Figure 12-3 Quinn Has Capacity to Make 950,000 Zippers Per Year, but \\
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question 59

Multiple Choice

Figure 12-3 $\begin{array}{ll}\text { Direct materials } & \$ 0.23 \\\text { Direct labor } & \$ 0.20 \\\text { Variable overhead } & \$ 0.95 \\\text { Fixed overhead } & \$ 1.32 \\\text { Total } & \$ 2.70\end{array}$ Quinn has capacity to make 950,000 zippers per year, but due to a soft market, only plans to produce and sell 620,000 zippers next year. LeatherStuff currently buys zippers from an outside supplier for $3.50 each (the same price that Style receives) .
-Refer to Figure 12-4. Assume that Style and LeatherStuff have agreed on a transfer price of $3.25. What is the total benefit for Style?

• A) $243,000
• B) $292,500
• C) $168,300
• D) $69,000
• E) $81,000

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Definitions:

1-Hexanamine

An organic chemical compound that is a primary amine consisting of a six-carbon chain ending with an amino group.

Ammonia

A colorless gas with a characteristic pungent smell, consisting of nitrogen and hydrogen (NH3), and is a common nitrogenous waste, particularly among aquatic organisms.

1-Bromohexane

A compound consisting of a six-carbon chain with a bromine atom attached to the first carbon.

Amide Synthesis

The process of forming amide bonds between carboxylic acids and amines, commonly involving methods such as direct coupling or activation of the carboxylic acid.