Question;1. Which of the following would produce the largest increase in the contribution margin per unit?A. A 7% increase in selling price.B. A 15% decrease in selling price.C. A 14% increase in variable cost.D. A 17% decrease in fixed cost.E. A 23% increase in the number of units sold.2.. At a volume of 20,000 units, Dries reported sales revenues of $1,000,000, variable costs of $300,000, and fixed costs of $260,000. The company's contribution margin per unit is:A. $22.B. $28.C. $35.D. $37.E. None of the other answers is correct.3. A recent income statement of Suni Corporation reported the following data: If these data are based on the sale of 20,000 units, the break-even point would be: A. 7,500 units.B. 11,628 units.C. 12,500 units.D. 33,333 units.E. None of the other answers is correct. 4. At a volume level of 500,000 units, Sullivan reported the following information:The company's contribution-margin ratio is closest to:A. 0.33.B. 0.40.C. 0.60.D. 0.67.E. None of the other answers is correct. 5. Brooklyn sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 31,600, a selling price of $20, variable cost per unit of $8, and total fixed costs of $360,000. Brooklyn's safety margin in units is:A. (13,400).B. 0.C. 1,600.D. 13,600.E. None of the other answers is correct.6. O'Dale sells three products: R, S, and T. Budgeted information for the upcoming accounting period follows. The company's weighted-average unit contribution margin is:A. $3.00.B. $3.55.C. $4.00.D. $19.35.E. None of the other answers is correct.7. Delaware has computed the following unit costs for the year just ended: Which of the following choices correctly depicts the per-unit cost of inventory under variable costing and absorption costing?A. Variable, $85, absorption, $105.B. Variable, $85, absorption, $116.C. Variable, $103, absorption, $105.D. Variable, $103, absorption, $116.E. None of the other answers are correct.8.. Roberts Corp., which began business at the start of the current year, had the following data:Planned and actual production: 40,000 unitsSales: 37,000 units at $15 per unitProduction costs:Variable: $4 per unitFixed: $260,000Selling and administrative costs:Variable: $1 per unitFixed: $32,000The gross profit that the company would disclose on an absorption-costing income statement is:A. $97,500.B. $147,000.C. $166,500.D. $370,000.E. None of the other answers are correct.9. Chino began business at the start of the current year. The company planned to produce 25,000 units, and actual production conformed to expectations. Sales totaled 22,000 units at $30 each. Costs incurred were: If there were no variances, the company's absorption-costing income would be:A. $190,000.B. $202,000.C. $208,000.D. $220,000.E. None of the other answers are correct.10. Franz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9, fixed manufacturing costs, $60,000, variable selling and administrative costs per unit, $2, and fixed selling and administrative costs, $220,000. The company sells its units for $45 each. Additional data follow. There were no variances.The income (loss) under variable costing is:A. $(7,500).B. $9,000.C. $15,000.D. $18,000.E. None of the other answers are correct.11. The following information relates to Paternus Company: If a manager at Paternus desired to determine the percentage impact on income of a given percentage change in sales, the manager would multiply the percentage increase/decrease in sales revenue by:A. 0.25.B. 0.40.C. 2.50.D. 4.00.E. 10.00.12. Carter reported $106,000 of income for the year by using variable costing. The company had no beginning inventory, planned and actual production of 50,000 units, and sales of 47,000 units. Standard variable manufacturing costs were $15 per unit, and total budgeted fixed manufacturing overhead was $150,000. If there were no variances, income under absorption costing would be:A. $52,000.B. $97,000.C. $106,000.D. $115,000.E. $160,000.13. Yorkley Corporation plans to sell 41,000 units of its single product in March. The company has 2,800 units in its March 1 finished-goods inventory and anticipates having 2,400 completed units in inventory on March 31. On the basis of this information, how many units does Yorkley plan to produce during March?A. 40,600.B. 41,400.C. 43,800.D. 46,200.E. None of the other answers are correct.14. Coleman, Inc. anticipates sales of 50,000 units, 48,000 units, 51,000 units and 50,000 units in July, August, September and October, respectively. Company policy is to maintain an ending finished-goods inventory equal to 40% of the following month's sales. On the basis of this information, how many units would the company plan to produce in September?A. 46,800.B. 49,200.C. 49,800.D. 50,600.E. None of the other answers are correct. 15. Tidewater plans to sell 85,000 units of product no. 794 in May, and each of these units requires three units of raw material. Pertinent data follow. On the basis of the information presented, how many units of raw material should Tidewater purchase for use in May production?A. 228,000.B. 246,000.C. 264,000.D. 282,000.E. None of the other answers are correct.16. An examination of Shorter Corporation's inventory accounts revealed the following information:Raw materials, June 1: 46,000 unitsRaw materials, June 30: 51,000 unitsPurchases of raw materials during June: 185,000 unitsShorter's finished product requires four units of raw materials. On the basis of this information, how many finished products were manufactured during June?A. 45,000.B. 47,500.C. 57,750.D. 70,500.E. None of the other answers are correct.17. Quattro began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale, 60% are collected in the first month after sale, and 10% are collected in the second month after sale. If sales for April, May, and June were $60,000, $80,000, and $70,000, respectively, what were the firm's budgeted collections for April?A. $18,000.B. $21,000.C. $60,000.D. $65,000.E. None of the other answers are correct.18. Verna's makes all sales on account, subject to the following collection pattern: 20% are collected in the month of sale, 70% are collected in the first month after sale, and 10% are collected in the second month after sale. If sales for October, November, and December were $70,000, $60,000, and $50,000, respectively, what was the budgeted receivables balance on December 31?A. $40,000.B. $46,000.C. $49,000.D. $59,000.E. None of the other answers are correct.19. The following data relate to product no. 89 of Des Moines Corporation:Direct material standard: 3 square feet at $2.50 per square footDirect material purchased: 30,000 square feet at $2.60 per square footDirect material consumed: 29,200 square feetManufacturing activity: 9,600 units completedAssume that the company computes variances at the earliest point in time.The direct-material quantity variance is:A. $1,000F.B. $1,000U.C. $1,040F.D. $1,040U.E. $2,000F.20. Courtney purchased and consumed 50,000 gallons of direct material that was used in the production of 11,000 finished units of product. According to engineering specifications, each finished unit had a manufacturing standard of five gallons. If a review of Courtney's accounting records at the end of the period disclosed a material price variance of $5,000U and a material quantity variance of $3,000F, what is the actual price paid for a gallon of direct material?A. $0.50.B. $0.60.C. $0.70.D. None of the other answers are correct.E. Not enough information to judge.21. Sammons Corporation had a favorable direct-labor efficiency variance of $6,000 for the period just ended. The actual wage rate was $0.50 more than the standard rate of $12.00. If the company's standard hours allowed for actual production totaled 9,500, how many hours did the firm actually work?A. 9,000.B. 9,020.C. 9,980.D. 10,000.E. None of the other answers are correct.22. Benson Company, which uses a standard cost system, budgeted $600,000 of fixed overhead when 40,000 machine hours were anticipated. Other data for the period were:Actual units produced: 10,000Standard production time per unit: 3.9 machine hoursFixed overhead incurred: $620,000Actual machine hours worked: 42,000Benson's fixed-overhead budget variance is:A. $10,000 favorable.B. $15,000 favorable.C. $15,000 unfavorable.D. $20,000 favorable.E. $20,000 unfavorable.23. Atlanta Enterprises incurred $828,000 of fixed overhead during the period. During that same period, the company applied $845,000 of fixed overhead to production and reported an unfavorable budget variance of $41,000. How much was Atlanta's budgeted fixed overhead?A. $787,000.B. $804,000.C. $869,000.D. $886,000.E. Not enough information to judge.24. Enberg Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended:Actual units produced: 14,800Actual fixed overhead incurred: $791,000Standard fixed overhead rate: $13 per hourBudgeted fixed overhead: $780,000Planned level of machine-hour activity: 60,000If Enberg estimates four hours to manufacture a completed unit, the company's fixed-overhead volume variance would be:A. $10,400 favorable.B. $10,400 unfavorable.C. $11,000 favorable.D. $11,000 unfavorable.E. None of the other answers are correct.25. Sussex Company uses a standard cost system and prepared the following budget for May when 24,000 machine hours of activity were anticipated: variable overhead, $48,000, fixed overhead: $240,000. Actual data for May were:Standard machine hours allowed for output attained: 25,000Actual machine hours worked: 24,000Variable overhead incurred: $50,000Fixed overhead incurred: $250,000The standard variable overhead rate for May is:A. $2.00.B. $2.08.C. $3.00.D. $5.00.E. $5.21.
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