104. Management of Lewallen Corporation has asked your help as an intern in preparing some
key reports for September. Direct materials cost was $57,000, direct labor cost was $43,000, and
manufacturing overhead was $71,000. Selling expense was $15,000 and administrative expense
was $32,000.
The prime cost for September was:
105. Abare Corporation reported the following data for the month of December:
Direct materials $63,000
Direct labor cost $52,000
Manufacturing overhead $77,000
Selling expense $26,000
Administrative expense $36,000
The conversion cost for December was:
106. Abare Corporation reported the following data for the month of December:
Direct materials $63,000
Direct labor cost $52,000
Manufacturing overhead $77,000
Selling expense $26,000
Administrative expense $36,000
The prime cost for December was:
107. Krimton Corporation’s manufacturing costs last year consisted of $150,000 of direct
materials, $200,000 of direct labor, $40,000 of variable manufacturing overhead, and $25,000 of
fixed manufacturing overhead.
Prime cost was:
108. Krimton Corporation’s manufacturing costs last year consisted of $150,000 of direct
materials, $200,000 of direct labor, $40,000 of variable manufacturing overhead, and $25,000 of
fixed manufacturing overhead.
Conversion cost was:
109. A partial listing of costs incurred during December at Rooks Corporation appears below:
Factory supplies $7,000
Administrative wages and salaries $92,000
Direct materials $176,000
Sales staff salaries $32,000
Factory depreciation $52,000
Corporate headquarters building rent $47,000
Indirect labor $23,000
Marketing $136,000
Direct labor $82,000
The total of the period costs listed above for December is:
110. A partial listing of costs incurred during December at Rooks Corporation appears below:
Factory supplies $7,000
Administrative wages and salaries $92,000
Direct materials $176,000
Sales staff salaries $32,000
Factory depreciation $52,000
Corporate headquarters building rent $47,000
Indirect labor $23,000
Marketing $136,000
Direct labor $82,000
The total of the manufacturing overhead costs listed above for December is:
111. A partial listing of costs incurred during December at Rooks Corporation appears below:
Factory supplies $7,000
Administrative wages and salaries $92,000
Direct materials $176,000
Sales staff salaries $32,000
Factory depreciation $52,000
Corporate headquarters building rent $47,000
Indirect labor $23,000
Marketing $136,000
Direct labor $82,000
The total of the product costs listed above for December is:
112. A partial listing of costs incurred at Gilhooly Corporation during September appears
below:
Direct materials $183,000
Utilities, factory $9,000
Administrative salaries $90,000
Indirect labor $25,000
Sales commissions $33,000
Depreciation of production equipment $25,000
Depreciation of administrative equipment $32,000
Direct labor $124,000
Advertising $148,000
The total of the manufacturing overhead costs listed above for September is:
113. A partial listing of costs incurred at Gilhooly Corporation during September appears
below:
Direct materials $183,000
Utilities, factory $9,000
Administrative salaries $90,000
Indirect labor $25,000
Sales commissions $33,000
Depreciation of production equipment $25,000
Depreciation of administrative equipment $32,000
Direct labor $124,000
Advertising $148,000
The total of the product costs listed above for September is:
114. A partial listing of costs incurred at Gilhooly Corporation during September appears
below:
Direct materials $183,000
Utilities, factory $9,000
Administrative salaries $90,000
Indirect labor $25,000
Sales commissions $33,000
Depreciation of production equipment $25,000
Depreciation of administrative equipment $32,000
Direct labor $124,000
Advertising $148,000
The total of the period costs listed above for September is:
115. At a sales volume of 37,000 units, Maks Corporation’s property taxes (a cost that is fixed
with respect to sales volume) total $802,900.
To the nearest whole dollar, what should be the total property taxes at a sales volume of 39,700
units? (Assume that this sales volume is within the relevant range.)
116. At a sales volume of 37,000 units, Maks Corporation’s property taxes (a cost that is fixed
with respect to sales volume) total $802,900.
To the nearest whole cent, what should be the average property tax per unit at a sales volume of
40,300 units? (Assume that this sales volume is within the relevant range.)
117. Corcetti Company manufactures and sells prewashed denim jeans. Large rolls of denim
cloth are purchased and are first washed in a giant washing machine. After the cloth is dried, it is
cut up into jean pattern shapes and then sewn together. The completed jeans are sold to various
retail chains.
Which of the following terms could be used to correctly describe the cost of the soap used to
wash the denim cloth?
Direct Cost Product Cost
A) Yes Yes
B) Yes No
C) No Yes
D) No No
118. Corcetti Company manufactures and sells prewashed denim jeans. Large rolls of denim
cloth are purchased and are first washed in a giant washing machine. After the cloth is dried, it is
cut up into jean pattern shapes and then sewn together. The completed jeans are sold to various
retail chains.
Which of the following terms could be used to correctly describe the wages paid to the workers
that cut up the cloth into the jean pattern shapes?
Conversion Cost Variable Cost
A) Yes Yes
B) Yes No
C) No Yes
D) No No
119. Corcetti Company manufactures and sells prewashed denim jeans. Large rolls of denim
cloth are purchased and are first washed in a giant washing machine. After the cloth is dried, it is
cut up into jean pattern shapes and then sewn together. The completed jeans are sold to various
retail chains.
Which of the following terms could be used to correctly describe the cost of the thread used to
sew the jeans together?
Manufacturing Overhead Cost Fixed Cost
A) Yes Yes
B) Yes No
C) No Yes
D) No No
120. At an activity level of 8,300 machine-hours in a month, Baudry Corporation’s total variable
maintenance cost is $220,448 and its total fixed maintenance cost is $556,764.
What would be the total variable maintenance cost at an activity level of 8,600 machine-hours in
a month? Assume that this level of activity is within the relevant range.
121. At an activity level of 8,300 machine-hours in a month, Baudry Corporation’s total variable
maintenance cost is $220,448 and its total fixed maintenance cost is $556,764.
What would be the average fixed maintenance cost per unit at an activity level of 8,600 machine–
hours in a month? Assume that this level of activity is within the relevant range.
122. Emerton Corporation leases its corporate headquarters building. This lease cost is fixed
with respect to the company’s sales volume. In a recent month in which the sales volume was
32,000 units, the lease cost was $716,800.
To the nearest whole dollar, what should be the total lease cost at a sales volume of 30,900 units
in a month? (Assume that this sales volume is within the relevant range.)
123. Emerton Corporation leases its corporate headquarters building. This lease cost is fixed
with respect to the company’s sales volume. In a recent month in which the sales volume was
32,000 units, the lease cost was $716,800.
To the nearest whole cent, what should be the average lease cost per unit at a sales volume of
34,400 units in a month? (Assume that this sales volume is within the relevant range.)