Use the following information Direct labor on concerning Garcia company for the

Question

Use the following information Direct labor on concerning Garcia company for the ne Garcia three nuestions: $5,000 Directnmaterials 8,000 Direct materials used 3,500 1,000 Sales commissions Factory manager's salary Advertising 2,500 4,000 1,500 44. What is Garica's total manufacturing cost? A. $25,500 B. $24,000 C. $21,500 D. $10,000 What is Garcia's prime cost? $11,500 B. $12,500 C. $15,500 D. $21,000 46. What is Garcia's manufacturing overhead? A. $24,000 B. $12,500 C. $14,000 D. $10,000 47. Which of the following is the primary tool used by cost centers to manage costs? A. Return on investment B. ransfer pricing lanced scorecard Budgetary control system A. The difference between total variable cost and fixed cost. B. The difference between sales and cost of goods sold. C. The difference between sales and fixed cost. D. The difference between sales and variable cost. 48. Total contribution margin is .1 49. Hathaway Corp. manufactures garden hoses. Last month, its ending inventory level increased comparing absorption costing to variable costing A. Both would show the same amount of profit B. Variable costing would show more profit C. Absorption costing would show more profit D. Effect on income cannot be determined

Explanation / Answer

44. Option C is correct.

Manufacturing cost = $5000 +8000+1000+3500+4000

= 21500

45. Option A is correct.

46. Option D is correct.

Manufacturing OH= Total manufacturing cost - Prime cost

= 10000

47.Option D is correct.

Budgetory control system.

48.

Option D is correct.

Contribution margin = Sales - Variable cost

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