Required: Copy the information below onto your answer sheet and place an X in th
ID: 2585870 • Letter: R
Question
Required: Copy the information below onto your answer sheet and place an X in the appropriate column to indicate whether each item is relevant or irrelevant to the decision context described in Case A and Case B. Item Case A Case B a. Sales revenue b. Direct materials c. Direct labor d. Variable manufacturing overhead e. Depreciation-Model B100 machine f. Book value-Model B100 machine g. Disposal value-Model B100 machine h. Market value-Model B300 machine (cost) i. Fixed manufacturing overhead (general) j. Variable selling expense k. Fixed selling expense l. General administrative overheadExplanation / Answer
Case 1
Case 2
Item
Relevant
Not Relevant
Relevant
Not Relevant
a.
Sales revenue...........................................................
X
X
b.
Direct materials........................................................
X
X
c.
Direct labor..............................................................
X
X
d.
Variable manufacturing overhead................................
X
X
e.
Depreciation— Model B100 machine...........................
X
X
f.
Book value— Model B100 machine..............................
X
X
g.
Disposal value— Model B100 machine.........................
X
X
h.
Market value—Model B300 machine (cost)...................
X
X
i.
Fixed manufacturing overhead....................................
X
X
j.
Variable selling expense.............................................
X
X
k.
Fixed selling expense................................................
X
X
l.
General administrative overhead................................
X
X
Case 1
Case 2
Item
Relevant
Not Relevant
Relevant
Not Relevant
a.
Sales revenue...........................................................
X
X
b.
Direct materials........................................................
X
X
c.
Direct labor..............................................................
X
X
d.
Variable manufacturing overhead................................
X
X
e.
Depreciation— Model B100 machine...........................
X
X
f.
Book value— Model B100 machine..............................
X
X
g.
Disposal value— Model B100 machine.........................
X
X
h.
Market value—Model B300 machine (cost)...................
X
X
i.
Fixed manufacturing overhead....................................
X
X
j.
Variable selling expense.............................................
X
X
k.
Fixed selling expense................................................
X
X
l.
General administrative overhead................................
X
X
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