Archives: Quiz

1) bakken corporation has provided the following production and average cost data for two levels of monthly production volume. the company produces a single product. the best estimate of the total variable manufacturing cost per unit is: a.$16.50 b.$90.40 c.$45.50 […]

1) franca corporation has two service departments, administrative and facilities, and two operating departments, assembly and customer feedbacks. the company uses the direct method to allocate service department costs to operating departments. administrative costs are allocated on the basis of […]

1) harris company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (dlhs). the company has provided the following data: the volume variance would be: a.$2,500 f […]

1) hilty corporation produces and sells two products. in the most recent month, product u77d had sales of $45,000 and variable expenses of $15,750. product d86d had sales of $49,000 and variable expenses of $22,790. and the fixed expenses of […]

1) the same constrained resource is used by four different products at porraz corporation. data concerning those products appear below: the company does not have enough of the constrained resource to satisfy for demand of all four products. if salespersons […]

1) tenicheff corporation uses the fifo method in its process costing system. operating data for the curing department for the month of march appear below: according to the company’s records, the conversion cost in beginning work in process inventory was […]

1) schrick inc. manufactures a variety of products. variable costing net operating income was $86,800 last year and ending inventory increased by 1,900 units. fixed manufacturing overhead cost was $6 per unit. what was the absorption costing net operating income […]

1) the controller of hallowell company estimates the amount of materials handling overhead cost that should be allocated to the company’s two products using the data that are given below: the total materials handling cost for the year is expected […]

1) witherington corporation manufactures and sells a single product. the company uses units as the measure of activity in its budgets and performance reports. during june, the company budgeted for 7,800 units, but its actual level of activity was 7,850 […]

1) dagnon corporation uses direct labor-hours in its predetermined overhead rate. at the beginning of the year, the total estimated manufacturing overhead was $299,130. at the end of the year, actual direct labor-hours for the year were 17,400 hours, manufacturing […]

1) the management of crapser corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. the company’s controller has provided an example to illustrate how this new system would work. in this example, […]

1) cost of goods manufactured will usually include: a.only costs incurred during the current period b.only direct labor and direct materials costs c.some costs incurred during the prior period as well as costs incurred during the current period d.some period […]

1) hutton corporation keeps careful track of the time required to fill orders. data concerning a particular order appear below: the throughput time was: a.25 hours b.13.5 hours c.20.9 hours d.4.1 hours 2) in january, the universal solutions division of […]

1) gargymal company would like to estimate the variable and fixed components of its electrical costs and has compiled the following data for the last five months of operations. using the high-low method, the estimated monthly fixed component of the […]

1) data concerning grodi corporation’s single product appear below: fixed expenses are $324,000 per month. the company is currently selling 5,000 units per month. management is considering using a new component that would increase the unit variable cost by $9. […]

1) kuczenski corporation’s cost formula for its manufacturing overhead is $45,700 per month plus $53 per machine-hour. for the month of march, the company planned for activity of 6,200 machine-hours, but the actual level of activity was 6,150 machine-hours. the […]

1) a manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: what is the variable costing unit product cost for the month? a.$97 b.$90 c.$68 d.$75 2) guynn corporation’s most […]

1) bosril corporation uses the weighted-average method in its process costing system. this month, the beginning inventory in the first processing department consisted of 400 units. the costs and percentage completion of these units in beginning inventory were: a total […]

1) dadisman corporation’s most recent balance sheet and income statement appear below: dividends on common stock during year 2 totaled $30 thousand. dividends on preferred stock totaled $20 thousand. the market price of common stock at the end of year […]

1) thiel inc. is working on its cash budget for october. the budgeted beginning cash balance is $35,000. budgeted cash receipts total $166,000 and budgeted cash disbursements total $162,000. the desired ending cash balance is $50,000. the excess (deficiency) of […]

1) ermoin corporation uses the weighted-average method in its process costing system. this month, the beginning inventory in the first processing department consisted of 600 units. the costs and percentage completion of these units in beginning inventory were: a total […]

1) ben company produces a single product. last year, the company’s net operating income under absorption costing was $4,400 lower than under variable costing. the company sold 8,000 units during the year, and its variable costs were $8 per unit, […]

1) wable inc. has provided the following data to be used in evaluating a proposed investment project: for tax purposes, the entire initial investment without any reduction for salvage value will be depreciated over 5 years. the company uses a […]

1) (ignore income taxes in this problem.) a company with $800,000 in operating assets is considering the purchase of a machine that costs $75,000 and which is expected to reduce operating costs by $20,000 each year. the payback period for […]

1) the management of haigler corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. the company’s controller has provided an example to illustrate how this new system would work. in this example, […]

1) geneva steel corporation produces large sheets of heavy gauge steel. the company showed the following amounts relating to its production for the year just completed: the balance of the finished goods inventory at the end of the year was: […]

1) (ignore income taxes in this problem.) jones and company has just purchased a new piece of equipment, the cost characteristics of which are given below: the company uses a required rate of return of 10% and depreciates equipment using […]

1) monsky corporation produces and sells a single product whose contribution margin ratio is 60%. the company’s monthly fixed expense is $420,000 and the company’s monthly target profit is $13,000. the dollar sales to attain that target profit is closest […]

1) vanikoro corporation currently has two divisions which had the following operating results for last year: since the rubber division sustained a loss, the president of vanikoro is considering the elimination of this division. all of the fixed costs for […]

1) _________________ is a method of separating a mixed cost into its fixed and variable elements by fitting a regression line that minimizes the sum of the squared errors. a.quick and dirty method b.scattergraph method c.high-low method d.least-square regression method […]

1) the manufacturing overhead budget at waycaster corporation is based on budgeted direct labor-hours. the direct labor budget indicates that 6,000 direct labor-hours will be required in february. the variable overhead rate is $3.40 per direct labor-hour. the company’s budgeted […]

1) creelman company makes four products in a single facility. data concerning these products appear below: the milling machines are potentially the constraint in the production facility. a total of 13,000 minutes are available per month on these machines. which […]

1) excerpts from shelton corporation’s most recent balance sheet appear below: sales on account in year 2 amounted to $1,320 and the cost of goods sold was $890. the current ratio at the end of year 2 is closest to: […]

1) lisby, inc., allocates service department costs to operating departments using the step-down method. the company has two service departments, administration and physical plant, and two operating departments, assembly and testing. data concerning those departments follow: administration department costs are […]

1) (ignore income taxes in this problem.) boston company is contemplating the purchase of a new machine on which the following information has been gathered: the company’s discount rate is 16%, and the machine will be depreciated using the straight-line […]

1) the management of smoots corporation would like for you to analyze their repair costs, which are listed below: management believes that repair cost is a mixed cost that depends on the number of machine-hours. using the least-squares regression method, […]

1) data concerning plaxco corporation’s single product appear below: assume the company’s monthly target profit is $11,000. the unit sales to attain that target profit is closest to: a.4,818 b.5,219 c.4,181 d.2,505 2) abdol company, which has only one product, […]

1) the best estimate of the total contribution margin when 4,300 units are sold is: a.$134,590 b.$43,430 c.$64,070 d.$38,270 Answer: c variable component of cost of goods sold: variable cost = change in costs change in units variable cost = […]

1) the mohawk-hudson company is an electric utility which has two service departments, accounting and maintenance. it has two operating departments, generation and transmission. the company does not distinguish between fixed and variable service department costs. maintenance department costs are […]

1) the consumer products division of garafalo corporation had average operating assets of $300,000 and net operating income of $46,900 in march. the minimum required rate of return for performance evaluation purposes is 16%. what was the consumer products division’s […]

1) eccles corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. during the year the company’s finished goods inventory account was debited for $384,000 and credited for $325,900. the ending balance in the […]

1) pardee company plans to sell 12,000 units during the month of august. if the company has 2,500 units on hand at the start of the month, and plans to have 2,000 units on hand at the end of the […]

1) data concerning plaxco corporation’s single product appear below: assume the company’s monthly target profit is $12,000. the dollar sales to attain that target profit is closest to: a.$941,500 b.$754,166 c.$451,920 d.$869,077 2) an opportunity cost is: a.the difference in […]

1) during the most recent month at hybarger corporation, queue time was 3.0 days, inspection time was 0.8 day, process time was 2.8 days, wait time was 11.8 days, and move time was 0.6 day. required: a. compute the throughput […]

1) alake company is a manufacturing firm that uses job-order costing. at the beginning of the year, the company’s inventory balances were as follows: the company applies overhead to jobs using a predetermined overhead rate based on machine-hours. at the […]

1) (ignore income taxes in this problem.) how is depreciation handled by the following capital budgeting techniques? a.choice a b.choice b c.choice c d.choice d 2) hurst co. manufacturers and sells a single product. price and cost data regarding this […]

1) castil corporation makes and sells a product called a miniwarp. one miniwarp requires 2.5 kilograms of the raw material jurislon. budgeted production of miniwarps for the next five months is as follows: the company wants to maintain monthly ending […]

1) lavell corporation reported the following data for the month of february: the cost of goods sold for february was: a.$225,000 b.$134,000 c.$184,000 d.$127,000 Answer: b 2) in capital budgeting, what will be the effect on the following if there […]

1) grundmann inc. reports that at an activity level of 6,500 machine-hours in a month, its total variable inspection cost is $487,110 and its total fixed inspection cost is $326,040. what would be the average fixed inspection cost per unit […]

1) weisgarber clinic uses client-visits as its measure of activity. during august, the clinic budgeted for 3,900 client-visits, but its actual level of activity was 3,850 client-visits. the clinic has provided the following data concerning the formulas to be used […]