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153) The following cost data pertain to the operations of Quinonez Department Stores, Inc., for
the month of September.
Corporate headquarters building lease
$
77,000
Cosmetics Department sales commissions--Northridge Store
$
4,000
Corporate legal office salaries
$
59,000
Store manager's salary-Northridge Store
$
11,000
Heating-Northridge Store
$
10,000
Cosmetics Department cost of sales--Northridge Store
$
37,000
Central warehouse lease cost
$
16,000
Store security-Northridge Store
$
12,000
Cosmetics Department manager's salary--Northridge Store
$
4,000
The Northridge Store is just one of many stores owned and operated by the company. The
Cosmetics Department is one of many departments at the Northridge Store. The central
warehouse serves all of the company's stores.
What is the total amount of the costs listed above that are NOT direct costs of the Northridge
Store?
A) $152,000
B) $33,000
C) $45,000
D) $77,000
154) The following cost data pertain to the operations of Ladwig Department Stores, Inc., for the
month of December.
Corporate legal office salaries
$
68,000
Shoe Department cost of sales--Brentwood Store
$
66,000
Corporate headquarters building lease
$
86,000
Store manager's salary--Brentwood Store
$
10,000
Shoe Department sales commissions--Brentwood Store
$
5,000
Store utilities--Brentwood Store
$
11,000
Shoe Department manager's salary--Brentwood Store
$
3,000
Central warehouse lease cost
$
3,000
Janitorial costs--Brentwood Store
11,000
The Brentwood Store is just one of many stores owned and operated by the company. The Shoe
Department is one of many departments at the Brentwood Store. The central warehouse serves
all of the company's stores.
What is the total amount of the costs listed above that are direct costs of the Shoe Department?
A) $66,000
B) $74,000
C) $106,000
D) $71,000
155) The following cost data pertain to the operations of Ladwig Department Stores, Inc., for the
month of December.
Corporate legal office salaries
$
68,000
Shoe Department cost of sales--Brentwood Store
$
66,000
Corporate headquarters building lease
$
86,000
Store manager's salary--Brentwood Store
$
10,000
Shoe Department sales commissions--Brentwood Store
$
5,000
Store utilities--Brentwood Store
$
11,000
Shoe Department manager's salary--Brentwood Store
$
3,000
Central warehouse lease cost
$
3,000
Janitorial costs--Brentwood Store
11,000
The Brentwood Store is just one of many stores owned and operated by the company. The Shoe
Department is one of many departments at the Brentwood Store. The central warehouse serves
all of the company's stores.
What is the total amount of the costs listed above that are NOT direct costs of the Brentwood
Store?
A) $74,000
B) $32,000
C) $157,000
D) $86,000
156) Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it
produces and sells 4,000 units, its average costs per unit are as follows:
Average Cost
per Unit
Direct materials
$
6.55
Direct labor
$
3.50
Variable manufacturing overhead
$
1.40
Fixed manufacturing overhead
$
2.60
Fixed selling expense
$
0.70
Fixed administrative expense
$
0.40
Sales commissions
$
1.50
Variable administrative expense
$
0.45
For financial reporting purposes, the total amount of product costs incurred to make 4,000 units
is closest to:
A) $56,200
B) $45,800
C) $60,200
D) $10,400
157) Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it
produces and sells 4,000 units, its average costs per unit are as follows:
Average Cost
per Unit
Direct materials
$
6.55
Direct labor
$
3.50
Variable manufacturing overhead
$
1.40
Fixed manufacturing overhead
$
2.60
Fixed selling expense
$
0.70
Fixed administrative expense
$
0.40
Sales commissions
$
1.50
Variable administrative expense
$
0.45
For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is
closest to:
A) $7,800
B) $8,100
C) $4,400
D) $12,200
158) Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it
produces and sells 4,000 units, its average costs per unit are as follows:
Average Cost
per Unit
Direct materials
$
6.55
Direct labor
$
3.50
Variable manufacturing overhead
$
1.40
Fixed manufacturing overhead
$
2.60
Fixed selling expense
$
0.70
Fixed administrative expense
$
0.40
Sales commissions
$
1.50
Variable administrative expense
$
0.45
If 3,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:
A) $30,150
B) $34,350
C) $42,150
D) $34,650
159) Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it
produces and sells 4,000 units, its average costs per unit are as follows:
Average Cost
per Unit
Direct materials
$
6.55
Direct labor
$
3.50
Variable manufacturing overhead
$
1.40
Fixed manufacturing overhead
$
2.60
Fixed selling expense
$
0.70
Fixed administrative expense
$
0.40
Sales commissions
$
1.50
Variable administrative expense
$
0.45
If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
A) $4,200
B) $10,400
C) $14,600
D) $12,000
160) Glew Corporation has provided the following information:
Cost per
Unit
Cost per
Period
Direct materials
$
6.00
Direct labor
$
3.35
Variable manufacturing overhead
$
1.75
Fixed manufacturing overhead
$
8,800
Sales commissions
$
1.00
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
4,000
For financial reporting purposes, the total amount of product costs incurred to make 4,000 units
is closest to:
A) $57,200
B) $8,800
C) $44,400
D) $53,200
161) Glew Corporation has provided the following information:
Cost per
Unit
Cost per
Period
Direct materials
$
6.00
Direct labor
$
3.35
Variable manufacturing overhead
$
1.75
Fixed manufacturing overhead
$
8,800
Sales commissions
$
1.00
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
4,000
For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is
closest to:
A) $6,400
B) $9,600
C) $4,000
D) $5,600
162) Glew Corporation has provided the following information:
Cost per
Unit
Cost per
Period
Direct materials
$
6.00
Direct labor
$
3.35
Variable manufacturing overhead
$
1.75
Fixed manufacturing overhead
$
8,800
Sales commissions
$
1.00
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
4,000
If 3,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:
A) $33,300
B) $31,050
C) $28,050
D) $39,900
163) Glew Corporation has provided the following information:
Cost per
Unit
Cost per
Period
Direct materials
$
6.00
Direct labor
$
3.35
Variable manufacturing overhead
$
1.75
Fixed manufacturing overhead
$
8,800
Sales commissions
$
1.00
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
4,000
If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
A) $5,250
B) $11,850
C) $8,800
D) $14,050
164) Schwiesow Corporation has provided the following information:
Cost per
Unit
Cost per
Period
Direct materials
$
7.05
Direct labor
$
3.50
Variable manufacturing overhead
$
1.65
Fixed manufacturing overhead
$
11,000
Sales commissions
$
1.00
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
5,500
For financial reporting purposes, the total amount of product costs incurred to make 5,000 units
is closest to:
A) $72,000
B) $77,000
C) $11,000
D) $61,000
165) Schwiesow Corporation has provided the following information:
Cost per
Unit
Cost per
Period
Direct materials
$
7.05
Direct labor
$
3.50
Variable manufacturing overhead
$
1.65
Fixed manufacturing overhead
$
11,000
Sales commissions
$
1.00
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
5,500
For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is
closest to:
A) $12,500
B) $8,300
C) $7,000
D) $5,500
166) Schwiesow Corporation has provided the following information:
Cost per
Unit
Cost per
Period
Direct materials
$
7.05
Direct labor
$
3.50
Variable manufacturing overhead
$
1.65
Fixed manufacturing overhead
$
11,000
Sales commissions
$
1.00
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
5,500
If 4,000 units are sold, the variable cost per unit sold is closest to:
A) $13.60
B) $12.20
C) $14.40
D) $16.90
167) Schwiesow Corporation has provided the following information:
Cost per
Unit
Cost per
Period
Direct materials
$
7.05
Direct labor
$
3.50
Variable manufacturing overhead
$
1.65
Fixed manufacturing overhead
$
11,000
Sales commissions
$
1.00
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
5,500
If 4,000 units are sold, the total variable cost is closest to:
A) $54,400
B) $48,800
C) $57,600
D) $67,600
168) Schwiesow Corporation has provided the following information:
Cost per
Unit
Cost per
Period
Direct materials
$
7.05
Direct labor
$
3.50
Variable manufacturing overhead
$
1.65
Fixed manufacturing overhead
$
11,000
Sales commissions
$
1.00
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
5,500
If 4,000 units are produced, the total amount of manufacturing overhead cost is closest to:
A) $14,600
B) $17,600
C) $11,600
D) $23,600
169) Schwiesow Corporation has provided the following information:
Cost per
Unit
Cost per
Period
Direct materials
$
7.05
Direct labor
$
3.50
Variable manufacturing overhead
$
1.65
Fixed manufacturing overhead
$
11,000
Sales commissions
$
1.00
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
5,500
If the selling price is $18.70 per unit, the contribution margin per unit sold is closest to:
A) $5.10
B) $1.80
C) $4.30
D) $8.15
170) Schwiesow Corporation has provided the following information:
Cost per
Unit
Cost per
Period
Direct materials
$
7.05
Direct labor
$
3.50
Variable manufacturing overhead
$
1.65
Fixed manufacturing overhead
$
11,000
Sales commissions
$
1.00
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
5,500
If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:
A) $73,200
B) $69,300
C) $86,400
D) $63,300
171) Schwiesow Corporation has provided the following information:
Cost per
Unit
Cost per
Period
Direct materials
$
7.05
Direct labor
$
3.50
Variable manufacturing overhead
$
1.65
Fixed manufacturing overhead
$
11,000
Sales commissions
$
1.00
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
5,500
If 6,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
A) $23,100
B) $9,900
C) $11,000
D) $20,900
172) Schwiesow Corporation has provided the following information:
Cost per
Unit
Cost per
Period
Direct materials
$
7.05
Direct labor
$
3.50
Variable manufacturing overhead
$
1.65
Fixed manufacturing overhead
$
11,000
Sales commissions
$
1.00
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
5,500
The incremental manufacturing cost that the company will incur if it increases production from
5,000 to 5,001 units is closest to:
A) $14.40
B) $15.10
C) $16.90
D) $12.20
