The Managerial Accountant at Change Organization Needs to Determine the Total

question 74

Multiple Choice

The managerial accountant at Change Organization needs to determine the total indirect Research and Development (R&D) cost associated with a new machine.The manager revealed total revenues were $4,000,000;and reported that the only prevention cost to allocate were 20,000 hours assigned to R&D at $35 per hour.The manager's report indicated that the there were no direct costs associated with the machine because there were no resources assigned to the management of quality of the machines.
Required:
Compute the total cost and the percent of revenues associated with the Research and Development at Change Organization.

• A)$500,000 total cost;15.5% of revenues
• B)$600,000 total cost;16.5% of revenues
• C)$700,000.total cost;17.5% of revenues
• D)$800,000 total cost;18.5% of revenues
• E)$900,000 total cost;19.5 % of revenues

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Definitions:

Annual Income

Annual income is the total sum of money earned by an individual or entity over the course of a year from all sources including wages, dividends, and bonuses.

Level of Education

The highest degree or level of schooling an individual has completed, often categorized by primary, secondary, tertiary, and further education.

ANOVA Table

A tabular representation used in analysis of variance that summarizes the source of variation, degrees of freedom, sum of squares, mean squares, and the F-statistic.

F-ratio

A statistical measure used in the analysis of variance (ANOVA) to determine the ratio of variance between groups to the variance within groups.