1. Which of the following is an example of internal failure costs?

Cost incurred as warranty expenses

costs incurred for the evaluation of the quality of suppliers process

Cost incurred for the reworking of substandard products

Cost incurred in the inspection at various stages of production.

2. Companies calculate the predetermined overhead rate at the beginning of an accounting period using the actual values of overhead costs?

True or False

3. variable cost per unit is constant throughout various relevant ranges?

True or False

4. Activity-based costing focuses on a single predetermined overhead rate for cost analysis. True or False

5. Agostino Inc. uses a just-in-time costing system. During the month, Agostino Inc.

incurred $300,000 as direct labor and $9,000 as overhead. Which of the following is the correct journal entry to record the conversion costs?

a. Conversion Costs 309,000

Wages Payable, Accumulated Depreciation, etc. 309,000

b. Manufacturing Overhead 309,000

Conversion Costs 309,000

c. Conversion Costs 309,000

Wages Payable 309,000

d. Conversion Costs 309,000

Accounts payable 309,000

6.Companies use balanced scorecard to measure how well one is doing against performance levels either inside or outside of the organization. True or False

7. Which of the following is a variable cost?

property taxes

direct material cost

salary of plant manager

straight line depreciation expense

8. Modiste Inc. manufactures two kinds of bags- totes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $24250. Additional information is given below:

DM cost per unit- totes $35, satchels $40

DL cost per unit- totes $55, satchels $60

number of units- totes 500, satchels 350

Calculate the predetermined overhead allocation rate.

60%

50%

30%

45%

9. Perfect Fit Company sells hand-sewn shirts for $40 per shirt. It incurs monthly fixed costs of $5,000. The contribution margin ratio is calculated to be 20%. What is the breakeven point in units?

a.1,125 units

b. 950 units

c. 625 inits

d. 1,750 units

10. Young Guns Company, which sells tents, has provided the following information:

Price per unit $40

Variable cost per unit 12

Fixed costs per month $12,600

What are the required sales in units for Young to break even?

315units

450units

252 units

1050 units

11. Venus Inc. has fixed costs of $300,000. Total costs, both fixed and variable, are $450,000 when 30,000 units are produced. Calculate the total costs if the volume increases to 60,000 units.

A. $750,000

B. $1,200,000

C. $600,000

D. $450,000

12.Contribution margin ratio is equal to ________.

select one:

net sales revenue per unit minus variable costs per unit

contribution margin divided by net sales revenue

net sales revenue minus variable costs

fixed costs divided by contribution margin per unit