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
