Young Company has a tax rate of 40 percent. Information for the company is as
follows:
What is the EVA if the before-tax operating income is $1,500,000?
A.$1,134,000
B.$402,000
C.$534,000
D.$(198,000)
KF Company
KF Company uses standard costing. The company reported the following information
for the current period:
Refer to KF Company. Calculate the variable overhead efficiency variance.
A.$1,000 U
B.$ 500 F
C.$1,000 F
D.$ 500 U
Under normal costing, the Predetermined Manufacturing Overhead Rate equals
A.Actual Manufacturing Overhead divided by the Actual Activity
Which of the following is not usually one of the perspectives used in the balanced
scorecard?
A.Learning and growth
B.Congeniality
C.Customer
D.Financial
Goal congruence occurs if members of an organization have incentives to perform in
who’s interest?
A.the firm’s interest.
B.their own economic interest.
C.the national interest.
D.all of the above
How is EVA (economic value added) calculated?
A.Net Operating Profit After Tax – [Weighted-Average Cost of Capital x (Total Assets –
Non-Interest-Bearing Debt)].
B.the amount of earnings generated above the cost of funds invested to generate those
earnings.
C.Net Operating Profit After Tax – [Weighted-Average Cost of Capital x (Total Assets –
Non-Interest-Bearing Debt)], and the amount of earnings generated above the cost of
funds invested to generate those earnings.
D.None of the answers is correct.
Java Gourmet Coffee
Java Gourmet Coffee reports the following data for April 2010 where 200,000 pounds
of roasted gourmet coffee beans were actually produced (note: standard costs do not
allow for any wastage), Actual:
Standard:
Refer to Java Gourmet Coffee. Calculate the direct labor price variance.
A.$11,000 F
B.$9,000 U
C.$20,000 U
D.$9,500 U
Lydia Company projects the following sales in units for the third quarter of the year:
If the company wishes to maintain an inventory balance of 5,000 units and has 2,500
units on hand at the end of June, how many units will need to be produced in July?
A.10,000
B.12,500
C.15,000
D.17,500
Which of the following represents the performance evaluation tool that integrates
financial and nonfinancial measures to promote achieving the company’s goals and
objectives?
A.PERT chart.
B.balanced scorecard.
C.Pareto chart.
D.control chart.
What is throughput contribution?
A.sales dollars minus direct materials costs.
B.sales dollars minus direct materials and direct labor costs.
C.sales dollars minus direct materials, direct labor, and overhead costs.
D.sales dollars minus actual total direct and indirect costs.
How is differential analysis used to determine when to add or drop parts of an
operation?
What is the purpose of the return on investment (ROI) calculation and what are its
shortcomings?
Garfield Company has two production departments and a maintenance department. In
addition, the company keeps other costs for the general plant in a separate account. The
estimated cost data for Year 1 follow:
The general plant services the three departments in the following proportions: 50
percent (Department 1); 30 percent (Department 2); 20 percent (Maintenance).
Required:
Allocate maintenance costs based on maintenance hours. Allocate maintenance
department and general plant costs to the production departments. Use the step method,
starting with general plant costs.
Identify ethical issues in job costing.
Baxter Corporation’s master budget calls for the production of 5,000 units of product
monthly. The master budget includes indirect labor of $144,000 annually; Baxter
considers indirect labor to be a variable cost. During the month of April, 4,500 units of
product were produced, and indirect labor costs of $10,100 were incurred. What would
be the budget variance for indirect labor utilizing flexible budgeting?
Susan Shumaker assisted in developing break-even points for various products within
her company. She was hired by another company to determine selling prices of their
products. Susan feels it is unacceptable to use the information she gathered for her
previous employer, but is being pressured by her new supervisor to divulge this
information. What should Susan do?
Resources used versus resources supplied. Information about two activities for the
Sunrise Corporation follows:
Required: Compute unused capacity for energy and marketing.
What are the four quality costing categories? Include in your answer at least three
examples for each category.