Exam 1: Managerial Accounting and Cost Concepts

Salomon Marketing, Inc., a merchandising company, reported sales of $1,555,500 and cost of goods sold of $1,025,100 for December. The company's total variable selling expense was $96,900; its total fixed selling expense was $34,300; its total variable administrative expense was $71,400; and its total fixed administrative expense was $100,100. The cost of goods sold in this company is a variable cost. -The contribution margin for December is:

The fixed portion of the cost of electricity for a manufacturing facility is classified as a:

Prime cost equals manufacturing overhead cost.

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:

Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device. -Rent on the administrative office space is:

In a contribution format income statement for a merchandising company,the cost of goods sold reports the product costs attached to the merchandise sold during the period.

The following data pertains to activity and costs for two months: Assuming that these activity levels are within the relevant range,the manufacturing overhead for July was:

An example of a committed fixed cost would be:

At a volume of 5,000 units,Pwerson Company incurred $32,000 in factory overhead costs,including $14,000 in fixed costs.If volume increases to 6,000 units and both 5,000 units and 6,000 units are within the relevant range,then the company would expect to incur total factory overhead costs of:

The cost of shipping parts from a supplier is considered a period cost.

The sum of all manufacturing costs except for direct materials and direct labor is called manufacturing overhead.

Marquess Corporation has provided the following partial listing of costs incurred during May: Required: a.What is the total amount of product cost listed above? Show your work. b.What is the total amount of period cost listed above? Show your work.

Norred Corporation has provided the following information: If 8,000 units are produced,the total amount of indirect manufacturing cost incurred is closest to:

In a traditional format income statement,the gross margin is sales minus cost of goods sold.

A direct cost is a cost that can be easily traced to the particular cost object under consideration.

Bolka Corporation, a merchandising company, reported the following results for October: -The contribution margin for October is:

A partial listing of costs incurred at Boylen Corporation during March appears below: Required: a.What is the total amount of product cost listed above? Show your work. b.What is the total amount of period cost listed above? Show your work.

Conversion cost is the same thing as manufacturing overhead.

What would be the total variable maintenance cost at an activity level of 9,300 machine-hours in a month? Assume that this level of activity is within the relevant range.

Depreciation on equipment a company uses in its selling and administrative activities would be classified as a period cost.