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Mardist Corporation has sales of $100,000, variable expenses of $75,000, fixed expenses

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Question;1.;Mardist;Corporation has sales of $100,000, variable expenses of $75,000, fixed expenses;of $30,000;and a net loss of $5,000. How much would Mardist;have to sell to achieve a profit of 10% of sales?;A. $187,500;B. $225,500;C. $180,000;D. $200,000;2. Use the following information to answer this;question.;Gargymal Company would like to estimate the;variable and fixed components of its electrical costs and has;compiled the following data for the past five;months of operations.;Using the high-low method of analysis, the;estimated variable cost per machine hour for electricity is;closest to which of the following?;Machine;Hours;Electrical;Cost;August 1,000 $1,620;September 900 $1,510;October 1,500 $1,870;November 2,000 $1,950;December 1,300 $1,730;A. $0.40;B. $1.68;C. $2.50;D. $0.98;3. Use the following information to answer this;question.;Callaham Corporation is a wholesaler that sells;a single product. Management has provided the following;cost data for two levels of monthly sales;volume. The company sells the product for $115.80 per unit.;Sales volume (units)The best estimate of the;total variable cost per unit is;4,000 5,000;Cost of sales $338,000 $422,500;Selling and administrative costs $89,600;$106,000;A. $84.50.;B. $105.70.;C. $106.90.;D. $100.90.;4. Viren Corporation has provided the following;data from its activity-based costing system;The company makes 240 units of product T91H a;year, requiring a total of 550 machine hours, 90 orders;and 40 inspection hours per year. The product's;direct materials cost is $16.98 per unit, and its direct labor;cost is $12.09 per unit. According to the;activity-based costing system, the average cost of product T91H is;closest to _______ per unit.;Activity Cost Pool Total Cost Total Activity;Assembly $387,000 25,000 machine-hours;Processing orders $68,510 1,700 orders;Inspection $129,117 1,930 inspection-hours;A. $90.81;B. $75.70;C. $79.66;D. $29.07;5. Indiana Corporation produces a single product;that it sells for $9 per unit. During the first year of;operations, 100,000 units were produced, and;90,000 units were sold. Manufacturing costs and selling and;administrative expenses for the year were as;follows;What was Indiana Corporation's net operating;income for the year using variable costing?;Fixed Costs Variable Costs;Raw materials $1.75 per unit;produced;Direct labor $1.25 per unit;produced;Factory;overhead $100,000 $0.50 per unit;produced;Selling and;administrative $70,000 $0.60 per unit;sold;A. $371,000;B. $281,000;C. $271,000;D. $181,000;6. Use the following information to answer this;question.;Harris Company produces a single product. Last;year, Harris manufactured 17,000 units and sold 13,000;units. Production costs for the year were as;follows;Sales were $780,000 for the year, variable;selling and administrative expenses were $88,400, and fixed;selling and administrative expenses were;$170,000. There was no beginning inventory. Assume that direct;labor is a variable cost.;The contribution margin per unit was;Production Cost Data;Direct materials $153,000;Direct labor $110,500;Variable manufacturing overhead $204,000;Fixed manufacturing overhead $255,000;A. $27.30.;B. $32.50.;C. $17.50.;D. $25.70.;7. Last year, Gransky Corporation's variable;costing net operating income was $52,100, and its ending;inventory increased by 400 units. Fixed;manufacturing overhead cost was $7 per unit. What was the;absorption costing net operating income last;year?;A. $49,300;B. $52,100;C. $54,900;D. $2,800;8. Rank the following methods of assigning;overhead costs from least accurate to most accurate.;A. Plantwide rate, departmental rates;activity-based costing;B. Plantwide rate, activity-based costing;departmental rates;C. Activity-based costing, departmental rates;plantwide rate;D. Departmental rates, plantwide rate, activity-based;costing;9. Use the following information to answer this;question.;Callaham Corporation is a wholesaler that sells;a single product. Management has provided the following;cost data for two levels of monthly sales;volume. The company sells the product for $115.80 per unit.The best estimate of;the total contribution margin when 4,300 units are sold is;Sales volume (units);4,000 5,000;Cost of sales $338,000 $422,500;Selling and administrative costs $89,600;$106,000;A. $64,070.;B. $38,270.;C. $134,590.;D. $43,430.;10. A company increased the selling price for;its product from $5 to $6 per unit when total fixed expenses;increased from $100,000 to $200,000 and variable;expense per unit remained unchanged. How would;these changes affect the break-even point?;A. The break-even point in units would decrease.;B. The effect can't be determined from;the information given.;C. The break-even point in units would increase.;D. The break-even point in units would remain;unchanged.;11. Use the following information to;answer this question.;Harris Company produces a single product. Last;year, Harris manufactured 17,000 units and sold 13,000;units. Production costs for the year were as;follows;Sales were $780,000 for the year, variable;selling and administrative expenses were $88,400, and fixed;selling and administrative expenses were;$170,000. There was no beginning inventory. Assume that direct;labor is a variable cost.;Under variable costing, the company's net;operating income for the year would be _______ than under;absorption costing.;Production Cost Data;Direct materials $153,000;Direct labor $110,500;Variable manufacturing overhead $204,000;Fixed manufacturing overhead $255,000;A. $108,000 higher;B. $60,000 higher;C. $60,000 lower;D. $108,000 lower;12. An increase in the activity level within the;relevant range results in a/an;A. increase in fixed cost per unit.;B. unchanged fixed cost per unit.;C. proportionate increase in total fixed costs.;D. decrease in fixed cost per unit.;13. Use the following information to answer this;question.;Gargymal Company would like to estimate the;variable and fixed components of its electrical costs and has;compiled the following data for the past five;months of operations.;Using the high-low method of analysis, the estimated;fixed cost per month for electricity is closest to which;of the following?;Machine;Hours;Electrical;Cost;August 1,000 $1,620;September 900 $1,510;October 1,500 $1,870;November 2,000 $1,950;December 1,300 $1,730;A. $870.00;B. $1,150.00;C. $1,306.50;D. $1,290.00;14. Use the following information to answer this;question.;Lifsey Wedding Fantasy Company makes very;elaborate wedding cakes to order. The owner of the;company has provided the following data;concerning the activity rates in its activity-based costing system;l The measure of activity for the size-related;activity cost pool is the number of planned guests at the;wedding reception. The greater the number of;guests, the larger the cake.;l The measure of complexity is the number of;tiers in the cake.;l The activity measure for the order-related;cost pool is the number of orders. (Each wedding involves;one order.);l The activity rates include the costs of raw;ingredients, such as flour, sugar, eggs, and shortening. The;activity rates don't include the costs of;purchased decorations, such as miniature statues and wedding;bells, which are accounted for separately.;Data concerning two recent orders are listed;here;Activity Cost Pools Activity Rate;Size-related $0.94 per guest;Complexity-related $31.62 per tier;Order-related $55.79 per orderAssuming that the;company charges $556.96 for the Smith wedding cake, what would be the overall;margin on the order?;Pyburn;Wedding;Smith;Wedding;Number of reception guests 72 189;Number of tiers on the cake 4 5;Cost of purchased decorations for cake $29.92;$68.75;A. $460.30;B. $165.41;C. $96.66;D. $152.45;15. Which statement is true for a company that;uses variable costing?;A. The unit product cost changes because of;changes in the number of units manufactured.;B. Profit fluctuates with sales.;C. Product costs include variable administration;costs.;D. Any underapplied overhead is included in the;product cost.;16. Use the following information to answer this;question.;Callaham Corporation is a wholesaler that sells;a single product. Management has provided the following;cost data for two levels of monthly sales;volume. The company sells the product for $115.80 per unit.;The best estimate of the total monthly fixed;cost is;Sales volume (units);4,000 5,000;Cost of sales $338,000 $422,500;Selling and administrative costs $89,600;$106,000;A. $478,050.;B. $427,600.;C. $24,000.;D. $528,500.;17. Murdoch Corporation has provided the;following data concerning its only product;Murdoch Product Data;Selling price $230 per unit;Current sales 39,100 units;Break-even sales 29,716 unitsWhat is the margin;of safety in dollars?;A. $8,993,000;B. $5,995,333;C. $2,158,320;D. $6,834,680;18. Use the following information to answer this;question.;Lifsey Wedding Fantasy Company makes very;elaborate wedding cakes to order. The owner of the;company has provided the following data;concerning the activity rates in its activity-based costing system;l The measure of activity for the size-related;activity cost pool is the number of planned guests at the;wedding reception. The greater the number of;guests, the larger the cake.;l The measure of complexity is the number of;tiers in the cake.;l The activity measure for the order-related;cost pool is the number of orders. (Each wedding involves;one order.);l The activity rates include the costs of raw;ingredients, such as flour, sugar, eggs, and shortening. The;activity rates don't include the costs of;purchased decorations, such as miniature statues and wedding;bells, which are accounted for separately.;Data concerning two recent orders are listed;here;Assuming that the company charges $556.96 for;the Smith wedding cake, what would be the overall;margin on the order?;Activity Cost Pools Activity Rate;Size-related $0.94 per guest;Complexity-related $31.62 per tier;Order-related $55.70 per order;Pyburn;Wedding;Smith;Wedding;Number of reception guests 72 189;Number of tiers on the cake 4 5;Cost of purchased decorations for cake $29.92;$68.75;A. $96.66;B. $152.45;C. $165.41;D. $460.30;19. Daniele Corporation uses an activity-based;costing system with the following three activity cost pools;Activity Cost Pool Total ActivityEnd of exam;The Other activity cost pool is used to;accumulate costs of idle capacity and organization-sustaining costs.;The company has provided the following data;concerning its costs;The distribution of resource consumption across;activity cost pools is given below;The activity rate for the Fabrication activity;cost pool is closest to _______ per machine hour.;Fabrication 50,000 machine-hours;Order processing 500 orders;Other not applicable;Cost Data;Wages and salaries $280,000;Depreciation $200,000;Occupancy $140,000;Total $620,000;Activity Cost Pools;Fabrication Order;Processing Other Total;Wages and;salaries 60% 30% 10% 100%;Depreciation 20% 35% 45% 100%;Occupancy 10% 50% 40% 100%;A. $7.44;B. $1.24;C. $3.72;D. $4.44;20. Green Company's variable expenses are 75% of;sales. At a sales level of $400,000, the company's;degree of operating leverage is 8. At this sales;level, fixed expenses are;A. $50,000.;B. $75,000.;C. $87,500.;D. $100,000.

 

Paper#51930 | Written in 18-Jul-2015

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