1) sabat corporation has two productss94 and t88that use the same constrained
resourcea critical raw material. data concerning those products follow:
the total amount of the constrained resource available is 10,400 grams.
required:
a. which product is most profitable, given the company’s constraint?
b. how much of each product should be produced?
c. what is the total contribution margin if your plan in part (b) above is followed?
2) the total assets of the philbin company on january 1 were $2.3 million and on
december 31 were $2.5 million. net income was $188,000. dividends totaled $75,000,
interest expense totaled $70,000, and the tax rate was 30%. the return on total assets
was closest to:
a.9.5%
b.6.8%
c.9.9%
d.10.8%
3) data concerning three of the activity cost pools of bramhall llc, a legal firm, have
been provided below:
the activity rate for the “meeting with clients” activity cost pool is closest to:
a.$125 per meeting hour
b.$65 per meeting hour
c.$80 per meeting hour
d.$665,500 per meeting hour
4) how much cost, in total, was assigned to the units transferred out to the next
department during the month?
a.$549,500
b.$584,400
c.$502,600
d.$535,000
5) a manufacturer of playground equipment has a standard costing system based on
standard direct labor-hours (dlhs) as the measure of activity. data from the company’s
flexible budget for manufacturing overhead are given below:
the following data pertain to operations for the most recent period:
what is the predetermined fixed manufacturing overhead rate to the nearest cent?
a.$9.25
b.$9.55
c.$9.37
d.$9.08
6) dodridge corporation has provided the following data for february. the beginning
balance in the raw materials inventory account was $23,000. during the month, the
company made raw materials purchases amounting to $59,000. at the end of the month,
the balance in the raw materials inventory account was $33,000. direct labor cost was
$28,000 and manufacturing overhead was $74,000. the beginning balance in the work
in process account was $12,000 and the ending balance was $17,000. the beginning
balance in the finished goods account was $48,000 and the ending balance was
$54,000.
the cost of goods manufactured for february was:
a.$156,000
b.$146,000
c.$151,000
d.$161,000
7) hanson corporation uses the weighted-average method in its process costing system.
data concerning the first processing department for the most recent month are listed
below:
note: your answers may differ from those offered below due to rounding error. in all
cases, select the answer that is the closest to the answer you computed. to reduce
rounding error, carry out all computations to at least three decimal places.
the cost of ending work in process inventory in the first processing department
according to the company’s cost system is closest to:
a.$24,983
b.$33,310
c.$41,638
d.$27,484
8) ivory company uses a job-order costing system. what year-end journal entry could
ivory make to dispose of (close out) $4,150 of overapplied manufacturing overhead
cost?
a.
b.
c.
d.
9) a company that has a profit can increase its return on investment by:
a.increasing sales revenue and operating expenses by the same dollar amount
b.increasing average operating assets and operating expenses by the same dollar amount
c.increasing sales revenue and operating expenses by the same percentage
d.decreasing average operating assets and sales by the same percentage
10) harstin corporation has provided the following data:
the turnover for the past year was:
a.2.5
b.6.94
c.2.98
d.1.4
11) janet company produces a game that sells for $17 per game. variable expenses are
$9 per game and fixed expenses total $172,000 annually.
the break-even point is closest to:
a.19,111 units
b.10,118 units
c.21,500 units
d.24,000 units
12) walsh company produces a single product. last year, the company manufactured
25,000 units and sold 22,000 units. production costs were as follows:
sales totaled $440,000, variable selling and administrative expenses were $110,000, and
fixed selling and administrative expenses were $45,000. there was no beginning
inventory. assume that direct labor is a variable cost.
the contribution margin per unit would be:
a.$15.00
b.$11.00
c.$8.00
d.$6.00
13) iacopi corporation is a wholesaler that sells a single product. management has
provided the following cost data for two levels of monthly sales volume. the company
sells the product for $172.50 per unit.
the best estimate of the total contribution margin when 4,300 units are sold is:
a.$343,140
b.$65,790
c.$121,260
d.$411,080
14) komlos corporation has two operating divisions-an east division and a west
division. the company’s logistics department services both divisions. the variable costs
of the logistics department are budgeted at $48 per shipment. the logistics department’s
fixed costs are budgeted at $253,000 for the year. the fixed costs of the logistics
department are determined based on peak-period demand.
at the end of the year, actual logistics department variable costs totaled $360,620 and
fixed costs totaled $267,210. the east division had a total of 4,200 shipments and the
west division had a total of 3,100 shipments for the year.
how much logistics department cost should be allocated to the west division at the end
of the year?
a.$340,187
b.$256,238
c.$325,900
d.$266,613
15) hauber corporation would like to use target costing for a new product it is
considering introducing. at a selling price of $26 per unit, management projects sales of
60,000 units. the new product would require an investment of $300,000. the desired
return on investment is 20%.
the desired profit according to the target costing calculations is:
a.$312,000
b.$60,000
c.$1,560,000
d.$1,500,000
16) worden hospital bases its budgets on patient-visits. the hospital’s static budget for
february appears below:
the total fixed cost at the activity level of 4,700 patient-visits per month should be:
a.$162,620
b.$148,780
c.$93,060
d.$85,140
17) the following transactions occurred last year at jowlson company:
based solely on the above information, the net cash provided by financing activities for
the year on the statement of cash flows would be:
a.$(131,000)
b.$279,000
c.$(63,000)
d.$(85,000)
18) brailey corporation, which makes helicopter rotors, has provided the following data
for october:
required:
compute the rate variances and the efficiency variances for indirect labor and power and
indicate whether they are favorable or unfavorable.
19) an increase in the market price of a company’s common stock will immediately
affect its:
a.dividend yield ratio
b.debt-to-equity ratio
c.earnings per share of common stock
d.dividend payout ratio
20) hugh corporation applies manufacturing overhead to products on the basis of
standard machine-hours. budgeted and actual overhead costs for the most recent month
appear below:
the company based its original budget on 6,700 machine-hours. the company actually
worked 6,810 machine-hours during the month. the standard hours allowed for the
actual output of the month totaled 6,940 machine-hours. what was the overall fixed
manufacturing overhead budget variance for the month?
a.$960 favorable
b.$370 unfavorable
c.$960 unfavorable
d.$370 favorable