1.ABC Corporation is planning to sell 100,000 units for $2.00 per unit and will break even at this level of sales. Fixed expenses will be $75,000. What are the company's variable expenses per unit?

$1.10

$1.00

$1.25

$0.75

2.In May, one of the processing departments at ABC Corporation had beginning work in process inventory of $16,000 and ending work in process inventory of $27,000. During the month, the cost of units transferred out from the department was $160,000. In the department's cost reconciliation report for May, the total cost to be accounted for under the weighted-average method would be:

$358,000

$187,000

$374,000

$43,000

3.A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $2,400 and is paid at the beginning of the first year. Seventy percent of the premium applies to manufacturing operations and thirty percent applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage?

Product?Period?

$0 $800

$240 $560

$800 $0

$560 $240

4.At a break-even point of 800 units sold, ABC Corporation's variable expenses are $8,000 and its fixed expenses are $4,000. What will the Corporation's net operating income be at a volume of 801 units?

$15

$10

$5

$20

5.ABC Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 57,000 actual direct labor-hours and incurred $345,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 55,000 direct labor-hours during the year and apply $330,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:

overapplied by $15,000

underapplied by $15,000

overapplied by $3,000

underapplied by $3,000

6.ABC Corporation manufacturers a single product that has a selling price of $20.00 per unit. Fixed expenses total $45,000 per year, and the company must sell 5,000 units to break even. If the company has a target profit of $13,500, sales in units must be:

6,000

6,500

7,925

5,750