1. value:

2.00 points

The following cost data pertain to the operations of Rademaker Department Stores, Inc., for the month of March.

Corporate headquarters building lease	$81,600
Cosmetics Department sales commissions--Northridge Store	$5,580
Corporate legal office salaries	$62,700
Store manager's salary-Northridge Store	$13,400
Heating-Northridge Store	$13,200
Cosmetics Department cost of sales--Northridge Store	$38,500
Central warehouse lease cost	$13,600
Store security-Northridge Store	$17,300
Cosmetics Department manager's salary--Northridge Store	$4,870

The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores.

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

$44,080$97,920$38,500$48,950

2. value: 2.00 points

Erkkila Inc. reports that at an activity level of 7,300 machine-hours in a month, its total variable inspection cost is $425,030 and its total fixed inspection cost is $192,204.

What would be the average fixed inspection cost per unit at an activity level of 7,600 machine-hours in a month? Assume that this level of activity is within the relevant range.

$25.29 $84.55 $26.33 $31.89

3. value:

10.00 points

Younger Corporation reports that at an activity level of 4,200 units, its total variable cost is $261,744 and its total fixed cost is $121,948.

Required:

For the activity level of 4,300 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.(Round your "Average cost" to 2 decimal places and other answers to the nearest dollar amount.)

(a)Total variable cost ____________ (b)Total fixed cost ____________ (c)Total cos ____________ (d)Average variable cost ____________per unit (e)Average fixed cost ____________per unit (f)Average total cost ____________per unit

4. value: 2.00 points

Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:

Activities	Activity Rate
Setting up batches	$80.00	per batch
Processing customer orders	$71.73	per customer order
Assembling products	$7.31	per assembly hour

Data concerning two products appear below:

	Product V09X	Product A09X
Number of batches	70	13
Number of customer orders	21	10
Number of assembly hours	493	698

How much overhead cost would be assigned to Product V09X using the activity-based costing system?

$159.04 $107,101.60 $10,710.16 $5,600.00

5. value:

2.00 points Jeanlouis, Inc., manufactures and sells two products: Product D0 and Product D5. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

		Estimated	Expected Activity
Activity Cost Pools	Activity Measures	Overhead Cost	Product D0	Product D5	Total
Labor-related	DLHs	$313,743	3,600	3,300	6,900
Production orders	orders	70,264	300	500	800
General factory	MHs	253,555	4,300	4,200	8,500
		$637,562

The total overhead applied to Product D5 under activity-based costing is closest to:

$319,252 $125,286 $304,920 $273,240 6. value: 2.00 points

Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March.

Sales (6,400 units)	$403,200
Variable expenses	275,200
Contribution margin	128,000
Fixed expenses	103,500
Net operating income	$24,500

If the company sells 6,300 units, its net operating income should be closest to:

$20,000 $23,979 $22,500 $24,500

7. value: 2.00 points

Dybala Corporation's produces and sells a single product. Data concerning that product appear below:

	Per Unit	Percent of Sales
Selling price	$140	100%
Variable expenses	70	50%
Contribution margin	$ 70	50%

The company is currently selling 4,900 units per month. Fixed expenses are $285,700 per month. The marketing manager believes that a $7,100 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Increase of $6,900 Decrease of $6,900 Increase of $14,000 Decrease of $7,100

8. value: 2.00 points

Data concerning Wang Corporation's single product appear below:(Do not round your intermediate calculations.)

Selling price per unit	$	280.00
Variable expense per unit	$	78.40
Fixed expense per month	$	158,400

The break-even in monthly dollar sales is closest to:

$220,000 $281,600 $158,400 $440,000

9. value: 2.00 points

Data concerning Cutshall Enterprises Corporation's single product appear below:

Selling price per unit	$	175.00
Variable expense per unit	$	93.00
Fixed expense per month	$	434,140

The unit sales to attain the company's monthly target profit of $22,000 is closest to:(Do not round your intermediate calculations.)

5,294 2,607 4,905 5,563

10. value: 2.00 points

A cement manufacturer has supplied the following data:

Tons of cement produced and sold	280,000
Sales revenue	$984,000
Variable manufacturing expense	$233,000
Fixed manufacturing expense	$316,000
Variable selling and administrative expense	$190,120
Fixed selling and administrative expense	$94,000
Net operating income	$150,880

The company's contribution margin ratio is closest to:

44.2% 57.0% 67.9% 15.3%

11. value: 8.00 points

Gonyo Inc., which produces and sells a single product, has provided the following contribution format income statement for December appears below:

Sales (5,000 units)	$	340,000
Variable expenses		175,000
Contribution margin		165,000
Fixed expenses		105,100
Net operating income	$	59,900

Required:

Redo the company's contribution format income statement assuming that the company sells 5,200 units.

Net operating income answer:______________

12. value: 10.00 points

The contribution margin ratio of Donath Corporation's only product is 69%. The company's monthly fixed expense is $455,400 and the company's monthly target profit is $41,400.

Required:

Determine the dollar sales to attain the company's target profit.(Round your answer to the nearest dollar amount.)

SALES: __________

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price	$131
Units in beginning inventory	0
Units produced	3,320
Units sold	2,890
Units in ending inventory	430
Variable costs per unit:
Direct materials	$45
Direct labor	$15
Variable manufacturing overhead	$7
Variable selling and administrative	$19
Fixed costs:
Fixed manufacturing overhead	$92,960
Fixed selling and administrative expenses	$28,900

The total gross margin for the month under absorption costing is:

$104,040 $20,230 $119,250 $130,050

14. value: 2.00 points

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Units in beginning inventory	0
Units produced	4,850
Units sold	4,750
Units in ending inventory	100

Variable costs per unit:

Direct materials	$	58
Direct labor	$	60
Variable manufacturing overhead	$	23
Variable selling and administrative	$	21

Fixed costs:

Fixed manufacturing overhead	$	101,850
Fixed selling and administrative	$	47,500

What is the variable costing unit product cost for the month?

$162 per unit $183 per unit $141 per unit $145 per unit

15. value: 2.00 points

Bartelt Inc., which produces a single product, has provided the following data for its most recent month of operations:

Number of units produced	1,000
Variable costs per unit:
Direct materials	$50
Direct labor	$47
Variable manufacturing overhead	$2
Variable selling and administrative expense	$8
Fixed costs:
Fixed manufacturing overhead	$31,000
Fixed selling and administrative expense	$69,000

There were no beginning or ending inventories. The absorption costing unit product cost was:

$97 per unit

$130 per unit

$99 per unit

$207 per unit

16. value:

10.00 points

Rehmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.05 direct labor-hours. The direct labor rate is $7.80 per direct labor-hour. The production budget calls for producing 5,200 units in June and 5,700 units in July.

Required:

Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month.(Round your answers to 2 decimal places.)

June July

Required production in units ________ ________

Direct labor-hours per unit ________ ________

Total direct labor-hours needed ________ ________

Direct labor cost per hour ________ ________

Total direct labor cost ________ ________

17. value: 2.00 points

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours.

Standard hours per unit of output	3.10	machine-hours
Standard variable overhead rate	$10.45	per machine-hour

The following data pertain to operations for the last month:

Actual hours	9,500	machine-hours
Actual total variable manufacturing overhead cost	$95,770
Actual output	2,800	units

What is the variable overhead efficiency variance for the month?

$4,492 U $7,613 F $8,569 U $7,613 U

18. value: 10.00 points

The following materials standards have been established for a particular product:

Standard quantity per unit of output	2.9	grams
Standard price	$13.00	per grams

The following data pertain to operations concerning the product for the last month:

Actual materials purchased	1,700	grams
Actual cost of materials purchased	$ 19,805
Actual materials used in production	1,200	grams
Actual output	350	units

The direct materials purchases variance is computed when the materials are purchased.

Required:
a.	What is the materials price variance for the month?(Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.) MATERIALS PRICE VARIANCE: _____________

b.

What is the materials quantity variance for the month?(Input the amount a as positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.) MATERIALS QUANTITY VARIANCE: _____________

19. value:

10.00 points

The following standards for variable overhead have been established for a company that makes only one product:

Standard hours per unit of output	4.6	hours
Standard variable overhead rate	$16.00	per hour

The following data pertain to operations for the last month:

Actual hours	8,300	hours
Actual total variable overhead cost	$125,010
Actual output	1,790	units

Required:
a.	What is the variable overhead rate variance for the month?(Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.) Variable overhead rate variance: ____________

b.

What is the variable overhead efficiency variance for the month?(Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.) Variable overhead efficiency variance: ___________

20. value: 2.00 points

Aguilera Industries is a division of a major corporation. Data concerning the most recent year appears below:

Sales	$17,910,000
Net operating income	$985,050
Average operating assets	$4,850,000

The division's margin is closest to:(Round your answer to 1 decimal place.)

20.3% 5.5% 21.5% 27.0%

21. value: 2.00 points

Aguilera Industries is a division of a major corporation. Data concerning the most recent year appears below:

Sales	$18,310,000
Net operating income	$1,171,840
Average operating assets	$5,550,000

The division's turnover is closest to:(Round your answer to 2 decimal places.)

15.63 3.30 0.21 4.74

22. value: 2.00 points

Aguilera Industries is a division of a major corporation. Data concerning the most recent year appears below:

Sales	$17,910,000
Net operating income	$1,199,970
Average operating assets	$4,250,000

The division's return on investment (ROI) is closest to:(Round your answer to 2 decimal places.)

6.70% 28.23% 24.38% 3.70%

23. value: 2.00 points

Fabio Corporation is considering eliminating a department that has a contribution margin of $36,000 and $72,000 in fixed costs. Of the fixed costs, $18,000 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating income would be:

a decrease of $36,000.

an increase of $36,000.

a decrease of $18,000.

an increase of $18,000.

24. value: 2.00 points

The management of Fannin Corporation is considering dropping product H58S. Data from the company's accounting system appear below:

Sales	$900,000
Variable expenses	$384,000
Fixed manufacturing expenses	$366,000
Fixed selling and administrative expenses	$246,000

In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $225,000 of the fixed manufacturing expenses and $186,000 of the fixed selling and administrative expenses are avoidable if product H58S is discontinued. What would be the effect on the company's overall net operating income if product H58S were dropped?

Overall net operating income would decrease by $96,000. Overall net operating income would increase by $96,000. Overall net operating income would increase by $105,000. Overall net operating income would decrease by $105,000.

25. value:

2.00 points

Chee Corporation has gathered the following data on a proposed investment project: (Ignore income taxes in this problem.)

Investment required in equipment	$510,000
Annual cash inflows	$90,000
Salvage value	$0
Life of the investment	10 years
Required rate of return	7%

The company uses straight-line depreciation. Assume cash flows occur uniformly throughout a year except for the initial investment.

The payback period for the investment is closest to:

0.2 years1.0 years3.7 years5.7 years

26. value: 2.00 points In a statement of cash flows, issuing bonds payable affects the:

operating activities section. financing activities section. investing activities section. free cash flow activities section.

27. value: 2.00 points In a statement of cash flows, which of the following would be classified as an investing activity? The sale of the company's own common stock for cash. The sale of equipment. Interest paid to a lender. The issuance of bonds payable.