Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Sifton Electronics Corporation manufactures and assembles electronic motor drives for
video cameras. The company assembles the motor drives for several accounts. The
process consists of a lean cell for each customer. The following information relates only
to one customer's lean cell for the coming year. Projected labor and overhead,
$7,370,000; materials costs, $28 per unit. Planned production included 4,000 hours to
produce 27,500 motor drives. Actual production for August was 1,600 units, and motor
drives shipped amounted to 1,380 units.
From the foregoing information, determine the budgeted cell conversion cost per unit.
a. $240.00
b. $268.00
c. $296.00
d. $1,842.50
Division A of Chacha Company has sales of $140,000, cost of goods sold of $83,000,
operating expenses of $43,000, and invested assets of $150,000.
What is the profit margin for Division A?
a. 11.1%
b. 10.0%
c. 9.0%
d. 0.90%
The anticipated purchase of a fixed asset for $400,000, with a useful life of 5 years and
no residual value, is expected to yield total net income of $300,000 for the 5 years. The
expected average rate of return is 30%.
a. True
b. False
Salesman commissions
The following are some of the costs incurred by Cupcake Company. Identify them as
either:
a. Prime costs
b. Conversion costs
c. Both prime and conversion costs
d. Neither prime or conversion costs
The following financial information was summarized from the accounting records of
Train Corporation for the current year ended December 31:
The net income for Train Corporation is
a. $83,180
b. $35,940
c. $48,390
d. $60,840
Costs that are treated as assets until the product is sold are
a. product costs
b. period costs
c. conversion costs
d. selling expenses
an accounting report that presents predicted amounts of the company's assets, liabilities,
and equity as of the end of the budget period
Match each phrase that follows with the term (a-f) it describes..
a. budget
b. capital expenditures budget
c. sales budget
d. production budget
e. cash budget
f. budgeted balance sheet
Cost accounting systems measure, record, and report product costs.
a. True
b. False
The Rocky Company reports the following data:
Rocky Company's operating leverage is
a. 6.7
b. 2.7
c. 1.0
d. 1.3
Safari Co. sells two products, Orks and Zins. Last year, Safari sold 21,000 units of Orks
and 14,000 units of Zins. Related data are
Calculate the following:
a. Safari Co.'s sales mix
b. Safari Co.'s unit selling price of E?
c. Safari Co.'s unit contribution margin of E?
d. Safari Co.'s breakÂeven point assuming that last year's fixed costs were $160,000.
A business operated at 100% of capacity during its first month, with the following
results:
What is the amount of the manufacturing margin that would be reported on the variable
costing income statement?
a. $30,000
b. $38,000
c. $56,000
d. $44,000
Panamint Systems Corporation is estimating activity costs associated with producing
disk drives, tapes drives, and wire drives. The indirect labor can be traced to four
separate activity pools. The budgeted activity cost and activity base data by product are
provided below.
Determine the activity rate per production order for scheduling.
a. $200.00
b. $20.00
c. $29.41
d. $10.42
Which of the following is not a disadvantage of decentralized operation?
a. competition among managers
b. duplication of operations
c. price cutting by departments that are competing in the same product market
d. top management freed from everyday tasks to do strategic planning
The systematic examination of differences between planned and actual contribution
margins is termed contribution margin analysis.
a. True
b. False
Which of the following best describes the effect on direct labor when management
adopts a just-in-time environment?
a. Workers typically perform one function.
b. The environment becomes more labor intensive.
c. Each employee runs a single machine.
d. Workers are often cross-trained to perform more than one function.
Non-financial measures are often linked to the inputs or outputs of an activity or
process.
a. True
b. False
Goshawks Co. produces an automotive product and incurs total manufacturing costs of
$2,600,000 in the production of 80,000 units. The company desires to earn a profit
equal to a 12% rate of return on assets of $960,000. Total selling and administrative
expenses are $105,000.
(a) Calculate the markup percentage, using the product cost concept.
(b) Compute the selling price per unit of the automotive product.
Round your markup percentage to one decimal place, and other intermediate
calculations and final answer to two decimal places.
Carter Co. sells two products, Arks and Bins. Last year, Carter sold 14,000 units of
Arks and 56,000 units of Bins. Related data are:
Assuming that last year's fixed costs totaled $960,000, what was Carter Co.'s
break-even point in units?
a. 40,000 units
b. 12,000 units
c. 35,000 units
d. 28,000 units
Mocha Company manufactures a single product by a continuous process, involving
three production departments. The records indicate that direct materials, direct labor,
and applied factory overhead for Department 1 were $100,000, $125,000, and
$150,000, respectively. The records further indicate that direct materials, direct labor,
and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000,
respectively. In addition, work in process at the beginning of the period for Department
1 totaled $75,000, and work in process at the end of the period totaled $60,000.
The journal entry to record the flow of costs into Department 2 for applied overhead is
a. Factory Overhead'”Department 2 Work in Process'”Department 2 80,000
80,000
b. Work in Process'”Department 2 Factory Overhead'”Department 2 230,000
230,000
c. Work in Process'”Department 2 Factory Overhead'”Department 2 80,000
80,000
d. Work in Process'”Department 2 Factory Overhead'”Department 2 150,000
150,000
