Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
1) Variable cost per labor-hour is $8.50. Fixed cost is $10,500. Calculate the total cost
for 350 labor hours. Machine hours during the period are 50.
A) $10,925
B) $13,475
C) $13,900
D) $3,400
2) Which of the following is the correct mathematical expression to calculate total
factor productivity?
A) Sales value of output produced Quantity of all inputs used
B) Quantity of output produced Quantity of the input used
C) Quantity of output produced Costs of all inputs used
D) Sales value of output produced Cost of inputs required to produce current year
production in previous year
3) Which of the following is the correct mathematical expression to calculate the fixed
overhead spending variance?
A) Static-budget amount - Flexible-budget amount
B) Flexible-budget amount - Actual costs incurred
C) Static-budget amount - Fixed overhead allocated for actual output
D) Flexible-budget amount - Fixed overhead allocated for actual output
4) The annual relevant total costs are at a minimum when relevant ________.
A) ordering costs are greater than the relevant carrying costs
B) carrying costs are greater than the relevant ordering costs
C) carrying costs are equal to relevant ordering costs
D) carrying costs are equal to relevant purchasing costs
5) Advocates of throughput costing argue that ________.
A) fixed manufacturing costs are also to be included as inventoriable costs
B) direct manufacturing labor is relatively fixed
C) direct materials costs are a cost of the period
D) only direct material costs are included as inventoriable costs
6) Stark Corporation has two departments, Car Rental and Truck Rental. Central costs
may be allocated to the two departments in various ways.
If advertising expense of $125,000 is allocated on the basis of sales, the amount
allocated to the Car Rental Department would be ________.
A) $83,333.33
B) $87,777.67
C) $86,666.67
D) $85,467.33
7) Winnz sells 8,000 units resulting in $100,000 of sales revenue, $35,000 of variable
costs, and $45,000 of fixed costs. The contribution margin percentage is ________.
A) 66.67%
B) 65.0%
C) 37.5%
D) 75.0%
8) ABC and traditional systems are quite similar in ________.
A) the treatment of direct costs
B) the allocation of overheads
C) evaluating performance
D) the identification of cost pools
9) Kason, Inc., expects to sell 20,000 pool cues for $12.00 each. Direct materials costs
are $2.00, direct manufacturing labor is $4.00, and manufacturing overhead is $0.80 per
pool cue. The following inventory levels apply to 2016:
On the 2016 budgeted income statement, what amount will be reported for cost of
goods sold?
A) $139,800
B) $136,000
C) $132,600
D) $153,000
10) The cost effect of productivity for variable costs is calculated by multiplying the
difference in actual input units used to produce current year output and units of input
required to produce current year output in previous year by the ________.
A) price per input unit of previous year
B) price per unit of capacity in the previous year
C) price per unit of capacity in the current year
D) price per input unit of current year
11) A manufacturing company prepays its insurance coverage for a three-year period.
The premium for the three years is $2,400 and is paid at the beginning of the first year.
Seventy percent of the premium applies to manufacturing operations and thirty percent
applies to selling and administrative activities. What amounts should be considered
product and period costs respectively for the first year of coverage?
Product Period
A) $800 $0
B) $0 $800
C) $560 $240
D) $240 $560
12) Strategic Analysis of Profitability of Ransham Company:
Income Statement Amounts in 2014 Revenue and Cost Effects of Growth
Component in 2015 Revenue and Cost Effects of Price-Recovery Component in
2015 Cost Effect of Productivity Component in 2015 Income Statement Amounts
in 2015
Revenues ($) 34,000 10,000 F 1,000 U (b) (e)
Costs 23,500 (a) 500 U (c) 26,100
Operating income 10,500 5,500 F 1,500 U 2,400 F (d)
What is the operating income amount for 2015 (d)?
A) $43,000
B) $25,000
C) $16,900
D) $46,000
13) Home Decor Inc., manufactures home cleaning products. The company has two
divisions, Bleach and Cleanser. Because of different accounting methods and inflation
rates, the company is considering multiple evaluation measures. The following
information is provided for 2015:
The company is currently using a 15% required rate of return.
What are Wheels's and Assembly's residual incomes based on book values,
respectively?
A) $74,000; $28,500
B) $61,800; $70,000
C) $63,500; $59.500
D) $28,500; $74,000
14) Shiffon Electronics manufactures music player. Its costing system uses two cost
categories, direct materials and conversion costs. Each product must pass through the
Assembly Department, the Programming department, and the Testing Department.
Direct materials are added at the beginning of the production process. Conversion costs
are allocated evenly throughout production. Shiffon Electronics uses weighted-average
costing.
The following information is available for the month of March 2015 for the Assembly
department.
The cost details for the month of March are as follows:
What is the direct materials cost per equivalent unit during March?
A) $995
B) $950
C) $636
D) $313
