1) how many units were started into production during the month?
a.68,000 units
b.84,000 units
c.72,000 units
d.56,000 units
2) electrical costs at one of gotch corporation’s factories are listed below:
management believes that electrical cost is a mixed cost that depends on
machine-hours. using the high-low method to estimate the variable and fixed
components of this cost, these estimates would be closest to:
a.$0.15 per machine-hour; $35,115 per month
b.$9.11 per machine-hour; $1,249 per month
c.$9.43 per machine-hour; $35,406 per month
d.$6.57 per machine-hour; $10,728 per month
3) (ignore income taxes in this problem.) an expansion at huebschman, inc., would
increase sales revenues by $76,000 per year and cash operating expenses by $33,000
per year. the initial investment would be for equipment that would cost $196,000 and
have a 7 year life with no salvage value. the annual depreciation on the equipment
would be $28,000. the simple rate of return on the investment is closest to:
a.7.7%
b.14.3%
c.21.9%
d.19.7%
4) supply costs at rupard corporation’s chain of gyms are listed below:
management believes that supply cost is a mixed cost that depends on client-visits.
using the high-low method to estimate the variable and fixed components of this cost,
those estimates would be closest to:
a.$0.76 per client-visit; $18,152 per month
b.$1.31 per client-visit; $10,462 per month
c.$2.08 per client-visit; $28,489 per month
d.$0.77 per client-visit; $17,952 per month
5) eschbach company is a wholesale distributor that uses activity-based costing for all
of its overhead costs. the company has provided the following data concerning its
annual overhead costs and its activity based costing system:
the “other” activity cost pool consists of the costs of idle capacity and
organization-sustaining costs.
the amount of activity for the year is as follows:
what would be the total overhead cost per order according to the activity based costing
system? in other words, what would be the overall activity rate for the filling orders
activity cost pool? (round to the nearest whole cent.)
a.$42.00
b.$77.00
c.$59.50
d.$68.25
6) the long-run average or peak period needs of operating departments would be the
most suitable base for allocating:
a.the variable element of power costs
b.the fixed element of power costs
c.total power costs
d.any spending variance associated with power costs
7) richards company has the following budgeted sales for the first half of next year:
the company is in the process of preparing a cash budget and must determine the
expected cash collections by month. to this end, the following information has been
assembled:
collections on credit sales:
60% in month of sale
30% in month following sale
10% in second month following sale
what is the budgeted accounts receivable balance on may 31?
a.$81,000
b.$68,000
c.$60,000
d.$141,000
8) kidwell company, which has only one product, has provided the following data
concerning its most recent month of operations:
the company produces the same number of units every month, although the sales in
units vary from month to month. the company’s variable costs per unit and total fixed
costs have been constant from month to month.
what is the net operating income for the month under absorption costing?
a.$5,800
b.$16,000
c.$5,400
d.$8,300
9) a tile manufacturer has supplied the following data:
what is the company’s unit contribution margin?
a.$0.86
b.$2.35
c.$4.10
d.$1.75
10) look manufacturing corporation has a traditional costing system in which it applies
manufacturing overhead to its products using a predetermined overhead rate based on
direct labor-hours (dlhs). the company has two products, n06d and m09k, about which it
has provided the following data:
the company’s estimated total manufacturing overhead for the year is $2,532,200 and
the company’s estimated total direct labor-hours for the year is 44,000.
the company is considering using a variation of activity-based costing to determine its
unit product costs for external reports. data for this proposed activity-based costing
system appear below:
the manufacturing overhead that would be applied to a unit of product e76i under the
activity-based costing system is closest to:
a.$88.28
b.$96.29
c.$184.57
d.$10.13
11) on july 1, woolard corporation had $20,000 of raw materials on hand. during the
month, the company purchased an additional $53,000 of raw materials. during july,
$49,000 of raw materials were requisitioned from the storeroom for use in production.
these raw materials included both direct and indirect materials. the indirect materials
totaled $5,000.
prepare journal entries to record these events.
the credits to the work in process account as a consequence of the raw materials
transactions in july total:
a.$49,000
b.$53,000
c.$0
d.$44,000
12) sucharzewski corporation’s management keeps track of the time it takes to process
orders. during the most recent month, the following average times were recorded per
order:
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.
13) loraine company applies manufacturing overhead to jobs using a predetermined
overhead rate of 70% of direct labor cost. any underapplied or overapplied overhead
cost is closed to cost of goods sold at the end of the month. during august, the following
transactions were recorded by the company:
the cost of goods manufactured for august was:
a.$69,600
b.$69,500
c.$76,900
d.$84,500
14) management of berndt corporation has asked your help as an intern in preparing
some key reports for august. the beginning balance in the raw materials inventory
account was $33,000. during the month, the company made raw materials purchases
amounting to $62,000. at the end of the month, the balance in the raw materials
inventory account was $30,000. direct labor cost was $46,000 and manufacturing
overhead was $74,000. the beginning balance in the work in process account was
$13,000 and the ending balance was $19,000. the beginning balance in the finished
goods account was $54,000 and the ending balance was $50,000. sales totaled
$270,000. selling expense was $18,000 and administrative expense was $49,000.
the cost of goods sold for august was:
a.$175,000
b.$183,000
c.$138,000
d.$274,000
15) kalbach corporation, a manufacturing company, has provided the following
financial data for november:
the company had no beginning or ending inventories. the contribution margin for
november was:
a.$285,000
b.$166,000
c.$310,000
d.$36,000
16) graciana corporation’s most recent comparative balance sheet and income statement
appear below:
cash dividends were $28.
the net cash provided by (used by) investing activities for the year was:
a.$50
b.($76)
c.($50)
d.$76