The Managerial Accountant at the Snowboard Factory Reported That the Company

question 110

Multiple Choice

The managerial accountant at the Snowboard Factory reported that the company makes internal transfers at 150% of full cost.The Wood Refining Division purchases 35,000 slabs of wood per day,on average,from a local supplier,who delivers wood for $50 per slab via an external shipper.To reduce costs,the company located an independent supplier in Utah who is willing to sell 35,000 slabs of wood at a variable cost of $4.25 per slab.
Required
Compute the full cost of purchasing the wood from the Utah supplier and shipping it to the Wood Refining Division.

• A)$1,525,000
• B)$1,600,350
• C)$1,625,950
• D)$1,898,750
• E)$1,925,460

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Definitions:

Labor Force Participation Rate

The percentage of the working-age population that is either employed or actively looking for work.

Increasing

Describes a situation where there is a growth or rise in a particular variable, measure, or quantity over time.

Constant

A fixed value that does not change.

Slope

A measure of the steepness or incline of a line, represented as the ratio of the vertical change to the horizontal change between two points on the line.