Archives: Quiz

1) the dawson corporation projects the following for the upcoming year: the expected dividend per share of common stock is: a.$2.10 b.$2.70 c.$1.80 d.$3.90 2) financial statements for nardella company appear below: Answer: a net income = ($35 – $5) […]

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) division a makes a part with the following characteristics: division b, another division of the same company, would like to purchase 5,000 units of the part each period from division a. division b is now purchasing these parts from […]

1) the management of fanton corporation is considering introducing a new producta compact lawn blower. at a selling price of $38 per unit, management projects sales of 60,000 units. the lawn blower would require an investment of $500,000. the desired […]

1) mccaughey corporation’s most recent balance sheet and income statement appear below: the accounts receivable turnover for year 2 is closest to: a.1.15 b.9.62 c.0.87 d.8.93 Answer: 2) the lee company uses a job-order costing system. the following data were […]

1) pardise company plans the following beginning and ending inventory levels (in units) for july: two units of raw material are needed to produce each unit of finished product. if the company plans to sell 640,000 units during the year, […]

1) the predetermined overhead rate (variable and fixed) is $7.50 per machine-hour and the denominator activity level is 135,000 machine-hours. if the variable portion of the predetermined overhead rate is $3.00 per machine-hour, then the budgeted fixed factory overhead for […]

1) hackney company, which has only one product, has provided the following data concerning its most recent month of operations: what is the net operating income for the month under variable costing? a.$4,700 b.$(5,300) c.$1,500 d.$3,200 2) bessey hospital bases […]

1) the alpha company produces toys for national distribution. standards for a particular toy are: materials: 12 ounces per unit at 56 per ounce. labor: 2 hours per unit at $2.75 per hour. during the month of december, the company […]

1) the accounts receivable balance that would appear in the march 31 budgeted balance sheet would be: a.$15,000 b.$16,000 c.$8,800 d.$12,400 2) lavell corporation reported the following data for the month of february: the total manufacturing cost for february was: […]

1) merone company allocates materials handling cost to the company’s two products using the below data: the total materials handling cost for the year is expected to be $218,790. if the materials handling cost is allocated on the basis of […]

1) the management of cius corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity rather than on the estimated amount of activity for the year. the company’s controller has provided an example […]

1) the management of jahns corporation is considering introducing a new producta compact barbecue. at a selling price of $59 per unit, management projects sales of 30,000 units. launching the barbecue as a new product would require an investment of […]

1) smalling inc. has provided the following data for the month of november: the adjusted cost of goods sold that appears on the income statement for november is: a.$237,000 b.$225,000 c.$214,000 d.$213,000 Answer: 2) erdmann corporation has provided its contribution […]

1) demand for a product is said to be elastic if a change in price has: a.no effect on the volume of units sold b.substantial effect on the volume of units sold c.little effect on the volume of units sold […]

1) genito corporation’s static planning budget for october appears below. the company bases its budgets on machine-hours. in october, the actual number of machine-hours was 8,800, the actual supplies cost was $69,450, the actual power cost was $34,190, the actual […]

1) tabcomp inc. is a retail distributor for mzb-33 computer hardware and related software. tabcomp prepares annual sales forecasts of which the first six months of the coming year are presented below. cash sales account for 25% of tabcomp’s total […]

1) which of the following would be classified as an appraisal cost on a quality cost report? a.systems development b.plant utilities in the inspection area c.lost sales arising from a reputation for poor quality d.audits of the effectiveness of the […]

1) gowin inc. has provided the following data for the month of september. 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 […]

1) bunyard corporation has two operating divisions-an atlantic division and a pacific division. the company’s logistics department services both divisions. the variable costs of the logistics department are budgeted at $45 per shipment. the logistics department’s fixed costs are budgeted […]

1) hostetter corporation would like to use target costing for a new product it is considering introducing. at a selling price of $30 per unit, management projects sales of 30,000 units. the new product would require an investment of $200,000. […]

1) eagen corporation manufactures a variety of products. the following data pertain to the company’s operations over the last two years: required: a. determine the absorption costing net operating income for last year. show your work! b. determine the absorption […]

1) (ignore income taxes in this problem) the management of nagata corporation is investigating buying a small used aircraft to use in making airborne inspections of its above-ground pipelines. the aircraft would have a useful life of 6 years. the […]

1) guasson corporation uses the weighted-average method in its process costing system. this month, the beginning inventory in the first processing department consisted of 500 units. the costs and percentage completion of these units in beginning inventory were: a total […]

1) the management of cerruto corporation has provided the following data concerning its two products: the constrained resource is a particular machine that is available for 9,600 minutes each month. the company is considering launching a new product that would […]

1) a company has provided the following data: if the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, net operating income will: a.increase by $61,000 […]

1) ebner corporation’s balance sheet and income statement appear below: cash dividends were $37. the company sold equipment for $18 that was originally purchased for $10 and that had accumulated depreciation of $9. the net cash provided by (used by) […]

1) harwichport company has a current ratio of 3.5 and an acid-test ratio of 2.8. current assets equal $175,000 of which $5,000 consists of prepaid expenses. the remainder of current assets consists of cash, accounts receivable, marketable securities, and inventory. […]

1) the following data pertain to harriman company’s operations during july: the beginning work in process inventory was: a.$10,000 b.$14,000 c.$1,000 d.$4,000 2) the following information is available on product a: the company uses the absorption costing approach to cost-plus […]

1) grundhoefer kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. during april, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 1,990 […]

1) craston company’s net income last year was $70,000. the company paid preferred dividends of $10,000 and its average common stockholders’ equity was $480,000. the company’s return on common stockholders’ equity for the year was closest to: a.12.5% b.14.6% c.16.7% […]

1) the following labor standards have been established for a particular product: the following data pertain to operations concerning the product for the last month: what is the labor rate variance for the month? a.$2,955 f b.$4,935 f c.$2,955 u […]

1) buffo company fabricates metal folding chairs. data concerning the company’s revenue and cost structure follow: if buffo expects to produce and sell 2,000 units next month, the total expected manufacturing cost would be: a.$34,000 b.$39,000 c.$45,500 d.$38,000 2) swift […]

1) spraque air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. the cost formula for plane operating costs is $40,520 per month plus $2,733 per flight plus $11 per passenger. […]

1) kets corporation uses the fifo method in its process costing system. operating data for the enameling department for the month of may appear below: what were the equivalent units for conversion costs in the enameling department for may? a.83,190 […]

1) the management of wymer 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) dolney corporation has provided the following data for a recent period: the variable overhead rate variance for lubricants is closest to: a.$3,820 u b.$600 f c.$3,820 f d.$4,420 f 2) which of the following would be classified as an […]

1) (ignore income taxes in this problem.) the connelly company has funds available to invest in the following project: the working capital needed now would be released at the end of the seven years for investment elsewhere. consider only the […]

1) eyring industries has a truck purchased seven years ago at a cost of $6,000. at the time of purchase, the ultimate salvage value was estimated at $500, but salvage value was ignored in depreciation deductions. the truck is now […]

1) which of the following accounts is debited when indirect labor is recorded? a.work in process b.salaries and wages expense c.salaries and wages payable d.manufacturing overhead 2) during august, sherill corporation incurred $78,000 of actual manufacturing overhead costs. during the […]

1) elgot company produces a single product. the cost of producing and selling a single unit of this product at the company’s normal activity level of 30,000 units per month is as follows: the normal selling price of the product […]

1) rank the following methods of assigning overhead costs from least accurate to most accurate. a.departmental rates, plantwide rate, activity-based costing b.plantwide rate, departmental rates, activity-based costing c.plantwide rate, activity-based costing, departmental rates d.activity-based costing, departmental rates, plantwide rate e.activity-based […]

1) your boss would like you to estimate the fixed and variable components of a particular cost. actual data for this cost over four recent periods appear below. using the least-squares regression method, what is the cost formula for this […]

1) kleppe corporation has provided the following data from its activity-based costing accounting system: the “other” activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products. how much indirect factory wages […]

1) the commando motorcycle company has decided to become decentralized and split its operations into two divisions, motor and assembly. both divisions will be treated as investment centers. the motor division is currently operating at its capacity of 30,000 motors […]

1) data concerning sotero corporation’s single product appear below: the company is currently selling 5,000 units per month. fixed expenses are $319,000 per month. consider each of the following questions independently. this question is to be considered independently of all […]

1) brummitt corporation is working on its direct labor budget for the next two months. each unit of output requires 0.05 direct labor-hours. the direct labor rate is $7.50 per direct labor-hour. the production budget calls for producing 9,100 units […]

1) kimbeth manufacturing makes dust density sensors (dds), a safety device for the mining industry. the company uses a process costing system and has only a single processing department. the following information pertains to operations for the month of may: […]

1) marchi family inn is a bed and breakfast establishment in a converted 100-year-old mansion. the inn’s guests appreciate its gourmet breakfasts and individually decorated rooms. the inn’s overhead budget for the most recent month appears below: the inn’s variable […]

1) lauser clinic uses client-visits as its measure of activity. during july, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,690 client-visits. the clinic has provided the following data concerning the formulas used in its […]