choose the best answer (mcqs) just choose the no need of any explanation 1) Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $498,000 or a new model 220 machine costing $469,000 to replace a machine that was purchased 6 years ago for $453,000. The old machine was used to make product I43L until it broke down last week. Unfortunately, the old machine cannot be repaired. Management has decided to buy the new model 220 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product I43L. Management also considered, but rejected, the alternative of simply dropping product I43L. If that were done, instead of investing $340,000 in the new machine, the money could be invested in a project that would return a total of $478,000. In making the decision to buy the model 220 machine rather than the model 370 machine, the differential cost was: A $29,000 B $45,000 C $25,000 D $16,000 2) Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $464,000 or a new model 220 machine costing $405,000 to replace a machine that was purchased 10 years ago for $439,000. The old machine was used to make product I43L until it broke down last week. Unfortunately, the old machine cannot be repaired. Management has decided to buy the new model 220 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product I43L. Management also considered, but rejected, the alternative of simply dropping product I43L. If that were done, instead of investing $340,000 in the new machine, the money could be invested in a project that would return a total of $456,000. In making the decision to buy the model 220 machine rather than the model 370 machine, the sunk cost was: A $456,000 B $439,000 C $464,000 D $405,000 3) In May direct labor was 35% of conversion cost. If the manufacturing overhead for the month was $118,950 and the direct materials cost was $24,200, the direct labor cost was: A $64,050 B $13,031 C $44,943 D $220,907

choose the best answer (mcqs) just choose the no need of any explanation 1) Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $498,000 or a new model 220 machine costing $469,000 to replace a machine that was purchased 6 years ago for $453,000. The old machine was used to make product I43L until it broke down last week. Unfortunately, the old machine cannot be repaired. Management has decided to buy the new model 220 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product I43L. Management also considered, but rejected, the alternative of simply dropping product I43L. If that were done, instead of investing $340,000 in the new machine, the money could be invested in a project that would return a total of $478,000. In making the decision to buy the model 220 machine rather than the model 370 machine, the differential cost was: A $29,000 B $45,000 C $25,000 D $16,000 2) Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $464,000 or a new model 220 machine costing $405,000 to replace a machine that was purchased 10 years ago for $439,000. The old machine was used to make product I43L until it broke down last week. Unfortunately, the old machine cannot be repaired. Management has decided to buy the new model 220 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product I43L. Management also considered, but rejected, the alternative of simply dropping product I43L. If that were done, instead of investing $340,000 in the new machine, the money could be invested in a project that would return a total of $456,000. In making the decision to buy the model 220 machine rather than the model 370 machine, the sunk cost was: A $456,000 B $439,000 C $464,000 D $405,000 3) In May direct labor was 35% of conversion cost. If the manufacturing overhead for the month was $118,950 and the direct materials cost was $24,200, the direct labor cost was: A $64,050 B $13,031 C $44,943 D $220,907

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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choose the best answer (mcqs) just choose the no need of any explanation

1) Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $498,000 or a new model 220 machine costing $469,000 to replace a machine that was purchased 6 years ago for $453,000. The old machine was used to make product I43L until it broke down last week. Unfortunately, the old machine cannot be repaired.

Management has decided to buy the new model 220 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product I43L.

Management also considered, but rejected, the alternative of simply dropping product I43L. If that were done, instead of investing $340,000 in the new machine, the money could be invested in a project that would return a total of $478,000.

In making the decision to buy the model 220 machine rather than the model 370 machine, the differential cost was:

	A	$29,000
	B	$45,000
	C	$25,000
	D	$16,000

2) Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $464,000 or a new model 220 machine costing $405,000 to replace a machine that was purchased 10 years ago for $439,000. The old machine was used to make product I43L until it broke down last week. Unfortunately, the old machine cannot be repaired.

Management has decided to buy the new model 220 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product I43L.

Management also considered, but rejected, the alternative of simply dropping product I43L. If that were done, instead of investing $340,000 in the new machine, the money could be invested in a project that would return a total of $456,000.

In making the decision to buy the model 220 machine rather than the model 370 machine, the sunk cost was:

	A	$456,000
	B	$439,000
	C	$464,000
	D	$405,000

3) In May direct labor was 35% of conversion cost. If the manufacturing overhead for the month was $118,950 and the direct materials cost was $24,200, the direct labor cost was:

	A	$64,050
	B	$13,031
	C	$44,943
	D	$220,907

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