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Question : 129.Fox Hunting Gear manufactures two products: camouflage jackets and camouflage : 1302771

Economics

 

 

129.Fox Hunting Gear manufactures two products: camouflage jackets and camouflage hats. The company makes 50,000 jackets and 20,000 hats each year. Information for overhead costs and for the two products appears below.

 

ActivityDriverEstimated Total

Overhead CostJacketsHats

Setups# of setups$   200,000500 setups1,500 setups

Ordering parts# of parts300,00060,000 parts40,000 parts

Machining# of machine hours600,00012,000 machine hrs.6,000 machine hrs.

Inspections# of inspections400,00010,000 inspections40,000 inspections

Shipping# of shipments300,00010,000 shipments10,000 shipments

Total overhead$1,800,000

 

 

How much is the overhead cost of each hat if all overhead is assigned using ABC?

A.$159.33 per hat

B.$24.00 per hat

C.$100.00 per hat

D.$47.00 per hat

 

130.Fox Hunting Gear manufactures two products: camouflage jackets and camouflage hats. The company makes 50,000 jackets and 20,000 hats each year. Information for overhead costs and for the two products appears below.

 

ActivityDriverEstimated Total

Overhead CostJacketsHats

Setups# of setups$   200,000500 setups1,500 setups

Ordering parts# of parts300,00060,000 parts40,000 parts

Machining# of machine hours600,00012,000 machine hrs.6,000 machine hrs.

Inspections# of inspections400,00010,000 inspections40,000 inspections

Shipping# of shipments300,00010,000 shipments10,000 shipments

Total overhead$1,800,000

 

If the company uses a single cost pool and assigns overhead using machine hours, how much overhead will be assigned to each hat?

A.$24.00 per hat

B.$100 per hat

C.$30.00 per hat

D.$300.00 per hat

 

131.Fox Hunting Gear manufactures two products: camouflage jackets and camouflage hats. The company makes 50,000 jackets and 20,000 hats each year. Information for overhead costs and for the two products appears below.

 

ActivityDriverEstimated Total

Overhead CostJacketsHats

Setups# of setups$   200,000500 setups1,500 setups

Ordering parts# of parts300,00060,000 parts40,000 parts

Machining# of machine hours600,00012,000 machine hrs.6,000 machine hrs.

Inspections# of inspections400,00010,000 inspections40,000 inspections

Shipping# of shipments300,00010,000 shipments10,000 shipments

Total overhead$1,800,000

 

Fox Hunting Gear uses activity-based costing. What is the rate per inspection that should be used to assign inspection cost to hats?

A.$10 per inspection

B.$40 per inspection

C.$8 per inspection

D.$16 per inspection

 

132.Fox Hunting Gear manufactures two products: camouflage jackets and camouflage hats. The company makes 50,000 jackets and 20,000 hats each year. Information for overhead costs and for the two products appears below.

 

ActivityDriverEstimated Total

Overhead CostJacketsHats

Setups# of setups$   200,000500 setups1,500 setups

Ordering parts# of parts300,00060,000 parts40,000 parts

Machining# of machine hours600,00012,000 machine hrs.6,000 machine hrs.

Inspections# of inspections400,00010,000 inspections40,000 inspections

Shipping# of shipments300,00010,000 shipments10,000 shipments

Total overhead$1,800,000

 

 

What will be the overhead cost of each jacket if overhead is assigned using ABC?

A.$159.33 per jacket

B.$100 per jacket

C.$47 per jacket

D.$17.20 per jacket

 

133.Rather Bedding makes two types of pillow—down and foam. It is currently implementing an activity-based costing system. In the past, all overhead had been applied on the basis of machine hours. The company produces 6,000 down pillows and 18,000 foam pillows per year.

 

Cost PoolDriver and LevelEstimated CostsUse of Driver by Down PillowsUse of Driver by Foam Pillows

Equipment setup360 setups$216,000120 setups240 setups

Materials ordering6,000 orders$60,0002,400 orders3,600 orders

Quality control2,000 inspections$36,000800 inspections1,200 inspections

Machining8,000 machine hours$86,8004,200 machine hours3,800 machine hours

 

What is the overhead cost for each foam pillow when all overhead is applied based on machine hours?

A.$10.52 per foam pillow

B.$638.85 per foam pillow

C.$49.85 per foam pillow

D.$20.67 per foam pillow

 

134.Rather Bedding makes two types of pillow—down and foam. It is currently implementing an activity-based costing system. In the past, all overhead had been applied on the basis of machine hours. The company produces 6,000 down pillows and 18,000 foam pillows per year.

 

Cost PoolDriver and LevelEstimated CostsUse of Driver by Down PillowsUse of Driver by Foam Pillows

Equipment setup360 setups$216,000120 setups240 setups

Materials ordering6,000 orders$60,0002,400 orders3,600 orders

Quality control2,000 inspections$36,000800 inspections1,200 inspections

Machining8,000 machine hours$86,8004,200 machine hours3,800 machine hours

 

What is the overhead cost for each down pillow using ABC?

A.$50.00 per down pillow

B.$26.00 per down pillow

C.$13.49 per down pillow

D.$16.67 per down pillow

 

135.Rather Bedding makes two types of pillow—down and foam. It is currently implementing an activity-based costing system. In the past, all overhead had been applied on the basis of machine hours. The company produces 6,000 down pillows and 18,000 foam pillows per year.

 

Cost PoolDriver and LevelEstimated CostsUse of Driver by Down PillowsUse of Driver by Foam Pillows

Equipment setup360 setups$216,000120 setups240 setups

Materials ordering6,000 orders$60,0002,400 orders3,600 orders

Quality control2,000 inspections$36,000800 inspections1,200 inspections

Machining8,000 machine hours$86,8004,200 machine hours3,800 machine hours

 

Which two cost pools could be combined without affecting the unit costs using ABC?

A.Equipment setup and machining

B.Materials ordering and quality control

C.Materials ordering and machining

D.None. The drivers for each activity differ.

 

136.Rather Bedding makes two types of pillow—down and foam. It is currently implementing an activity-based costing system. In the past, all overhead had been applied on the basis of machine hours. The company produces 6,000 down pillows and 18,000 foam pillows per year.

 

Cost PoolDriver and LevelEstimated CostsUse of Driver by Down PillowsUse of Driver by Foam Pillows

Equipment setup360 setups$216,000120 setups240 setups

Materials ordering6,000 orders$60,0002,400 orders3,600 orders

Quality control2,000 inspections$36,000800 inspections1,200 inspections

Machining8,000 machine hours$86,8004,200 machine hours3,800 machine hours

 

Using ABC, what is the cost per setup to be assigned to down pillows?

A.$600 per setup

B.$0.10 per setup

C,$3.02 per setup

D.None of these answer choices are correct.

 

137.Rather Bedding makes two types of pillow—down and foam. It is currently implementing an activity-based costing system. In the past, all overhead had been applied on the basis of machine hours. The company produces 6,000 down pillows and 18,000 foam pillows per year.

 

Cost PoolDriver and LevelEstimated CostsUse of Driver by Down PillowsUse of Driver by Foam Pillows

Equipment setup360 setups$216,000120 setups240 setups

Materials ordering6,000 orders$60,0002,400 orders3,600 orders

Quality control2,000 inspections$36,000800 inspections1,200 inspections

Machining8,000 machine hours$86,8004,200 machine hours3,800 machine hours

 

What is the overhead cost for each down pillow when all overhead is applied based on machine hours?

A.$34.90 per down pillow

B.$49.85 per down pillow

C.$10.85 per down pillow

D.None of these answer choices are correct.

 

138.Rather Bedding makes two types of pillow—down and foam. It is currently implementing an activity-based costing system. In the past, all overhead had been applied on the basis of machine hours. The company produces 6,000 down pillows and 18,000 foam pillows per year.

 

Cost PoolDriver and LevelEstimated CostsUse of Driver by Down PillowsUse of Driver by Foam Pillows

Equipment setup360 setups$216,000120 setups240 setups

Materials ordering6,000 orders$60,0002,400 orders3,600 orders

Quality control2,000 inspections$36,000800 inspections1,200 inspections

Machining8,000 machine hours$86,8004,200 machine hours3,800 machine hours

 

What is the overhead cost for each foam pillow using ABC?

A.$10.56 per foam pillow

B.$26.00 per foam pillow

C.$13.49 per foam pillow

D.$50.00 per foam pillow

 

 

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121.In the context of the 1997 Asian crisis, how did the International Monetary Fund's “one-size-fits-all” approach to macroeconomic policy affect South Korea?   

A. It led to a decrease in the interest rates of short-term loans.

B. It made it difficult for companies to service their excessive short-term debt obligations.

C. It decreased the probability of widespread corporate defaults.

D. South Korea failed to recover from its financial crises.

E. South Korea was forced to increase restrictions on foreign direct investment.

122._____ arises when people behave recklessly because they know they will be saved if things go wrong.   

A. Systemic risk

B. Moral hazard

C. Ethical dilemma

D. Tragedy of the commons

E. Risk compensation

123.Jade, a working professional, began driving rashly ever since she got her car insured against damage. She believed that the insurance claim would cover her in case of any accidents. Jade’s behavior is due to a situation known as _____. 

A. cognitive dissonance

B. conflict of interest

C. systemic risk

D. moral hazard

E. tragedy of the commons

124.The International Monetary Fund been criticized for:    

A. its lack of “one-size-fits-all” approach to macroeconomic policy.

B. encouraging moral hazard among banks.

C. its lack of power and authority.

D. using external experts to gain knowledge about a country.

E. keeping its operations open to outside scrutiny.

125.According to the critics of the International Monetary Fund (IMF), how should the problem of moral hazard exhibited by banks be resolved? 

A. The IMF should use a “one-size-fits-all” approach to macroeconomic policy.

B. The IMF should establish a mechanism for accountability.

C. The IMF should free all banks from the obligation of financial reporting.

D. The banks should be forced to pay the price for their rash lending policies.

E. The IMF should bail out the banks whose loans gave rise to financial crises.

126.According to the noted economist Jeffrey Sachs, the International Monetary Fund should:   

A. not be accountable to anyone as it is a powerful institution.

B. bail out the banks that have rash lending policies.

C. have a “one-size-fits-all” approach to macroeconomic policy.

D. keep its operations open to greater outside scrutiny.

E. lend only to countries with safe credit ratings.

127.The International Monetary Fund programs have been counterproductive, or only had limited success in _____.  

A. Turkey

B. Iceland

C. Greece

D. Ireland

E. Latvia

128.In response to the global financial crisis of 2008–2009, the International Monetary Fund began to:   

A. exercise tight controls on fiscal policy of the borrowing countries.

B. encourage activities that resulted in high inflation rates.

C. display inflexibility in policy responses.

D. urge countries to adopt policies that included fiscal stimulus and monetary easing.

E. adopt a “one-size-fits-all” approach to macroeconomic policy.

129.Which of the following observations about the International Monetary Fund (IMF) is true?   

A. The IMF can force countries to adopt the policies required to correct economic mismanagement.

B. Internal political problems can affect a government's commitment to taking corrective action in return for an IMF loan.

C. In recent years, the IMF has begun to make its policies more tight and inflexible.

D. In response to the global financial crisis of 2008–2009, the IMF began to adopt a “one-size-fits-all” approach to macroeconomic policy.

E. In recent years, the IMF has begun to urge countries to oppose fiscal stimulus and monetary easing.

130.Which of the following poses a problem for international businesses in the long run?   

A. Using exchange rate instruments like the forward market and swaps

B. Volatility of global exchange rate regime

C. Anti-inflationary monetary policies

D. Maintaining strategic flexibility by dispersing production to different locations

E. A policy of reduction in government spending

 

default image
July 1, 2023
    

 

121.In the context of the 1997 Asian crisis, how did the International Monetary Fund's “one-size-fits-all” approach to macroeconomic policy affect South Korea?   

A. It led to a decrease in the interest rates of short-term loans.

B. It made it difficult for companies to service their excessive short-term debt obligations.

C. It decreased the probability of widespread corporate defaults.

D. South Korea failed to recover from its financial crises.

E. South Korea was forced to increase restrictions on foreign direct investment.

122._____ arises when people behave recklessly because they know they will be saved if things go wrong.   

A. Systemic risk

B. Moral hazard

C. Ethical dilemma

D. Tragedy of the commons

E. Risk compensation

123.Jade, a working professional, began driving rashly ever since she got her car insured against damage. She believed that the insurance claim would cover her in case of any accidents. Jade’s behavior is due to a situation known as _____. 

A. cognitive dissonance

B. conflict of interest

C. systemic risk

D. moral hazard

E. tragedy of the commons

124.The International Monetary Fund been criticized for:    

A. its lack of “one-size-fits-all” approach to macroeconomic policy.

B. encouraging moral hazard among banks.

C. its lack of power and authority.

D. using external experts to gain knowledge about a country.

E. keeping its operations open to outside scrutiny.

125.According to the critics of the International Monetary Fund (IMF), how should the problem of moral hazard exhibited by banks be resolved? 

A. The IMF should use a “one-size-fits-all” approach to macroeconomic policy.

B. The IMF should establish a mechanism for accountability.

C. The IMF should free all banks from the obligation of financial reporting.

D. The banks should be forced to pay the price for their rash lending policies.

E. The IMF should bail out the banks whose loans gave rise to financial crises.

126.According to the noted economist Jeffrey Sachs, the International Monetary Fund should:   

A. not be accountable to anyone as it is a powerful institution.

B. bail out the banks that have rash lending policies.

C. have a “one-size-fits-all” approach to macroeconomic policy.

D. keep its operations open to greater outside scrutiny.

E. lend only to countries with safe credit ratings.

127.The International Monetary Fund programs have been counterproductive, or only had limited success in _____.  

A. Turkey

B. Iceland

C. Greece

D. Ireland

E. Latvia

128.In response to the global financial crisis of 2008–2009, the International Monetary Fund began to:   

A. exercise tight controls on fiscal policy of the borrowing countries.

B. encourage activities that resulted in high inflation rates.

C. display inflexibility in policy responses.

D. urge countries to adopt policies that included fiscal stimulus and monetary easing.

E. adopt a “one-size-fits-all” approach to macroeconomic policy.

129.Which of the following observations about the International Monetary Fund (IMF) is true?   

A. The IMF can force countries to adopt the policies required to correct economic mismanagement.

B. Internal political problems can affect a government's commitment to taking corrective action in return for an IMF loan.

C. In recent years, the IMF has begun to make its policies more tight and inflexible.

D. In response to the global financial crisis of 2008–2009, the IMF began to adopt a “one-size-fits-all” approach to macroeconomic policy.

E. In recent years, the IMF has begun to urge countries to oppose fiscal stimulus and monetary easing.

130.Which of the following poses a problem for international businesses in the long run?   

A. Using exchange rate instruments like the forward market and swaps

B. Volatility of global exchange rate regime

C. Anti-inflationary monetary policies

D. Maintaining strategic flexibility by dispersing production to different locations

E. A policy of reduction in government spending

 

default image
July 1, 2023
    

 

121.In the context of the 1997 Asian crisis, how did the International Monetary Fund's “one-size-fits-all” approach to macroeconomic policy affect South Korea?   

A. It led to a decrease in the interest rates of short-term loans.

B. It made it difficult for companies to service their excessive short-term debt obligations.

C. It decreased the probability of widespread corporate defaults.

D. South Korea failed to recover from its financial crises.

E. South Korea was forced to increase restrictions on foreign direct investment.

122._____ arises when people behave recklessly because they know they will be saved if things go wrong.   

A. Systemic risk

B. Moral hazard

C. Ethical dilemma

D. Tragedy of the commons

E. Risk compensation

123.Jade, a working professional, began driving rashly ever since she got her car insured against damage. She believed that the insurance claim would cover her in case of any accidents. Jade’s behavior is due to a situation known as _____. 

A. cognitive dissonance

B. conflict of interest

C. systemic risk

D. moral hazard

E. tragedy of the commons

124.The International Monetary Fund been criticized for:    

A. its lack of “one-size-fits-all” approach to macroeconomic policy.

B. encouraging moral hazard among banks.

C. its lack of power and authority.

D. using external experts to gain knowledge about a country.

E. keeping its operations open to outside scrutiny.

125.According to the critics of the International Monetary Fund (IMF), how should the problem of moral hazard exhibited by banks be resolved? 

A. The IMF should use a “one-size-fits-all” approach to macroeconomic policy.

B. The IMF should establish a mechanism for accountability.

C. The IMF should free all banks from the obligation of financial reporting.

D. The banks should be forced to pay the price for their rash lending policies.

E. The IMF should bail out the banks whose loans gave rise to financial crises.

126.According to the noted economist Jeffrey Sachs, the International Monetary Fund should:   

A. not be accountable to anyone as it is a powerful institution.

B. bail out the banks that have rash lending policies.

C. have a “one-size-fits-all” approach to macroeconomic policy.

D. keep its operations open to greater outside scrutiny.

E. lend only to countries with safe credit ratings.

127.The International Monetary Fund programs have been counterproductive, or only had limited success in _____.  

A. Turkey

B. Iceland

C. Greece

D. Ireland

E. Latvia

128.In response to the global financial crisis of 2008–2009, the International Monetary Fund began to:   

A. exercise tight controls on fiscal policy of the borrowing countries.

B. encourage activities that resulted in high inflation rates.

C. display inflexibility in policy responses.

D. urge countries to adopt policies that included fiscal stimulus and monetary easing.

E. adopt a “one-size-fits-all” approach to macroeconomic policy.

129.Which of the following observations about the International Monetary Fund (IMF) is true?   

A. The IMF can force countries to adopt the policies required to correct economic mismanagement.

B. Internal political problems can affect a government's commitment to taking corrective action in return for an IMF loan.

C. In recent years, the IMF has begun to make its policies more tight and inflexible.

D. In response to the global financial crisis of 2008–2009, the IMF began to adopt a “one-size-fits-all” approach to macroeconomic policy.

E. In recent years, the IMF has begun to urge countries to oppose fiscal stimulus and monetary easing.

130.Which of the following poses a problem for international businesses in the long run?   

A. Using exchange rate instruments like the forward market and swaps

B. Volatility of global exchange rate regime

C. Anti-inflationary monetary policies

D. Maintaining strategic flexibility by dispersing production to different locations

E. A policy of reduction in government spending

 

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Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

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Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

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Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

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Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

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Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

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