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:

Railroad Owners

Individuals or companies that own the infrastructure and rolling stock for railway transport, historically significant in the development and economic growth of many countries.

American Railway Union

A short-lived but significant labor union in the United States, founded in 1893 by Eugene V. Debs, that sought to unify all railroad workers, regardless of craft or job function, into one organization.

Pullman Cars

Luxury railway cars that were introduced in the 19th century, offering sleeping accommodations and other amenities, revolutionizing long-distance train travel.

Gilded Age

A period in the late 19th century marked by rapid economic growth, technological advancement, and ostentatious wealth amidst widespread social issues in the United States.