1) The net cash provided by (used in) financing activities for the year was:
A.$(18)
B.$5
C.$(5)
D.$8
2) How many minutes of milling machine time would be required to satisfy demand for
all four products?
A.22,600
B.23,700
C.18,400
D.9,000
3) Coderre Corporation manufactures and sells a single product. The company uses
units as the measure of activity in its budgets and performance reports. During July, the
company budgeted for 7,800 units, but its actual level of activity was 7,780 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for July:
Data used in budgeting:
Actual results for July:
The direct labor in the planning budget for July would be closest to:
A.$52,904
B.$52,408
C.$52,274
D.$53,040
4) Nicolaysen Corporation manufactures and sells a single product. The company uses
units as the measure of activity in its budgets and performance reports. During
February, the company budgeted for 5,700 units, but its actual level of activity was
5,690 units. The company has provided the following data concerning the formulas
used in its budgeting and its actual results for February:
Data used in budgeting:
Actual results for February:
The net operating income in the planning budget for February would be closest to:
A.$21,360
B.$21,222
C.$13,606
D.$13,558
5) Duhe Corporation is considering the following six long-term projects:
Only $59,100 is available for investment in these projects.
Required:
a. Determine which projects should be accepted.
b. Determine the total net present value of all of the accepted projects if your plan from
part (a) above is adopted.
6) Marlan Manufacturing produces a product that passes through two processing
departments. The units from the Molding Department are completed in the Assembly
Department. The activity in the Assembly Department for the current month is
presented below. Marlan uses the FIFO method in its process costing system.
The equivalent units (with respect to the Molding Department’s costs) transferred from
the Molding Department to the Assembly during the month were:
A.30,000 units
B.38,000 units
C.40,800 units
D.42,000 units
7) Moates Corporation makes a product with the following standard costs:
In January the company produced 5,800 units using 38,740 kilos of the direct material
and 1,110 direct labor-hours. During the month, the company purchased 41,000 kilos of
the direct material at a total cost of $49,200. The actual direct labor cost for the month
was $20,979 and the actual variable overhead cost was $6,993. The company applies
variable overhead on the basis of direct labor-hours. The direct materials purchases
variance is computed when the materials are purchased.
Required:
a. Compute the materials quantity variance.
b. Compute the materials price variance.
c. Compute the labor efficiency variance.
d. Compute the labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance.
8) Which of the following companies would be most likely to use a process costing
system?
A.Ship builder.
B.Movie studio.
C.Oil refinery.
D.Hospital.
9) The product’s price elasticity of demand as defined in the text is closest to:
A.-1.75
B.-2.22
C.-2.06
D.-1.07
10) The constraint at Fulena Inc. is an expensive milling machine. The three products
listed below use this constrained resource.
Required:
a. Rank the products in order of their current profitability from the most profitable to
the least profitable. In other words, rank the products in the order in which they should
be emphasized. Show your work!
b. Assume that sufficient constraint time is available to satisfy demand for all but the
least profitable product. Up to how much should the company be willing to pay to
acquire more of the constrained resource?
11) Hatfield Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
What is the total period cost for the month under variable costing?
A.$140,300
B.$140,800
C.$232,300
D.$281,100
12) Lasater Corporation has provided the following information concerning a capital
budgeting project:
The company’s tax rate is 35%. The company’s after-tax discount rate is 15%. The
project would require an investment of $10,000 at the beginning of the project. This
working capital would be released for use elsewhere at the end of the project. The
company uses straight-line depreciation on all equipment.
The total cash flow net of income taxes in year 2 is:
A.$62,500
B.$36,500
C.$50,000
D.$80,000
13) Evans Corporation uses the weighted-average method in its process costing system.
This month, the beginning inventory in the first processing department consisted of 900
units. The costs and percentage completion of these units in beginning inventory were:
A total of 8,100 units were started and 6,800 units were transferred to the second
processing department during the month. The following costs were incurred in the first
processing department during the month:
The ending inventory was 60% complete with respect to materials and 10% complete
with respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all
cases, select the answer that is the closest to the answer you computed. To reduce
rounding error, carry out all computations to at least three decimal places.
What are the equivalent units for conversion costs for the month in the first processing
department?
A.9,000
B.7,020
C.6,800
D.220
14) When the actual price to purchase a raw material on account exceeds its standard
price, the journal entry would include:
A.Debit to Raw Materials; Credit to Materials Price Variance
B.Debit to Accounts Payable; Credit to Materials Price Variance
C.Debit to Raw Materials; Debit to Materials Price Variance
D.Debit to Accounts Payable; Debit to Materials Price Variance
15) Brower Inc. has provided the following data concerning its only product:
Required:
Compute the margin of safety in both dollars and as a percentage of sales.
16) Morganti Corporation sells a product for $140 per unit. The product’s current sales
are 40,700 units and its break-even sales are 31,339 units.
What is the margin of safety in dollars?
A.$3,798,667
B.$5,698,000
C.$4,387,460
D.$1,310,540