prejudice to your response to any other question, assume question thàt Superite plans to manufacture 400,000 units in April. Superite’s April budget for the purchase of B-6 should be A. 378,000 units. B. 778,000 units. C. 822,000 units. D. 408,000 units.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Superite expects April sales of its deluxe model airplane, the C-14, to be 408,000 units at $11
each. Each C-14 requires three purchased components shown below.
Number Needed
Purchase Cost for Each C-14 Unit
А-9
$.50
1
В-6
.25
2
D-28
1.00
3
Factory direct labor and variable overhead per unit of C-14 totals $3.00. Fixed factory overhead is
$1.00 per unit at a production level of 500,000 units. Superite plans the following beginning and
ending inventories for the month of April and uses standard absorption costing for valuing
inventory.
Part No.
Units at April 1
Units at April 30
С-14
12,000
10,000
А-9
21,000
9,000
В-6
32,000
10,000
D-28
14,000
6,000
Transcribed Image Text:Superite expects April sales of its deluxe model airplane, the C-14, to be 408,000 units at $11 each. Each C-14 requires three purchased components shown below. Number Needed Purchase Cost for Each C-14 Unit А-9 $.50 1 В-6 .25 2 D-28 1.00 3 Factory direct labor and variable overhead per unit of C-14 totals $3.00. Fixed factory overhead is $1.00 per unit at a production level of 500,000 units. Superite plans the following beginning and ending inventories for the month of April and uses standard absorption costing for valuing inventory. Part No. Units at April 1 Units at April 30 С-14 12,000 10,000 А-9 21,000 9,000 В-6 32,000 10,000 D-28 14,000 6,000
Without prejudice to your response to any other question, assume for this question that
Superite plans to manufacture 400,000 units in April. Superite’s April budget for the purchase
of B-6 should be
A. 378,000 units.
B. 778,000 units.
C. 822,000 units.
D. 408,000 units.
[5] The internal rate of return (IRR) is the
A. Hurdle rate.
B. Rate of interest for which the net present value is greater than 1.0.
C. Rate of interest for which the net present value is equal to zero.
D. Accounting rate of return.
Transcribed Image Text:Without prejudice to your response to any other question, assume for this question that Superite plans to manufacture 400,000 units in April. Superite’s April budget for the purchase of B-6 should be A. 378,000 units. B. 778,000 units. C. 822,000 units. D. 408,000 units. [5] The internal rate of return (IRR) is the A. Hurdle rate. B. Rate of interest for which the net present value is greater than 1.0. C. Rate of interest for which the net present value is equal to zero. D. Accounting rate of return.
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