1) the best estimate of the total contribution margin when 4,300 units are sold is:
a.$134,590
b.$43,430
c.$64,070
d.$38,270
2) lemoine corporation’s standard wage rate is $11.50 per direct labor-hour (dlh) and
according to the standards, each unit of output requires 5.5 dlhs. in february, 8,900 units
were produced, the actual wage rate was $11.60 per dlh, and the actual hours were
51,210 dlhs. the labor rate variance for february would be recorded as a:
a.debit of $5,121
b.credit of $4,895
c.credit of $5,121
d.debit of $4,895
3) eccles corporation uses a job-order costing system and applies overhead to jobs using
a predetermined overhead rate. during the year the company’s finished goods inventory
account was debited for $384,000 and credited for $325,900. the ending balance in the
finished goods inventory account was $72,100. at the end of the year, manufacturing
overhead was underapplied by $5,400.
the manufacturing overhead was:
a.$3,300 overapplied
b.$3,300 underapplied
c.$100 overapplied
d.$100 underapplied
4)
ternasky corporation has provided the following data from its activity-based costing
accounting system:
distribution of resource consumption across activity cost pools:
the “other” activity cost pool consists of the costs of idle capacity and
organization-sustaining costs that are not assigned to products.
required:
a. determine the total amount of indirect factory wages and factory equipment
depreciation costs that would be allocated to the product processing activity cost pool.
show your work!
b. determine the total amount of indirect factory wages and factory equipment
depreciation costs that would not be assigned to products. show your work!
5) galli corporation uses the fifo method in its process costing system. the grinding
department started the month with 10,000 units in its beginning work in process
inventory that were 30% complete with respect to conversion costs. an additional
73,000 units were transferred in from the prior department during the month to begin
processing in the grinding department. during the month 66,000 units were completed
in the grinding department and transferred to the next processing department. there
were 17,000 units in the ending work in process inventory of the grinding department
that were 40% complete with respect to conversion costs.
what were the equivalent units for conversion costs in the grinding department for the
month?
a.69,800
b.80,000
c.72,800
d.66,000
6) ceder products is a division of a major corporation. last year the division had total
sales of $21,520,000, net operating income of $538,000, and average operating assets of
$8,000,000. the company’s minimum required rate of return is 18%.
the division’s residual income is closest to:
a.$(902,000)
b.$(3,335,600)
c.$1,978,000
d.$538,000
7) annarummo inc., an escrow agent, has provided the following data concerning its
office expenses:
management believes that office expense is a mixed cost that depends on the number of
escrows completed. note: real estate purchases usually involve the services of an escrow
agent that holds funds and prepares documents to complete the transaction.
using the high-low method, the estimate of the fixed component of office expense per
month is closest to:
a.$12,724
b.$11,333
c.$9,521
d.$14,115
8) munos publishing company uses a job-order costing system to collect costs related to
the manufacture of specialty publications for corporate training.
what journal entry would munos make to record the application of $1,200 of
manufacturing overhead to job kn672?
a.
b.
c.
d.
9) lisa inc.’s balance sheet appears below:
the company’s sales for the year were $300 thousand, its cost of goods sold was $220
thousand, and its net income was $35 thousand. all sales were on credit. preferred
dividends for the year were $5 thousand.
lisa inc.’s accounts receivable turnover for year 2 was closest to:
a.4.9
b.5.9
c.6.7
d.8.0
10) richards company has the following budgeted sales for the first half of next year:
the company is in the process of preparing a cash budget and must determine the
expected cash collections by month. to this end, the following information has been
assembled:
collections on credit sales:
60% in month of sale
30% in month following sale
10% in second month following sale
assume that the accounts receivable balance on january 1 is $70,000. of this amount,
$60,000 represents uncollected december sales and $10,000 represents uncollected
november sales. given these data, the total cash collected during january would be:
a.$270,000
b.$420,000
c.$345,000
d.$360,000