Question 1

The contribution margin for July is:

Accepted Answer

A) $333,800 
B) $209,000 
C) $233,700 
D) $164,700 
A) $333,800 
B) $209,000 
C) $233,700 
D) $164,700

Question 2

A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $2,700 and is paid at the beginning of the first year. Eighty percent of the premium applies to manufacturing operations and 20% applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage?

Accepted Answer

A) Option A 
B) Option B 
C) Option C 
D) Option D 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Question 3

To the nearest whole cent, what should be the average sales commission per unit at a sales volume of 36,800 units? (Assume that this sales volume is within the relevant range.)

Accepted Answer

A) $13.49 
B) $12.17 
C) $12.80 
D) $12.49 
A) $13.49 
B) $12.17 
C) $12.80 
D) $12.49

Question 4

The salary paid to the production manager in a factory is:

Accepted Answer

A) a variable cost. 
B) part of prime cost. 
C) part of conversion cost. 
D) both a variable cost and a prime cost. 
A) a variable cost. 
B) part of prime cost. 
C) part of conversion cost. 
D) both a variable cost and a prime cost.

Question 5

Dabney Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.   The best estimate of the total monthly fixed manufacturing cost is:

Accepted Answer

A) $778,400 
B) $1,457,400 
C) $1,505,900 
D) $1,554,400 
A) $778,400 
B) $1,457,400 
C) $1,505,900 
D) $1,554,400

Question 6

The best estimate of the total monthly fixed manufacturing cost is:

Accepted Answer

A) $25,600 
B) $114,400 
C) $47,700 
D) $69,800 
A) $25,600 
B) $114,400 
C) $47,700 
D) $69,800

Question 7

The wages of factory maintenance personnel would usually be considered to be: $$\begin{array} { c c c } 
& \text { Indirect labor } & \begin{array} { c } 
\text { Manufacturing } \
\text { overhead }
\end{array} \
\text { A) } & \text { No } & \text { Yes } \
\text { B) } & \text { Yes } & \text { No } \
\text { C) } & \text { Yes } & \text { Yes } \
\text { D) } & \text { No } & \text { No }
\end{array}$$

Accepted Answer

A) Option A 
B) Option B 
C) Option C 
D) Option D 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Question 8

At an activity level of 5,900 units, Haas Corporation's total variable cost is $347,982 and its total fixed cost is $284,321.
Required:
For the activity level of 6,100 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f) the average total cost per unit. Assume that this activity level is within the relevant range.

Accepted Answer

Variable cost = $347

Question 9

At an activity level of 4,400 units in a month, Goldbach Corporation's total variable maintenance and repair cost is $313,632 and its total fixed maintenance and repair cost is $93,104. What would be the total maintenance and repair cost, both fixed and variable, at an activity level of 4,600 units in a month? Assume that this level of activity is within the relevant range.

Accepted Answer

A) $420,992 
B) $425,224 
C) $415,980 
D) $406,736 
A) $420,992 
B) $425,224 
C) $415,980 
D) $406,736

Question 10

In making the decision to buy the model 230 machine rather than the model 330 machine, the sunk cost was:

Accepted Answer

A) $319,000 
B) $386,000 
C) $285,000 
D) $323,000 
A) $319,000 
B) $386,000 
C) $285,000 
D) $323,000

Question 11

The conversion cost for December was:

Accepted Answer

A) $107,000 
B) $142,000 
C) $111,000 
D) $178,000 
A) $107,000 
B) $142,000 
C) $111,000 
D) $178,000

Question 12

The contribution margin for March is:

Accepted Answer

A) $922,600 
B) $1,120,000 
C) $1,962,600 
D) $1,360,000 
A) $922,600 
B) $1,120,000 
C) $1,962,600 
D) $1,360,000

Question 13

Iadanza Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $195.70 per unit.   The best estimate of the total contribution margin when 6,300 units are sold is:

Accepted Answer

A) $752,220 
B) $638,190 
C) $100,170 
D) $177,030 
A) $752,220 
B) $638,190 
C) $100,170 
D) $177,030

Question 14

Which of the following should NOT be included as part of manufacturing overhead at a company that makes office furniture?

Accepted Answer

A) sheet steel in a file cabinet made by the company. 
B) manufacturing equipment depreciation. 
C) idle time for direct labor. 
D) taxes on a factory building. 
A) sheet steel in a file cabinet made by the company. 
B) manufacturing equipment depreciation. 
C) idle time for direct labor. 
D) taxes on a factory building.

Question 15

To the nearest whole cent, what should be the average lease cost per unit at a sales volume of 19,200 units in a month? (Assume that this sales volume is within the relevant range.)

Accepted Answer

A) $28.52 
B) $24.60 
C) $25.10 
D) $24.10 
A) $28.52 
B) $24.60 
C) $25.10 
D) $24.10

Question 16

The net operating income for September was:

Accepted Answer

A) $60,000 
B) $128,000 
C) $127,000 
D) $59,000 
A) $60,000 
B) $128,000 
C) $127,000 
D) $59,000

Question 17

Slonaker Inc. has provided the following data concerning its maintenance costs:   Management believes that maintenance cost is a mixed cost that depends on machine-hours.
Required:
Estimate the variable cost per machine-hour and the fixed cost per month using the high-low method. Show your work!

Accepted Answer

@#IMG-DLM& Variable cost = Change in cost ÷ Change

Question 18

The concept of the relevant range does not apply to fixed costs.

Accepted Answer

A) True 
 B)False

Question 19

The total of the product costs listed above for December is:

Accepted Answer

A) $310,000 
B) $89,000 
C) $635,000 
D) $325,000 
A) $310,000 
B) $89,000 
C) $635,000 
D) $325,000

Question 20

What is the total amount of the costs listed above that are direct costs of the Shoe Department?

Accepted Answer

A) $80,000 
B) $88,000 
C) $130,000 
D) $92,000 
A) $80,000 
B) $88,000 
C) $130,000 
D) $92,000

The contribution margin for July is:

To the nearest whole cent, what should be the average sales commission per unit at a sales volume of 36,800 units? (Assume that this sales volume is within the relevant range.)

The salary paid to the production manager in a factory is:

Dabney Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. The best estimate of the total monthly fixed manufacturing cost is:

The best estimate of the total monthly fixed manufacturing cost is:

The wages of factory maintenance personnel would usually be considered to be: Indirect labor Manufacturing overhead A) No Yes B) Yes No C) Yes Yes D) No No

In making the decision to buy the model 230 machine rather than the model 330 machine, the sunk cost was:

The conversion cost for December was:

The contribution margin for March is:

Iadanza Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $195.70 per unit. The best estimate of the total contribution margin when 6,300 units are sold is:

Which of the following should NOT be included as part of manufacturing overhead at a company that makes office furniture?

To the nearest whole cent, what should be the average lease cost per unit at a sales volume of 19,200 units in a month? (Assume that this sales volume is within the relevant range.)

The net operating income for September was:

Slonaker Inc. has provided the following data concerning its maintenance costs: Management believes that maintenance cost is a mixed cost that depends on machine-hours. Required: Estimate the variable cost per machine-hour and the fixed cost per month using the high-low method. Show your work!

The concept of the relevant range does not apply to fixed costs.

The total of the product costs listed above for December is:

What is the total amount of the costs listed above that are direct costs of the Shoe Department?

Cost-Volume-Profit Relationships

Job-Order Costing

Variable Costing and Segment Reporting: Tools for Management

Activity-Based-Costing: a Tool to Aid Decision Making

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Capital Budgeting Decisions

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based-Costing: a Tool to Aid Decision Making

A Capital Budgeting Decisions

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Performance Measurement in Decentralized Organizations

Profitability Analysis

Pricing Products and Services

Filters

Exam 1: Managerial Accounting and Cost Concepts

The contribution margin for July is:

To the nearest whole cent, what should be the average sales commission per unit at a sales volume of 36,800 units? (Assume that this sales volume is within the relevant range.)

The salary paid to the production manager in a factory is:

Dabney Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. The best estimate of the total monthly fixed manufacturing cost is:

The best estimate of the total monthly fixed manufacturing cost is:

The wages of factory maintenance personnel would usually be considered to be: Indirect labor Manufacturing overhead A) No Yes B) Yes No C) Yes Yes D) No No

In making the decision to buy the model 230 machine rather than the model 330 machine, the sunk cost was:

The conversion cost for December was:

The contribution margin for March is:

Iadanza Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $195.70 per unit. The best estimate of the total contribution margin when 6,300 units are sold is:

Which of the following should NOT be included as part of manufacturing overhead at a company that makes office furniture?

To the nearest whole cent, what should be the average lease cost per unit at a sales volume of 19,200 units in a month? (Assume that this sales volume is within the relevant range.)

The net operating income for September was:

Slonaker Inc. has provided the following data concerning its maintenance costs: Management believes that maintenance cost is a mixed cost that depends on machine-hours. Required: Estimate the variable cost per machine-hour and the fixed cost per month using the high-low method. Show your work!

The concept of the relevant range does not apply to fixed costs.

The total of the product costs listed above for December is:

What is the total amount of the costs listed above that are direct costs of the Shoe Department?

Cost-Volume-Profit Relationships

Job-Order Costing

Variable Costing and Segment Reporting: Tools for Management

Activity-Based-Costing: a Tool to Aid Decision Making

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Capital Budgeting Decisions

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based-Costing: a Tool to Aid Decision Making

A Capital Budgeting Decisions

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Performance Measurement in Decentralized Organizations

Profitability Analysis

Pricing Products and Services

Filters