23. Madnd Corporation is using a manufacturing overhead application rate of 110% of direct labor dollars. If direct labor was 10 hours at $15 per hour, how much overhead should be applied to the job? a) $135 b) $165 c) $160 d) $150 e) None of the above A company has fixed costs of $175,000 and a 25% contribution margin ratio sales are necessary to achieve a pre-tax net income of $200,000 if the tax rate 24 What dollar is 20967 a) $1,000,000 b) $1,180,000 C) $1,500,000 d) $1,700,000 e) $1,900,000 25. Which of the following statements is true regarding fixed and variable costs? a) Fixed costs stay the same and variable costs increase in total as activity volume increases. Fixed costs increase and variable costs decrease in total as activity volume decreases b) c) Both fixed and variable costs increase as activity volume increases d) Both fixed and variable costs stay the same in total as activity volume increases e) None of the above. 26 A n accounting system that provides information that management can use to evaluate the performance of a department's manager is called a a) Cost accounting system. b) Managerial accounting system c) Responsibility accounting system. d) Financial accounting system e) Activity-based accounting system. 27. A company bought a machine that has an expected ife of six years and no salvage value. Management estimates that this machine will generate annual after-tax net income of $700 If the accounting rate of return is 10%, what was the purchase price of the machine? a) $7,000 b) $700 d) e) $14,000 $3,500 c) $28,000 Units of Produc 2,000 15,000 5,000 28. Assume the following 35% complete Goods started and completed Ending goods in process 25% complete Assuming FIFO, what are the equivalent units for beginning and ending inventory? a) Beginning 2,000 and Ending 5,000 b) Beginning 1,300 and Ending 5,000 c) Beginning 1,300 and Ending 3,750 d) Beginning 1,300 and Ending 1,250 e) Beginning 700 and Ending 1,250