Suppose that a new machine tool having a useful life of only one year cost $80,000 suppose also that the net profit resulting for buying the stores expected to be $16,000 if the firm finds it can borrow funds an interest rate of 15% the firm should invest or purchase the machine: a) because the expected rate of return exceeds the interest rate not investor purchase the machine
b) because the expected rate of return exceeds the interest rate invest or purchase a machine
c) because interest rate exceeds the expected rate of return not invest or purchase a machine
d) because the interest rate exceeds the expected rate of return

The following data pertains to activity and costs for two months: june july activity level in 10,000 12,000 direct materials $16,000 $ ? fixed factory rent 12,000 ? manufacturing overhead 10,000 ? total cost $38,000 $42,900 assuming that these activity levels are within the relevant range, the manufacturing overhead for july was: a) $10,000 b) $11,700 c) $19,000 d) $9,300

Vintage fun reproduces oldminusfashioned style roller skates and skateboards. the annual production and sales of roller skates is 950 units, while 1,750 skateboards are produced and sold. the company has traditionally used direct labor hours to allocate its overhead to products. roller skates require 2.5 direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. the total estimated overhead for the period is $114,300. the company is looking at the possibility of changing to an activityminusbased costing system for its products. if the company used an activityminusbased costing system, it would have the following three activity cost pools: the overhead cost per skateboard using the traditional costing system would be closest to: a. $9.31. b. $65.31. c. $25.05. your answer is not correct.d.

During which of the following phases of the business cycle does the real gdp fall? a. trough b. expansion c. contraction d. peak