Answer the Following Questions Using the Information Below

question 31

Multiple Choice

Answer the following questions using the information below:
One of the makeup kit models that Tiegs Corporation produces is targeted at professional women.The goal for Year 2 is to reduce direct materials usage per unit.No defective units are currently produced.Manufacturing conversion costs depend on production capacity defined in terms of makeup kits that can be produced.The industry market size for makeup kits increased 5% from Year 1 to Year 2.The following additional data are available for Years 1 and 2:

-What is the Tiegs Corporation cost effect of the growth component for direct materials?

• A)$1,768,000 U
• B)$1,700,000 U
• C)$1,232,500 U
• D)$1,232,500 F
• E)$1,689,000 F

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Definitions:

Mildred Parten

A researcher known for her work on children's play, categorizing it into types that reflect the social development stages of children.

Solitary

The state or condition of being alone or isolated from others, often used to describe times spent alone or creatures that live in isolation.

Cooperative

Pertaining to the willingness or practice of working together with others for a common purpose or benefit.

Sequential

Following a logical order of progression or a sequence, one after the other.