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1) The times interest earned for Year 2 is closest to:
A.2.22
B.4.17
C.3.17
D.5.95
2) If Madison has a limit of 15,000 machine hours but no limit on direct labor hours,
then the ranking of the products from the most profitable to the least profitable use of
the constrained resource is:
A) A, B, C
B) B, C, A
C) A, C, B
D) C, A, B
3) The Gerald Corporation makes and sells a single product called a Clop. Each Clop
requires 1.1 direct labor-hours at $8.20 per direct labor-hour. The direct labor workforce
is fully adjusted each month to the required workload. The company is preparing a
Direct Labor Budget for the first quarter of the year.
The budgeted direct labor cost per Clop is closest to:
A.$7.45
B.$8.20
C.$9.02
D.$9.76
4) How much profit (loss) does the company make by processing one batch of sugar
beets into the end products industrial fiber and refined sugar?
A) $(8)
B) $13
C) $(89)
D) $5
5) The company's return on total assets for Year 2 is closest to:
A.2.09%
B.2.08%
C.1.67%
D.1.66%
6) Variable manufacturing overhead is applied to products on the basis of standard
direct labor-hours. If the labor efficiency variance is unfavorable, the variable overhead
efficiency variance will be:
A.favorable.
B.unfavorable.
C.eitherfavorable or unfavorable.
D.zero.
7) The profitability index of investment project E is closest to:
A.0.13
B.1.13
C.0.87
D.0.12
8) For July, White Corporation has budgeted production of 6,000 units. Each unit
requires 0.10 direct labor-hours at a cost of $8.50 per direct labor-hour. How much will
White Corporation budget for labor in July?
A.$51,000
B.$5,160
C.$600
D.$5,100
9) How many minutes of grinding machine time would be required to satisfy demand
for all four products?
A.10,500
B.10,700
C.11,000
D.10,800
10) Mutskic Corporation produces and sells Product BetaC. To guard against stockouts,
the company requires that 30% of the next month's sales be on hand at the end of each
month. Budgeted sales of Product BetaC over the next four months are:
Budgeted production for August would be:
A.83,000 units
B.107,000 units
C.77,000 units
D.80,000 units
