1) during the most recent month at hybarger corporation, queue time was 3.0 days,
inspection time was 0.8 day, process time was 2.8 days, wait time was 11.8 days, and
move time was 0.6 day.
required:
a. compute the throughput time.
b. compute the manufacturing cycle efficiency (mce).
c. what percentage of the production time is spent in non-value-added activities?
d. compute the delivery cycle time.
2) direct labor standards at cepeda manufacturing corporation allow 5 direct labor-hours
for every unit produced. the standard direct labor rate is $12.00 per hour. during the
month of february, cepeda incurred 35,000 direct labor-hours and recorded a $15,000
favorable labor efficiency variance. how many units did cepeda produce during
february?
a.6,750
b.7,250
c.33,750
d.36,250
3) niesen corporation has two major business segments-consumer and commercial. data
for the segment and for the company for august appear below:
in addition, common fixed expenses totaled $282,000 and were allocated as follows:
$127,000 to the consumer business segment and $155,000 to the commercial business
segment.
a properly constructed segmented income statement in a contribution format would
show that the segment margin of the consumer business segment is:
a.$273,000
b.$290,000
c.$169,000
d.$296,000
4) eccles corporation uses a job-order costing system and applies overhead to jobs using
a predetermined overhead rate. during the year the company’s finished goods inventory
account was debited for $384,000 and credited for $325,900. the ending balance in the
finished goods inventory account was $72,100. at the end of the year, manufacturing
overhead was underapplied by $5,400.
if the applied manufacturing overhead was $174,000, the actual manufacturing
overhead cost for the year was:
a.$193,400
b.$251,500
c.$179,400
d.$168,600
5) computing unit product costs involves averaging in:
a.choice a
b.choice b
c.choice c
d.choice d
6) goyal inc. has an operating leverage of 12.5. if the company’s sales increase by 6%,
its net operating income should increase by about:
a.6.0%
b.12.5%
c.75.0%
d.208.3%
7) woofter corporation manufactures and sells a single product. the company uses units
as the measure of activity in its budgets and performance reports. during january, the
company budgeted for 7,600 units, but its actual level of activity was 7,560 units. the
company has provided the following data concerning the formulas used in its budgeting
and its actual results for january:
the net operating income in the flexible budget for january would be closest to:
a.$28,604
b.$16,238
c.$16,410
d.$29,140
8) ahrns tech is a for-profit vocational school. the school bases its budgets on two
measures of activity (i.e., cost drivers), namely student and course. the school uses the
following data in its budgeting:
in july, the school budgeted for 1,770 students and 148 courses. the school’s income
statement showing the actual results for the month appears below:
required:
prepare a report showing the school’s revenue and spending variances for july. label
each variance as favorable (f) or unfavorable (u).
9) the assembly department started the month with 59,000 units in its beginning work in
process inventory. an additional 274,000 units were transferred in from the prior
department during the month to begin processing in the assembly department. there
were 21,000 units in the ending work in process inventory of the assembly department.
how many units were transferred to the next processing department during the month?
a.333,000
b.236,000
c.354,000
d.312,000
10) dunklin medical clinic measures its activity in terms of patient-visits. last month,
the budgeted level of activity was 1,620 patient-visits and the actual level of activity
was 1,540 patient-visits. the cost formula for administrative expenses is $3.20 per
patient-visit plus $14,300 per month. the actual administrative expense was $21,050. in
the clinic’s flexible budget performance report for last month, the spending variance for
administrative expenses was:
a.$118 f
b.$256 f
c.$1,566 u
d.$1,822 u
11) a partial listing of costs incurred during february at urfer corporation appears below:
the total of the manufacturing overhead costs listed above for february is:
a.$61,000
b.$595,000
c.$277,000
d.$33,000