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Which of the following securities typically pays interest?
A) equity securities
B) preferred stocks
C) corporate bonds
D) significant interest investment
Manhattan Enterprises manufactures cookware sets and sells the sets to department
stores. Manhattan expects to sell 2,400 cookware sets for $200 each in April and 3,500
cookware sets for $215 each in May. Sales are 15% cash and 85% on account. Compute
the total budgeted sales for May.
A) $752,500
B) $480,000
C) $112,875
D) $9,594,375
Delicious Food Products is famous for its frosted fruit cake. The main ingredient of the
cake is dried fruit, which Delicious purchases by the pound. In addition, the production
requires a certain amount of direct labor. Delicious uses a standard cost system, and at
the end of the first quarter, there was a favorable direct materials cost variance. Which
of the following is a logical explanation for that variance?
A) The production manager negotiated a lower wage package for production staff,
bringing direct labor costs down.
B) The factory lost two experienced workers at the beginning of the quarter, and their
replacements worked at a much slower pace during their training period.
C) The purchasing manager was able to secure a volume discount on dried fruit,
purchasing the fruit for less than the amount set by standard.
D) The production staff changed the work flow process so that there was less wastage
of direct materials during production.
