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Managerial Accounting Exam 2

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Question 1 (2 points) Question 1 Unsaved;If variable costs increase, fixed costs increase, and sales remain the same, what is expected to happen to the Contribution Margin (CM) and to the Break-even Point (BE) respectively?;Que s tion 1 options;CM: Decrease;BE: Increase;CM: Increase;BE: Decrease;CM: Decrease;BE: Decrease;CM: Decrease;BE: Can't be determined;Save;Question 2 (3 points) Question 2 Unsaved;The break-even point is the point at which;Question 2 options;fixed costs equal variable costs;fixed costs equal sales;total contribution margin equals fixed costs;sales equals variable costs;Save;Question 3 (3 points) Question 3 Unsaved;Singer Co. reported sales of $416,000, a contribution margin of $5 per unit, fixed costs of $80,000, and a net income of $ 2 4,000. Determine the selling price per unit?;Question 3 options;$26;$20;$86.70;$5;Save;Question 4 (3 points) Question 4 Unsaved;Use the following information to answer questions 4 & 5;Projected cost information for a new product is as follows;Variable manufacturing costs:$8 per unit;Variable selling costs: $2 per unit;Fixed manufacturing costs: $25,000;Fixed selling costs: $45,000;The product is to be sold at $18 per unit.;Determine the break-even point for this product (in $);Question 4 options;$45,000;$126,000;$157,500;$8,750;Save;Question 5 (3 points) Question 5 Unsaved;Use the following information to answer questions 4 & 5;Projected cost information for a new product is as follows;Variable manufacturing costs:$8 per unit;Variable selling costs: $2 per unit;Fixed manufacturing costs: $25,000;Fixed selling costs: $45,000;The product is to be sold at $18 per unit.;What price would the company h a ve to sell this product for if they wish to sell 10,000 units and realize a profit of $50,000?;Question 5 options;$18;$22;$12;$5;Save;Question 6 (3 points) Question 6 Unsaved;Gastone Inc. has estimated the following forecasted sales for a 3-month period;Month Estimated sales $;August 33,000;September 29,000;October 30,000;On average, 60% of sales are collected in the month of sale, 3 9 % in the following month, and the remaining 1% is never collected. Determine the budgeted cash receipts for September.;Question 6 options;$29,000;$30, 270;$31,110;$29,100;Save;Question 7 (3 points) Question 7 Unsaved;Garth Inc. has gathered the following monthly budget numbers based on a budgeted production level of 2,000 units;Direct Materials $30,000;Factory property taxes $10,000;Factory utilities $3,000;The actual production level during February wa s 3,000 units. Based on the information provided, determine the estimated direct material & factory property taxes, respectively, for February.;Question 7 options;$30,000 and $15,000;$30,000 and $10,000;$45,000 and and $15,000;$45,000 and $10,000;Save;Question 8 (3 points) Question 8 Unsaved;Use the following information to answer questions 8 & 9.;Projected sales, beginning & ending inventory for Sommers Inc. for March 2013 is as follows;Sales 50,000 units;FG Beg. Inv. 4,000 units;FG End. Inv. 8,000 units;The selling price is $40 per unit. Each unit requires 4 pounds of material which costs $6 per pound. The beginning inventory of raw mater i als is 12,000 pounds. The company wants to have 3,000 pounds of material in inventory at the end of March 2013.;Determine Sommers' budgeted production for March 2013.;Question 8 options;54,000 units;46,000 units;62,000 units;38,000 units;Save;Question 9 (3 points) Question 9 Unsaved;Use the following information to answer questions 8 & 9.;Projected sales, beginning & ending inventory for Sommers Inc. for March 2013 is as follows;Sales 50,000 units;FG Beg. Inv. 4,000 units;FG End. Inv. 8,000 units;The selling price is $40 per unit. Each unit requires 4 pounds of material which costs $6 per pound. The beginning i nventory of raw materials is 12,000 pounds. The company wants to have 3,000 pounds of material in inventory at the end of March 2013.;Determine the budgeted material purchases for March 2013.;Question 9 options;$1,350,000;$1,242,000;$1,206,000;$1,296,000;Save;Question 10 (3 points) Question 10 Unsaved;Polar Fans has prepared all the necessary budgets and is attempting to prepare their forecasted income statement. Given that the budgeted total manufacturing cost is $600,000, the budgeted beginning and ending WIP balances are $120,000 a nd $170,000 respectively, the budgeted costs of goods manufactured is $550,000, and the budgeted beginning and ending FG inventories are $60,000 and $78,000, determine the budgeted cost of goods sold for Polar Fans.;Question 10 options;$500,000;$532,000;$482,000;$568,000;Save;Question 11 (3 points) Question 11 Unsaved;The f o llowing information was reported for Lake Co.;Beginning cash balance $24,000;Cash payments $42,000;Cash receipts $29,000;Minimum cash balance desired $22,000;How much cash will Lake Co. have to borrow to meet its minimum cash requirements?;Question 11 options;$0;$9,000;$11,000;$13,550;Save;Question 12 (3 points) Question 12 Unsaved;Use the following information to answer questions 12 - 15;The budgeted and actual costs at Goodyear Company is as follows;Budgeted costs Actual costs;Materials (per tire): 12 lbs @ $1.80/lb Total materials purchased: 840,000lbs;Labor (per tire): 4 hrs. @ $14/hr Total cost of purchase: $1,554,000;Factory O/H (per tire): 3 hr s. @ $8/hr Total material used: 849,600 lbs;Labor (per tire): 4.1 hrs @ $13/hr;Factory O/H (per tire): 2.8 hrs @ $8.50/hr;During October, Goodyear produced 72,000 tires.;The budgeted cost and actual cost, respectively, of producing one tire is (to the nearest $);Question 12 options;$102 and $98;$102 and $99;$102 and $95;$78 and $98;Save;Question 13 (3 points) Question 13 Unsaved;Use the following information to answer questions 12 - 15;The budgeted and actual costs at Goodyear Company is as follows;Budgeted costs Actual costs;Materials (per tire): 12 lbs @ $1.80/lb Total materials purchased: 840,000lbs;Labor (per tire): 4 hrs. @ $14/hr Total cost of purchase: $1,554,000;Factory O/H (per tire): 3 hrs. @ $8/hr Total material used: 849,600 lbs;Labor (per tire): 4.1 hrs @ $13/hr;Factory O/H (per tire): 2.8 hrs @ $8.50/hr;During October, Goodyear produced 72,000 tires.;The direct materials price variance is;Question 13 options;$42,480 (U);$42,480 (F);$42,000 (U);$42,000 (F);Save;Question 14 (3 points) Question 14 Unsaved;Use the following information to answer questions 12 - 15;The budgeted and actual costs at Goodyear Company is as follows;Budgeted costs Actual costs;Materials (per tire): 12 lbs @ $1.80/lb Total materials purchased: 840,000l b s;Labor (per tire): 4 hrs. @ $14/hr Total cost of purchase: $1,554,000;Factory O/H (per tire): 3 hrs. @ $8/hr Total material used: 849,600 lbs;Labor (per tire): 4.1 hrs @ $13/hr;Factory O/H (per tire): 2.8 hrs @ $8.50/hr;During October, Goodyear produced 72,000 tires.;The direct materials quantity variance is;Question 14 options;$44,400 (F);$44,400 (U);$25,920 (F);$25,920 (U);Save;Question 15 (3 points) Question 15 Unsaved;Use the following information to answer questions 12 - 15;The budgeted and actual costs at Goodyear Company is as follows;Budgeted costs Actual costs;Materials (per tire): 12 lbs @ $1.80/lb Total mat e rials purchased: 840,000lbs;Labor (per tire): 4 hrs. @ $14/hr Total cost of purchase: $1,554,000;Factory O/H (per tire): 3 hrs. @ $8/hr Total material used: 849,600 lbs;Labor (per tire): 4.1 hrs @ $13/hr;Factory O/H (per tire): 2.8 hrs @ $8.50/hr;During October, Goodyear produced 72,000 tires.;The direct labor efficiency variance is;Question 15 options;$72,000 (F);$72,000 (U);$100,800 (F);$100,800 (U);Save;Question 16 (3 points) Question 16 Unsaved;Excel Co. has collected the following data for April 2001;Budgeted direct labor: 3 hours per unit at $6 per hour;Direct labor efficiency variance: $1,200 (U);Actual direct labor cost: $28,900;Units produced: 1,600;The number of direct labor hours actually worked during April is;Question 16 options;4,500;4,800;5,000;4,600;Save;Ques tion 17 (3 points) Question 17 Unsaved;What type of direct material variances for quantity and price will arise if the actual number of pounds of material used exceeds budgeted pounds but actual cost per pound was less than budgeted cost per pound?;Question 17 options;Qty: Unfavorable;Price: Favorable;Qty: Favorable;Price: Favorable;Qty: Favorable;Price: Unfavorable;Qty: Unfavorable;Price: Unfavorable;

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