Answer the Following Questions Using the Information Below

question 60

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 conversion costs?

• A)$1,500,000 U
• B)$0
• C)$1,650,000 U
• D)$1,650,000 F
• E)$1,500,000 F

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Definitions:

Quiet Period

A mandated time frame where promotional or public communications by a company are restricted by regulatory authorities before an IPO.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.

Cumulative Voting

A method of electing boards of directors in which stockholders can cast all of their votes for a single seat. Enables minority interests to get at least some representation on the board.

Minority Stockholders

Minority stockholders are investors who own a smaller portion of a company's shares and typically do not have control or significant influence over the company's decisions.