Determine the April 20xx Residual Income for an Investment Center

question 18

Multiple Choice

Determine the April 20xx residual income for an investment center with the following information: $\begin{array}{|l|l|}\hline \text { Operating income for the month ended April 30,20:x } & \$ 14,900,000 \\\hline \text { Assets at March 31, 20:sx } & 10,200,000 \\\hline \text { Assets at April 30, 20:x } & 13,150,000 \\\hline \text { Desired ROI } & 49 \% \\\hline \text { Actual ROI } & 60 \% \\\hline\end{array}$

• A) $8,456,500
• B) $8,780,000
• C) $9,179,250
• D) $8,945,750

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Definitions:

Machine-Hour

A measure of production output or usage time based on the hours a machine is operated.

Unit Product Cost

The cost assigned to a single unit of product, comprising both variable and fixed manufacturing costs.

Overhead Applied

The amount of manufacturing overhead expenses assigned to a particular job or activity, based on a predetermined rate.

Job P978

A specific job, project, or batch in a costing system assigned with a unique identifier for tracking costs.