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1) kuczenski corporation's cost formula for its manufacturing overhead is $45,700 per
month plus $53 per machine-hour. for the month of march, the company planned for
activity of 6,200 machine-hours, but the actual level of activity was 6,150
machine-hours. the actual manufacturing overhead for the month was $373,630.
the activity variance for manufacturing overhead in march would be closest to:
a.$670 u
b.$670 f
c.$2,650 f
d.$2,650 u
2) at a break-even point of 400 units sold, variable expenses were $4,000 and fixed
expenses were $2,000. what will the 401st unit sold contribute to profit?
a.$0
b.$5
c.$10
d.$15
3) earll company's quality cost report is to be based on the following data:
what would be the total prevention cost appearing on the quality cost report?
a.$145,000
b.$75,000
c.$93,000
d.$76,000
4) kaighn corporation has two divisions: the west division and the east division. the
corporation's net operating income is $18,500. the west division's divisional segment
margin is $27,700 and the east division's divisional segment margin is $49,400. what is
the amount of the common fixed expense not traceable to the individual divisions?
a.$46,200
b.$67,900
c.$77,100
d.$58,600
5) austin manufacturing had the following operating data for the year just ended.
management plans to improve the quality of its only product by: (1) replacing a
component that costs $3.50 with a higher-grade component that costs $5.50; and (2)
renting a packing machine for $18,000 a year. if the desired target profit is $288,000,
the company must sell:
a.19,300 units
b.21,316 units
c.22,500 units
d.20,842 units
6) witherington corporation manufactures and sells a single product. the company uses
units as the measure of activity in its budgets and performance reports. during june, the
company budgeted for 7,800 units, but its actual level of activity was 7,850 units. the
company has provided the following data concerning the formulas used in its budgeting
and its actual results for june:
the manufacturing overhead in the flexible budget for june would be closest to:
a.$57,435
b.$54,794
c.$57,380
d.$55,498
7) wisneski corporation uses the step-down method to allocate service department costs
to operating departments. the company has two service departments, general
management and physical plant, and two operating departments, sales and after-sales.
data concerning those departments follow:
general management department costs are allocated first on the basis of employee time
and physical plant department costs are allocated second on the basis of space occupied.
the total after-sales department cost after allocations is closest to:
a.$251,200
b.$261,249
c.$263,460
d.$262,820
8) bawcutt company, which has only one product, has provided the following data
concerning its most recent month of operations:
what is the unit product cost for the month under variable costing?
a.$93
b.$62
c.$66
d.$97
9) tator corporation reported the following data for the month of april:
the net operating income for april was:
a.$22,000
b.$81,000
c.$46,000
d.$104,000
10) kaaihue detailing's cost formula for its materials and supplies is $2,750 per month
plus $17 per vehicle. for the month of april, the company planned for activity of 95
vehicles, but the actual level of activity was 135 vehicles. the actual materials and
supplies for the month was $4,850.
the spending variance for materials and supplies in april would be closest to:
a.$195 f
b.$485 f
c.$195 u
d.$485 u
11) the west division of fitzmaurice corporation had average operating assets of
$450,000 and net operating income of $87,300 in november. the minimum required rate
of return for performance evaluation purposes is 18%.
what was the west division's minimum required return in november?
a.$87,300
b.$15,714
c.$96,714
d.$81,000
12) kiefert corporation has provided the following data concerning its two productsa70
and o48:
the total amount of the constrained resource available each month is 54,800 grams. each
unit of product a70 requires 8 grams of the constrained resource and each unit of
product o48 requires 18 grams. what is the maximum contribution margin the company
can earn per month?
a.$447,680
b.$508,160
c.$424,500
d.$413,120
13) slosh cleaning corporation services both residential and commercial customers.
slosh expects the following operating results next year for each type of customer:
slosh expects to have $18,000 in fixed expenses next year. what would slosh's total
dollar sales have to be next year in order to generate a profit of $90,000?
a.$216,000
b.$250,000
c.$270,000
d.$300,000
