1.A responsibility center that incurs costs (and expenses) and generates revenues is classified as a(n): Question 1 options: investment center. revenue center. cost center. profit center.

2.The most useful measure for evaluating a manager's performance in controlling revenues and costs in a profit center is: Question 2 options: contribution net income. controllable margin. contribution gross profit. contribution margin.

3.Marley Corporation desires to earn target net income of $180,000. If the selling price per unit is $30, unit variable cost is $24, and total fixed costs are $720,000, the number of units that the company must sell to earn its target net income is: Question 3 options: 150,000. 120,000. 60,000. 90,000.

4.Oscar Corporation uses a process cost accounting system. Given the following data, compute the number of units transferred out during the current period. Beginning Work in process 10,000 units ( complete) Ending Work in Process 12,500 units ( complete) Started into Production 75,000 units Question 4 options: 85,000. 75,000. 72,500. 62,500.

5.Pilgrim Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period: Estimated annual overhead cost $1,200,000 Actual annual overhead cost $1,150,000 Estimated machine hours 300,000 Actual machine hours 280,000 Question 5 options: $1,120,000 applied and $30,000 underapplied. $1,120,000 applied and $30,000 overapplied. $1,150,000 applied and neither under- nor overapplied. $1,200,000 applied and $30,000 overapplied.

6.The following data has been collected for use in analyzing the behavior of maintenance costs of Sterling Corporation: Month Maintenance Costs Machine Hours January $121,000 20,000 February 125,000 23,000 March 128,000 24,000 April 159,000 34,000 May 168,000 36,000 June 178,000 38,000 July 181,000 40,000 Using the high-low method to separate the maintenance costs into their variable and fixed cost components, these components are: Question 6 options: $4 per hour plus $41,000. $5 per hour plus $30,000. $3 per hour plus $61,000. $5 per hour plus $20,000.