Aviatrix Ace final dump Questions and Answers 2024/2025

Aviatrix Ace final dump
Questions and Answers
2024/2025




Rally Synthesis Inc. manufactures and sells 100
bottles per day. Fixed costs are $22,000 and the
variable costs for manufacturing 100 bottles are
$30,000. Each bottle is sold for $1,200. How would
the daily profit be affected if the daily volume of
sales drop by 10%?

A. profits are reduced by $59,000
B. profits are reduced by $12,000
C. profits are reduced by $9,000
D. profits are reduced by $3,000 -
<<<ANSWER>>>C. profits are reduced by $9,000

, Manufacturing overhead rate=(budgeted
manufacturing overhead/budgeted direct labor
hours)
=(5,400,000/30,000)= 180

Crandle Corp. applies manufacturing overhead costs
to products at a budgeted indirect cost rate of $60
per direct manufacturing labor-hour. A retail outlet
has requested a bid on a special order of a necklace.
Estimates for this order include: Direct materials of
$40,000; 400 direct manufacturing labor-hours at
$15 per hour; and a 50% markup rate on total
manufacturing costs.
Estimated total product costs for this special order
equal ________.

A. $105,000
B. $70,000
C. $64,000
D. $46,000 - <<<ANSWER>>>B. $70,000

Estimated total product costs for this special order
= Direct Materials + Direct manufacturing labor +
Overhead applied