of this cost,
those estimates would be closest to:

A.
$2.44 per client-visit; $28,623 per
month
B.
$1.33 per client-visit;
$12,768 per month
C.
$0.79 per client-visit;
$19,321 per month
D.
$0.75 per client-visit; $19,826 per
month

83.
Electrical costs at one of Vanartsdalen Corporation’s factories are listed
below:
.0/msohtmlclip1/01/clip_image002.jpg”>

Management
believes that electrical cost is a mixed cost that depends on machine-hours.
Using the high-low method to estimate the variable and fixed components of this
cost, these estimates would be closest to:

A.
$14.41 per machine-hour; $33,832 per
month
B.
$0.11 per machine-hour;
$33,957 per month
C.
$9.35 per machine-hour;
$11,885 per month
D.
$11.30 per machine-hour; $7,229 per
month

84.
A soft drink bottler
incurred the following plant utility costs: 1,800 units bottled with utility
costs of $5,750, and 1,500 units bottled with utility costs of $5,200. What is
the variable cost per unit bottled (Use the High-low method. Round to the
nearest cent.)

A.
$3.47.
B.
$3.19.
C.
$1.83.
D.
None of the above is true.

85.
The following data pertains to activity and maintenance costs for two recent
years:
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Using the
high-low method, the cost formula for maintenance would be:

A.
$1.50 per unit
B.
$1.25 per unit
C.
$3,000 plus $1.50 per
unit
D.
$6,000 plus $0.75 per unit

86.
The following data pertains to activity and utility costs for two recent years:
.0/msohtmlclip1/01/clip_image004.jpg”>

Using the
high-low method, the cost formula for utilities is:

A.
$1.50 per unit
B.
$1.20 per unit
C.
$3,000 plus $3.00 per
unit
D.
$4,500 plus $0.75 per unit

87.

Maintenance
costs at a Tierce Corporation factory are listed below:

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10 of 73
.0/msohtmlclip1/01/clip_image005.jpg”>

Management
believes that maintenance cost is a mixed cost that depends on machine-hours.
Using the high-low method to estimate the variable and fixed components of this
cost, these estimates would be closest to:

A.
$14.54 per machine-hour; $52,671 per
month
B.
$9.27 per machine-hour;
$19,076 per month
C.
$0.11 per machine-hour;
$52,591 per month
D.
$9.27 per machine-hour; $19,071 per
month

88.
Buckeye Company has provided the following data for maintenance cost:
.0/msohtmlclip1/01/clip_image006.jpg”>

The best
estimate of the cost formula for maintenance would be:

A.
$21,625 per year plus $0.625 per machine
hour
B.
$7,000 per year plus
$0.625 per machine hour
C.
$7,000 per year plus
$1.60 per machine hour
D.
$27,000 per year plus $1.60 per machine
hour

89. Haar
Inc. is a merchandising company. Last month the company’s cost of goods sold
was $61,000. The company’s beginning merchandise inventory was $11,000 and its
ending merchandise inventory was $21,000. What was the total amount of the
company’s merchandise purchases for the month?

A.
$61,000
B.
$51,000
C.
$71,000
D.
$93,000