18)Andrew Industries purchased $157,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $20,400, and the materials used to complete jobs during the month were $133,800 direct materials and $12,200 indirect materials. What is the ending Raw Materials Inventory balance for March?

$43,600.

$9,400.

$31,400.

$23,200.

$8,200.

19)Andrew Industries purchased $157,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $20,400, and the materials used to complete jobs during the month were $133,800 direct materials and $12,200 indirect materials. What is the ending Raw Materials Inventory balance for March?

$43,600.

$9,400.

$31,400.

$23,200.

$8,200.

20)The final step of activity-based costing assigns overhead costs to pools rather than to products.

True

False

21)Gray Company uses a plantwide overhead rate with machine hours as the allocation base. Use the following information to solve for the amount of machine hours estimated per unit of product Q.

Direct material cost per unit of Q	$15
Total estimated manufacturing overhead	$100,000
Total cost per unit of Q	$60
Total estimated machine hours	200,000 MH
Direct labor cost per unit of Q	$30

50 MH per unit of Q.

.50 MH per unit of Q.

.75 MH per unit of Q.

17.5 MH per unit of Q.

30 MH per unit of Q.

22)During March, a firm expects to its total sales to be $153,000, its total variable costs to be $94,300, and its total fixed costs to be $24,300. The contribution margin for March is:

$58,700.

$94,300.

$118,600.

$34,400.

$24,300.

23)During its most recent fiscal year, Raphael Enterprises sold 200,000 electric screwdrivers at a price of $15.00 each. Fixed costs amounted to $400,000 and pretax income was $600,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?

$2,000,000.

$2,400,000.

$3,000,000.

$1,600,000.

$1,000,000.

24)Watson Company has monthly fixed costs of $92,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $15,900, what dollar amount of sales must be made to produce the target income?

$269,750

$107,900

$230,000

$39,750

$190,250

25)A product sells for $30 per unit and has variable costs of $17.50 per unit. The fixed costs are $775,000. If the variable costs per unit were to decrease to $15.10 per unit, fixed costs increase to $923,800, and the selling price does not change, break-even point in units would :

Equal 6,000.

Increase by 4,960.

Decrease by 20,575.

Not change.

Increase by 20,575.

26)Raven Company has a target of earning $70,400 pre-tax income. The contribution margin ratio is 25%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $36,800?

$510,400.

$281,600.

$36,800.

$363,200.

$428,800.

27)Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $300. Annual fixed costs are $870,000. Current sales volume is $4,200,000. Flannigan Company management targets an annual pre-tax income of $1,125,000. Compute the dollar sales to earn the target pre-tax net income.

$5,640,000.

$5,990,990.

$3,378,378.

$2,991,004.

$2,612,613.

28)The dollar amount of sales needed to achieve a target income is computed by dividing the sum of fixed costs plus the target income by the contribution margin ratio.

True

False