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173) Lambeth Corporation has provided the following information:
Cost per
Unit
Cost per
Period
Direct materials
$
4.90
Direct labor
$
2.95
Variable manufacturing overhead
$
1.25
Fixed manufacturing overhead
$
8,000
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) $26,550
B) $23,550
C) $33,300
D) $27,300
174) Lambeth Corporation has provided the following information:
Cost per
Unit
Cost per
Period
Direct materials
$
4.90
Direct labor
$
2.95
Variable manufacturing overhead
$
1.25
Fixed manufacturing overhead
$
8,000
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) $8,000
B) $11,750
C) $9,750
D) $3,750
175) Mccaskell Corporation's relevant range of activity is 7,000 units to 11,000 units. When it
produces and sells 9,000 units, its average costs per unit are as follows:
Average Cost
per Unit
Direct materials
$
6.30
Direct labor
$
3.65
Variable manufacturing overhead
$
1.75
Fixed manufacturing overhead
$
9.90
Fixed selling expense
$
2.25
Fixed administrative expense
$
1.80
Sales commissions
$
1.00
Variable administrative expense
$
0.50
If 8,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:
A) $79,600
B) $93,600
C) $87,600
D) $172,800
176) Mccaskell Corporation's relevant range of activity is 7,000 units to 11,000 units. When it
produces and sells 9,000 units, its average costs per unit are as follows:
Average Cost
per Unit
Direct materials
$
6.30
Direct labor
$
3.65
Variable manufacturing overhead
$
1.75
Fixed manufacturing overhead
$
9.90
Fixed selling expense
$
2.25
Fixed administrative expense
$
1.80
Sales commissions
$
1.00
Variable administrative expense
$
0.50
If 8,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
A) $14,000
B) $93,200
C) $89,100
D) $103,100
177) Kesterson Corporation has provided the following information:
Cost per
Unit
Cost per
Period
Direct materials
$
6.20
Direct labor
$
3.10
Variable manufacturing overhead
$
1.35
Fixed manufacturing overhead
$
14,000
Sales commissions
$
1.50
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
4,500
If 4,000 units are produced, the total amount of manufacturing overhead cost is closest to:
A) $16,300
B) $25,600
C) $19,400
D) $13,200
178) Kesterson Corporation has provided the following information:
Cost per
Unit
Cost per
Period
Direct materials
$
6.20
Direct labor
$
3.10
Variable manufacturing overhead
$
1.35
Fixed manufacturing overhead
$
14,000
Sales commissions
$
1.50
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
4,500
If the selling price is $21.90 per unit, the contribution margin per unit sold is closest to:
A) $9.35
B) $12.60
C) $8.45
D) $5.65
179) Kesterson Corporation has provided the following information:
Cost per
Unit
Cost per
Period
Direct materials
$
6.20
Direct labor
$
3.10
Variable manufacturing overhead
$
1.35
Fixed manufacturing overhead
$
14,000
Sales commissions
$
1.50
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
4,500
If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:
A) $55,800
B) $63,900
C) $80,700
D) $64,800
180) Kesterson Corporation has provided the following information:
Cost per
Unit
Cost per
Period
Direct materials
$
6.20
Direct labor
$
3.10
Variable manufacturing overhead
$
1.35
Fixed manufacturing overhead
$
14,000
Sales commissions
$
1.50
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
4,500
If 6,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
A) $8,100
B) $24,900
C) $22,100
D) $14,000
181) Kesterson Corporation has provided the following information:
Cost per
Unit
Cost per
Period
Direct materials
$
6.20
Direct labor
$
3.10
Variable manufacturing overhead
$
1.35
Fixed manufacturing overhead
$
14,000
Sales commissions
$
1.50
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
4,500
The incremental manufacturing cost that the company will incur if it increases production from
5,000 to 5,001 units is closest to:
A) $10.65
B) $13.45
C) $16.25
D) $13.95
182) Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports
heroes. Shown below are some of the costs incurred by Vignana for last year:
Cost of clay used in production
$
65,000
Wages paid to the workers who paint the figurines
$
90,000
Wages paid to the sales manager's secretary
$
22,000
Cost of junk mail advertising
$
47,000
What is the total of the direct costs above?
A) $65,000
B) $112,000
C) $155,000
D) $202,000
183) Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports
heroes. Shown below are some of the costs incurred by Vignana for last year:
Cost of clay used in production
$
65,000
Wages paid to the workers who paint the figurines
$
90,000
Wages paid to the sales manager's secretary
$
22,000
Cost of junk mail advertising
$
47,000
What is the total of the product costs above?
A) $0
B) $69,000
C) $155,000
D) $159,000
184) Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports
heroes. Shown below are some of the costs incurred by Vignana for last year:
Cost of clay used in production
$
65,000
Wages paid to the workers who paint the figurines
$
90,000
Wages paid to the sales manager's secretary
$
22,000
Cost of junk mail advertising
$
47,000
What is the total of the conversion costs above?
A) $65,000
B) $69,000
C) $90,000
D) $155,000
185) A partial listing of costs incurred at Archut Corporation during September appears below:
Direct materials
$
113,000
Utilities, factory
$
5,000
Administrative salaries
$
81,000
Indirect labor
$
25,000
Sales commissions
$
48,000
Depreciation of production equipment
$
20,000
Depreciation of administrative equipment
$
30,000
Direct labor
$
129,000
Advertising
135,000
The total of the manufacturing overhead costs listed above for September is:
A) $586,000
B) $50,000
C) $292,000
D) $30,000
186) A partial listing of costs incurred at Archut Corporation during September appears below:
Direct materials
$
113,000
Utilities, factory
$
5,000
Administrative salaries
$
81,000
Indirect labor
$
25,000
Sales commissions
$
48,000
Depreciation of production equipment
$
20,000
Depreciation of administrative equipment
$
30,000
Direct labor
$
129,000
Advertising
135,000
The total of the product costs listed above for September is:
A) $292,000
B) $294,000
C) $50,000
D) $586,000
187) A partial listing of costs incurred at Archut Corporation during September appears below:
Direct materials
$
113,000
Utilities, factory
$
5,000
Administrative salaries
$
81,000
Indirect labor
$
25,000
Sales commissions
$
48,000
Depreciation of production equipment
$
20,000
Depreciation of administrative equipment
$
30,000
Direct labor
$
129,000
Advertising
135,000
The total of the period costs listed above for September is:
A) $294,000
B) $344,000
C) $292,000
D) $50,000
188) A partial listing of costs incurred during March at Febbo Corporation appears below:
Factory supplies
$
9,000
Administrative wages and salaries
$
85,000
Direct materials
$
126,000
Sales staff salaries
$
30,000
Factory depreciation
$
33,000
Corporate headquarters building rent
$
43,000
Indirect labor
$
26,000
Marketing
$
65,000
Direct labor
$
99,000
The total of the period costs listed above for March is:
A) $68,000
B) $293,000
C) $291,000
D) $223,000
189) A partial listing of costs incurred during March at Febbo Corporation appears below:
Factory supplies
$
9,000
Administrative wages and salaries
$
85,000
Direct materials
$
126,000
Sales staff salaries
$
30,000
Factory depreciation
$
33,000
Corporate headquarters building rent
$
43,000
Indirect labor
$
26,000
Marketing
$
65,000
Direct labor
$
99,000
The total of the manufacturing overhead costs listed above for March is:
A) $68,000
B) $35,000
C) $516,000
D) $293,000
190) A partial listing of costs incurred during March at Febbo Corporation appears below:
Factory supplies
$
9,000
Administrative wages and salaries
$
85,000
Direct materials
$
126,000
Sales staff salaries
$
30,000
Factory depreciation
$
33,000
Corporate headquarters building rent
$
43,000
Indirect labor
$
26,000
Marketing
$
65,000
Direct labor
$
99,000
The total of the product costs listed above for March is:
A) $516,000
B) $68,000
C) $293,000
D) $223,000
191) Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it
produces and sells 9,000 units, its average costs per unit are as follows:
Average Cost
per Unit
Direct materials
$
5.50
Direct labor
$
3.90
Variable manufacturing overhead
$
1.30
Fixed manufacturing overhead
$
13.50
Fixed selling expense
$
2.25
Fixed administrative expense
$
1.80
Sales commissions
$
0.50
Variable administrative expense
$
0.45
If 10,000 units are produced, the average fixed manufacturing cost per unit produced is closest
to:
A) $15.00
B) $12.83
C) $13.50
D) $12.15
192) Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it
produces and sells 9,000 units, its average costs per unit are as follows:
Average Cost
per Unit
Direct materials
$
5.50
Direct labor
$
3.90
Variable manufacturing overhead
$
1.30
Fixed manufacturing overhead
$
13.50
Fixed selling expense
$
2.25
Fixed administrative expense
$
1.80
Sales commissions
$
0.50
Variable administrative expense
$
0.45
If 10,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:
A) $128,250
B) $121,500
C) $148,500
D) $135,000
