12 Cumulative Final Questions 15 The primary objective of management accounting is to provide a. stockholders and potential investors with useful information for decision making b. banks and other creditors with information useful in making credit decisions c. management with information useful for planning and control of operations d. the Internal Revenue Service with information about taxable income. 16. If the activity level increases, one would expect the fixed cost per unit to: a. increase b. decrease c. remain unchanged d. none of these Juniper Company has provided the following data concerning its manufacturing costs and work in process inventories last month: 17. $270,000 170,000 Raw materials used in production Direct labor 220,000 Manufacturing overhead 90,000 Beginning work in process inve Ending work in process inventory 120,000 The cost of goods manufactured for the month was: a. $870,000 b. $630,000 c. $690,000 d. $660,000 A key feature of Activity Based Costing is 8. a. it is used by all companies b. it is used by no companies C. it does not calculate accurate costs d. the use of multiple overhead pools 19. Bargie Company uses activity-based costing to determine the costs of its two products: A and B. The estimated total cost and expected activity for one of the company's three activity cost pools are as follows. Expected Activity Estimated Cost Product A Product B 22,5001080810 The activity rate under the activity-based costing system for this activity is closest to a. $2.38. b. $5.10. c. $6.80. d. $11.90. Ctrl 20. Last year, Jester Company's sales were $242,000, its fixed costs were $$1,000, and its variable costs were $2 per unit. During the year, 80,200 units were sold. The contribution margin was a. $30,600 b. $81,600 $242,000 d. $201,900 Scadams Company has a single product. The selling price is $70 and the variable cost is $28 per unit. The company's fixed expense is $609,000 per month. How many units would the company have to sell to 21. a. 16,900 units b. 14,500 units c. 16477 units d. 17,400 units 22. The starting point for the preparation of a master budget is the a. budgeted balance sheet b. budgeted income statement c. sales budget. d. production budget 23. The Starchatter Company reported the following results Average operating assets 55,000 280,000 28,600 10,000 Sales Contribution margin Net operating income The company's ROI is (Do not round your intermediate calculations.): 18.18%. a. b. 36.36%. c. 10.21%. d52.00%. 24. Lemont Company reported the following results: Average operating assets $ 460,000 5 410,000 Stockholders euity$1.540.000 Sales 595,900 17% income Net Minimum required rate of return The company's residual income is: a. $574,100 b. $17,700 c. $314,100 d. $26,200 Shit Ctri 25. Unrealistically high expense amounts in budgets (l.e. to overestimated budgeted expenses used to make it easier to meet budgeted expectations) is called: Budgetary Slack b. Activity Based Costing a. c. ROI Target Operating Profit d