1) the following data pertains to lam co.’s manufacturing operations:
additional information for the month of april:
overhead is applied at $12 per direct labor hour.
for the month of april, conversion cost incurred was:
a.$75,000
b.$66,000
c.$70,000
d.$39,000
2) standard costs are:
a.planned costs the firm should attain
b.associated with direct materials and factory overhead only
c.associated with direct labor and factory overhead only
d.targeted low costs the firm should strive for
e.none of the above
3) simple regression analysis involves the use of:
a.option a
b.option b
c.option c
d.option d
4) for job costing in service industries, overhead costs are usually applied to jobs based
on:
a.factory overhead
b.indirect labor
c.indirect materials
d.direct labor-hours or dollars
e.direct materials
5) under the sarbanes-oxley act of 2002, the public company accounting oversight
board (pcaob) established rules relating to which of the following areas?
a.financial reporting
b.production quality control
c.executive compensation
d.hiring and firing practices
e.audit quality, ethics, and independence
6) at the breakeven point, total fixed cost is:
a.less than the total contribution margin
b.equal to the total contribution margin
c.more than the total contribution margin
d.equal to the contribution margin per unit
e.equal to the contribution margin divided by operating income
7) sterling glass company uses the high-low method to analyze mixed costs. the
following information relates to the production data for the first six months of the year.
what is the estimated total cost at an operating level of 900 hours?
a.$5,275
b.$5,745
c.$5,115
d.$5,885
8) if activity x had a budgeted cost of $125,000 and a budgeted activity consumption of
10,000 engineering hours, what would the activity consumption rate be?
a.$10 per hour
b.$12.50 per hour
c.$0.08 per hour
d.0.10 per hour
9) ardel co. budgeted to sell 200,000 units of zbox in september. production of one unit
of zbox required two pounds of aluminum and five pounds of steel powder. the
beginning inventory and the desired ending inventory in units are:
how many pounds of steel powder does ardel co. need to purchase during september if
ardel plans to manufacture 150,000 units of zbox in september?
a.725,000 pounds
b.745,000 pounds
c.750,000 pounds
d.755,000 pounds
e.775,000 pounds
10) backflush costing is a costing method that:
a.charges current production costs directly to finished goods inventory
b.charges past production costs directly to finished goods inventory
c.charges current production costs using actual costs incurred
d.charges current production cost directly to work-in-process inventory