Details of this Paper

accountng quiz 30 mcq

Description

solution


Question

Question;1. Manufacturing overhead;consists of;a. all manufacturing costs.;b. indirect materials but not;indirect labor.;c. all manufacturing costs, except;direct materials and direct labor.;d. indirect labor but not indirect;materials.;2.Each of the following would be a period cost except;a. the salary of the company;president's secretary.;b. the cost of a general;accounting office.;c. depreciation of a machine used;in manufacturing.;d. sales commissions.;3.In describing the cost formula equation Y = a + bX, which of;the following statements is correct?;a. "X" is the dependent;variable.;b. "a" is the fixed;component.;c. In the high-low method;b" equals change in activity divided by change in costs.;d. As "X" increases;Y" decreases.;4. Which one of the following costs should NOT be considered a;direct cost of serving a particular customer who orders a customized personal;computer by phone directly from the manufacturer?;a. the cost of the hard disk drive;installed in the computer.;b. the cost of shipping the;computer to the customer.;c. the cost of leasing a machine;on a monthly basis that automatically d. tests hard disk drives before they;are installed in computers.;d. the cost of packaging the;computer for shipment.;5. The term differential cost refers to;a. a difference in cost which;results from selecting one alternative instead of another.;b. the benefit forgone by;selecting one alternative instead of another.;c. a cost which does not involve;any dollar outlay but which is relevant to the decision-making process.;d. a cost which continues to be;incurred even though there is no activity.;6.When a decision is made among a number of alternatives, the;benefit that is lost by choosing one alternative over another is the;a. realized cost.;b. opportunity cost.;c. conversion cost.;d. accrued cost.;7.In September direct labor was 40% of conversion cost. If the;manufacturing overhead for the month was $66,000 and the direct materials cost;was $20,000, the direct labor cost was;a. $13,333;b. $44,000;c. $99,000;d. $30,000;8. At a volume of 10,000 units, Company P incurs $30,000 in;factory overhead costs, including $10,000 in fixed costs. Assuming that this;activity is within the relevant range, if volume increases to 12,000 units;Company P would expect to incur total factory overhead costs of;a. $36,000;b. $34,000;c. $30,000;d.$32,000;9. Haar Inc. is a merchandising company. Last month the;company's cost of goods sold was $61,000. The company's beginning merchandise;inventory was $11,000 and its ending merchandise inventory was $21,000. What;was the total amount of the company's merchandise purchases for the month?;a. $61,000;b. $51,000;c. $71,000;d. $93,000;10. At a sales volume of 35,000 units, Thoma Corporation's sales;commissions (a cost that is variable with respect to sales volume) total;$448,000.;To the nearest whole cent, what should be the average sales commission per unit;at a sales volume of 36,800 units? (Assume that this sales volume is within the;relevant range.);a. $13.49;b. $12.17;c. $12.80;d.$12.49;12. Fiene Sales, Inc., a;merchandising company, reported sales of 2,200 units in June at a selling price;of $600 per unit. Cost of goods sold, which is a variable cost, was $364 per;unit. Variable selling expenses were $23 per unit and variable administrative;expenses were $33 per unit. The total fixed selling expenses were $30,500 and;the total administrative expenses were $55,300.;The contribution margin for June was;$1,111,000;$396,000;$310,200;$519,200;13. Getchman Marketing, Inc., a merchandising company, reported;sales of $592,500 and cost of goods sold of $305,000 for April. The company's;total variable selling expense was $37,500, its total fixed selling expense was;$16,000, its total variable administrative expense was $35,000, and its total;fixed administrative expense was $38,900. The cost of goods sold in this;company is a variable cost.;The gross margin for April is;$287,500;$215,000;$537,600;$160,100;14. The following cost data pertain to the operations of Mancia;Department Stores, Inc., for the month of February.;Corporate legal office salaries - $62,000;Shoe dept. cost of salaries (Brentwood Store) - $80,000;Corporate HQ building lease- $79,000;Store Manager Salary (Brentwood Store)- $14,000;Shoe Department Sales Commissions (Brentwood Store) - $8,000;Store utilities (Brentwood Store) - $13,000;Shoe Department Managers Salary (Brentwood Store) - $4,000;Central Warehouse lease cost - $11,000;Janitorial Cost (Brentwood Store) - $11,000;The Brentwood Store is just one of many stores owned and;operated by the company. The Shoe Department is one of many departments at the;Brentwood Store. The central warehouse serves all of the company's stores.;What is the total amount of the costs listed above that are direct costs of the;Shoe Department?;$80,000;$88,000;$130,000;$92,000;15. Temblador Corporation purchased a machine 7 years ago for;$319,000 when it launched product E26T. Unfortunately, this machine has broken;down and cannot be repaired. The machine could be replaced by a new model 330;machine costing $323,000 or by a new model 230 machine costing $285,000.;Management has decided to buy the model 230 machine. It has less capacity than;the model 330 machine, but its capacity is sufficient to continue making;product E26T. Management also considered, but rejected, the alternative of;dropping product E26T and not replacing the old machine. If that were done, the;$285,000 invested in the new machine could instead have been invested in a;project that would have returned a total of $386,000.;In making the decision to buy the model 230 machine rather than the model 330;machine, the differential cost was;$34,000;$38,000;$4,000;$67,000;17. If Q equals the level;of output, P is the selling price per unit, V is the variable expense per unit;and F is the fixed expense, then the break-even point in units is;Q ? (P-V).;F ? (P-V).;V ? (P-V).;F ?;[Q(P-V)].;18. James Company has a margin of safety percentage of 20% based;on its actual sales. The break-even point is $200,000 and the variable expenses;are 45% of sales. Given this information, the actual profit is;$27,500;$18,000;$22,500;$22,000;19.Montgomery Corporation produces and sells a single product.;Data concerning that product appear below;Selling price - $240 per unit - 100% of sales;Variable Expenses - $144 per unit - 60% of sales;Contribution Margin - $96 per unit - 40% of sales;Fixed expenses are $239,000 per month. The company is currently;selling 3,000 units per month. The marketing manager would like to cut the;selling price by $12 and increase the advertising budget by $12,000 per month.;The marketing manager predicts that these two changes would increase monthly;sales by 500 units. What should be the overall effect on the company's monthly;net operating income of this change?;increase of $102,000;decrease of $30,000;decrease of $6,000;increase of $30,000;20. Hassick Corporation produces and sells a single product;whose contribution margin ratio is 63%. The company's monthly fixed expense is;$460,530 and the company's monthly target profit is $19,000. The dollar sales;to attain that target profit is closest to;$290,134;$302,104;$761,159;$731,000;21. Shiraki Corporation;produces and sells a single product. Data concerning that product appear below;Selling price per unit -;$200;Variable expenses per;unit - $78;Fixed expenses per month;- $396,500;The break-even in monthly;dollar sales is closest to;$650,000;$687,722;$396,500;$1,016,667;22. Data concerning Carlo Corporation's single product appear;below;Selling price per unit - $230;Variable expenses per unit - $69;Fixed expenses per month - $466,900;The break-even in monthly dollar sales is closest to;$896,744;$466,900;$1,556,333;$667,000;23. A cement manufacturer has supplied the following data;Tons of cement produced and sold - 260,000;Sales Revenue- $1,118,000;Variable Manufacturing Expense - $429,000;Fixed manufacturing expense - $288,000;Variable selling and administrative expense - $228,000;Net Operating Income - $82,000;What is the company's unit contribution margin?;$2.00;$0.32;$4.30;$2.30;24. A company that makes organic fertilizer has supplied the;following data;Bags produced and sold - 680,000;Sales Revenue- $4,352,000;Variable Manufacturing Expense - $1,972,000;Fixed manufacturing expense - $730,000;Variable selling and administrative expense - $412,000;Net Operating Income - $456,000;The company's unit contribution margin is closest to;$5.25;$4.05;$3.50;$2.35;25. The following is Allison Corporation's contribution format;income statement for last month;Sales - $800,000;Variable Expense - $300,000;Contribution Margin - 500,000;Fixed expenses- 400,000;Net Operating Income - 100,000;The company has no beginning or ending inventories. The company;produced and sold 10,000 units last month.;What is the company's degree of operating leverage?;0.2;8.0;1.7;5.0;25. Paxton Corp has;provided the following data concerning its operations last month;Sales- 400,000;Variable expenses-;250,000;Fixed Expenses- 100,000;Paxton Corp is a;retailing organization.;The contribution margin ratio is;12.5%;33.0%;25.0%;37.5%;27. Robledo Corporation produces and sells a single product.;Data concerning that product appear below;Selling Price- $100 per unit - 100% of sales;Variable Expenses- 20 per unit - 20% of sales;Contribution Margin- $80 per unit - 80% of sales;Fixed expenses are $625,000 per month. The company is currently selling 9,000;units per month. Consider each of the following questions independently.;This question is to be considered independently of all other questions relating;to Robledo Corporation. Refer to the original data when answering this;question.;Management is considering using a new component that would increase the unit;variable cost by $3. Since the new component would increase the features of the;company's product, the marketing manager predicts that monthly sales would;increase by 400 units. What should be the overall effect on the company's;monthly net operating income of this change?;decrease of $30,800;decrease of $3,800;increase of $30,800;increase of $3,800;28. Data concerning Homme Corporation's single product appear;below;Selling Price- $190 per unit - 100% of sales;Variable Expenses- 114 per unit - 60% of sales;Contribution Margin- $76 per unit - 40% of sales;The company is currently selling 2,000 units per month. Fixed;expenses are $130,000 per month. Consider each of the following questions;independently.;This question is to be considered independently of all other questions relating;to Homme Corporation. Refer to the original data when answering this question.;The marketing manager believes that a $12,000 increase in the monthly;advertising budget would result in a 190 unit increase in monthly sales. What;should be the overall effect on the company's monthly net operating income of;this change?;increase of $2,440;decrease of $12,000;increase of $14,440;decrease of $2,440;29. Data concerning Celenza Corporation's single product appear;below;Selling Price- $230 per unit;Variable expenses per unit- $59.80;Fixed expenses per month - $697,820;Assume the company's monthly target profit is $25,000. The unit;sales to attain that target profit are closest to;6,492 units;4,247 units;12,087 units;3,143 units;30. Kuhner Corporation produces and sells two products. Data;concerning those products for the most recent month appear below;Sales- $10,000 (Product B64P) - $46,000 (Product I00E);Variable Exp.- $2,500 (Product B64P) - $15,420 (Product I00E);Fixed expenses for the entire company were $33,100.;If the sales mix were to shift toward Product B64P with total dollar sales;remaining constant, the overall break-even point for the entire company;would not change.;would decrease.;would increase.;could increase or decrease.;23. A cement manufacturer;has supplied the following data;Tons of cement produced and sold - 260,000;Sales Revenue- $1,118,000;Variable Manufacturing Expense - $429,000;Fixed manufacturing expense - $288,000;Variable selling and administrative expense - $91,000;Fixed Selling and;administrative expense - $228,000;Net Operating Income - $82,000;What is the company's unit contribution margin?;$2.00;$0.32;$4.30;$2.30;24.A company that makes;organic fertilizer has supplied the following data;Bags produced and sold - 680,000;Sales Revenue- $4,352,000;Variable Manufacturing Expense - $1,972,000;Fixed manufacturing expense - $730,000;Variable selling and administrative expense - $782,000;Fixed Selling and administrative expense - $412,000;Net Operating Income - $456,000;The company's unit contribution margin is closest to;$5.25;$4.05;$3.50;$2.35

 

Paper#44358 | Written in 18-Jul-2015

Price : $28
SiteLock