Question 1

Streif Inc., a local retailer, has provided the following data for the month of June:   The net operating income for June was:

Accepted Answer

A)  $132,000 
B)  $126,000 
C)  $85,000 
D)  $79,000 
A)  $132,000 
B)  $126,000 
C)  $85,000 
D)  $79,000

Question 2

Pedregon Corporation has provided the following information:   If the selling price is $20.60 per unit, the contribution margin per unit sold is closest to:

Accepted Answer

A)  $4.05 
B)  $6.00 
C)  $7.95 
D)  $10.50 
A)  $4.05 
B)  $6.00 
C)  $7.95 
D)  $10.50

Question 3

Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year:   What is the total of the conversion costs above?

Accepted Answer

A)  $65,000 
B)  $69,000 
C)  $90,000 
D)  $155,000 
A)  $65,000 
B)  $69,000 
C)  $90,000 
D)  $155,000

Question 4

Kogler Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:   The incremental manufacturing cost that the company will incur if it increases production from 9,000 to 9,001 units is closest to:

Accepted Answer

A)  $10.60 
B)  $22.75 
C)  $19.60 
D)  $25.50 
A)  $10.60 
B)  $22.75 
C)  $19.60 
D)  $25.50

Question 5

Prime cost is the sum of direct materials cost and direct labor cost.

Accepted Answer

A) True 
 B)False

Question 6

A cost can be direct or indirect. The classification can change if the cost object changes.

Accepted Answer

A) True 
 B)False

Question 7

Product costs that have become expenses can be found in:

Accepted Answer

A)  period costs. 
B)  selling expenses. 
C)  cost of goods sold. 
D)  administrative expenses. 
A)  period costs. 
B)  selling expenses. 
C)  cost of goods sold. 
D)  administrative expenses.

Question 8

Morrisroe Corporation has provided the following information:
   Required:
a. If the selling price is $25.90 per unit, what is the contribution margin per unit sold?
b. What incremental manufacturing cost will the company incur if it increases production from 5,000 to 5,001 units?

Accepted Answer

The answer of Morrisroe Corporation has provided the following information:
...

Question 9

Lambeth Corporation has provided the following information:   If 3,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

Accepted Answer

A)  $26,550 
B)  $23,550 
C)  $33,300 
D)  $27,300 
A)  $26,550 
B)  $23,550 
C)  $33,300 
D)  $27,300

Question 10

Management of Mcgibboney Corporation has asked your help as an intern in preparing some key reports for November. Direct materials cost was $42,000, direct labor cost was $25,000, and manufacturing overhead was $62,000. Selling expense was $21,000 and administrative expense was $38,000. The conversion cost for November was:

Accepted Answer

A)  $116,000 
B)  $79,000 
C)  $87,000 
D)  $129,000 
A)  $116,000 
B)  $79,000 
C)  $87,000 
D)  $129,000

Question 11

Contribution margin is:

Accepted Answer

A)  Sales less cost of goods sold. 
B)  Sales less variable production, variable selling, and variable administrative expenses. 
C)  Sales less variable production expense. 
D)  Sales less all variable and fixed expenses. 
A)  Sales less cost of goods sold. 
B)  Sales less variable production, variable selling, and variable administrative expenses. 
C)  Sales less variable production expense. 
D)  Sales less all variable and fixed expenses.

Question 12

Selling and administrative expenses are period costs under generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 13

Schwiesow Corporation has provided the following information:   For financial reporting purposes, the total amount of product costs incurred to make 5,000 units is closest to:

Accepted Answer

A)  $72,000 
B)  $77,000 
C)  $11,000 
D)  $61,000 
A)  $72,000 
B)  $77,000 
C)  $11,000 
D)  $61,000

Question 14

Waldhauser Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows:   If 6,000 units are sold, the total variable cost is closest to:

Accepted Answer

A)  $79,500 
B)  $107,400 
C)  $67,800 
D)  $87,600 
A)  $79,500 
B)  $107,400 
C)  $67,800 
D)  $87,600

Question 15

Wages paid to production supervisors would be classified as manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 16

Erkkila Inc. reports that at an activity level of 2,100 machine-hours in a month, its total variable inspection cost is $69,846 and its total fixed inspection cost is $9,072. What would be the average fixed inspection cost per unit at an activity level of 2,400 machine-hours in a month? Assume that this level of activity is within the relevant range.

Accepted Answer

A)  $37.58 
B)  $4.32 
C)  $15.23 
D)  $3.78 
A)  $37.58 
B)  $4.32 
C)  $15.23 
D)  $3.78

Question 17

Oerther Corporation reports that at an activity level of 5,000 units, its total variable cost is $131,750 and its total fixed cost is $31,200. What would be the average fixed cost per unit at an activity level of 5,200 units? Assume that this level of activity is within the relevant range.

Accepted Answer

A)  $6.24 
B)  $6.00 
C)  $14.94 
D)  $32.59 
A)  $6.24 
B)  $6.00 
C)  $14.94 
D)  $32.59

Question 18

Wippert Corporation, a merchandising company, reported the following results for December:
   Required:
a. Prepare a traditional format income statement for December.
b. Prepare a contribution format income statement for December.

Accepted Answer

a. Traditional Forma

Question 19

Brault Corporation has provided the following information:   If 10,000 units are sold, the variable cost per unit sold is closest to:

Accepted Answer

A)  $22.75 
B)  $11.95 
C)  $13.50 
D)  $28.80 
A)  $22.75 
B)  $11.95 
C)  $13.50 
D)  $28.80

Question 20

Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:   If 10,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:

Accepted Answer

A)  $128,250 
B)  $121,500 
C)  $148,500 
D)  $135,000 
A)  $128,250 
B)  $121,500 
C)  $148,500 
D)  $135,000

Exam 1: Managerial Accounting and Cost Concepts

Streif Inc., a local retailer, has provided the following data for the month of June: The net operating income for June was:

Pedregon Corporation has provided the following information: If the selling price is $20.60 per unit, the contribution margin per unit sold is closest to:

Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year: What is the total of the conversion costs above?

Kogler Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: The incremental manufacturing cost that the company will incur if it increases production from 9,000 to 9,001 units is closest to:

Prime cost is the sum of direct materials cost and direct labor cost.

A cost can be direct or indirect. The classification can change if the cost object changes.

Product costs that have become expenses can be found in:

Morrisroe Corporation has provided the following information: Required: a. If the selling price is $25.90 per unit, what is the contribution margin per unit sold? b. What incremental manufacturing cost will the company incur if it increases production from 5,000 to 5,001 units?

Lambeth Corporation has provided the following information: If 3,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

Contribution margin is:

Selling and administrative expenses are period costs under generally accepted accounting principles.

Schwiesow Corporation has provided the following information: For financial reporting purposes, the total amount of product costs incurred to make 5,000 units is closest to:

Waldhauser Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: If 6,000 units are sold, the total variable cost is closest to:

Wages paid to production supervisors would be classified as manufacturing overhead.

Oerther Corporation reports that at an activity level of 5,000 units, its total variable cost is $131,750 and its total fixed cost is $31,200. What would be the average fixed cost per unit at an activity level of 5,200 units? Assume that this level of activity is within the relevant range.

Wippert Corporation, a merchandising company, reported the following results for December: Required: a. Prepare a traditional format income statement for December. b. Prepare a contribution format income statement for December.

Brault Corporation has provided the following information: If 10,000 units are sold, the variable cost per unit sold is closest to:

Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: If 10,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:

Costvolumeprofit Relationships

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Variable Costing and Segment Reporting: Tools for Management

Activitybased Costing: a Tool to Aid Decision Making

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Cost of Quality

Analyzing Mixed Costs

Activity-Based Absorption Costing

the Predetermined Overhead Rate and Capacity

Super-Variable Costing

Time-Driven Activity-Based Costing: a Microsoft Excel-Based Approach

Pricing Decisions

the Concept of Present Value

Income Taxes and the Net Present Value Method

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Transfer Pricing

Service Department Charges

Filters