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accounting problems with A+ answers week 2 homework

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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 units;Sales;37,000 units at $15 per unit;Production;costs;Variable;$4 per unit;Fixed;$260,000;Selling;and administrative costs;Variable;$1 per unit;Fixed;$32,000;The;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 units;Raw;materials, June 30: 51,000 units;Purchases;of raw materials during June: 185,000 units;Shorter'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 foot;Direct;material purchased: 30,000 square feet at $2.60 per square foot;Direct;material consumed: 29,200 square feet;Manufacturing;activity: 9,600 units completed;Assume;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: 10,000;Standard;production time per unit: 3.9 machine hours;Fixed;overhead incurred: $620,000;Actual;machine hours worked: 42,000;Benson'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: 14,800;Actual;fixed overhead incurred: $791,000;Standard;fixed overhead rate: $13 per hour;Budgeted;fixed overhead: $780,000;Planned;level of machine-hour activity: 60,000;If;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: 25,000;Actual;machine hours worked: 24,000;Variable;overhead incurred: $50,000;Fixed;overhead incurred: $250,000;The;standard variable overhead rate for May is;A.;$2.00.;B.;$2.08.;C.;$3.00.;D.;$5.00.;E.;$5.21.

 

Paper#38843 | Written in 18-Jul-2015

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