1) wings co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours,
and had the following manufacturing overhead:
the total overhead of job #971 under the abc costing is:
a.$95
b.$380
c.$1,520
d.$2,300
e.$9,200
2) randall company manufactures products to customer specifications. a job costing
system is used to accumulate production costs. factory overhead cost was applied at
125% of direct labor cost. selected data concerning the past year’s operation of the
company are presented below.
the cost of goods manufactured during the year is:
a.$850,000
b.$348,000
c.$672,000
d.$835,000
e.$811,000
3) dye co. uses a job cost system and predetermines a factory overhead rate based on
the amount of expected fixed costs and expected volume. at the conclusion of the fiscal
year, overapplied overhead could be explained by which of the following?
a.option a
b.option b
c.option c
d.option d
4) the long term care plus company has two service departments actuarial and premium
rating, and two production departments marketing and sales. the distribution of each
service department’s efforts to the other departments is shown below:
the direct operating costs of the departments (including both variable and fixed costs)
were as follows:
the total cost accumulated in the marketing department using the direct method is
(calculate all ratios and percentages to 2 decimal places, for example 33.33%, and
round all dollar amounts to the nearest whole dollar):
a.$100,000
b.$104,000
c.$126,000
d.$130,000
e.$87,000
5) the difference between wholesalers and retailers is:
a.wholesalers are merchandisers that sell directly to customers whereas retailers are
merchandisers that sell to other merchandisers
b.wholesalers are merchandisers that sell to other merchandisers whereas retailers are
merchandisers that sell directly to consumers
c.wholesalers are merchandisers that sell directly to the government whereas retailers
are merchandisers that sell to other merchandisers
d.wholesalers are merchandisers that sell directly to customers whereas retailers are
merchandisers that sell directly to the government
e.there is no difference between wholesalers and retailers
6) which of the following is not an underlying assumption of a conventional cvp
analysis?
a.learning-curve effects (i.e., productivity gains with experience)
b.fixed costs, in total, do not change as sales mix or total sales volume change
c.selling price per unit is unrelated to assumed sales volume
d.inputs to the profit-planning model are known with certainty
e.variable costs per unit are unrelated to changes in volume
7) cost system design/selection should consider all but which one of the following?
a.cost/benefit of system design/selection and operation
b.a firm’s strategy and management information needs
c.customer needs
d.nature of the business, product, or service
8) nantucket company has the following cost-volume-profit (cvp) relationships:
what is the variable cost per unit?
a.$515.00
b.$562.50
c.$625.00
d.$655.25
e.$62.50
9) in the current business environment, companies cannot survive without a long-term
strategy. what exactly should an effective strategy include?
a.a set of plans for using resources to achieve sustainable goals
b.a focus on accurate financial data, thus allowing the firm to effectively compete in
any environment
c.a focus on long-term nonfinancial information that will provide the company with
versatile management techniques capable of being used in a wide variety of situations
d.a clear, concise mission statement, naming every product and outlining the company’s
long-term goals of success
10) staley co. manufactures computer monitors. the following is a summary of its basic
cost and revenue data:
assume that staley co. is currently selling 600 computer monitors per month and
monthly fixed costs are $80,000.
what is staley co.’s margin of safety (mos), in units, if 600 units are sold and all costs
and revenues are as budgeted? (round intermediate calculation up to nearest whole
number of units.)
a.123
b.242
c.128
d.141
e.214
11) the following information pertains to korning corp:
how many total units must be sold to obtain an after-tax profit of $47,775?
a.780 units
b.894 units
c.955 units
d.1,021 units
12) billy baroo company uses a job order cost system. the following information was
found in the work-in-process account for the month of july.
billy baroo applies overhead to production at a predetermined rate of 80% based on the
direct labor cost. job #23, the only job still in process at the end of july, has been
charged with direct labor of $12,000. direct material charged to job #23 was:
a.$22,400
b.$24,000
c.$27,000
d.$29,400
e.$30,400
13) in a process costing system, which assumes that normal spoilage occurs at the end
of a process, the cost attributable to normal spoilage should be assigned to:
a.beginning work-in-process inventory
b.ending work-in-process inventory
c.cost of goods manufactured and ending work-in-process inventory in the ratio of units
worked on during the period to units remaining in work-in-process inventory
d.cost of goods manufactured (transferred out)
e.a separate loss account in order to highlight production inefficiencies
14) assume the following information pertaining to cub company:
factory overhead is calculated to be:
a.$306,000
b.$26,000
c.$110,000
d.$84,000
e.$111,000