1) Nixon’s Diner bakes pies in large batches. One batch of pies has the following
standard costs and amounts:
Nixon’s Diner baked 425 batches of pies in the most recent month. Actual costs and
usage levels were as follows:
Required:
a.Calculate the material price variance.
b.Calculate the material quantity variance.
c.Calculate the labor rate variance.
d.Calculate the labor efficiency variance.
2) To follow is information about the units produced and total manufacturing costs for
Pine Enterprises for the past six months.
Using the high-low method, what is the variable cost per unit?
A) $1.44
B) $1.04
C) $0.50
D) $2.00
3) A company reported the following amounts of net income:
Which of the following is the percentage change from Year 1 to Year 2?
A) 150.00%
B) 110.00%
C) 40.00%
D) 50.00%
4) Elk Manufacturing has budgeted the following amounts for its next fiscal year:
To maintain the original breakeven sales in units if fixed expenses were to increase by
20%, the selling price per unit would have to be
A) increased by 65.00%.
B) increased by 15.00%.
C) decreased by 15.00%.
D) decreased by 65.00%.
5) The following data relate to Sorrentino Corporation for last year:
What is the net cash provided by operating activities for last year on the statement of
cash flows for Sorrentino Corporation?
A) $130,000
B) $142,000
C) $173,000
D) $177,000
6) The McCumber Corporation data for the current year:
With respect to long-term liabilities, what would a horizontal analysis report?
A) Long-term liabilities decreased by 6.15%.
B) Long-term liabilities increased by $8,000.
C) Long-term liabilities increased by 6.15%.
D) Long-term liabilities decreased by $1,800.
7) Compute the missing amounts.
8) Using the direct method to prepare the statement of cash flows, cash payments to
supplies is computed as
A) interest expense minus the decrease in accounts payable.
B) interest expense minus the decrease in merchandise inventory.
C) purchases minus the increase in accounts payable.
D) interest expense minus the increase in merchandise inventory.
9) In the last reporting period, Helena’s Heavenly Fixture Company recorded 100,000
units sold for the first time in the history of the company. The price per unit was $89.99
and variable costs per unit at $36.39. Showing all work in the space provided, compute
the contribution margin. Next, compute the fixed costs if the operating income is
$4,020,000.
A) $5,360,000; $1,340,000
B) $5,500,000; $1,360,000
C) $5,575,000; $1,375,000
D) $5,600,000; $1,425,000