Question 1

A partial listing of costs incurred at Archut Corporation during September appears below:   The total of the period costs listed above for September is:

Accepted Answer

A)  $294,000 
B)  $344,000 
C)  $292,000 
D)  $50,000 
A)  $294,000 
B)  $344,000 
C)  $292,000 
D)  $50,000

Question 2

Which of the following is unlikely to be classified as a fixed cost with respect to the number of units produced and sold?

Accepted Answer

A)  Property taxes on a headquarters building. 
B)  Legal department salaries. 
C)  Cost of leasing the company's mainframe computer. 
D)  Production supplies. 
A)  Property taxes on a headquarters building. 
B)  Legal department salaries. 
C)  Cost of leasing the company's mainframe computer. 
D)  Production supplies.

Question 3

Learned Corporation has provided the following information:
   Required:a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,000 units?b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,000 units?c. If the selling price is $22.40 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.)d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred?e. If 7,000 units are produced, what is the total amount of indirect manufacturing costs incurred?

Accepted Answer

a.
 @#IMG-DLM& b.
 @#IMG-DLM&

Question 4

Erkkila Incorporated reports that at an activity level of 6,600 machine-hours in a month, its total variable inspection cost is $426,230 and its total fixed inspection cost is $188,301.What would be the average fixed inspection cost per unit at an activity level of 6,900 machine-hours in a month? Assume that this level of activity is within the relevant range.

Accepted Answer

A)  $93.11 
B)  $28.53 
C)  $37.29 
D)  $27.29 
A)  $93.11 
B)  $28.53 
C)  $37.29 
D)  $27.29

Question 5

The relevant range concept is applicable to mixed costs.

Accepted Answer

A) True 
 B)False

Question 6

Landmann 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:   For financial reporting purposes, the total amount of product costs incurred to make 9,000 units is closest to:

Accepted Answer

A)  $106,200 
B)  $236,700 
C)  $121,500 
D)  $227,700 
A)  $106,200 
B)  $236,700 
C)  $121,500 
D)  $227,700

Question 7

Wofril Corporation uses the cost formula Y = $5,300 + $0.60X for the maintenance cost, where X is machine-hours. The August budget is based on 8,000 hours of planned machine time. Maintenance cost expected to be incurred during August is:

Accepted Answer

A)  $10,100 
B)  $4,800 
C)  $500 
D)  $5,300 
A)  $10,100 
B)  $4,800 
C)  $500 
D)  $5,300

Question 8

Dizzy Amusement Park is open from 8:00 am till midnight every day of the year. Dizzy charges its patrons a daily entrance fee of $30 per person which gives them unlimited access to all of the park's 35 rides.Dizzy employees a certified operator for each of its 35 rides. Each operator is paid $20 per hour. The cost of the certified operators would best be described as a:

Accepted Answer

A)  fixed cost 
B)  mixed cost 
C)  step-variable cost 
D)  true variable cost 
A)  fixed cost 
B)  mixed cost 
C)  step-variable cost 
D)  true variable cost

Question 9

The University Store,Incorporated is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is presented below:   On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed.If 25,000 books are sold during the second quarter and this activity is within the relevant range, the company's expected contribution margin would be:

Accepted Answer

A)  $875,000 
B)  $300,000 
C)  $175,000 
D)  $65,000 
A)  $875,000 
B)  $300,000 
C)  $175,000 
D)  $65,000

Question 10

Phaup 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:   For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is closest to:

Accepted Answer

A)  $8,200 
B)  $12,250 
C)  $7,500 
D)  $4,750 
A)  $8,200 
B)  $12,250 
C)  $7,500 
D)  $4,750

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

An income statement for Sam's Bookstore for the first quarter of the year is presented below:   On average, a book sells for $50. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed.The contribution margin for Sam's Bookstore for the first quarter is:

Accepted Answer

A)  $180,000 
B)  $774,000 
C)  $144,000 
D)  $756,000 
A)  $180,000 
B)  $774,000 
C)  $144,000 
D)  $756,000

Question 13

Fiori Corporation's relevant range of activity is 2,800 units to 6,000 units. When it produces and sells 4,400 units, its average costs per unit are as follows:   The incremental manufacturing cost that the company will incur if it increases production from 5,000 to 5,001 units is closest to:

Accepted Answer

A)  $17.85 
B)  $11.35 
C)  $13.85 
D)  $14.85 
A)  $17.85 
B)  $11.35 
C)  $13.85 
D)  $14.85

Question 14

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 product costs above?

Accepted Answer

A)  $0 
B)  $69,000 
C)  $155,000 
D)  $159,000 
A)  $0 
B)  $69,000 
C)  $155,000 
D)  $159,000

Question 15

Prime cost consists of:

Accepted Answer

A)  direct labor and manufacturing overhead. 
B)  direct materials and manufacturing overhead. 
C)  direct materials and direct labor. 
D)  direct materials, direct labor and manufacturing overhead. 
A)  direct labor and manufacturing overhead. 
B)  direct materials and manufacturing overhead. 
C)  direct materials and direct labor. 
D)  direct materials, direct labor and manufacturing overhead.

Question 16

Pedregon Corporation has provided the following information:   If 4,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Accepted Answer

A)  $21,000 
B)  $14,000 
C)  $28,000 
D)  $17,500 
A)  $21,000 
B)  $14,000 
C)  $28,000 
D)  $17,500

Question 17

Depreciation is always considered a period cost for external financial reporting purposes in a manufacturing company.

Accepted Answer

A) True 
 B)False

Question 18

Classify the following costs for an auto manufacturer as either direct materials, direct labor, manufacturing overhead, or period costs.
   Required:Complete the answer sheet above by placing an "X" under each heading that identifies the cost involved.

Accepted Answer

The answer of Classify the following costs for an auto...

Question 19

Mccaskell 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 8,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

Accepted Answer

A)  $14,000 
B)  $93,200 
C)  $89,100 
D)  $103,100 
A)  $14,000 
B)  $93,200 
C)  $89,100 
D)  $103,100

Question 20

Sparacino Corporation has provided the following information:   If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Accepted Answer

A)  $24,750 
B)  $42,650 
C)  $33,700 
D)  $29,225 
A)  $24,750 
B)  $42,650 
C)  $33,700 
D)  $29,225

A partial listing of costs incurred at Archut Corporation during September appears below: The total of the period costs listed above for September is:

Which of the following is unlikely to be classified as a fixed cost with respect to the number of units produced and sold?

The relevant range concept is applicable to mixed costs.

Landmann 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: For financial reporting purposes, the total amount of product costs incurred to make 9,000 units is closest to:

Wofril Corporation uses the cost formula Y = $5,300 + $0.60X for the maintenance cost, where X is machine-hours. The August budget is based on 8,000 hours of planned machine time. Maintenance cost expected to be incurred during August is:

Phaup 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: For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is closest to:

Contribution margin is:

Fiori Corporation's relevant range of activity is 2,800 units to 6,000 units. When it produces and sells 4,400 units, its average costs per unit are as follows: The incremental manufacturing cost that the company will incur if it increases production from 5,000 to 5,001 units 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 product costs above?

Prime cost consists of:

Pedregon Corporation has provided the following information: If 4,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Depreciation is always considered a period cost for external financial reporting purposes in a manufacturing company.

Classify the following costs for an auto manufacturer as either direct materials, direct labor, manufacturing overhead, or period costs. Required:Complete the answer sheet above by placing an "X" under each heading that identifies the cost involved.

Mccaskell 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 8,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

Sparacino Corporation has provided the following information: If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Responsibility Accounting Systems

Strategic Performance Measurement

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 1: Managerial Accounting and Cost Concepts

A partial listing of costs incurred at Archut Corporation during September appears below: The total of the period costs listed above for September is:

Which of the following is unlikely to be classified as a fixed cost with respect to the number of units produced and sold?

The relevant range concept is applicable to mixed costs.

Landmann 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: For financial reporting purposes, the total amount of product costs incurred to make 9,000 units is closest to:

Wofril Corporation uses the cost formula Y = $5,300 + $0.60X for the maintenance cost, where X is machine-hours. The August budget is based on 8,000 hours of planned machine time. Maintenance cost expected to be incurred during August is:

Phaup 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: For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is closest to:

Contribution margin is:

Fiori Corporation's relevant range of activity is 2,800 units to 6,000 units. When it produces and sells 4,400 units, its average costs per unit are as follows: The incremental manufacturing cost that the company will incur if it increases production from 5,000 to 5,001 units 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 product costs above?

Prime cost consists of:

Pedregon Corporation has provided the following information: If 4,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Depreciation is always considered a period cost for external financial reporting purposes in a manufacturing company.

Classify the following costs for an auto manufacturer as either direct materials, direct labor, manufacturing overhead, or period costs. Required:Complete the answer sheet above by placing an "X" under each heading that identifies the cost involved.

Mccaskell 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 8,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

Sparacino Corporation has provided the following information: If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Responsibility Accounting Systems

Strategic Performance Measurement

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters