1) data concerning plaxco corporation’s single product appear below:
assume the company’s monthly target profit is $11,000. the unit sales to attain that
target profit is closest to:
a.4,818
b.5,219
c.4,181
d.2,505
2) abdol company, which has only one product, has provided the following data
concerning its most recent month of operations:
what is the net operating income for the month under variable costing?
a.$13,000
b.$5,700
c.$9,500
d.$3,500
3) (ignore income taxes in this problem.) bleeker corporation is investigating buying a
small used aircraft for the use of its executives. the aircraft would have a useful life of 8
years. the company uses a discount rate of 12% in its capital budgeting. the net present
value of the initial investment and the annual operating cash cost is -$240,849.
management is having difficulty estimating the annual benefit of having the aircraft and
estimating the salvage value of the aircraft.
ignoring any salvage value, to the nearest whole dollar how large would the annual
benefit have to be to make the investment in the aircraft financially attractive?
a.$30,106
b.$240,849
c.$28,902
d.$48,480
4) (ignore income taxes in this problem.) parks company is considering an investment
proposal in which a working capital investment of $10,000 would be required. the
investment would provide cash inflows of $2,000 per year for six years. the working
capital would be released for use elsewhere when the project is completed. if the
company’s discount rate is 10%, the investment’s net present value is:
a.$1,290
b.$(1,290)
c.$2,000
d.$4,350
5) an example of a discretionary fixed cost is:
a.insurance
b.taxes on real estate
c.management training
d.depreciation of buildings and equipment
6) dagg corporation reported the following data for the month of october:
the cost of goods manufactured for october was:
a.$176,000
b.$168,000
c.$162,000
d.$165,000
7) the following events occurred last year for the cashback company:
based solely on the above information, the net cash provided by financing activities for
the year on the statement of cash flows was:
a.$44,000
b.$48,000
c.$25,000
d.$15,000
8) the dexon company makes and sells a single product called a mip and uses a standard
costing system. the following standards have been established for one unit of mip:
there were no inventories of any kind on august 1. during august, the following events
occurred:
purchased 15,000 board feet at the total cost of $24,000.
used 12,000 board feet to produce 2,100 mips.
used 1,700 hours of direct labor time at a total cost of $20,060.
to record the incurrence of direct labor costs and its use in production, the general
ledger would include what entry to the labor efficiency variance account?
a.$480 credit
b.$240 debit
c.$1,200 debit
d.$1,200 credit
9) the following standards for variable overhead have been established for a company
that makes only one product:
the following data pertain to operations for the last month:
what is the variable overhead rate variance for the month?
a.$6,226 u
b.$2,050 u
c.$1,940 f
d.$8,166 u
10) kimbeth manufacturing makes dust density sensors (dds), a safety device for the
mining industry. the company uses a process costing system and has only a single
processing department. the following information pertains to operations for the month
of may:
the beginning work in process inventory was 60% complete with respect to materials
and 20% complete with respect to conversion costs. the ending work in process
inventory was 90% complete with respect to materials and 40% complete with respect
to conversion costs. the costs were as follows:
using the fifo method, the equivalent units for may for materials are:
a.82,400 units
b.104,000 units
c.107,200 units
d.108,000 units
11) brubacher company makes four products in a single facility. these products have the
following unit product costs:
the grinding machines are potentially the constraint in the production facility. a total of
20,500 minutes are available per month on these machines.
direct labor is a variable cost in this company.
which product makes the most profitable use of the grinding machines?
a.product a
b.product b
c.product c
d.product d
12) buffaloe corporation manufactures and sells a single product. the company uses
units as the measure of activity in its budgets and performance reports. during august,
the company budgeted for 5,200 units, but its actual level of activity was 5,250 units.
the company has provided the following data concerning the formulas used in its
budgeting and its actual results for august:
the direct labor in the planning budget for august would be closest to:
a.$40,040
b.$41,015
c.$40,425
d.$40,624