The air quality board recently informed Coffee Roast, a small coffee roasting firm, of a complaint regarding the smoke from its roaster. Recently enacted air quality regulations requires machine roasting more than 10 pounds of coffee to be equipped with expensive smoke-dissipating afterburners. The firm, however, roasts only 8 pounds of coffee at a time. Nevertheless, the company has decided to purchase and install an afterburner.

Which of the following, if true, most strongly supports the firm’s decision?

(A) Until setting on the new air quality regulations, the board had debated whether to require afterburners for machines roasting more than 5 pounds of coffee at a time.

(B) Coffee roasted in a machine equipped with an afterburner has its flavor subtly altered.

(C) The cost to the firm of an afterburner is less than the cost of replacing its roaster with a smaller one.

(D) Fewer complaints are reported in areas that maintain strict rules regarding afterburners.

(E) The firm has reason to fear that negative publicity regarding the complaints could result in lost sales.

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The law firm of furlan and benson accumulates costs associated with individual cases, using a job order cost system. the following transactions occurred during july: jul. 3 charged 175 hours of professional (lawyer) time to the obsidian co. breech of contract suit to prepare for the trial, at a rate of $150 per hour. 10 reimbursed travel costs to employees for depositions related to the obsidian case, $12,500. 14 charged 260 hours of professional time for the obsidian trial at a rate of $185 per hour. 18 received invoice from consultants wadsley and harden for $30,000 for expert testimony related to the obsidian trial. 27 applied office overhead at a rate of $62 per professional hour charged to the obsidian case. 31 paid administrative and support salaries of $28,500 for the month. 31 used office supplies for the month, $4,000. 31 paid professional salaries of $74,350 for the month. 31 billed obsidian $172,500 for successful defense of the case. required: a. provide the journal entries for each of these transactions. refer to the chart of accounts for exact wording of account titles. b. how much office overhead is over- or underapplied? c. determine the gross profit on the obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services.

Kubin company’s relevant range of production is 24,000 to 31,000 units. when it produces and sells 27,500 units, its average costs per unit are as follows: