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
Direct materials
$
Direct labor
Direct manufacturing cost per unit (a)
$
Number of units produced (b)
Total direct manufacturing cost (a) × (b)
$
23,550
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
($1.25 per unit × 3,000 units)
$
Total fixed manufacturing overhead cost
Total indirect manufacturing cost
$
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
Direct materials
$
Direct labor
Direct manufacturing cost per unit (a)
$
Number of units produced (b)
Total direct manufacturing cost (a) × (b)
$
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
($1.75 per unit × 8,000 units)
$
($9.90 per unit × 9,000 units*)
Total indirect manufacturing cost
$
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
$
Sales commissions
$
1.50
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
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
($1.35 per unit × 4,000 units)
$
5,400
Total fixed manufacturing overhead cost
14,000
Total manufacturing overhead cost (a)
$
19,400
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
$
Sales commissions
$
1.50
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
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
Selling price per unit
$
21.90
Direct materials
$
6.20
Direct labor
3.10
Variable manufacturing overhead
1.35
Sales commissions
1.50
Variable administrative expense
0.40
Variable cost per unit sold
12.55
Contribution margin per unit
$
9.35
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
$
Sales commissions
$
1.50
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
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
Direct materials
$
Direct labor
Direct manufacturing cost per unit (a)
$
Number of units produced (b)
Total direct manufacturing cost (a) × (b)
$
55,800
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
$
Sales commissions
$
1.50
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
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
($1.35 per unit × 6,000 units)
$
8,100
Total fixed manufacturing overhead cost
14,000
Total indirect manufacturing cost
22,100
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
$
Sales commissions
$
1.50
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
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
Direct materials
$
6.20
Direct labor
3.10
Variable manufacturing overhead
1.35
Incremental manufacturing cost
$
10.65
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
$
Wages paid to the workers who paint the figurines
$
Wages paid to the sales manager’s secretary
$
Cost of junk mail advertising
$
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
$
Wages paid to the workers who paint the figurines
$
Wages paid to the sales manager’s secretary
$
Cost of junk mail advertising
$
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
$
Wages paid to the workers who paint the figurines
$
Wages paid to the sales manager’s secretary
$
Cost of junk mail advertising
$
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
121,500
Number of units produced (b)
10,000
(b)
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
Fixed manufacturing overhead per unit
Number of units produced*
Total fixed manufacturing overhead cost