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1) Berends Corporation makes a product with the following standard costs:
The company reported the following results concerning this product in April.
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
The materials price variance for April is:
A.$17,180 U
B.$16,192 F
C.$16,192 U
D.$17,180 F
2) What would the selling price per unit of Product P need to be after processing in
order for Paulsen Corporation to be economically indifferent between selling P at the
split-off point or processing P further?
A) $7.85
B) $8.58
C) $9.49
D) $11.68
3) Chirico Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 2,500 client-visits, but its actual level of activity was 2,550 client-visits.
The clinic has provided the following data concerning the formulas used in its
budgeting and its actual results for February:
Data used in budgeting:
Actual results for February:
The net operating income in the flexible budget for February would be closest to:
A.$16,900
B.$23,450
C.$18,140
D.$22,539
4) Davey Corporation is preparing its Manufacturing Overhead Budget for the fourth
quarter of the year. The budgeted variable manufacturing overhead rate is $3.00 per
direct labor-hour; the budgeted fixed manufacturing overhead is $66,000 per month, of
which $10,000 is factory depreciation.
If the budgeted direct labor time for December is 4,000 hours, then the predetermined
manufacturing overhead per direct labor-hour for December would be:
A.$3.00
B.$19.50
C.$5.50
D.$17.00
5) Kudej Printing uses two measures of activity, press runs and book set-ups, in the cost
formulas in its budgets and performance reports. The cost formula for wages and
salaries is $8,360 per month plus $570 per press run plus $910 per book set-up. The
company expected its activity in May to be 194 press runs and 74 book set-ups, but the
actual activity was 195 press runs and 72 book set-ups. The actual cost for wages and
salaries in May was $188,370.
The wages and salaries in the flexible budget for May would be closest to:
A.$185,030
B.$186,280
C.$188,370
D.$187,240
6) Preyer Corporation produces and sells a single product. Data concerning that product
appear below:
The break-even in monthly dollar sales is closest to:
A.$2,344,795
B.$492,407
C.$623,300
D.$1,153,501
7) The gross margin for April was:
A) $1,465,600
B) $3,960,400
C) $1,017,600
D) $600,400
8) Ginger Corporation uses an activity-based costing system with three activity cost
pools. The company has provided the following data concerning its costs and its activity
based costing system:
How much cost, in total, would be allocated in the first-stage allocation to the Setting
Up activity cost pool?
A.$528,000
B.$454,000
C.$418,000
D.$396,000
9) Under which of the following conditions will the FIFO method of process costing
result in the same amount of cost being transferred to the next department as the
weighted-average method?
A.When the beginning and ending inventories are each fifty percent complete.
B.When there is no beginning inventory.
C.When there is no ending inventory.
D.When units in the beginning inventory are all completed and transferred at the same
time.
10) Ruetz Clinic uses client-visits as its measure of activity. During November, the
clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,520
client-visits. The clinic has provided the following data concerning the formulas to be
used in its budgeting:
The net operating income in the flexible budget for November would be closest to:
A.$9,461
B.$12,950
C.$9,312
D.$13,376
