folk exam questions- chapter11（问题——chapter11民间考试）.doc

Garrison 14e Practice Exam – Chapter 12 Print these pages. Answer each of the following questions, explaining your answers or showing your work, and then compare your solutions to those provided at the end of the practice exam. 1. Carley Company produces 2,000 parts per year, which are used in the assembly of one of its products. The variable cost of manufacturing each part is $64 and the fixed manufacturing costs total $36 per unit for a total unit product cost of $100. The part can be purchased from an outside supplier at $80 per unit. If the part is purchased from the outside supplier, two-thirds of the fixed manufacturing costs can be eliminated. Part (a) Which costs are relevant to this decision? Why? Part (b) What would the annual impact on the company’s net operating income be as a result of buying the part from the outside supplier? 2. The management of Bayside Company is considering whether one of the department’s in its retail stores should be eliminated. The contribution margin in the department is $150,000 per year. Fixed expenses allocated to the department are $130,000 per year. It is estimated that $120,000 of these fixed expenses will be eliminated if the department is discontinued. Part (a) Which costs are irrelevant to this decision? Part (b) If the department is eliminated, what will be the impact on the company’s overall net operating income? 3. Nichols Company, which manufactures a single product, is operating at full capacity of 20,000 units per month. The follow unit costs relate to the manufacture of this product: Manufacturing: Direct materials $2.00 Direct labor 4.00 Variable overhead 1.00 Fixed overhead 1.80 Selling and administrative: Variable 3.00 Fixed 1.20 The company has 100 units left over from last year which have small defects and which will have to be sold at a reduced price as scrap. This would have no effect on the companys other sales. The variable se