Question : 51) ______ A) $179,000 favourable B) $241,000 unfavourable C) $420,000 favourable D) $179,000 unfavourable E) $420,000 : 1196088

 

51)

______ A)

$179,000 favourable B)

$241,000 unfavourable C)

$420,000 favourable D)

$179,000 unfavourable E)

$420,000 unfavourable

52)

What is the productivity component of change in operating income? 52)

______ A)

$45,500 favourable B)

$420,000 unfavourable C)

$420,000 favourable D)

$179,000 favourable E)

$241,000 unfavourable

Use the information below to answer the following question(s).

 

Following a strategy of product differentiation, Barry Company makes an XX 300. Barry Company presents the following data for the years 20×1 and 20×2.

 

20x120x2

Units of XX 300 produced and sold10,00010,500

Selling price$100$110

Direct materials (square feet) 30,00030,750

Direct materials costs per square foot$10$11

Manufacturing capacity for XX 300 (units)12,50012,500

Total manufacturing conversion costs $2500,000$277,500

Manufacturing conversion costs (per unit of capacity)$20$22

Selling and customer-service capacity (customers)3029

Total selling and customer-service costs $90,000$90,625

Cost per customer of selling and customer-service capacity$3,000$3,125

 

Barry Company produces no defective units but it wants to reduce direct materials usage per unit of XX 300 in 20×2. Manufacturing conversion costs in each year depend on production capacity defined in terms of XX 300 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Barry Company has 23 customers in 20×1 and 25 customers in 20×2. The industry market size for high-end appliances increased 5% from 20×1 to 20×2.

53)

What is the operating income for 20×1? 53)

______ A)

$48,000 B)

$451,125 C)

$50,000 D)

$360,000 E)

$91,125

54)

What is operating income in 20×2? 54)

______ A)

$91,125 B)

$451,125 C)

$50,000 D)

$360,000 E)

$48,000

55)

What is the change in operating income from 20x1to 20×2? 55)

______ A)

$50,000 favourable B)

$48,000 favourable C)

$451,125 favourable D)

$360,000 favourable E)

$91,125 favourable

56)

What is revenue effect of growth component? 56)

______ A)

$50,000 favourable B)

$451,125 favourable C)

$48,000 favourable D)

$91,125 favourable E)

$360,000 favourable

57)

What is the cost effect of growth component? 57)

______ A)

$35,000 favourable B)

$50,000 favourable C)

$48,000 favourable D)

$15,000 favourable E)

$15,000 unfavourable

58)

What is the net increase in operating income as a result of the growth component? 58)

______ A)

$35,000 favourable B)

$50,000 favourable C)

$48,000 favourable D)

$15,000 favourable E)

$15,000 unfavourable

59)

What is the revenue effect of price-recovery component? 59)

______ A)

$60,250 favourable B)

$44,750 unfavourable C)

$60,250 unfavourable D)

$44,750 favourable E)

$105,000 favourable

60)

What is the cost effect of price-recovery component? 60)

______ A)

$44,750 unfavourable B)

$60,250 unfavourable C)

$60,250 favourable D)

$44,750 favourable E)

$105,000 favourable