Loose Leaf for Managerial Accounting 16th Edition

ISBN 13

978-1259307416

ISBN 10

1259307417

Authors

Eric Noreen, Peter Brewer, Ray Garrison

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183 documents found.

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Accounting Appendix N 1 Analyze A Mixed Cost Using A Scatter Graph Plot And The High-low

1 Answer: FALSE Difficulty: 2 Medium Topic: Diagnosing Cost Behavior with a Scattergraph Learning Objective: 05-10 (Appendix 5A) Analyze a mixed cost using a scattergraph plot and the high-low method. Bloom's: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking; FN Measurement 1 Answer: FALSE Difficulty: 2 Medium Topic: Diagnosing Cost

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 1 Data For This Proposed Activity Based Costing System

1 Answer: D 1 Answer: D 1 Answer: D Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 1 During Its First Year Operations The Company

1 Answer: FALSE Difficulty: 1 Easy Topic: Super-Variable Costing Learning Objective: 06-06 (Appendix 6A) Prepare an income statement using super-variable costing and reconcile this approach with variable costing. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Critical Thinking; FN Measurement 1 Answer: FALSE Difficulty: 1 Easy Topic: Super-Variable Costing Learning Objective:

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 1 Explanation Data Processing Costs Allocated 26488 Difficulty Easy Topic

1 Answer: TRUE Difficulty: 1 Easy Topic: Cost Allocation Using Direct Method for Service Department Costs; Cost Allocation Using Step-Down Method for Service Department Costs Learning Objective: 04-10 (Appendix 4B) Allocate service department costs to operating departments using the direct method.; 04-11 (Appendix 4B) Allocate service department costs to

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 1 Explanation Predetermined Overhead Rate Based Capacity Estimated

1 Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 1 Its Balance Sheet January Appears Below Venzke Corporation Balance

1 Answer: FALSE Difficulty: 2 Medium Topic: A Microsoft Excel Approach to Job-Order Costing Learning Objective: 03-05 (Appendix 3A) Use Microsoft Excel to summarize the flow of costs in a job-order costing system. Bloom's: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking; FN Measurement 1 Answer: FALSE Difficulty: 2 Medium

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 1 Units Started Into Production During The Period

1 Answer: FALSE Difficulty: 2 Medium Topic: Equivalent Units of Production Using Weighted-Average Method; Equivalent Units of Production Using FIFO Method Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method.; 04-06 (Appendix 4A) Compute the equivalent units of production using the FIFO method. Bloom's: Understand

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 1 Warranty Repairs And Replacements Systems Development Rework

1 Answer: TRUE Difficulty: 2 Medium Topic: Cost of Quality Learning Objective: 01-07 (Appendix 1A) Identify the four types of quality costs and explain how they interact. Bloom's: Understand AACSB: Analytical Thinking AICPA: BB Critical Thinking; FN Decision Making 1 Answer: TRUE Difficulty: 2 Medium Topic: Cost of Quality Learning

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 2 Compute The Cost Per Equivalent Unit Using The FIFO

21 Answer: A 21 Answer: A 21 Answer: A Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 2 Custodial Services Department Are Allocated First The Amount

21 Answer: D Explanation: Information Technology costs to be allocated = $25,956 Difficulty: 1 Easy Topic: Cost Allocation Using Direct Method for Service Department Costs Learning Objective: 04-10 (Appendix 4B) Allocate service department costs to operating departments using the direct method. Bloom's: Apply AACSB: Analytical Thinking AICPA: FN Measurement;

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 2 Explanation Predetermined Overhead Rate Estimated Total Manufacturing

21 Answer: D Explanation: Predetermined overhead rate = Estimated total manufacturing overhead at capacity Estimated total amount of the allocation base at capacity = $11,880 12,000 machine-hours = $0.99 per machine-hour Difficulty: 1 Easy Topic: The Predetermined Overhead Rate and Capacity; Computing Predetermined Overhead Rates Learning Objective: 02-06 (Appendix

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 2 Fackler Companys Quality Cost Report Based

21 Answer: A Explanation: Total internal failure cost = $59,000 + $65,000 + $19,000 = $143,000 Difficulty: 2 Medium Topic: Cost of Quality; Quality Cost Reports Learning Objective: 01-07 (Appendix 1A) Identify the four types of quality costs and explain how they interact.; 01-08 (Appendix 1A) Prepare and interpret a

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 2 January 31 Because The Page Is Too Narrow To Accommodate All Of

21 Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 2 No Reproduction Or Distribution Without The Prior Written Consent

21 Answer: B Explanation: Machine- Hours Maintenance Cost High level of activity 10,000 $ 31,000 Low level of activity 8,000 26,600 Change 2,000 $ 4,400 Variable cost per unit = Change in cost Change in activity = $4,400 2,000 machine-hours = $2.20 per machine-hour Fixed cost = Total cost Variable

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 2 Supervariable Costing Net Operating Income Exceeds Absorption

21 Answer: C Explanation: Super-variable costing income statement: Sales ($227 per unit 54,000 units) $ 12,258,000 Variable cost of goods sold ($89 per unit 54,000 units) 4,806,000 Contribution margin 7,452,000 Fixed expenses: Direct labor $ 616,000 Fixed manufacturing costs 3,472,000 Fixed selling and administrative expense 1,782,000 5,870,000 Net operating income

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 2 The Overhead Cost Charged To Model 58 Is

Loose Leaf for Managerial Accounting 16th Edition

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34 Answer: D Explanation: Predetermined overhead rate = Estimated total manufacturing overhead at capacity Estimated total amount of the allocation base at capacity = $4,130,340 82,000 machine-hours = $50.37 per machine-hour Actual manufacturing overhead cost incurred $ 4,130,340 Manufacturing overhead applied to jobs: Predetermined overhead rate $ 50.37 per

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Accounting Appendix N 3 Compton Corporation Is A Wholesale Distributor Of Educational

41 Answer: D Explanation: Total manufacturing overhead at 2,000 units = 2,000 units $86.90 per unit = $173,800 Total manufacturing overhead at 4,000 units = 4,000 units $55.30 per unit = $221,200 Units Produced Total Manufacturing Overhead High level of activity 4,000 $ 221,200 Low level of activity 2,000 173,800

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 3 Easy Topic Cost Allocation Using Stepdown Method For

41 Answer: C 41 Answer: C 41 Answer: C Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 3 Hartnett Company’s Quality Cost Report Is To Be Based On The

35 Answer: B Explanation: Total internal failure cost = $75,000 + $75,000 = $150,000 Difficulty: 2 Medium Topic: Cost of Quality; Quality Cost Reports Learning Objective: 01-07 (Appendix 1A) Identify the four types of quality costs and explain how they interact.; 01-08 (Appendix 1A) Prepare and interpret a quality cost

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 3 Huberty Corporation Uses A Job-order Costing System To

41 Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 3 Labadie Corporation Manufactures And Sells One Product.

41 Answer: B 41 Answer: B 41 Answer: B Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 3 Record The Flow Of Materials, Labor, And Overhead Through

41 Answer: A Explanation: FIFO Method Costs to be accounted for as follows: Cost of ending work in process inventory $ 15,000 Cost of units transferred out 273,000 Total cost accounted for $ 288,000 Difficulty: 2 Medium Topic: Cost Reconciliation Report Using FIFO Method Learning Objective: 04-09 (Appendix 4A)

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 3 Use Activity Based Absorption Costing Compute Unit Product Costs Blooms

34 Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 4 Medium Topic Equivalent Units Production Using Fifo Method Learning

61 Answer: A Explanation: FIFO method equivalent units of production Conversion To complete beginning work in process inventory: Conversion: 5,000 units (100% 30%) 3,500 Units started and completed (65,000 3,000) 62,000 Ending work in process inventory: Conversion: 3,000 units 25% 750 Equivalent units of production 66,250 Difficulty: 3 Hard

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 4 Pediatrics Geriatrics And Surgery The Clinic Allocates

56 Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 4 Supervariable Costing And Absorption Costing

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Accounting Appendix N 4 The Company Sells The Product For 14050 Per

61 Answer: B 61 Answer: B 61 Answer: B Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 4 Use Microsoft Excel To Summarize The Flow Of Costs In A Job-order

60 Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 5 Calculate Arlos Total Variable Cost 9000 T-shirts

81 Answer: B Explanation: The regression line is Y = 1,121.18 + 1.5588X and the R2 is 0.9607. Therefore, the variable cost per machine hour for lubrication is closest to $1.56. Difficulty: 3 Hard Topic: The Least-Squares Regression Method Learning Objective: 05-11 (Appendix 5A) Analyze a mixed cost using a

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 5 Explanation Fifo Methodunits Started And Completed During

Explanation: FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 7,800 - 700 = 7,100 Conversion To complete beginning work in process: Conversion: 700 units (100% 65%) 245 Units started and completed 7,100 Ending

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 6 Easy Inc Uses The Fifo Method

101 Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 6 Intercept 1724 The Solution Using The Formulas The

93 Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Appendix N 7 Zubris Corporation Uses The FIFO Method In Its Process Costing

116 Answer: FIFO method Units started and completed during the period = Units completed during the period Units in beginning work in process inventory = 23,100 600 = 22,500 a. Materials Conversion To complete beginning work in process: Materials: 600 units (100% 90%) 60 Conversion: 600 units (100% 10%)

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Chapter 1 1 Classifications For Predicting Cost Behavior Learning Objective 0104

1 Answer: TRUE Difficulty: 2 Medium Topic: Cost Classifications for Assigning Costs to Cost Objects Learning Objective: 01-01 Understand cost classifications used for assigning costs to cost objects: direct costs and indirect costs. Bloom's: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking; FN Measurement 1 Answer: TRUE Difficulty: 2 Medium

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Accounting Chapter 1 10 Medium Topic Using Different Cost Classifications For Different

181 Answer: C Explanation: Sunk cost = Cost of old machine = $527,000 Difficulty: 1 Easy Topic: Cost Classifications for Decision Making Learning Objective: 01-05 Understand cost classifications used in making decisions: differential costs, sunk costs, and opportunity costs. Bloom's: Apply AACSB: Analytical Thinking AICPA: BB Critical Thinking; FN Decision

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Accounting Chapter 1 3 Meginnis Corporation’s Relevant Range Of Activity Is

41 Answer: D Difficulty: 1 Easy Topic: Cost Classifications for Decision Making; Cost Classifications for Predicting Cost Behavior Learning Objective: 01-05 Understand cost classifications used in making decisions: differential costs, sunk costs, and opportunity costs. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Critical Thinking; FN Decision Making 41 Answer: D

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Chapter 1 4 Given The Cost Formula Y = $23,000

61 Answer: A Explanation: Y = $5,300 + ($0.60 per unit X) = $5,300 + ($0.60 per unit 8,000 hours) = $5,300 + $4,800 = $10,100 Difficulty: 2 Medium Topic: Cost Classifications for Predicting Cost Behavior Learning Objective: 01-04 Understand cost classifications used to predict cost behavior: variable costs, fixed

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Chapter 1 5 Understand Cost Classifications Used Predict Cost Behavior Variable

81 Answer: A Explanation: Costs that are not direct costs of the Northridge Store = Corporate headquarters building lease + Corporate legal office salaries + Central warehouse lease cost = $77,000 + $59,000 + $16,000 = $152,000 Difficulty: 2 Medium Topic: Cost Classifications for Assigning Costs to Cost Objects Learning

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Accounting Chapter 1 6 Explanation Direct Costs Include The Cost Clay

101 Answer: B Explanation: Direct materials $ 4.90 Direct labor 2.95 Direct manufacturing cost per unit (a) $ 7.85 Number of units produced (b) 3,000 Total direct manufacturing cost (a) (b) $ 23,550 Difficulty: 1 Easy Topic: Cost Classifications for Assigning Costs to Cost Objects; Cost Classifications for Manufacturing Companies;

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Accounting Chapter 1 8 Easy Topic Cost Classifications For Predicting Cost Behavior Learning

141 Answer: A Explanation: Direct materials $ 4.85 Direct labor 3.35 Variable manufacturing overhead 1.35 Variable manufacturing cost per unit $ 9.55 Total variable manufacturing cost ($9.55 per unit 4,000 units produced) $ 38,200 Total fixed manufacturing overhead cost 8,000 Total product (manufacturing) cost $ 46,200 Difficulty: 1 Easy Topic:

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Accounting Chapter 1 9 Store Inc Income Statement For The Quarter Ended March

161 Answer: B Explanation: Variable maintenance cost per unit = Total variable maintenance cost Total activity = $390,240 9,000 machine-hours Total variable maintenance cost = Variable maintenance cost per unit Total activity = $43.36 per machine-hour 9,300 machine-hours = $403,248 Difficulty: 1 Easy Topic: Cost Classifications for Predicting Cost Behavior

Loose Leaf for Managerial Accounting 16th Edition

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Accounting Chapter 10a 1 What Was The Fixed Manufacturing Overhead Budget

1 Answer: TRUE Difficulty: 2 Medium Topic: Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System Learning Objective: 10-04 (Appendix 10A) Compute and interpret the fixed overhead budget and volume variances. Bloom's: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking; FN Measurement 1 Answer: TRUE Difficulty: 2 Medium

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Accounting Chapter 10a 2 Budgeted Fixed Overhead Cost Fixed Overhead

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Accounting Chapter 10a 3 The Following Data For May Has Been Provided

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Accounting Chapter 10a 4 Easy Topic Predetermined Overhead Rates And Overhead Analysis

61 Answer: A 61 Answer: A 61 Answer: A Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill

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Accounting Chapter 10a 7 The Company Has A Standard Cost System In Which It Applies Overhead

121 Answer: B Explanation: Fixed component of the predetermined overhead rate = $50,140 4,600 hours = $10.90 per DLH Volume variance = Budgeted fixed overhead cost Fixed overhead applied to work in process = $50,140 (4,743 DLHs $10.90 per DLH) = $50,140.00 $51,698.70 = $1,558.70 F Difficulty: 2 Medium Topic:

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Accounting Chapter 10a 8 The Fixed Manufacturing Overhead Budget Variance For April Was

141 Answer: B Explanation: Predetermined overhead rate = Estimated total manufacturing overhead Denominator level of activity = ($56,400 + $100,800) 8,000 DLHs = $157,200 8,000 DLHs = $19.65 per DLH Difficulty: 2 Medium Topic: Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System Learning Objective: 10-04 (Appendix 10A)

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Accounting Chapter 11 1 Residual Income Is The Difference Between Net Operating Income And The Product

1 Answer: TRUE Difficulty: 1 Easy Topic: Return on Investment Learning Objective: 11-01 Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI. Bloom's: Remember AACSB: Reflective Thinking AICPA: FN Measurement; BB Critical Thinking 1 Answer: TRUE Difficulty: 1 Easy Topic: Return on Investment

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Accounting Chapter 11 2 Condren Inc Reported The Following

21 Answer: D Explanation: Margin = Net operating income Sales = $1,400,000 $14,000,000 = 10.0% Difficulty: 1 Easy Topic: Return on Investment Learning Objective: 11-01 Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI. Bloom's: Apply AACSB: Analytical Thinking AICPA: FN Measurement; BB

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Accounting Chapter 11 3 Wait Time Throughput Time 280 Hours 97

41 Answer: D Explanation: Average operating assets $ 5,000,000 Net operating income $ 440,000 Minimum required return ($5,000,000 10%) 500,000 Residual income $ (60,000) - Difficulty: 1 Easy Topic: Residual Income Learning Objective: 11-02 Compute residual income and understand its strengths and weaknesses. Bloom's: Apply AACSB: Analytical Thinking AICPA: FN

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Accounting Chapter 11 4 Compute Return On Investment (ROI) And Show How Changes In Sales, Expenses

61 Answer: B Explanation: Sales = $12,000,000 + $4,680,000 = $16,680,000 Average operating assets = $5,000,000 + $1,300,000 = $6,300,000 Turnover = Sales Average operating assets = $16,680,000 $6,300,000 = 2.65 Difficulty: 1 Easy Topic: Return on Investment Learning Objective: 11-01 Compute return on investment (ROI) and show how changes

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Accounting Chapter 11 5 Roi For This Years Investment Opportunity Considered

81 Answer: C Explanation: Contribution margin (50% $2,520,000) $ 1,260,000 Fixed expenses 1,108,800 Net operating income $ 151,200 Margin = Net operating income Sales = $151,200 $2,520,000 = 6.0% Difficulty: 1 Easy Topic: Return on Investment Learning Objective: 11-01 Compute return on investment (ROI) and show how changes in sales,

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Accounting Chapter 11 6 The Minimum Required Rate Of Return For Performance Evaluation Purposes

101 Answer: C Explanation: ROI = Net operating income Average operating assets = $2,808,960 $8,000,000 = 35.11% Difficulty: 1 Easy Topic: Return on Investment Learning Objective: 11-01 Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI. Bloom's: Apply AACSB: Analytical Thinking AICPA: FN

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Accounting Chapter 11 8 The Ceo Would Pursue The

138 Answer: a. Return on investment = Net operating income Average operating assets = $380,000 $2,000,000 = 19% Residual income = Net operating income - (Average operating assets Minimum required rate of return) = $380,000 - ($2,000,000 0.18) = $20,000 b. Return on investment = Net operating income Average operating

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Accounting Chapter 12 10 Determine The Most Profitable Use Of A Constrained Resource

179 Answer: Incremental revenue (3,000 units $34.70 per unit) $ 104,100 Less incremental costs: Direct materials (3,000 units $14.70 per unit) 44,100 Direct labor (3,000 units $1.30 per unit) 3,900 Variable manufacturing overhead (3,000 units $7.00 per unit) 21,000 Modifications (3,000 units $3.80 per unit) 11,400 Special molds 24,000 Total

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Accounting Chapter 12 2 Explanation Avoidable Fixed Costs 160000 90000

21 Answer: A Explanation: The company's relevant cost in this case is how much it could earn by selling the 240 kilograms at the discounted price of $8.35 per kilogram, less delivery costs of $71 for all 240 kilograms. Proceeds of sale at the discounted price: 240 kgs $8.35 per

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Accounting Chapter 12 3 Variable Selling And Administrative Costs This Special

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Accounting Chapter 12 4 Final Sales Value After Further Processing Less Sales

61 Answer: C Explanation: Product A Product B Product C Contribution margin per unit (a) $ 12 $ 5 $ 9 Amount of the constrained resource required to produce one unit (b) 3 1 2 Contribution margin per unit of the constrained resource (a) (b) $ 4.00 $ 5.00 $

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Accounting Chapter 12 5 Mcfarlain Corporation Presently Making Part U98 That

81 Answer: C Explanation: Sales $ 830,000 Variable expenses 390,000 Contribution margin 440,000 Less avoidable fixed expenses: Fixed manufacturing expenses $ 111,000 Fixed selling and administrative expenses 103,000 214,000 Profit $ 226,000 The company would forego the profit of $226,000 if this product were dropped. Difficulty: 1 Easy Topic: Adding

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Accounting Chapter 12 6 Reserved Reproduction Distribution

101 Answer: D Explanation: Make Direct materials $ 250,000 Direct labor 200,000 Variable manufacturing overhead 190,000 Fixed manufacturing overhead (not relevant) Opportunity cost 80,000 Total cost $ 720,000 It costs the company $720,000 30,000 units = $24 per unit to make the subcomponents. Therefore, the company would be indifferent between

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Accounting Chapter 12 7 Which Product Makes The Most

121 Answer: B Explanation: A B C Selling price per unit $ 21 $ 12 $ 32 Variable cost per unit 11 7 18 Contribution margin per unit (a) $ 10 $ 5 $ 14 Amount of the constrained resource required to produce one unit (b) 0.4 0.1 0.7 Contribution

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Accounting Chapter 12 8 Boney Corporation Processes Sugar Beets That Purchases

141 Answer: D Explanation: Combined final sales value ($39 + $79) $ 118 Less costs of producing the end products: Cost of sugar beets $ 53 Cost of crushing 18 Combined costs of further processing ($18 + $28) 46 117 Financial advantage (disadvantage) $ 1 Difficulty: 1 Easy Topic: Joint

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Accounting Chapter 13 5 Compute The Simple Rate Return For Investment Blooms

81 Answer: D Explanation: Now 1 2 3 4 5 Initial investment $(370,000) Annual net cash flow $128,000 $105,000 $126,000 $123,000 $122,000 Total cash flows (a) $(370,000) $128,000 $105,000 $126,000 $123,000 $122,000 Discount factor (10%) (b) 1.000 0.909 0.826 0.751 0.683 0.621 Present value of cash flows (a) (b) $(370,000)

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Accounting Chapter 13c 1 The Income Tax Rate 30 The After-tax

1 Answer: FALSE Difficulty: 1 Easy Topic: Income Taxes and the Net Present Value Method Learning Objective: 13-08 (Appendix 13C) Include income taxes in a net present value analysis. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Critical Thinking; FN Measurement 1 Answer: FALSE Difficulty: 1 Easy Topic: Income Taxes and

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Accounting Chapter 13c 10 A Onetime Expense 90000 For Renovations Would Required

172 Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution

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Accounting Chapter 13c 2 Cash Operating Expenses $(440,000)

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Accounting Chapter 13c 3 No Reproduction Or Distribution Without The Prior Written Consent

41 Answer: D Explanation: Depreciation expense = (Original cost Salvage value) Useful life = ($240,000 $0) 4 years = $60,000 per year Year 2 Calculate the annual tax expense: Sales $ 490,000 Cash operating expenses $ (390,000 ) Depreciation expense $ (60,000 ) Incremental net income $ 40,000 Tax rate

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Accounting Chapter 13c 4 Annual Incremental Sales Would Be $350,000 And Annual Incremental Cash

61 Answer: A Explanation: Depreciation expense = (Original cost - Salvage value) Useful life\ = ($160,000 - $0) 4 years = $40,000 per year Year 2 Calculate the annual tax expense: Sales $ 460,000 Cash operating expenses $ (340,000 ) Depreciation expense $ (40,000 ) Incremental net income $ 80,000

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Accounting Chapter 13c 5 Medium Topic Income Taxes And The Net Present

81 Answer: C Explanation: Depreciation expense = (Original cost Salvage value) Useful life = ($80,000 $0) 4 years = $20,000 per year Year 3 Calculate the annual tax expense: Sales $ 260,000 Cash operating expenses $ (210,000 ) One-time expense $ (20,000 ) Depreciation expense $ (20,000 ) Incremental net

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Accounting Chapter 13c 6 Explanation Depreciation Expense Original Cost Salvage

101 Answer: D Explanation: Depreciation expense = (Original cost Salvage value) Useful life = ($160,000 $0) 4 years = $40,000 per year Year 2 Calculate the annual tax expense: Sales $ 400,000 Cash operating expenses $ (290,000 ) Depreciation expense $ (40,000 ) Incremental net income $ 70,000 Tax rate

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Accounting Chapter 13c 7 Salvage Value Useful Life 160000 0

121 Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution

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Accounting Chapter 13c 8 The Working Capital Would Required Immediately And

141 Answer: Year Now 1 2 3 Calculate the annual tax expense: Net annual op. cash inflow $230,000 $230,000 $230,000 Depreciation expense $(160,000) $(160,000) $(160,000) Incremental net income $70,000 $70,000 $70,000 Tax rate 30% 30% 30% Income tax expense $(21,000) $(21,000) $(21,000) Calculate the net present value: Purchase of equipment

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Accounting Chapter 13c 9 Income Taxes And The Net Present Value

161 Answer: Depreciation expense = (Original cost Salvage value) Useful life = ($80,000 $0) 4 years = $20,000 per year Year Now 1 2 3 4 Calculate the annual tax expense: Sales $170,000 $170,000 $170,000 $170,000 Cash operating expenses $(120,000) $(120,000) $(120,000) $(120,000) One-time expense $(20,000) Depreciation expense $(20,000) $(20,000)

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Accounting Chapter 14a 1 Ending Balance Accounts Receivable Beginning Balance Accounts

1 Answer: TRUE Difficulty: 2 Medium Topic: The Direct Method of Determining the Net Cash Provided by Operating Activities Learning Objective: 14-04 (Appendix 14A) Use the direct method to determine the net cash provided by operating activities. Bloom's: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking; FN Measurement 1 Answer:

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Accounting Chapter 14a 2 The Net Cash Provided Used In Investing

21 Answer: B Explanation: Ending Beginning Change Inventory $ 105,000 $ 85,000 $ +20,000 Accounts Payable $ 65,000 $ 92,000 $ 27,000 Cost of goods sold (as reported) $ 720,000 Adjustments to a cash basis: Increase in inventory +20,000 Decrease in accounts payable +27,000 Cost of goods sold adjusted to

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Accounting Chapter 14a 3 Education 48 Hayward Corporation Had Net Sales 610000

41 Answer: B Explanation: Sales $ 375,000 Adjustments to a cash basis: Increase in accounts receivable -30,000 Sales adjusted to a cash basis $ 345,000 Difficulty: 2 Medium Topic: The Direct Method of Determining the Net Cash Provided by Operating Activities Learning Objective: 14-04 (Appendix 14A) Use the direct method

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Accounting Chapter 14a 4 Operating Activities Organizing The Statement Cash Flows Learning Objective

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Accounting Chapter 2 1 Compute The Total Cost And The Unit Product Cost Of A Job

1 Answer: TRUE Difficulty: 1 Easy Topic: Computing Predetermined Overhead Rates Learning Objective: 02-01 Compute a predetermined overhead rate. Bloom's: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking; FN Measurement 1 Answer: TRUE Difficulty: 1 Easy Topic: Computing Predetermined Overhead Rates Learning Objective: 02-01 Compute a predetermined overhead rate. Bloom's:

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Accounting Chapter 2 10 The Company Has Provided The Following Data Concerning

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Accounting Chapter 2 11 The Company Uses Job Order Costing System And Computes

201 Answer: A Explanation: Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base Estimated total amount of the allocation base) = $285,000 + ($3.80 per direct labor-hour 50,000 direct labor-hours) = $285,000 + $190,000 = $475,000

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Accounting Chapter 2 12 Hickingbottom Corporation Has Two Production Departments

221 Answer: D Explanation: Casting Department predetermined overhead rate: Estimated fixed manufacturing overhead $ 4,800 Estimated variable manufacturing overhead ($1.80 per MH 1,000 MHs) 1,800 Estimated total manufacturing overhead cost (a) $ 6,600 Estimated total machine-hours (b) 1,000 MHs Departmental predetermined overhead rate (a) (b) $ 6.60 per MH 221

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Accounting Chapter 2 13 Janicki Corporation Has Two Manufacturing Departments

241 Answer: C Explanation: The first step is to calculate the estimated total overhead costs in the two departments. Machining Estimated fixed manufacturing overhead $ 4,800 Estimated variable manufacturing overhead ($1.10 per MH 1,000 MHs) 1,100 Estimated total manufacturing overhead cost $ 5,900 Customizing Estimated fixed manufacturing overhead $ 23,400

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Accounting Chapter 2 14 Job A And Job H. There Were No Beginning Inventories

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Accounting Chapter 2 15 Compute The Total Cost And The Unit Product

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Accounting Chapter 2 16 Casting Department Closest Toa 970 Per Machinehour

301 Answer: C Explanation: Forming Department predetermined overhead rate: Estimated fixed manufacturing overhead $ 28,000 Estimated variable manufacturing overhead ($1.80 per MH 5,000 MHs) 9,000 Estimated total manufacturing overhead cost (a) $ 37,000 Estimated total machine-hours (b) 5,000 MHs Departmental predetermined overhead rate (a) (b) $ 7.40 per MH Assembly

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Accounting Chapter 2 17 Apply Overhead Cost Jobs Using Predetermined Overhead Rate Blooms

321 Answer: Estimated total manufacturing overhead = $1,533,180 + ($8.41 per labor-hour 66,000 labor-hours) = $2,088,240 Predetermined overhead rate = $2,088,240 66,000 labor-hours = $31.64 per labor-hour Difficulty: 1 Easy Topic: Computing Predetermined Overhead Rates Learning Objective: 02-01 Compute a predetermined overhead rate. Bloom's: Apply AACSB: Analytical Thinking AICPA: BB

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Accounting Chapter 2 18 Cardosa Corporation Uses Joborder Costing System

341 Answer: a. Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base Estimated total amount of the allocation base) = $156,000 + ($2.20 per machine-hour 40,000 machine-hours) = $156,000 + $88,000 = $244,000 Predetermined overhead rate

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Accounting Chapter 2 19 Hultquist Corporation Has Two Manufacturing Departments Forming

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Accounting Chapter 2 2 Compute Predetermined Overhead Rate 0202 Apply Overhead Cost

21 Answer: A Explanation: Salary of production supervisor $ 40,000 Indirect materials 8,000 Rent on factory equipment 20,000 Manufacturing overhead $ 68,000 Predetermined overhead rate = Estimated total manufacturing overhead Estimated total amount of the allocation base Predetermined overhead rate = $68,000 16,000 machine-hours = $4.25 per machine-hour Difficulty: 2

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Accounting Chapter 2 20 Further Assume That The Company Uses Markup 50

381 Answer: a. The first step is to calculate the estimated total overhead costs in the two departments. Forming Estimated fixed manufacturing overhead $50,400 Estimated variable manufacturing overhead ($1.70 per MH 9,000 MHs) 15,300 Estimated total manufacturing overhead cost $65,700 Customizing Estimated fixed manufacturing overhead $2,600 Estimated variable manufacturing overhead

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Accounting Chapter 2 21 How Much Manufacturing Overhead Will

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Accounting Chapter 2 3 Apply Overhead Cost Jobs Using Predetermined Overhead Rate

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Accounting Chapter 2 4 Education 69 Mahon Corporation Has Two Production Departments

61 Answer: A Explanation: Forming Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour Total machine-hours in the department) = $110,500 + ($1.60 per machine-hour 17,000 machine-hours) = $110,500 + $27,200 = $137,700 Predetermined overhead rate = Estimated total manufacturing overhead cost Estimated total amount

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Accounting Chapter 2 5 Estimated Total Manufacturing Overhead Cost Estimated Total Amount

81 Answer: B Explanation: Manufacturing overhead applied to Work in Process: Fabrication Assembly Total Predetermined overhead rate (a) $ 30 per MH $ 12 per DLH Actual total amount of the allocation base (b) 40 MHs 25 DLHs Manufacturing overhead applied (a) (b) $ 1,200 $ 300 $ 1,500 Difficulty:

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Accounting Chapter 2 6 Predetermined Overhead Rate Amount The Allocation Base Incurred

101 Answer: C Explanation: Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base Estimated total amount of the allocation base) = $90,000 + ($3.70 per direct labor-hour 50,000 direct labor-hours) = $90,000 + $185,000 = $275,000

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Accounting Chapter 2 7 Lueckenhoff Corporation Uses Job Order Costing

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Accounting Chapter 2 8 Job T687 Was Completed With The Following

141 Answer: A Explanation: Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base Estimated total amount of the allocation base) = $33,000 + ($2.50 per direct labor-hour 10,000 direct labor-hours) = $33,000 + $25,000 = $58,000

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Accounting Chapter 2 9 Explanation Estimated Total Manufacturing Overhead Cost Estimated

161 Answer: A Explanation: The first step is to calculate the estimated total overhead costs in the two departments. Casting Estimated fixed manufacturing overhead $ 27,500 Estimated variable manufacturing overhead ($1.70 per MH 5,000 MHs) 8,500 Estimated total manufacturing overhead cost $ 36,000 161 Answer: A Explanation: The first step

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Accounting Chapter 3 10 Direct Materials Requisitioned For Use In Production

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Accounting Chapter 3 11 Boursaw Corporation Has Provided The Following

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Accounting Chapter 3 12 Medium Topic Schedule Cost Goods Manufactured And Cost

221 Answer: D Explanation: Schedule of Cost of Goods Manufactured Direct materials: Beginning raw materials inventory $ 10,000 Add: Purchases of raw materials 33,000 Total raw materials available 43,000 Deduct: Ending raw materials inventory 15,000 Raw materials used in production 28,000 Deduct: Indirect materials included in manufacturing overhead 4,000 $

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Accounting Chapter 3 13 There Were No Beginning Inventories; Consequently, The Direct Materials

241 Answer: A Explanation: Allocating underapplied manufacturing overhead reduces the balances in the inventory and cost of goods sold accounts. Work in process inventory at the end of June after allocation of overapplied manufacturing overhead = $3,760 + [($930/$31,000) $3,000] = $3,760 + (3% $3,000) = $3,850 Difficulty: 2 Medium

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Accounting Chapter 3 14 Schedule Of Cost Of Goods Manufactured And Cost Of Goods Sold

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Accounting Chapter 3 15 Compute Underapplied Overapplied Overhead Cost And Prepare

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Accounting Chapter 3 16 Statement Cost Goods Sold Beginning Finished Goods Inventory Add Cost

295 Answer: a. Direct materials $24,000 Direct labor 58,000 Manufacturing overhead cost applied to work in process 87,000 Total manufacturing costs 169,000 Add: Beginning work in process inventory 50,000 219,000 Deduct: Ending work in process inventory 77,000 Cost of goods manufactured $142,000 b. Beginning finished goods inventory $28,000 Add: Cost

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Accounting Chapter 3 5 At The Beginning Of The Year, The Total Estimated Manufacturing

81 Answer: C Explanation: Cost of goods sold after allocation of underapplied overhead =$226,530 + [($45,650/$55,000) $7,000] = $226,530 + (83% $7,000) = $232,340 Difficulty: 2 Medium Topic: Schedule of Cost of Goods Manufactured and Cost of Goods Sold; Underapplied and Overapplied Overhead Learning Objective: 03-03 Prepare schedules of cost

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Accounting Chapter 3 6 Manufacturing Overhead For The Month Was Underapplied

101 Answer: D Explanation: Manufacturing Overhead 76,000 66,000 10,000 A debit balance in Manufacturing Overhead means that manufacturing overhead was underapplied. Difficulty: 2 Medium Topic: Underapplied and Overapplied Overhead Learning Objective: 03-04 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead

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Accounting Chapter 3 7 Understand The Flow Of Costs In A Job-order Costing System

121 Answer: B Explanation: Job C11 Direct materials $ 18,000 Direct labor 5,000 Manufacturing overhead (150% of direct labor cost) 7,500 Total product cost $ 30,500 Difficulty: 2 Medium Topic: The Flow of Costs in Job-Order Costing Learning Objective: 03-01 Understand the flow of costs in a job-order costing system

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Accounting Chapter 3 8 A Explanation Predetermined Overhead Rate Estimated Total Manufacturing

141 Answer: C Explanation: Predetermined overhead rate = Estimated total manufacturing overhead cost Estimated total amount of the allocation base = $568,000 32,000 direct labor-hours = $17.75 per direct labor-hour Overhead applied = Predetermined overhead rate Amount of the allocation base incurred = $17.75 per direct labor-hour 33,000 direct labor-hours

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Accounting Chapter 3 9 Process Account Balance Would Bea 13000b

161 Answer: A Explanation: The debit to Manufacturing Overhead in Entry (4) records indirect labor cost. Work in Process_18,000_ Manufacturing Overhead 8,000 Sales Salaries Expense 11,000 Salaries and Wages Payable 37,000 Difficulty: 2 Medium Topic: The Flow of Costs in Job-Order Costing Learning Objective: 03-02 Use T-accounts to show the

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Accounting Chapter 4 1 Reconciliation Report Using The Weighted Average Method Learning Objective

1 Answer: FALSE Difficulty: 2 Medium Topic: Materials, Labor, and Overhead Cost Entries Learning Objective: 04-01 Record the flow of materials, labor, and overhead through a process costing system. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Critical Thinking; FN Measurement 1 Answer: FALSE Difficulty: 2 Medium Topic: Materials, Labor, and

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Accounting Chapter 4 2 Saada Corporation Uses The Weighted Average Method Its

21 Answer: B Explanation: Weighted-average method Units in beginning work in process inventory + Units started into production or transferred in = Units in ending work in process inventory + Units completed and transferred out Finished Goods Inventory: 75,000 + Units completed and transferred to finished goods = 60,000 +

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Accounting Chapter 4 3 Units Transferred To The Next Department Or To Finished Goods

41 Answer: A Explanation: When the goods are transferred from the Molding Department to the Assembly Department, Work in Process - Assembly is debited and Work in Process - Molding is credited. Difficulty: 1 Easy Topic: Materials, Labor, and Overhead Cost Entries Learning Objective: 04-01 Record the flow of materials,

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Accounting Chapter 4 4 A Explanation Units Ending Work Process Units Beginning

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Accounting Chapter 4 5 Explanation Weighted Average Method Materials Conversion Units Transferred

81 Difficulty: 2 Medium Topic: Equivalent Units of Production Using Weighted-Average Method; Cost per Equivalent Unit Using Weighted-Average Method Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method.; 04-03 Compute the cost per equivalent unit using the weighted-average method.; 04-04 Assign costs to units using the

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Accounting Chapter 4 6 Corporation Uses The Weighted Average Method Its Process

101 Answer: A 101 Answer: A 101 Answer: A Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill

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Accounting Chapter 4 7 The Following Costs Were Incurred In The First Processing Department

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Accounting Chapter 4 8 Work In Process, October 1Units Started

141 Answer: (1) Work in Process-Assembly Department $ 24,500 Raw Materials $ 24,500 (2) Work in Process-Assembly Department $ 29,000 Salaries and Wages Payable $ 29,000 (3) Work in Process-Assembly Department $ 58,900 Manufacturing Overhead $ 58,900 (4) Work in Process-Painting Department $ 101,200 Work in Process-Assembly Department $ 101,200

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Accounting Chapter 4 9 June Answer Cost Beginning Work Process Inventory Costs Added

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Accounting Chapter 5 1 Difficulty Easy Topic Cvp Relationships Graphic Form Learning Objective

1 Answer: TRUE Difficulty: 2 Medium Topic: The Basics of Cost-Volume-Profit (CVP) Analysis Learning Objective: 05-01 Explain how changes in activity affect contribution margin and net operating income. Bloom's: Understand AACSB: Analytical Thinking AICPA: BB Critical Thinking; FN Measurement 1 Answer: TRUE Difficulty: 2 Medium Topic: The Basics of Cost-Volume-Profit

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Accounting Chapter 5 10 Laraia Corporation Has Provided The Following

181 Answer: B Explanation: Degree of operating leverage = Contribution margin Net operating income = $112,000 $6,400 = 17.5 Difficulty: 1 Easy Topic: Operating Leverage Learning Objective: 05-08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes

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Accounting Chapter 5 11 Selling Price Variable Cost Per Price $21 Per Unit

201 Answer: a. Total contribution margin (a) $60,000 Total unit sales (b) 3,000 units Unit contribution margin (a) (b) $20 per unit Alternatively, Selling price per unit ($150,000 3,000 units) $50 Variable cost per unit ($90,000 3,000 units) 30 Unit contribution margin $20 b. CM ratio = Contribution margin Sales

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Accounting Chapter 5 12 Dollar Sales To Attain Target Profit

221 Answer: Per Unit Percent of Sales Selling price per unit $ 240.00 100 % Variable expense per unit 72.00 30 % Contribution margin per unit and contribution margin ratio $ 168.00 70 % Unit sales to break even = Fixed expenses Unit CM = $372,960 $168 per unit =

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Accounting Chapter 5 2 Explanation Ratio Contribution Margin Sales 128000

21 Answer: D Explanation: Variable cost per unit = $18 per unit + (0.15 $40 per unit) = $24 per unit Unit CM = $40 per unit $24 per unit = $16 per unit Difficulty: 1 Easy Topic: The Basics of Cost-Volume-Profit (CVP) Analysis Learning Objective: 05-01 Explain how changes

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Accounting Chapter 5 3 What Should The Overall Effect The Companys

41 Answer: B Explanation: CM ratio = 1 Variable expense ratio CM ratio = 1 0.75 = 0.25 Dollar sales to break even = Fixed expenses CM ratio $675,000 = Fixed expenses 0.25 Fixed expenses = $675,000 0.25 = $168,750 Profit = (CM ratio Sales) Fixed expenses -$24,000 = (0.25

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Accounting Chapter 5 4 Fixed Costs Are 76800 Per Month And The

61 Answer: A Explanation: CM ratio = Unit contribution margin Unit selling price = ($150.00 per unit $58.50 per unit) $150.00 per unit = $91.50 per unit $150.00 per unit = 0.61 Dollar sales to break even = Fixed expenses CM ratio = $366,915 0.61 = $601,500 Difficulty: 1 Easy

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Accounting Chapter 5 5 Sales Variable Expenses 2000 Units 35

81 Answer: C Explanation: Margin of safety in dollars = Total sales Break-even sales = ($170 per unit 10,000 units) ($170 per unit 8,100 units) = $1,700,000 $1,377,000 = $323,000 Margin of safety percentage = Margin of safety in dollars Total sales = $323,000 $1,700,000 = 0.19 Difficulty: 1 Easy

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Accounting Chapter 5 6 Cement Manufacturer Has Supplied The

101 Answer: A Explanation: Selling price per unit = $266,800 4,600 units = $58 per unit Variable expense per unit = $179,400 4,600 units = $39 per unit Unit CM = $58 per unit $39 per unit = $19 per unit Profit = Unit CM Q Fixed expenses = $19

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Accounting Chapter 5 7 Contribution Margin Sales 37500 25 Dollar Sales

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Accounting Chapter 5 8 What Should The Overall Effect The Companys Monthly

141 Answer: C Explanation: Contribution margin = Sales Variable expenses = $2,412,000 ($1,170,000 + $414,000) = $2,412,000 $1,584,000 = $828,000 CM ratio = Contribution margin Sales = $828,000 $2,412,000 = 0.343 Difficulty: 1 Easy Topic: Contribution Margin Ratio (CM Ratio) and the Variable Expense Ratio Learning Objective: 05-03 Use the

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Accounting Chapter 5 9 Easy Topic Target Profit Analysis Learning Objective 0506 Determine

161 Answer: C Explanation: Unit CM = Selling price per unit Variable expenses per unit = $200.00 per unit $58.00 per unit = $142.00 per unit CM ratio = Unit CM Unit selling price = $142.00 per unit $200.00 per unit = 0.71 Dollar sales to break even = Fixed

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Accounting Chapter 6 1 Objective 0601 Explain How Variable Costing Differs

1 Answer: FALSE Difficulty: 1 Easy Topic: Overview of Variable and Absorption Costing Learning Objective: 06-01 Explain how variable costing differs from absorption costing and compute unit product costs under each method. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Critical Thinking; FN Measurement 1 Answer: FALSE Difficulty: 1 Easy Topic:

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Accounting Chapter 6 10 Prepare Income Statements Using Both Variable And Absorption

181 Answer: A Explanation: Variable costing unit product costs: Year 1 Direct materials $ 9 Direct labor 6 Variable manufacturing overhead 4 Variable costing unit product cost $ 19 Difficulty: 1 Easy Learning Objective: 06-01 Explain how variable costing differs from absorption costing and compute unit product costs under each

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Accounting Chapter 6 11 Smidt Corporation Has Provided The Following Data For Its Two Most

201 Answer: A Explanation: Under variable costing, the unit product cost is the variable production cost of $38 per unit. Difficulty: 1 Easy Learning Objective: 06-01 Explain how variable costing differs from absorption costing and compute unit product costs under each method.; 06-02 Prepare income statements using both variable and

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Accounting Chapter 6 12 Variable Selling And Administrative Expense Per Unit Sold Fixed Selling

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Accounting Chapter 6 13 Krepps Corporation Produces A Single Product

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Accounting Chapter 6 14 West Business Segmenta Properly Constructed Segmented Income

261 Answer: C Explanation: Urban Sales Territory: Segment CM ratio = Segment contribution margin Segment sales = $112,000 $320,000 = 0.35 Change in segment contribution margin = Segment CM ratio Change in segment sales = 0.35 (0.10 $320,000) = 0.35 $32,000 = $11,200 Difficulty: 2 Medium Topic: Segmented Income Statements

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Accounting Chapter 6 15 Traceable Fixed Expenses Segment Ratio 149000

281 Answer: A Explanation: Segment contribution margin = Segment sales Segment variable expenses = $233,000 $95,530 = $137,470 Segment CM ratio = Segment contribution margin Segment sales = $137,470 $233,000 = 0.590 Dollar sales for a segment to break even = Traceable fixed expenses Segment CM ratio = $86,000 0.590

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Accounting Chapter 6 17 Succulent Juice Corporation Manufactures And Sells

321 Answer: Absorption costing unit product cost = Variable costing unit product cost + Fixed manufacturing overhead per unit = $1.45 per gallon + ($63,000 75,000 gallons) = $1.45 per gallon + $0.84 per gallon = $2.29 per gallon Total contribution margin = Selling price per unit Unit sales Variable

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Accounting Chapter 6 2 Explain How Variable Costing Differs From Absorption

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Accounting Chapter 6 3 Medium Topic Variable Costing Contribution Format Income Statement Learning

41 Answer: D Explanation: Absorption costing unit product costs: Year 2 Direct materials $ 13 Direct labor 7 Variable manufacturing overhead 4 Fixed manufacturing overhead ($396,000 11,000 units produced) 36 Absorption costing unit product cost $ 60 Year 2 Fixed manufacturing overhead in ending inventory [(4,000 units $36 per unit)]

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Accounting Chapter 6 4 Objective 0604 Prepare Segmented Income Statement That

61 Answer: A Explanation: Manufacturing overhead deferred in (released from) inventory = Fixed manufacturing overhead in ending inventory Fixed manufacturing overhead in beginning inventory = ($8 per unit Units in ending inventory) ($8 per unit Units in beginning inventory) = $8 per unit (Units in ending inventory Units in beginning

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Accounting Chapter 6 5 The Break-even In Sales Dollars For Division N Is

81 Answer: B Explanation: Segment CM ratio = Segment contribution margin Segment sales = $187,720 $361,000 = 0.52 Dollar sales for a segment to break even = Segment traceable fixed expenses Segment CM ratio = $122,000 0.52 = $234,615 Difficulty: 1 Easy Learning Objective: 06-05 Compute companywide and segment break-even

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Accounting Chapter 6 6 Gabuat Corporation, Which Has Only One Product, Has Provided

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Accounting Chapter 6 7 Explain How Variable Costing Differs From Absorption Costing

121 Answer: D Explanation: Variable selling and administrative ($7 per unit 2,200 units sold) $ 15,400 Fixed manufacturing overhead 33,800 Fixed selling and administrative expense 8,800 Total period costs $ 58,000 Difficulty: 2 Medium Learning Objective: 06-01 Explain how variable costing differs from absorption costing and compute unit product costs

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Accounting Chapter 6 8 Farris Corporation, Which Has Only One Product, Has Provided

141 Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution

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Accounting Chapter 6 9 Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing

161 Answer: B Explanation: Direct materials $ 11 Direct labor 5 Variable manufacturing overhead 5 Fixed manufacturing overhead ($110,000 11,000 units produced) 10 Absorption costing unit product cost $ 31 Difficulty: 1 Easy Learning Objective: 06-01 Explain how variable costing differs from absorption costing and compute unit product costs under

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Accounting Chapter 7 1 Which Of The Following Would Probably The Most

1 Answer: FALSE Difficulty: 2 Medium Topic: Overview of Activity-Based Costing Learning Objective: 07-01 Understand activity-based costing and how it differs from a traditional costing system. Bloom's: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking; FN Measurement 1 Answer: FALSE Difficulty: 2 Medium Topic: Overview of Activity-Based Costing Learning Objective:

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Accounting Chapter 7 10 Distribution Of Resource Consumption Across Activity Cost Pools

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Accounting Chapter 7 11 Product And Product The Companyexpects Produce And

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Accounting Chapter 7 3 Using The ABC System, How Much Total Manufacturing Overhead Cost Would Be

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Accounting Chapter 7 6 Direct Cost Data Sales Total Direct Materials Total Direct Labor

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Accounting Chapter 7 7 What Is The Overhead Cost Assigned To Product Q1 Under

121 Answer: A Explanation: Sales $ 236,500 Direct materials $ 90,900 Direct labor 110,400 Machining 11,844 Order filling 15,360 228,504 Product margin $ 7,996 Difficulty: 2 Medium Topic: Prepare Management Reports Related to Activity-Based Costing Learning Objective: 07-05 Use activity-based costing to compute product and customer margins. Bloom's: Apply AACSB:

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Accounting Chapter 7 8 Handal Corporation Uses Activity-based Costing To Compute

141 Answer: A Explanation: The activity rates for each activity cost pool are computed as follows: Total Cost Total Activity Activity Rate Activity 1 $ 16,660 700 $ 23.80 Activity 2 $ 18,450 1,800 $ 10.25 Activity 3 $ 9,731 220 $ 44.23 The overhead cost charged to Product B

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Accounting Chapter 7a 4 Number Of Queries Resolved (a)Time-driven Activity Rate

61 Answer: A Explanation: Step 2: Calculate the time-driven activity rate Preparing Deliveries Minutes per unit of the activity (a) 30 Cost per minute of the resource supplied (b) $ 0.40 Time-driven activity rate (a) (b) $ 12.00 Step 3: Assign costs to cost objects Customer Q Number of deliveries

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Accounting Chapter 8 10 October Should Bea 460 Per Direct Labor Hour

181 Answer: A Explanation: Direct labor cost per unit = 1.4 direct labor-hours per unit $9.60 per direct labor-hour = $13.44 per unit Difficulty: 1 Easy Topic: The Direct Labor Budget Learning Objective: 08-05 Prepare a direct labor budget. Bloom's: Apply AACSB: Analytical Thinking AICPA: BB Critical Thinking; FN

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Accounting Chapter 8 12 If 68,300 Pounds Of Raw Materials Are Needed For Production In March

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Accounting Chapter 8 13 The Expected Cash Collections For February Are

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Accounting Chapter 8 14 The Direct Labor Budget Of Faver Corporation For The Upcoming

253 Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. All rights reserved. No reproduction or

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Accounting Chapter 8 3 With The Number Of Workers Currently Employed That

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Accounting Chapter 8 6 The Budgeted Raw Material Purchases For August Are Computed As

101 Answer: D Explanation: The budgeted required production for May is computed as follows: Budgeted sales in units 10,500 Add desired ending inventory* 2,760 Total needs 13,260 Less beginning inventory** 2,100 Required production 11,160 - * June sales of 13,800 units 20% = 2,760 units ** May sales of

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Accounting Chapter 8 8 The Estimated Cost Of Goods Sold For February Is Closest To

141 Answer: A Explanation: The budgeted required production for February is computed as follows: Budgeted sales in units 10,600 Add desired ending inventory* 3,600 Total needs 14,200 Less beginning inventory** 3,180 Required production 11,020 - *March sales of 12,000 units 30% = 3,600 units **February sales of 10,600 units

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Accounting Chapter 9 1 Prepare Planning Budget And Flexible Budget And

1 Answer: TRUE Difficulty: 1 Easy Topic: Flexible Budgets Learning Objective: 09-01 Prepare a planning budget and a flexible budget and understand how they differ from one another. Bloom's: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking; FN Measurement 1 Answer: TRUE Difficulty: 1 Easy Topic: Flexible Budgets Learning Objective:

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Accounting Chapter 9 10 Rhed Kennel Uses Tenant-days As Its Measure Of Activity;

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Accounting Chapter 9 11 The Kennel Has Provided The Following Data Concerning

201 Answer: D Explanation: Cost = Fixed cost + (Variable cost per unit q) = $2,700 + ($5.40 3,400) = $21,060 Difficulty: 2 Medium Topic: Flexible Budgets Learning Objective: 09-01 Prepare a planning budget and a flexible budget and understand how they differ from one another. Bloom's: Apply AACSB: Analytical

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Accounting Chapter 9 12 November Would Closest Toa 530 Ub 510

221 Answer: B Explanation: Revenue per unit $ 27.80 Total variable expense per unit 14.70 Contribution margin per unit $ 13.10 Total fixed expense $ 60,000 - Flexible budget [($13.10 6,160) $60,000] $ 20,696 Planning budget [($13.10 6,200) $60,000] 21,220 Activity variance $ 524 - Because the flexible budget net

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Accounting Chapter 9 13 During February The Clinic Budgeted For 2200 Client Visits

241 Answer: C Explanation: Cost = Fixed cost + (Variable cost per unit q) = $6,500 + ($0.40 3,700) = $7,980 Difficulty: 2 Medium Topic: Flexible Budgets Learning Objective: 09-01 Prepare a planning budget and a flexible budget and understand how they differ from one another. Bloom's: Apply AACSB: Analytical

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Accounting Chapter 9 14 Because The Flexible Budget Is Less Than The Planning Budget

261 Answer: A Explanation: Revenue per unit $ 34.00 Total variable expense per unit 20.90 Contribution margin per unit $ 13.10 Total fixed expense $ 63,700 - Flexible budget [($13.10 6,670) $63,700] $ 23,677 Planning budget [($13.10 6,700) $63,700] 24,070 Activity variance $ 393 Because the flexible budget net operating

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Accounting Chapter 9 15 Education 303 Prestridge Corporation Service Company That Measures

281 Answer: D Explanation: Revenue per tenant-day $ 27.30 Total variable expense per tenant-day 18.20 Contribution margin per tenant-day $ 9.10 Total fixed expense $ 19,500 Flexible budget [($9.10 2,960) $19,500] $ 7,436 Planning budget [($9.10 3,000) $19,500] 7,800 Activity variance $ 364 - Because the flexible budget net operating

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Accounting Chapter 9 16 Isadore Hospital Bases Its Budgets On Patient-visits

301 Answer: D Explanation: Actual Results Flexible Budget Revenue and Spending Variances Containers refurbished (q) 18 18 Expenses: Employee salaries and wages ($49,500 + $900q) $ 66,000 $ 65,700 $ 300 U Refurbishing materials ($500q) 9,500 9,000 500 U Other expenses ($40,300) 39,800 40,300 500 F Total expenses $ 115,300

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Accounting Chapter 9 17 The Company Expected Its Activity July 204 Press

321 Answer: A Explanation: Actual results $ 69,576 Flexible budget ($35.40 2,040) 72,216 Revenue variance $ 2,640 Because the actual revenue is less than the flexible budget, the variance is unfavorable (U). Difficulty: 2 Medium Topic: Revenue and Spending Variances Learning Objective: 09-03 Calculate and interpret revenue and spending variances.

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Accounting Chapter 9 18 Occupancy Expenses Are8100 Per Month Plus 200

341 Answer: Mansour Memorial Diner Flexible Budget For the Month Ended February 28 Actual meals (q) 3,400 Groceries ($2.20q) $ 7,480 Kitchen operations ($4,100 + $1.90q) 10,560 Administrative expenses ($3,600 + $0.60q) 5,640 Fundraising expenses ($1,100) 1,100 Total expense $ 24,780 - Difficulty: 1 Easy Topic: Flexible Budgets Learning Objective:

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Accounting Chapter 9 19 The Diner’s Director Has Provided The Following Cost Formulas To Use

361 Answer: Varcoe Corporation Activity Variances For the Month Ended September 30 Flexible Budget Planning Budget Activity Variances Customers served (q) 25,000 30,000 Revenue ($3.80q) $ 95,000 $ 114,000 $ 19,000 U Expenses: Wages and salaries ($34,100 + $1.20q) 64,100 70,100 6,000 F Supplies ($0.50q) 12,500 15,000 2,500 F Insurance

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Accounting Chapter 9 21 Objective 0902 Calculate And Interpret Activity Variances

401 Answer: Tuton Memorial Diner Spending Variances For the Month Ended July 31 Actual Results Flexible Budget Spending Variances Meals (q) 3,300 3,300 Groceries ($2.75q) $9,075 $9,005 $70 F Kitchen operations ($4,000 + $1.00q) 7,300 7,310 10 U Administrative expenses ($3,700 + 6,010 5,910 100 F 401 Answer: Tuton Memorial

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Accounting Chapter 9 22 A Performance Report Combining Activity And Revenue And Spending

415 Answer: Boan Tech Activity Variances For the Month Ended August 31 Flexible Budget Activity Variances Planning Budget Students (q1) 1,290 1,590 Courses (q2) 105 110 Revenue ($297q1) $ 383,130 $ 89,100 U $ 472,230 Expenses: Faculty wages ($2,600q2) 273,000 13,000 F 286,000 Course supplies ($38q1 + $23q2) 51,435 11,515

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Accounting Chapter 9 3 During That Month 19600 Units Were Produced Budgeted

41 Answer: D Explanation: Flexible budget [$48,840 + ($2,381 61) + ($7 298)] $ 196,167 Planning budget [$48,840 + ($2,381 63) + ($7 293)] 200,894 Activity variance $ 4,727 - Because the flexible budget is less than the planning budget, the variance is favorable (F). Difficulty: 1 Easy Topic: Flexible

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Accounting Chapter 9 4 During January, The Kennel Budgeted For 2,700 Tenant Days, But Its Actual Level

61 Answer: B Explanation: Actual results $ 4,500 Flexible budget [$570 + ($98 14) + ($24 102)] 4,390 Spending variance $ 110 - Since the actual expense is greater than the flexible budget, the variance is unfavorable (U) Difficulty: 1 Easy Topic: Revenue and Spending Variances; Flexible Budgets with Multiple

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Accounting Chapter 9 5 Virgen Kennel Uses Tenant-days As Its Measure Of Activity; An Animal Housed

81 Answer: D Explanation: Cost = Fixed cost + (Variable cost per unit q) = $9,500 + ($2.70 2,060) = $15,062 Difficulty: 2 Medium Topic: Flexible Budgets Learning Objective: 09-01 Prepare a planning budget and a flexible budget and understand how they differ from one another. Bloom's: Apply AACSB: Analytical

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Accounting Chapter 9 6 Corporation Shipping Container Refurbishment Company

101 Answer: B Explanation: Cost = Fixed cost + (Variable cost per unit q) = $45,900 + ($1.70 6,910) = $57,647 Difficulty: 2 Medium Topic: Flexible Budgets Learning Objective: 09-01 Prepare a planning budget and a flexible budget and understand how they differ from one another. Bloom's: Apply AACSB: Analytical

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Accounting Chapter 9 7 A Explanation Cost Fixed Cost Variable Cost Per

121 Answer: B Explanation: Cost = Fixed cost + (Variable cost per unit q) = $1,000 + ($11.60 2,530) = $30,348 Difficulty: 1 Easy Topic: Flexible Budgets Learning Objective: 09-01 Prepare a planning budget and a flexible budget and understand how they differ from one another. Bloom's: Apply AACSB: Analytical

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Accounting Chapter 9 8 April The Company Planned For Activity Boats But

141 Answer: A Explanation: Revenue per client-visit $ 31.00 Total variable expense per client-visit 15.80 Contribution margin per client-visit $ 15.20 Total fixed expense $ 36,100 - Net operating income = ($15.20 3,000) $36,100 = $9,500 Difficulty: 1 Easy Topic: Flexible Budgets Learning Objective: 09-01 Prepare a planning budget and

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Accounting Chapter 9 9 The Amount Shown For Revenue In The Planning Budget For April

161 Answer: C Explanation: Actual results $ 31,460 Flexible budget [$24,500 + ($1 7,160)] 31,660 Spending variance $ 200 - Because the actual expense is less than the flexible budget, the variance is favorable (F). Difficulty: 1 Easy Topic: Revenue and Spending Variances Learning Objective: 09-03 Calculate and interpret revenue

Loose Leaf for Managerial Accounting 16th Edition

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