2)Compute
conversion costs given the following data: Direct Materials, $347,500; Direct
Labor, $196,300; Factory Overhead, $187,900; and Selling Expenses, $45,290. MC.01-85
$731,700
$543,800
$384,200
$187,900
9)Jensen
Company reports the following: MC.01-118
|
Direct |
$345,000 |
|
Direct |
250,000 |
|
Factory |
400,000 |
|
Operating |
175,000 |
Jensen Company’s period costs are
a.$345,000
b.$400,000
c.$175,000
d.$250,000
10)Jensen
Company reports the following: MC.01-122
|
Direct |
$345,000 |
|
Direct |
250,000 |
|
Factory |
400,000 |
|
Operating |
175,000 |
Jensen Company’s product costs are
a.$995,000
b.$920,000
c.$770,000
d.$825,000
14) Thompson
Company manufactures and sells cookware. Because of current trends, it expects
to increase sales by 15% next year. If this expected level of production and
sales occurs and plant expansion is not needed, how should this increase affect
next year’s total amounts for the following costs. MC.04-91
|
Variable |
Fixed |
Mixed |
a.
|
increase |
increase |
increase |
b.
|
increase |
no |
increase |
c.
|
no |
no |
increase |
d.
|
decrease |
increase |
increase |
15) If
sales are $820,000, variable costs are 55% of sales, and operating income is
$260,000, what is the contribution margin ratio? MC.04-100
55%
45%
32%
62%
16) Variable
costs as a percentage of sales for Lemon Inc. are 80%, current sales are
$600,000, and fixed costs are $130,000. How much will operating income change
if sales increase by $40,000? MC.04-104
$8,000 decrease
$30,000 decrease
$8,000 increase
$30,000 increase
17) If the
contribution margin ratio for France Company is 45%, sales were $425,000, and
fixed costs were $100,000, what was the income from operations? MC.04-111
$91,250
$133,750
$191,250
$233,750
18) If
fixed costs are $250,000, the unit selling price is $125, and the unit variable
costs are $73, what is the break-even sales (units)? MC.04-112
4,808 units
2,000 units
2,381 units
3,425 units
19) If
fixed costs are $750,000 and variable costs are 60% of sales, what is the
break-even point in sales dollars? MC.04-113
$450,000
$1,875,000
$1,250,000
$300,000
21) Under
variable costing, which of the following costs would be included in finished
goods inventory? MC.05-72
only fixed factory overhead cost
neither variable nor fixed factory overhead cost
both variable and fixed factory overhead cost
only variable factory overhead cost
23) A
business operated at 100% of capacity during its first month and incurred the
following costs: MC.05-89
|
Production |
||
|
Direct |
$180,000 |
|
|
Direct |
240,000 |
|
|
Variable |
280,000 |
|
|
Fixed |
100,000 |
$800,000 |
|
Operating |
||
|
Variable |
$130,000 |
|
|
Fixed |
50,000 |
180,000 |
If 1,600 units remain unsold at the end of the month, what is the amount of
inventory that would be reported on the variable costing balance sheet?
$56,000
$78,400
$64,000
$66,400
24) A
business operated at 100% of capacity during its first month and incurred the following
costs: MC.05-90
|
Production |
||
|
Direct |
$ 80,000 |
|
|
Direct |
120,000 |
|
|
Variable |
140,000 |
|
|
Fixed |
40,000 |
$380,000 |
|
Operating |
||
|
Variable |
$ 65,000 |
|
|
Fixed |
25,000 |
90,000 |
If 1,000 units remain unsold at the end of the month, what is the amount of
inventory that would be reported on the absorption costing balance sheet?
a.$40,500
b.$38,000
c.$47,000
d.$34,000
25) A
business operated at 100% of capacity during its first month, with the
following results: MC.05-102
|
Sales |
$90,000 |
|
|
Production |
||
|
Direct |
$40,000 |
|
|
Direct |
20,000 |
|
|
Variable |
2,000 |
|
|
Fixed |
7,000 |
69,000 |
|
Operating |
||
|
Variable |
$ 8,000 |
|
|
Fixed |
1,000 |
9,000 |
What is the amount of the income from operations that would be reported on the
variable costing income statement?
a.$18,200
b.$21,000
c.$18,900
d.$18,000
26) A
business operated at 100% of capacity during its first month, with the
following results: MC.05-103
|
Sales |
$90,000 |
|
|
Production |
||
|
Direct |
$40,000 |
|
|
Direct |
20,000 |
|
|
Variable |
2,000 |
|
|
Fixed |
7,000 |
69,000 |
|
Operating |
||
|
Variable |
$ 8,000 |
|
|
Fixed |
1,000 |
9,000 |
What is the amount of the income from operations that would be reported on the
absorption costing income statement?
a.$21,000
b.$18,200
c.$18,900
d.$27,900
29) Management
should focus its sales and production efforts on the product or products that will
provide MC.05-114
the lowest product costs
the highest sales revenue
the lowest direct labor hours
the maximum contribution margin
30) The
amount of income under absorption costing will equal the amount of income under
variable costing when units manufactured: MC.05-79
are less than units sold
are equal to or greater than units sold
exceed units sold
equal units sold
35) Below
is budgeted production and sales information for Flushing Company for the month
of December: MC.06-85
|
Product XXX |
Product ZZZ |
|
|
Estimated |
32,000 units |
20,000 units |
|
Desired |
34,000 units |
17,000 units |
|
Region |
320,000 units |
260,000 units |
|
Region |
180,000 units |
140,000 units |
The unit selling price for product XXX is $5 and for product ZZZ is
$15.Budgeted sales for the month are
a.$8,500,000
b.$5,820,000
c.$1,800,000
d.$3,180,000
36) Below
is budgeted production and sales information for Flushing Company for the month
of December: MC.06-86
|
Product XXX |
Product ZZZ |
|
|
Estimated |
32,000 units |
20,000 units |
|
Desired |
34,000 units |
17,000 units |
|
Region |
320,000 units |
260,000 units |
|
Region |
180,000 units |
140,000 units |
The unit selling price for product XXX is $5 and for product ZZZ is
$15.Budgeted production for product XXX during the month is
a.498,000 units
b.502,000 units
c.566,000 units
d.534,000 units
37) Stephanie
Corporation sells a single product. Budgeted sales for the year are anticipated
to be 640,000 units, estimated beginning inventory is 108,000 units, and
desired ending inventory is 90,000 units. The quantities of direct materials
expected to be used for each unit of finished product are given below. MC.06-90
Material A 0.50 lb. per unit @ $0.70 per pound
Material B 1.00 lb. per unit @ $1.70 per pound
Material C 1.20 lb. per unit @ $1.00 per pound
The dollar amount of material A used in production during the year is
$311,000
$217,700
$224,600
$528,700
38) Woodpecker
Co. has $296,000 in accounts receivable on January 1. Budgeted sales for
January are $860,000. Woodpecker Co. expects to sell 20% of its merchandise for
cash. Of the remaining 80% of sales on account, 75% are expected to be
collected in the month of sale and the remainder the following month. The
January cash collections from sales are MC.06-127
$984,000
$468,000
$812,000
$688,000
40) Southern
Company is preparing a cash budget for April. The company has $12,000 cash at
the beginning of April and anticipates $30,000 in cash receipts and $34,500 in
cash disbursements during April. Southern Company has an agreement with its
bank to maintain a minimum cash balance of $10,000. To maintain the required
balance during April, the company must MC.06-149
borrow $5,000
borrow $2,500
borrow $7,500
borrow $4,500
42) Myers
Corporation has the following data related to direct materials costs for
November: actual costs for 5,000 pounds of material, $ 4.50; and standard costs
for 4,800 pounds of material at $5.10 per pound. MC.07-64
What is the direct materials price variance?
a.$3,000 unfavorable
b.$2,880 unfavorable
c.$2,880 favorable
d.$3,000 favorable
43) Jaxson
Corporation has the following data related to direct labor costs for September:
actual costs are 10,200 hours at $15.75 per hour and standard costs are 10,800
hours at $15.50 per hour. MC.07-66
What is the direct labor time variance?
a.$9,300 favorable
b.$9,450 unfavorable
c.$9,450 favorable
d.$9,300 unfavorable
44) Myers
Corporation has the following data related to direct materials costs for
November: actual costs for 5,000 pounds of material at $ 4.50; and standard
costs for 4,800 pounds of material at $5.10 per pound. MC.07-67
What is the direct materials quantity variance?
a.$900 unfavorable
b.$900 favorable
c.$1,020 favorable
d.$1,020 unfavorable
48) The
St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at
100% normal production capacity. Production was budgeted to be 12,000 units.
The standard hours for production were 5 hours per unit. The variable overhead
rate was $3 per hour. Actual fixed overhead was $360,000 and actual variable
overhead was $170,000. Actual production was 11,700 units. MC.07-120
The fixed factory overhead controllable variance is
a.$5,500 favorable
b.$5,500 unfavorable
c.$9,000 unfavorable
d.$9,000 favorable
49) The
St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at
100% normal production capacity. Production was budgeted to be 12,000 units.
The standard hours for production were 5 hours per unit. The variable overhead
rate was $3 per hour. Actual fixed overhead was $360,000 and actual variable
overhead was $170,000. Actual production was 11,700 units. MC.07-121
The fixed factory overhead volume variance is
a.$5,500 unfavorable
b.$5,500 favorable
c.$9,000 unfavorable
d.$9,000 favorable
56) Blaser
Corporation had $275,000 in invested assets, sales of $330,000, income from
operations amounting to $33,000 and a desired minimum rate of return of 7.5%.
The rate of return on investment for Blaser Corporation is MC.08-116
12%
7.5%
8.3%
10%
57) Mason
Corporation had $650,000 in invested assets, sales of $700,000, income from
operations amounting to $99,000, and a desired minimum rate of return of 15%.
MC.08-117
The profit margin for Mason is
a.15.2%
b.20%
c.7.1%
d.14.1%
58) Mason
Corporation had $650,000 in invested assets, sales of $700,000, income from
operations amounting to $99,000, and a desired minimum rate of return of 15%.
MC.08-118
The investment turnover for Mason is
a.0.93
b.1.08
c.7.07
d.6.57
59) Mason
Corporation had $650,000 in invested assets, sales of $700,000, income from
operations amounting to $99,000, and a desired minimum rate of return of 15%.
MC.08-119
The residual income for Mason is
a.$84,150
b.$0
c.$1,500
d.$(6,000)
60) The
International Boot Company has income from operations of $80,000, invested
assets of $500,000, and sales of $1,525,000. MC.08-161
What is the investment turnover?
a.3.05
b.16.0
c.0.33
d.27.5
