1) parlee company’s sales are 30% in cash and 70% on credit. sixty % of the credit sales
are collected in the month of sale, 25% in the month following sale, and 12% in the
second month following sale. the remainder are uncollectible. the following are
budgeted sales data:
total cash receipts in april would be budgeted to be:
a.$38,900
b.$47,900
c.$27,230
d.$36,230
2) slovick inc., which produces a single product, has provided the following data for its
most recent month of operations:
there were no beginning or ending inventories.
the unit product cost under variable costing was:
a.$168
b.$164
c.$199
d.$171
3) alvernaz inc. has provided the following data for the month of april. there were no
beginning inventories; consequently, the direct materials, direct labor, and
manufacturing overhead applied listed below are all for the current month.
manufacturing overhead for the month was overapplied by $2,000.
the company allocates any underapplied or overapplied overhead among work in
process, finished goods, and cost of goods sold at the end of the month on the basis of
the overhead applied during the month in those accounts.
the work in process inventory at the end of april after allocation of any underapplied or
overapplied overhead for the month is closest to:
a.$20,947
b.$20,400
c.$21,000
d.$20,453
4) davie corporation is preparing its manufacturing overhead budget for the fourth
quarter of the year. the budgeted variable factory overhead rate is $6.00 per direct
labor-hour; the budgeted fixed factory overhead is $92,000 per month, of which
$16,000 is factory depreciation.
if the budgeted direct labor time for december is 4,000 hours, then the predetermined
factory overhead per direct labor-hour for december would be:
a.$6.00
b.$29.00
c.$25.00
d.$10.00
5) the excess or deficiency of cash available over disbursements on the cash budget is
calculated as follows:
a.the beginning balance less the expected cash receipts less the expected cash
disbursements
b.the cash available less the expected cash receipts plus the expected cash
disbursements
c.the beginning balance plus the expected cash receipts less the expected cash
disbursements
d.none of these
6) the west division of fitzmaurice corporation had average operating assets of
$450,000 and net operating income of $87,300 in november. the minimum required rate
of return for performance evaluation purposes is 18%.
what was the west division’s residual income in november?
a.-$15,714
b.$15,714
c.$6,300
d.-$6,300
7) which of the following would be classified as an appraisal cost on a quality cost
report?
a.quality circles
b.rework labor and overhead
c.downtime caused by quality problems
d.supervision of testing and inspection activities
8) management of parrent corporation has asked your help as an intern in preparing
some key reports for april. the company started the month with raw materials
inventories of $32,000. during the month, the company made raw materials purchases
amounting to $68,000. at the end of the month, raw materials inventories totaled
$35,000. direct labor cost was $43,000 and manufacturing overhead was $62,000. the
beginning balance in the work in process account was $19,000 and the ending balance
was $12,000. the beginning balance in the finished goods account was $35,000 and the
ending balance was $58,000. sales totaled $240,000. selling expense was $18,000 and
administrative expense was $42,000.
the net operating income for april was:
a.$26,000
b.$86,000
c.$75,000
d.$7,000
9) the costing method that can be used most easily with break-even analysis and other
cost-volume-profit techniques is:
a.variable costing
b.absorption costing
c.process costing
d.job-order costing
10) moloney corporation produces and sells a single product. data concerning that
product appear below:
fixed expenses are $898,000 per month. the company is currently selling 9,000 units per
month. the marketing manager would like to introduce sales commissions as an
incentive for the sales staff. the marketing manager has proposed a commission of $16
per unit. in exchange, the sales staff would accept a decrease in their salaries of
$117,000 per month. (this is the company’s savings for the entire sales staff.) the
marketing manager predicts that introducing this sales incentive would increase
monthly sales by 100 units. what should be the overall effect on the company’s monthly
net operating income of this change?
a.increase of $115,400
b.decrease of $16,600
c.decrease of $250,600
d.increase of $1,063,400
11) data concerning vogelgesang corporation’s single product appear below:
the break-even in monthly dollar sales is closest to:
a.$850,000
b.$527,000
c.$921,281
d.$1,386,842