Based on the above data, what is the amount of quick assets?
a. $168,000
b. $96,000
c. $60,000
d. $61,000
Answer:
actions to achieve budgeted goals
Match each phrase that follows with the term (a-e) it describes.
a. planning
b. directing
c. controlling
d. budget slack
e. goal conflict
Answer:
Abigail Company reports the following:
Determine the (a) rate earned on stockholders’ equity, and (b) rate earned on common
stockholders’ equity. Round your answer to one decimal place.
Answer:
A local college is aggressively working to reduce the time it takes students to enroll for
each semester. Which of the following changes would not help achieve this goal?
a. Counselors are specializing in common degree plans
b. One application is good at the community college and at the transferring university
c. A one stop area includes admissions, advising, registration and student ID’s
d. Having more number of staff to help facilitate admission process
Answer:
Johnson’s Plumbing’s fixed costs are $700,000 and the unit contribution margin is $17.
What amount of units must be sold in order to realize an operating income of $100,000?
a. 5,000
b. 41,176
c. 47,059
d. 58,882
Answer:
The Skagit Company manufactures Hooks and Nooks. The following shows the
activities per product and total activity information:
Calculate the total factory overhead to be charged to each unit of Hooks.
a. $33
b. $50
c. $11
d. $61
Answer:
The following data relate to direct labor costs for the current period:
What is the direct labor rate variance?
a. $2,250 unfavorable
b. $2,125 unfavorable
c. $2,250 favorable
d. $2,125 favorable
Answer:
Long setups and large batch sizes result in smaller inventories.
a. True
b. False
Answer:
The phases of the management process are listed below. Match each phase to the
appropriate description.
Planning
Directing
Controlling
Improving
Decision making
a) Used by managers for continuous improvement
b) Managers must decide how to respond to unfavorable performances
c) Used by management to develop the organization’s objectives and goals
d) Monitoring the operating results of implemented plans and comparing actual results
to expected results
e) Process by which managers run day-to-day operations
Answer:
If variable costs per unit decreased because of a decrease in utility rates, the break-even
point would
a. decrease
b. increase
c. remain the same
d. increase or decrease, depending upon the percentage increase in utility rates
Answer:
The amount of income under absorption costing will equal the amount of income under
variable costing when units manufactured:
a. exceed units sold
b. equal units sold
c. are less than units sold
d. are equal to or greater than units sold
Answer:
If income from operations for a division is $5,000, invested assets are $25,000, and
sales are $30,000, the profit margin is 20%.
a. True
b. False
Answer:
The Kaumajet Factory produces two products’”table lamps and desk lamps. It has two
separate departments – Finishing and Production. The overhead budget for the Finishing
Department is $550,000, using 500,000 direct labor hours. The overhead budget for the
Production Department is $400,000 using 80,000 direct labor hours.
If the budget estimates that a table lamp will require 2 hours of finishing and 1 hours of
production, how much factory overhead will the Kaumajet Factory allocate to each unit
of table lamp using the multiple production department factory overhead rate method
with an allocation base of direct labor hours?
a. $6.33
b. $4.91
c. $5.00
d. $7.20
Answer:
If 10,000 units that were 40% completed are in process at November 1, 80,000 units
were completed during November, and 12,000 were 20% completed at November 30,
the number of equivalent units of production for November was 75,600. (Assume no
loss of units in production and that inventories are costed by the first-in, first- out
method.)
a. True
b. False
Answer:
The following data relate to direct labor costs for March:
Rate: standard, $12.00; actual, $12.25
Hours: standard, 18,500; actual, 17,955
Units of production: 9,450
Calculate the direct labor time variance.
a. $2,362.50 favorable
b. $2,362.50 unfavorable
c. $6,540.00 favorable
d. $6,540.00 unfavorable
Answer:
Which of the following is not a reason for banks to use activity-based costing?
a. to determine the amounts charged to customers for services provided
b. to determine service quality
c. to determine profitability of services provided
d. all of the above
Answer:
Cost of goods sold for a manufacturer equals cost of goods manufactured plus
a. beginning work in process inventory less ending work in process inventory
b. ending work in process inventory less beginning work in process inventory
c. beginning finished goods inventory less ending finished goods inventory
d. ending finished goods inventory less beginning finished goods inventory
Answer:
For a period during which the quantity of inventory at the end equals the inventory at
the beginning, income from operations reported under variable costing will be smaller
than income from operations reported under absorption costing.
a. True
b. False
Answer:
In a process costing system, costs flow into finished goods inventory only from the
work in process inventory of the last manufacturing process.
a. True
b. False
Answer:
The Bright Lamp Company has budgeted its conversion cost for the small lamp
production as $85,000 for 1,300 production hours. Each unit produced by the cell
requires 15 minutes of process time. During the month, 3,800 units are manufactured in
the cell. The estimated material cost is $18 per unit. Provide the following journal
entries.
(a) Materials are purchased to produce 4,000 units.
(b) Conversion costs are applied to 3,800 units of production. (Please round to nearest
cent.)
(c) 3,650 units are placed into finished goods.
Answer: