1) dadisman corporation’s most recent balance sheet and income statement appear
below:
dividends on common stock during year 2 totaled $30 thousand. dividends on preferred
stock totaled $20 thousand. the market price of common stock at the end of year 2 was
$6.75 per share.
the dividend yield ratio for year 2 is closest to:
a.2.97%
b.4.44%
c.60.00%
d.7.41%
2) a customer has requested that daleske corporation fill a special order for 2,000 units
of product d84 for $20.30 a unit. while the product would be modified slightly for the
special order, product d84’s normal unit product cost is $18.50:
direct labor is a variable cost. the special order would have no effect on the company’s
total fixed manufacturing overhead costs. the customer would like modifications made
to product d84 that would increase the variable costs by $2.50 per unit and that would
require an investment of $7,000 in special molds that would have no salvage value.
this special order would have no effect on the company’s other sales. the company has
ample spare capacity for producing the special order. if the special order is accepted, the
company’s overall net operating income would increase (decrease) by:
a.($14,900)
b.($5,800)
c.$3,600
d.($8,400)
3) financial statements for marcalo company appear below:
marcalo company’s working capital (in thousands of dollars) at the end of year 2 was
closest to:
a.$220
b.$580
c.$360
d.$1,580
4) aujla corporation uses activity-based costing to determine product costs for external
financial reports. the company has provided the following data concerning its
activity-based costing system:
assuming that actual activity turns out to be the same as expected activity, the total
amount of overhead cost allocated to product x would be closest to:
a.$235,000
b.$563,000
c.$316,600
d.$357,500
5) at an activity level of 7,900 machine-hours in a month, manchester corporation’s total
variable maintenance cost is $430,550 and its total fixed maintenance cost is $417,120.
what would be the total variable maintenance cost at an activity level of 8,000
machine-hours in a month? assume that this level of activity is within the relevant
range.
a.$847,670
b.$422,400
c.$430,550
d.$436,000
6) derflinger corporation reported the following data for the month of january:
the net operating income for january was:
a.$79,000
b.$70,000
c.$13,000
d.$5,000
7) in a certain standard costing system the following results occurred last period: labor
rate variance, $1,000 u; labor efficiency variance, $2,800 f; and the actual labor rate
was $0.20 more per hour than the standard labor rate. the number of actual direct
labor-hours used last period was:
a.9,000
b.5,400
c.5,000
d.4,800
8) vanstraten corporation has provided the following data concerning its two products:
the profitability index for product z63z is closest to:
a.$4.20 per gram
b.0.53
c.0.20
d.0.57
9) belegorsk corporation uses a weighted-average process costing system to collect
costs related to production in its milling department. the following information relates
to milling department production for august:
what are the milling department’s equivalent units related to materials for august?
a.37,000
b.51,000
c.42,000
d.46,000
10) buford company rents out a small unused portion of its factory to another company
for $1,000 per month. the rental agreement will expire next month, and rather than
renew the agreement buford company is thinking about using the space itself to store
materials. the term to describe the $1,000 per month is:
a.sunk cost
b.period cost
c.opportunity cost
d.variable cost
11) atlantic company produces a single product. for the most recent year, the company’s
net operating income computed by the absorption costing method was $7,400, and its
net operating income computed by the variable costing method was $10,100. the
company’s unit product cost was $17 under variable costing and $22 under absorption
costing. if the ending inventory consisted of 1,460 units, the beginning inventory must
have been:
a.920 units
b.1,460 units
c.2,000 units
d.12,700 units