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

A factory supervisor's salary would be classified as an indirect cost with respect to a unit of product.

Accepted Answer

A) True 
 B)False

Question 3

Administrative costs are indirect costs.

Accepted Answer

A) True 
 B)False

Question 4

Given the cost formula Y = $23,000 + $8X,total cost at an activity level of 7,000 units would be:

Accepted Answer

A)  $33,000 
B)  $79,000 
C)  $23,000 
D)  $56,000 
A)  $33,000 
B)  $79,000 
C)  $23,000 
D)  $56,000

Question 5

Fassino Corporation reported the following data for the month of November:
  
-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 6

Lagle Corporation has provided the following information:
  
-For financial reporting purposes,the total amount of product costs incurred to make 4,000 units is closest to:

Accepted Answer

A)  $46,200 
B)  $38,200 
C)  $8,000 
D)  $50,200 
A)  $46,200 
B)  $38,200 
C)  $8,000 
D)  $50,200

Question 7

The variable cost per unit depends on how many units are produced.

Accepted Answer

A) True 
 B)False

Question 8

Given the cost formula,Y = $16,000 + $3.40X,total cost for an activity level of 4,000 units would be:

Accepted Answer

A)  $13,600 
B)  $3,600 
C)  $19,600 
D)  $16,000 
A)  $13,600 
B)  $3,600 
C)  $19,600 
D)  $16,000

Question 9

A manufacturing company prepays its insurance coverage for a three-year period.The premium for the three years is $2,100 and is paid at the beginning of the first year.Sixty percent of the premium applies to manufacturing operations and forty percent applies to selling and administrative activities.What amounts should be considered product and period costs respectively for the first year of coverage?

Accepted Answer

B
Explanation:
Annual insuranc

Question 10

A fixed cost is a cost whose cost per unit varies as the activity level rises and falls.

Accepted Answer

A) True 
 B)False

Question 11

Haack Inc.is a merchandising company.Last month the company's cost of goods sold was $84,000.The company's beginning merchandise inventory was $20,000 and its ending merchandise inventory was $18,000.What was the total amount of the company's merchandise purchases for the month?

Accepted Answer

A)  $86,000 
B)  $82,000 
C)  $84,000 
D)  $122,000 
A)  $86,000 
B)  $82,000 
C)  $84,000 
D)  $122,000

Question 12

What would be the total variable cost at an activity level of 5,200 units? Assume that this level of activity is within the relevant range.

Accepted Answer

A)  $137,020 
B)  $131,750 
C)  $162,950 
D)  $32,448 
A)  $137,020 
B)  $131,750 
C)  $162,950 
D)  $32,448

Question 13

During the month of May,direct labor cost totaled $10,000 and direct labor cost was 40% of prime cost.If total manufacturing costs during May were $86,000,the manufacturing overhead was:

Accepted Answer

A)  $76,000 
B)  $25,000 
C)  $61,000 
D)  $15,000 
A)  $76,000 
B)  $25,000 
C)  $61,000 
D)  $15,000

Question 14

Streif Inc., a local retailer, has provided the following data for the month of June:
  
-The contribution margin for September was:

Accepted Answer

A)  $3,878,400 
B)  $2,122,900 
C)  $2,591,500 
D)  $1,627,700 
A)  $3,878,400 
B)  $2,122,900 
C)  $2,591,500 
D)  $1,627,700

Question 15

Schwiesow Corporation has provided the following information:
  
-If 6,000 units are produced,the total amount of direct manufacturing cost incurred is closest to:

Accepted Answer

A)  $73,200 
B)  $69,300 
C)  $86,400 
D)  $63,300 
A)  $73,200 
B)  $69,300 
C)  $86,400 
D)  $63,300

Question 16

Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:
  
-For financial reporting purposes,the total amount of product costs incurred to make 4,000 units is closest to:

Accepted Answer

A)  $56,200 
B)  $45,800 
C)  $60,200 
D)  $10,400 
A)  $56,200 
B)  $45,800 
C)  $60,200 
D)  $10,400

Question 17

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

Accepted Answer

A)  $40.92 
B)  $84.28 
C)  $39.60 
D)  $54.93 
A)  $40.92 
B)  $84.28 
C)  $39.60 
D)  $54.93

Question 18

Bellucci Corporation has provided the following information:
  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)  $26.75 
B)  $12.80 
C)  $30.05 
D)  $24.50 
A)  $26.75 
B)  $12.80 
C)  $30.05 
D)  $24.50

Question 19

To the nearest whole cent,what should be the average sales commission per unit at a sales volume of 18,500 units? (Assume that this sales volume is within the relevant range.)

Accepted Answer

A)  $6.60 
B)  $6.87 
C)  $7.17 
D)  $7.14 
A)  $6.60 
B)  $6.87 
C)  $7.17 
D)  $7.14

Question 20

A partial listing of costs incurred during March at Febbo Corporation appears below:
  
-The total of the product costs listed above for March is:

Accepted Answer

A)  $516,000 
B)  $68,000 
C)  $293,000 
D)  $223,000 
A)  $516,000 
B)  $68,000 
C)  $293,000 
D)  $223,000

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:

A factory supervisor's salary would be classified as an indirect cost with respect to a unit of product.

Administrative costs are indirect costs.

Given the cost formula Y = $23,000 + $8X,total cost at an activity level of 7,000 units would be:

Fassino Corporation reported the following data for the month of November: -The conversion cost for November was:

Lagle Corporation has provided the following information: -For financial reporting purposes,the total amount of product costs incurred to make 4,000 units is closest to:

The variable cost per unit depends on how many units are produced.

Given the cost formula,Y = $16,000 + $3.40X,total cost for an activity level of 4,000 units would be:

A fixed cost is a cost whose cost per unit varies as the activity level rises and falls.

Haack Inc.is a merchandising company.Last month the company's cost of goods sold was $84,000.The company's beginning merchandise inventory was $20,000 and its ending merchandise inventory was $18,000.What was the total amount of the company's merchandise purchases for the month?

What would be the total variable cost at an activity level of 5,200 units? Assume that this level of activity is within the relevant range.

During the month of May,direct labor cost totaled $10,000 and direct labor cost was 40% of prime cost.If total manufacturing costs during May were $86,000,the manufacturing overhead was:

Streif Inc., a local retailer, has provided the following data for the month of June: -The contribution margin for September was:

Schwiesow Corporation has provided the following information: -If 6,000 units are produced,the total amount of direct manufacturing cost incurred is closest to:

Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: -For financial reporting purposes,the total amount of product costs incurred to make 4,000 units is closest to:

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

Bellucci Corporation has provided the following information: The incremental manufacturing cost that the company will incur if it increases production from 9,000 to 9,001 units is closest to:

To the nearest whole cent,what should be the average sales commission per unit at a sales volume of 18,500 units? (Assume that this sales volume is within the relevant range.)

A partial listing of costs incurred during March at Febbo Corporation appears below: -The total of the product costs listed above for March is:

Job-Order Costing: Calculating Unit Production Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Super-Variable Costing

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Cost of Quality

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Job-Order Costing: a Microsoft Excel-Based Approach

Fifo Method

Service Department Allocations

Analyzing Mixed Costs

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

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Standard Cost Systems: a Financial Reporting Perspective Using Microsoft Excel

Transfer Pricing

Service Department Charges

Pricing Decisions

The Concept of Present Value

Income Taxes and the Present Value Method

the Direct Method of Determining the Net Cash Provided by Operating Activities

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