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Question;Test II -;Chapters 5 thru 7;1.;Data concerning Odum Corporation's single product appear below;The break-even in monthly unit sales is closest to;A) 1,413;unitsB) 1,110;unitsC) 622;unitsD) 1,048;units;2.;A cement manufacturer has supplied the following data;What is the company's unit contribution margin?;A) $2.00B) $0.32C) $4.30D) $2.30;3.;Tanigawa Inc. has an operating leverage of 8.7. If the company's;sales increase by 8%, its net operating income should increase by about;A) 69.6%B) 8.7%C) 108.8%D) 8.0%;4.;A company that makes organic fertilizer has supplied the following;data;The company's unit contribution margin is closest to;A) $5.25B) $4.05C) $3.50D) $2.35;5.;Weinreich Corporation produces and sells a single product. Data;concerning that product appear below;The company is currently selling 2,000 units per month. Fixed expenses are;$131,000 per month. The marketing manager believes that an $18,000 increase in;the monthly advertising budget would result in a 170 unit increase in monthly;sales. What should be the overall effect on the company's monthly net operating;income of this change?;A) Increase;of $2,700B) Increase;of $15,300C) Decrease;of $18,000D) Decrease;of $2,700;6.;Guillet Inc. produces and sells a single product. The selling;price of the product is $180.00 per unit and its variable cost is $46.80 per;unit. The fixed expense is $618,048 per month.;The break-even in monthly unit sales is closest to;A) 3,434;unitsB) 4,640;unitsC) 7,093;unitsD) 13,206;units;7.;Danneman Corporation's fixed monthly expenses are $13,000 and its;contribution margin ratio is 56%. Assuming that the fixed monthly expenses do;not change, what is the best estimate of the company's net operating income in;a month when sales are $41,000?;A) $9,960B) $5,040C) $22,960D) $28,000;8.;Green Enterprises produces a single product. The following data;were provided by the company for the most recent period;For the period above, one would expect the net operating income under absorption;costing to be;A) higher;than the net operating income under variable costing.B) lower;than the net operating income under variable costing.C) the;same as the net operating income under variable costing.D) The;relation between absorption costing net operating income and variable costing;net operating income cannot be determined.;9.;Vanstee Corporation manufactures a variety of products. Variable;costing net operating income last year was $60,000 and this year was $67,000.;Last year, $37,000 in fixed manufacturing overhead costs were deferred in;inventory under absorption costing. This year, $8,000 in fixed manufacturing;overhead costs were released from inventory under absorption costing.;What was the absorption costing net operating income this year?;A) $38,000B) $96,000C) $75,000D) $59,000;10.;Green Enterprises produces a single product. The following data;were provided by the company for the most recent period;Under absorption costing, the unit product cost is;A) $20B) $18C) $15D) $25;11.;Olds Inc., which produces a single product, has provided the;following data for its most recent month of operations;There were no beginning or ending inventories. The absorption costing unit;product cost was;A) $97B) $130C) $99D) $207;12.;Tsuchiya Corporation manufactures a variety of products. Last;year, the company's variable costing net operating income was $57,500. Fixed;manufacturing overhead costs deferred in inventory under absorption costing;amounted to $35,400. What was the absorption costing net operating income last;year?;A) $22,100B) $35,400C) $57,500D) $92,900;13.;Segment margin is sales minus;A) variable;expenses.B) traceable;fixed expenses.C) variable;expenses and common fixed expenses.D) variable;expenses and traceable fixed expenses.;14.;Favini Company, which has only one product, has provided the;following data concerning its most recent month of operations;What is the unit product cost for the month under absorption costing?;A) $91B) $125C) $118D) $98;15.;Dykema Corporation uses activity-based costing to compute product;margins. Overhead costs have already been allocated to the company's three;activity cost pools-Processing, Supervising, and Other. The costs in those;activity cost pools appear below;Processing costs are assigned to products using machine-hours (MHs) and;Supervising costs are assigned to products using the number of batches. The;costs in the Other activity cost pool are not assigned to products. Activity;data appear below;Finally, sales and direct cost data are combined with Processing and;Supervising costs to determine product margins.;The activity rate for the Processing activity cost pool under activity-based;costing is closest to;A) $15.00;per MH B) $3.60;per MH C) $0.46;per MH;16.;Drewniak Corporation has provided the following data from its;activity-based costing system;The company makes 430 units of product O37W a year, requiring a total of 690;machine-hours, 40 orders, and 10 inspection-hours per year. The product's;direct materials cost is $35.72 per unit and its direct labor cost is $29.46;per unit.;According to the activity-based costing system, the average cost of product;O37W is closest to;A) $94.11;per unit B) $89.72;per unit C) $65.18;per unit D) $92.49;per unit;17.;Roshannon Corporation uses activity-based costing to compute;product margins. In the first stage, the activity-based costing system;allocates two overhead accounts-equipment expense and indirect labor-to three;activity cost pools-Processing, Supervising, and Other-based on resource;consumption. Data to perform these allocations appear below;In the second stage, Processing costs are assigned to products using;machine-hours (MHs) and Supervising costs are assigned to products using the;number of batches. The costs in the Other activity cost pool are not assigned;to products. Activity data for the company's two products follow;Finally, sales and direct cost data are combined with Processing and;Supervising costs to determine product margins.;The activity rate for the Processing activity cost pool under activity-based;costing is closest to;A) $5.33;per MH B) $0.68;per MH C) $0.52;per MH D) $3.00;per MH;18.;Ballweg Corporation has an activity-based costing system with;three activity cost pools-Machining, Order Filling, and Other. In the first;stage allocations, costs in the two overhead accounts, equipment depreciation;and supervisory expense, are allocated to the three activity cost pools based;on resource consumption. Data used in the first stage allocations follow;Machining costs are assigned to products using machine-hours (MHs) and Order;Filling costs are assigned to products using the number of orders. The costs in;the Other activity cost pool are not assigned to products. Activity data for;the company's two products follow;Finally, the costs of Machining and Order Filling are combined with the;following sales and direct cost data to determine product margins.;What is the product margin for Product T2 under activity-based costing?;A) $1,821 B) $871 C) $8,700 D) $16,200;19.;Roshannon Corporation uses activity-based costing to compute;product margins. In the first stage, the activity-based costing system;allocates two overhead accounts-equipment expense and indirect labor-to three;activity cost pools-Processing, Supervising, and Other-based on resource;consumption. Data to perform these allocations appear below;In the second stage, Processing costs are assigned to products using;machine-hours (MHs) and Supervising costs are assigned to products using the;number of batches. The costs in the Other activity cost pool are not assigned;to products. Activity data for the company's two products follow;Finally, sales and direct cost data are combined with Processing and;Supervising costs to determine product margins.;What is the overhead cost assigned to Product P3 under activity-based costing?;A) $30,000 B) $5,916 C) $5,640 D) $11,556;20.;Matt Company uses activity-based costing. The company has two;products: A and B. The annual production and sales of Product A is 8,000 units;and of Product B is 6,000 units. There are three activity cost pools, with;total cost and total activity as follows;The activity-based costing cost per unit of Product A is closest to;A) $2.40 B) $3.90 C) $10.59 D) $6.60

 

Paper#45525 | Written in 18-Jul-2015

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