1) schrick inc. manufactures a variety of products. variable costing net operating
income was $86,800 last year and ending inventory increased by 1,900 units. fixed
manufacturing overhead cost was $6 per unit. what was the absorption costing net
operating income last year?
a.$86,800
b.$75,400
c.$98,200
d.$11,400
2) pauk corporation has provided the following data from its most recent income
statement:
the times interest earned ratio is closest to:
a.2.49
b.3.55
c.1.03
d.1.49
3) the following data (in thousands of dollars) have been taken from the accounting
records of karlana corporation for the just completed year.
the cost of goods sold for the year (in thousands of dollars) was:
a.$670
b.$500
c.$540
d.$650
4) hurst co. manufacturers and sells a single product. price and cost data regarding this
product are as follows:
the break-even point in units per year is:
a.15,200 units
b.26,600 units
c.38,000 units
d.40,000 units
5) the following data (in thousands of dollars) have been taken from the accounting
records of karlana corporation for the just completed year.
the cost of goods manufactured (finished) for the year (in thousands of dollars) was:
a.$530
b.$520
c.$500
d.$460
6) poma 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, r78s and n32y, about which it
has provided the following data:
the company’s estimated total manufacturing overhead for the year is $1,427,040 and
the company’s estimated total direct labor-hours for the year is 24,000.
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 unit product cost of product r78s under the company’s traditional costing system is
closest to:
a.$36.00
b.$59.83
c.$47.20
d.$59.78
7) mzimba sofa company has developed the following manufacturing overhead
standards for its sofa production.
manufacturing overhead at mzimba is applied to production on the basis of standard
machine-hours. the above standards were based on an expected annual volume of
20,000 sofas. the actual results last year were as follows:
what was mzimba’s variable overhead efficiency variance?
a.$8,766 unfavorable
b.$15,552 unfavorable
c.$17,280 unfavorable
d.$51,200 favorable
8) the fixed manufacturing overhead volume variance is due to:
a.inefficient or efficient use of whatever the denominator activity is
b.inefficient or efficient use of overhead resources
c.a difference between the denominator activity and the standard hours allowed for the
actual output of the period
d.a shift in the amount of hours required to produce the actual output
9) creelman company makes four products in a single facility. data concerning these
products appear below:
the milling machines are potentially the constraint in the production facility. a total of
13,000 minutes are available per month on these machines.
how many minutes of milling machine time would be required to satisfy demand for all
four products?
a.13,000
b.11,600
c.7,000
d.15,000
10) fox company has the following data concerning the machine-hours in its operating
departments:
fixed costs of the maintenance department are budgeted at $30,000 per year. the fixed
maintenance costs are incurred in order to service long-run average demand. the actual
fixed maintenance cost was actually $32,000. how much fixed maintenance cost should
be charged to department b at the end of the year for performance evaluation purposes?
a.$12,000
b.$14,400
c.$15,000
d.$18,000
11) dilom farm supply is located in a small town in the rural west. data regarding the
store’s operations follow:
sales are budgeted at $260,000 for november, $230,000 for december, and $210,000 for
january.
collections are expected to be 55% in the month of sale, 40% in the month following
the sale, and 5% uncollectible.
the cost of goods sold is 80% of sales.
the company purchases 50% of its merchandise in the month prior to the month of sale
and 50% in the month of sale. payment for merchandise is made in the month following
the purchase.
other monthly expenses to be paid in cash are $21,700.
monthly depreciation is $17,000.
ignore taxes.
the cash balance at the end of december would be:
a.$40,100
b.$28,000
c.$12,100
d.$40,800
12) during december, fleeger corporation incurred $51,000 of direct labor costs and
$5,000 of indirect labor costs. the journal entry to record the accrual of these wages
would include a:
a.debit to work in process of $56,000
b.credit to work in process of $51,000
c.debit to work in process of $51,000
d.credit to work in process of $56,000
13) financial statements for marcalo company appear below:
marcalo company’s accounts receivable turnover for year 2 was closest to:
a.12.4
b.12.2
c.8.5
d.17.8
14) marazzi corporation keeps careful track of the time required to fill orders. the times
recorded for a particular order appear below:
the throughput time was:
a.5.3 hours
b.20.7 hours
c.15.4 hours
d.9.5 hours
15) swader kennel uses tenant-days as its measure of activity; an animal housed in the
kennel for one day is counted as one tenant-day. during march, the kennel budgeted for
2,900 tenant-days, but its actual level of activity was 2,930 tenant-days. the kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for march:
the expendables in the flexible budget for march would be closest to:
a.$25,905
b.$25,650
c.$27,274
d.$26,719