Question 1

Conversion cost was:

Accepted Answer

A) $200,000 
B) $240,000 
C) $265,000 
D) $415,000 
A) $200,000 
B) $240,000 
C) $265,000 
D) $415,000

Question 2

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

Accepted Answer

A) $82,000 
B) $340,000 
C) $389,000 
D) $307,000 
A) $82,000 
B) $340,000 
C) $389,000 
D) $307,000

Question 3

Rent on a factory building used in the production process would be classified as a product cost and as a fixed cost.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following terms could be used to correctly describe the cost of the soap used to wash the denim cloth?

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 5

Anderson 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 monthly fixed manufacturing cost is:

Accepted Answer

A) $388,000 
B) $954,800 
C) $376,000 
D) $328,000 
A) $388,000 
B) $954,800 
C) $376,000 
D) $328,000

Question 6

What is the total amount of the costs listed above that are NOT direct costs of the Brentwood Store?

Accepted Answer

A) $161,000 
B) $86,000 
C) $32,000 
D) $38,000 
A) $161,000 
B) $86,000 
C) $32,000 
D) $38,000

Question 7

The Plastechnics Company began operations several years ago. The company's product requires materials that cost $25 per unit. The company employs a production supervisor whose salary is $2,000 per month. Production line workers are paid $15 per hour to manufacture and assemble the product. The company rents the equipment needed to produce the product at a rental cost of $1,500 per month. The building is depreciated on the straight-line basis at $9,000 per year.
The company spends $40,000 per year to market the product. Shipping costs for each unit are $20 per unit.
The company plans to liquidate several investments in order to expand production. These investments currently earn a return of $8,000 per year.
Required:
Complete the answer sheet below by placing an "X" under each heading that identifies the cost involved. The "Xs" can be placed under more than one heading for a single cost, e.g., a cost might be a sunk cost, an overhead cost, and a product cost.

Accepted Answer

The answer of The Plastechnics Company began operations several years...

Question 8

The cost of factory machinery purchased last year is:

Accepted Answer

A) an opportunity cost. 
B) a differential cost. 
C) a direct materials cost. 
D) a sunk cost. 
A) an opportunity cost. 
B) a differential cost. 
C) a direct materials cost. 
D) a sunk cost.

Question 9

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

Accepted Answer

A) $303,000 
B) $59,000 
C) $366,000 
D) $362,000 
A) $303,000 
B) $59,000 
C) $366,000 
D) $362,000

Question 10

To the nearest whole cent, what should be the average lease cost per unit at a sales volume of 34,400 units in a month? (Assume that this sales volume is within the relevant range.)

Accepted Answer

A) $23.20 
B) $21.62 
C) $20.84 
D) $22.40 
A) $23.20 
B) $21.62 
C) $20.84 
D) $22.40

Question 11

Using the high-low method of analysis, the estimated fixed cost per month for electricity is closest to:

Accepted Answer

A) $53.46 
B) $0.00 
C) $3.40 
D) $48.00 
A) $53.46 
B) $0.00 
C) $3.40 
D) $48.00

Question 12

Bee Company's net operating income for the second quarter using the contribution approach is:

Accepted Answer

A) $156,200 
B) $685,000 
C) $431,200 
D) $265,000 
A) $156,200 
B) $685,000 
C) $431,200 
D) $265,000

Question 13

The gross margin for October is:

Accepted Answer

A) $232,000 
B) $260,000 
C) $397,500 
D) $196,500 
A) $232,000 
B) $260,000 
C) $397,500 
D) $196,500

Question 14

To the nearest whole cent, what should be the average property tax per unit at a sales volume of 40,300 units? (Assume that this sales volume is within the relevant range.)

Accepted Answer

A) $21.70 
B) $20.22 
C) $19.92 
D) $20.81 
A) $21.70 
B) $20.22 
C) $19.92 
D) $20.81

Question 15

The contribution margin for April was:

Accepted Answer

A) $1,017,600 
B) $1,465,600 
C) $600,400 
D) $3,512,400 
A) $1,017,600 
B) $1,465,600 
C) $600,400 
D) $3,512,400

Question 16

During the month of April, direct labor cost totaled $15,000 and direct labor cost was 30% of prime cost. If total manufacturing costs during April were $79,000, the manufacturing overhead was:

Accepted Answer

A) $35,000 
B) $29,000 
C) $50,000 
D) $129,000 
A) $35,000 
B) $29,000 
C) $50,000 
D) $129,000

Question 17

Davis 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) $130,000 
B) $177,600 
C) $34,800 
D) $225,200 
A) $130,000 
B) $177,600 
C) $34,800 
D) $225,200

Question 18

Product costs are recorded as expenses in the period in which the related products are sold.

Accepted Answer

A) True 
 B)False

Question 19

The contribution margin is the amount remaining from sales revenues after variable expenses have been deducted.

Accepted Answer

A) True 
 B)False

Question 20

Direct material costs are generally fixed costs.

Accepted Answer

A) True 
 B)False

Conversion cost was:

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

Rent on a factory building used in the production process would be classified as a product cost and as a fixed cost.

Which of the following terms could be used to correctly describe the cost of the soap used to wash the denim cloth?

Anderson 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 monthly fixed manufacturing cost is:

What is the total amount of the costs listed above that are NOT direct costs of the Brentwood Store?

The cost of factory machinery purchased last year is:

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

To the nearest whole cent, what should be the average lease cost per unit at a sales volume of 34,400 units in a month? (Assume that this sales volume is within the relevant range.)

Using the high-low method of analysis, the estimated fixed cost per month for electricity is closest to:

Bee Company's net operating income for the second quarter using the contribution approach is:

The gross margin for October is:

To the nearest whole cent, what should be the average property tax per unit at a sales volume of 40,300 units? (Assume that this sales volume is within the relevant range.)

The contribution margin for April was:

During the month of April, direct labor cost totaled $15,000 and direct labor cost was 30% of prime cost. If total manufacturing costs during April were $79,000, the manufacturing overhead was:

Davis 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:

Product costs are recorded as expenses in the period in which the related products are sold.

The contribution margin is the amount remaining from sales revenues after variable expenses have been deducted.

Direct material costs are generally fixed costs.

Least-Squares Regression Computations

Cost of Quality

Job-Order Costing

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Process Costing

Fifo Method

Service Department Allocations

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Super-Variable Costing

Activity-Based Costing: a Tool to Aid Decision Making

Abc Action Analysis

Filters

Exam 1: Managerial Accounting and Cost Concepts

Conversion cost was:

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

Rent on a factory building used in the production process would be classified as a product cost and as a fixed cost.

Which of the following terms could be used to correctly describe the cost of the soap used to wash the denim cloth?

Anderson 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 monthly fixed manufacturing cost is:

What is the total amount of the costs listed above that are NOT direct costs of the Brentwood Store?

The cost of factory machinery purchased last year is:

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

To the nearest whole cent, what should be the average lease cost per unit at a sales volume of 34,400 units in a month? (Assume that this sales volume is within the relevant range.)

Using the high-low method of analysis, the estimated fixed cost per month for electricity is closest to:

Bee Company's net operating income for the second quarter using the contribution approach is:

The gross margin for October is:

To the nearest whole cent, what should be the average property tax per unit at a sales volume of 40,300 units? (Assume that this sales volume is within the relevant range.)

The contribution margin for April was:

During the month of April, direct labor cost totaled $15,000 and direct labor cost was 30% of prime cost. If total manufacturing costs during April were $79,000, the manufacturing overhead was:

Davis 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:

Product costs are recorded as expenses in the period in which the related products are sold.

The contribution margin is the amount remaining from sales revenues after variable expenses have been deducted.

Direct material costs are generally fixed costs.

Least-Squares Regression Computations

Cost of Quality

Job-Order Costing

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Process Costing

Fifo Method

Service Department Allocations

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Super-Variable Costing

Activity-Based Costing: a Tool to Aid Decision Making

Abc Action Analysis

Filters