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1) The inventory turnover for Year 2 is closest to:
A.3.75
B.1.20
C.4.09
D.0.83
2) Departmental overhead rates are generally preferred to plant-wide overhead rates
when:
A.the activities of the various departments in the plant are not homogeneous.
B.the activities of the various departments in the plant are homogeneous.
C.most of the overhead costs are fixed.
3) Slife Corporation has provided the following data concerning its most important raw
material, compound G81N:
When recording the use of materials in production, Raw Materials would be:
A.debited for $68,558.
B.credited for $83,839.
C.credited for $68,558.
D.debited for $83,839.
4) The total cash flow net of income taxes in year 3 is:
A.$115,500
B.$140,000
C.$80,500
D.$180,500
5) Sobota Corporation has provided the following partial listing of costs incurred during
August:
Required:
a. What is the total amount of product cost listed above? Show your work.
b. What is the total amount of period cost listed above? Show your work.
6) According to the company's accounting system, what is the net operating income
earned by product V41B? Include all costs in this calculationwhether relevant or not.
A.$71,000
B.$516,000
C.$(516,000)
D.$(71,000)
7) Bateman Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
What is the unit product cost for the month under absorption costing?
A.$97 per unit
B.$108 per unit
C.$78 per unit
D.$89 per unit
8) Stroth Corporation uses activity-based costing to compute product margins.
Overhead costs have already been allocated to the company's three activity cost
pools-Machining, Order Filling, and Other. The costs in those activity cost pools appear
below:
Machining costs are assigned to products using machine-hours (MHs) and Order Filling
costs are assigned to products using the number of orders. The costs in the Other
activity cost pool are not assigned to products. Activity data appear below:
Finally, sales and direct cost data are combined with Machining and Order Filling costs
to determine product margins.
The activity rate for Machining under activity-based costing is closest to:
A.$0.54 per MH
B.$4.00 per MH
C.$0.34 per MH
D.$2.10 per MH
9) Taccone Corporation makes a product that has the following direct labor standards:
In February the company produced 4,100 units using 1,120 direct labor-hours. The
actual direct labor rate was $20.40 per hour.
The labor efficiency variance for February is:
A.$2,244 F
B.$2,244 U
C.$2,200 U
D.$2,200 F
10) The company's average sale period (turnover in days) for Year 2 is closest to:
A.91.9 days
B.48.9 days
C.90.1 days
D.198.1 days
11) Prester Corporation has budgeted production for next year as follows:
Two pounds of material A are required for each unit produced. The company has a
policy of maintaining a stock of material A on hand at the end of each quarter equal to
25% of the next quarter's production needs for material A. A total of 30,000 pounds of
material A are on hand to start the year. Budgeted purchases of material A for the
second quarter would be:
A.145,000 pounds
B.140,000 pounds
C.180,000 pounds
D.135,000 pounds
