82. Folly Beach Industries decides to price delivery service according to the results of a recent
activity-based costing (ABC) study. The study indicates Folly Beach should charge $16 per order,
1% of the order’s value for general delivery costs, $2.50 per item, and $45 for delivery.
A year later, Folly Beach collected the following information for three of its customers:
What are the total delivery costs charged to Customer C during the year?
83. Sullivan Inc. reports the following information about resources. At the beginning of the
year, Sullivan estimated it would spend $180,000 for materials, $42,000 for purchasing, $35,000
for setups, and $36,000 for repairs.
Compute unused resource capacity for materials for Sullivan.
84. Sullivan Inc. reports the following information about resources. At the beginning of the
year, Sullivan estimated it would spend $180,000 for materials, $42,000 for purchasing, $35,000
for setups, and $36,000 for repairs.
Compute unused resource capacity for purchasing for Sullivan.
85. Sullivan Inc. reports the following information about resources. At the beginning of the
year, Sullivan estimated it would spend $180,000 for materials, $42,000 for purchasing, $35,000
for setups, and $36,000 for repairs.
Compute unused resource capacity for setups for Sullivan.
86. Sullivan Inc. reports the following information about resources. At the beginning of the
year, Sullivan estimated it would spend $180,000 for materials, $42,000 for purchasing, $35,000
for setups, and $36,000 for repairs.
Compute unused resource capacity for repairs for Sullivan.
87. MJK Molding is a specialty molder of plastic jar covers for the cosmetics industry.
Because the products sold are expensive cosmetics, the large cosmetic companies who purchase
the jar covers are highly sensitive to the appearance of the product. Any cuts, nicks, abrasions, or
pieces of dirt embedded will result in rejection of the units. The company spends a significant
amount of time in the quality control area. The following list of sub-activities has been developed
for quality control:
In an activity listing with value-added scores:
88. MJK Molding is a specialty molder of plastic jar covers for the cosmetics industry.
Because the products sold are expensive cosmetics, the large cosmetic companies who purchase
the jar covers are highly sensitive to the appearance of the product. Any cuts, nicks, abrasions, or
pieces of dirt embedded will result in rejection of the units. The company spends a significant
amount of time in the quality control area. The following list of sub-activities has been developed
for quality control:
The sub-activities of this company indicate that:
89. Which of the following is not a prevention activity in controlling quality?
90. Which of the following is a prevention activity in controlling quality?
91. Which of the following is an appraisal activity?
92. Which of the following is a prevention activity?
93. Which of the following is an internal failure activity?
94. Internal failure activities:
95. External failure activities:
96. Prevention activities:
97. Appraisal activities:
98. Le Francois Company developed the following information for its first quarter cost of
quality report:
The total cost of prevention activities for Le Francois Company is:
99. Le Francois Company developed the following information for its first quarter cost of
quality report:
The relevant percentage to be used to express internal failure activities at Le Francois is:
100. Le Francois Company developed the following information for its first quarter cost of
quality report:
The total cost of external failure activities at Le Francois is:
10–77
101. Le Francois Company developed the following information for its first quarter cost of
quality report:
The relevant percentage to be used to express appraisal activities at Le Francois is:
102. Which of the following is not an explanation of why a company would operate at less than
theoretical capacity?
103. Ketchem All Detective Agency is evaluating its system. The company gathered the
information below:
Practical capacity is 75% for each process.
Which process is most likely to be a current bottleneck?
104. Chang Inc. has developed the following unit costs for the production of one of its products,
based on a normal activity of 10,000 units per month:
What is the total amount of direct labor budgeted for a month in which production is expected to
be 11,000 units?