Question 1

What would be the total variable cost at an activity level of 3,500 units? Assume that this level of activity is within the relevant range.

Accepted Answer

A) $59,058 
B) $160,208 
C) $60,795 
D) $104,125 
A) $59,058 
B) $160,208 
C) $60,795 
D) $104,125

Question 2

In September direct labor was 40% of conversion cost. If the manufacturing overhead for the month was $66,000 and the direct materials cost was $20,000, the direct labor cost was:

Accepted Answer

A) $13,333 
B) $44,000 
C) $99,000 
D) $30,000 
A) $13,333 
B) $44,000 
C) $99,000 
D) $30,000

Question 3

The best estimate of the total monthly fixed cost is:

Accepted Answer

A) $846,000 
B) $886,050 
C) $365,400 
D) $926,100 
A) $846,000 
B) $886,050 
C) $365,400 
D) $926,100

Question 4

All costs incurred in a merchandising firm are considered to be period costs.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) $89,000 
B) $310,000 
C) $325,000 
D) $399,000 
A) $89,000 
B) $310,000 
C) $325,000 
D) $399,000

Question 6

Which of the following costs would not be included as part of manufacturing overhead?

Accepted Answer

A) Insurance on sales vehicles. 
B) Depreciation of production equipment. 
C) Lubricants for production equipment. 
D) Direct labor overtime premium. 
A) Insurance on sales vehicles. 
B) Depreciation of production equipment. 
C) Lubricants for production equipment. 
D) Direct labor overtime premium.

Question 7

Property taxes and insurance premiums paid on a factory building are examples of manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 8

Buckeye Company has provided the following data for maintenance cost:   The best estimate of the cost formula for maintenance would be:

Accepted Answer

A) $21,625 per year plus $0.625 per machine hour 
B) $7,000 per year plus $0.625 per machine hour 
C) $7,000 per year plus $1.60 per machine hour 
D) $27,000 per year plus $1.60 per machine hour 
A) $21,625 per year plus $0.625 per machine hour 
B) $7,000 per year plus $0.625 per machine hour 
C) $7,000 per year plus $1.60 per machine hour 
D) $27,000 per year plus $1.60 per machine hour

Question 9

Using the high-low method, the estimate of the fixed component of office expense per month is closest to:

Accepted Answer

A) $6,692 
B) $8,064 
C) $7,376 
D) $7,720 
A) $6,692 
B) $8,064 
C) $7,376 
D) $7,720

Question 10

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

Accepted Answer

A) $1,424,400 
B) $1,506,400 
C) $932,400 
D) $1,465,400 
A) $1,424,400 
B) $1,506,400 
C) $932,400 
D) $1,465,400

Question 11

The best estimate of the total variable manufacturing cost per unit is:

Accepted Answer

A) $82.00 
B) $70.20 
C) $56.70 
D) $11.80 
A) $82.00 
B) $70.20 
C) $56.70 
D) $11.80

Question 12

The contribution margin for June was:

Accepted Answer

A) $1,111,000 
B) $396,000 
C) $310,200 
D) $519,200 
A) $1,111,000 
B) $396,000 
C) $310,200 
D) $519,200

Question 13

Variable cost:

Accepted Answer

A) increases on a per unit basis as the number of units produced increases. 
B) remains constant on a per unit basis as the number of units produced increases. 
C) remains the same in total as production increases. 
D) decreases on a per unit basis as the number of units produced increases. 
A) increases on a per unit basis as the number of units produced increases. 
B) remains constant on a per unit basis as the number of units produced increases. 
C) remains the same in total as production increases. 
D) decreases on a per unit basis as the number of units produced increases.

Question 14

The following would typically be considered indirect costs of manufacturing a particular Boeing 747 to be delivered to Singapore Airlines: electricity to run production equipment, the factory manager's salary, and the cost of the General Electric jet engines installed on the aircraft.

Accepted Answer

A) True 
 B)False

Question 15

A partial listing of costs incurred at Starr Corporation during June 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.

Accepted Answer

a. Product costs consist of di

Question 16

The conversion cost for April was:

Accepted Answer

A) $186,000 
B) $100,000 
C) $128,000 
D) $122,000 
A) $186,000 
B) $100,000 
C) $128,000 
D) $122,000

Question 17

For a lamp manufacturing company, the cost of the insurance on its vehicles that deliver lamps to customers is best described as a:

Accepted Answer

A) prime cost. 
B) manufacturing overhead cost. 
C) period cost. 
D) differential (incremental) cost of a lamp. 
A) prime cost. 
B) manufacturing overhead cost. 
C) period cost. 
D) differential (incremental) cost of a lamp.

Question 18

In October, Patnode Inc., a merchandising company, had sales of $294,000, selling expenses of $27,000, and administrative expenses of $35,000. The cost of merchandise purchased during the month was $211,000. The beginning balance in the merchandise inventory account was $38,000 and the ending balance was $34,000.
Required:
Prepare a traditional format income statement for October.

Accepted Answer

The answer of In October, Patnode Inc., a merchandising company,...

Question 19

The following information summarizes the company's cost structure:   Required:
Estimate the following costs at the 40,000 unit level of activity:
a. Total variable cost.
b. Total fixed cost.
c. Variable cost per unit.
d. Fixed cost per unit.

Accepted Answer

Parts a., b., c., &

Question 20

Carbaugh Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product.   The best estimate of the total cost to manufacture 3,300 units is closest to:

Accepted Answer

A) $637,560 
B) $612,975 
C) $588,390 
D) $619,680 
A) $637,560 
B) $612,975 
C) $588,390 
D) $619,680

What would be the total variable cost at an activity level of 3,500 units? Assume that this level of activity is within the relevant range.

In September direct labor was 40% of conversion cost. If the manufacturing overhead for the month was $66,000 and the direct materials cost was $20,000, the direct labor cost was:

The best estimate of the total monthly fixed cost is:

All costs incurred in a merchandising firm are considered to be period costs.

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

Which of the following costs would not be included as part of manufacturing overhead?

Property taxes and insurance premiums paid on a factory building are examples of manufacturing overhead.

Buckeye Company has provided the following data for maintenance cost: The best estimate of the cost formula for maintenance would be:

Using the high-low method, the estimate of the fixed component of office expense per month is closest to:

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

The best estimate of the total variable manufacturing cost per unit is:

The contribution margin for June was:

Variable cost:

The following would typically be considered indirect costs of manufacturing a particular Boeing 747 to be delivered to Singapore Airlines: electricity to run production equipment, the factory manager's salary, and the cost of the General Electric jet engines installed on the aircraft.

A partial listing of costs incurred at Starr Corporation during June 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.

The conversion cost for April was:

For a lamp manufacturing company, the cost of the insurance on its vehicles that deliver lamps to customers is best described as a:

The following information summarizes the company's cost structure: Required: Estimate the following costs at the 40,000 unit level of activity: a. Total variable cost. b. Total fixed cost. c. Variable cost per unit. d. Fixed cost per unit.

Carbaugh Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product. The best estimate of the total cost to manufacture 3,300 units is closest to:

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

What would be the total variable cost at an activity level of 3,500 units? Assume that this level of activity is within the relevant range.

In September direct labor was 40% of conversion cost. If the manufacturing overhead for the month was $66,000 and the direct materials cost was $20,000, the direct labor cost was:

The best estimate of the total monthly fixed cost is:

All costs incurred in a merchandising firm are considered to be period costs.

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

Which of the following costs would not be included as part of manufacturing overhead?

Property taxes and insurance premiums paid on a factory building are examples of manufacturing overhead.

Buckeye Company has provided the following data for maintenance cost: The best estimate of the cost formula for maintenance would be:

Using the high-low method, the estimate of the fixed component of office expense per month is closest to:

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

The best estimate of the total variable manufacturing cost per unit is:

The contribution margin for June was:

Variable cost:

The following would typically be considered indirect costs of manufacturing a particular Boeing 747 to be delivered to Singapore Airlines: electricity to run production equipment, the factory manager's salary, and the cost of the General Electric jet engines installed on the aircraft.

A partial listing of costs incurred at Starr Corporation during June 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.

The conversion cost for April was:

For a lamp manufacturing company, the cost of the insurance on its vehicles that deliver lamps to customers is best described as a:

The following information summarizes the company's cost structure: Required: Estimate the following costs at the 40,000 unit level of activity: a. Total variable cost. b. Total fixed cost. c. Variable cost per unit. d. Fixed cost per unit.

Carbaugh Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product. The best estimate of the total cost to manufacture 3,300 units is closest to:

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