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Managerial Accounting MCQs

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Question;Hunten Manufacturing assigns overhead based on machine hours. The Milling Department logs 1,400 machine hours and Cutting Department shows 3,000 machine hours for the period. If the overhead rate is $5 per machine hour, the entry to assign overhead will show acredit to Manufacturing Overhead for $22,000.debit to Work in Process for $15,000.debit to Manufacturing Overhead for $22,000.credit to Work in Process?Cutting Department for $15,000.Question 4A process with no beginning work in process, completed and transferred out 95,000 units during a period and had 50,000 units in the ending work in process inventory that were 30% complete. The equivalent units of production for the period were:110,000 equivalent units.47,500 equivalent units.95,000 equivalent units.145,000 equivalent units.The Molding Department of Kenst Company has the following production data: beginning work in process 40,000 units (60% complete), started into production 680,000 units, completed and transferred out 690,000 units, and ending work in process 70,000 units (40% complete). Assuming conversion costs are incurred uniformly during the process, the equivalent units for conversion costs are:690,000.694,000.718,000.760,000.Question 6Conrad Company's Assembly Department has materials cost at $5 per unit and conversion cost at $8 per unit. There are 20,000 units in ending work in process, all of which are 70% complete as to conversion costs. How much are total costs to be assigned to inventory?$260,000.$112,000.$212,000.$182,800.Question 7A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of July, there was no beginning work in process, 40,000 units were completed and transferred out, and there were 20,000 units in the ending work in process that were 40% complete. During July, $96,000 materials costs and $84,000 conversion costs were charged to the department.The unit production costs for materials and conversion costs for July wasMaterialsConversion Costs$2.40$2.13$1.60$1.75$2.00$1.40$1.60$1.40Question 9Which of the following costs are variable?Cost10,000 Units30,000 Units1.$100,000$300,0002.40,000240,0003.90,00090,0004.50,000150,0001 and 2only 2only 11 and 4Question 11In applying the high-low method, what is the unit variable cost?MonthMilesTotal CostJanuary80,000$144,000February50,000120,000March70,000141,000April90,000$180,000Cannot be determined from the information given$2.00$1.50$2.40Question 13If a company had a contribution margin of $750,000 and a contribution margin ratio of 40%, total variable costs must have been$300,000.$1,125,000.$450,000.$1,875,000.Question 14The following monthly data are available for Hepburn, Inc. which produces only one product: Selling price per unit, $42, Unit variable expenses, $14, Total fixed expenses, $84,000, Actual sales for the month of June, 4,000 units. How much is the margin of safety for the company for June?$1,000$84,000$126,000$42,000Question 15Klinc, Inc. wants to sell a sufficient quantity of products to earn a profit of $70,000. If the unit sales price is $10, unit variable cost is $8, and total fixed costs are $120,000, how many units must be sold to earn income of $70,000?23,750 units950,000 units95,000 units70,000 unitsQuestion 16Sivenchy Company sells 100,000 wrenches for $18 per unit. Fixed costs are $625,000 and net income is $375,000. What should be reported as variable expenses in the CVP income statement?$1,425,000$1,000,000$1175$800,000Question 19At January 1, 2014, Zella Company has beginning inventory of 2,000 DVD players. Zella estimates it will sell 10,000 units during the first quarter of 2014 with a 12% increase in sales each quarter. Zella?s policy is to maintain an ending inventory equal to 25% of the next quarter?s sales. Each DVD player costs $100 and is sold for $140. How much is budgeted sales revenue for the third quarter of 2014?$12,544$420,000$1,820,000$1,756,160Question 20Vonak Co. estimates its sales at 240,000 units in the first quarter and that sales will increase by 24,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale.Cash collections for the third quarter are budgeted at$5,904,000.$7,092,000.$8,208,000.$4,068,000.Question 21Niles Manufacturing estimates its sales at 220,000 units in the first quarter and that sales will increase by 20,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $35. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale.Production in units for the third quarter should be budgeted at330,000.260,000.275,000.265,000Question 19At January 1, 2014, Zella Company has beginning inventory of 2,000 DVD players. Zella estimates it will sell 10,000 units during the first quarter of 2014 with a 12% increase in sales each quarter. Zella?s policy is to maintain an ending inventory equal to 25% of the next quarter?s sales. Each DVD player costs $100 and is sold for $140. How much is budgeted sales revenue for the third quarter of 2014?$12,544$420,000$1,820,000$1,756,160Question 20Vonak Co. estimates its sales at 240,000 units in the first quarter and that sales will increase by 24,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale.Cash collections for the third quarter are budgeted at$5,904,000.$7,092,000.$8,208,000.$4,068,000Question 21Niles Manufacturing estimates its sales at 220,000 units in the first quarter and that sales will increase by 20,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $35. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale.Production in units for the third quarter should be budgeted at330,000.260,000.275,000.265,000.Question 30Corrington Manufacturing Company prepared a fixed budget of 80,000 direct labor hours, with estimated overhead costs of $400,000 for variable overhead and $120,000 for fixed overhead. Corrington then prepared a flexible budget at 78,000 labor hours. How much is total overhead costs at this level of activity?$510,000$440,000$520,000$400,000Question 31At 18,000 direct labor hours, the flexible budget for indirect materials is $36,000. If $37,600 are incurred at 18,400 direct labor hours, the flexible budget report should show the following difference for indirect materials:$1,600 favorable.$1,600 unfavorable.$800 unfavorable.$800 favorable.

 

Paper#43056 | Written in 18-Jul-2015

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