| There were no beginning or ending inventories. The absorption costing unit product cost was: A.$124 per unit B.$169 per unit C.$131 per unit D.$253 per unit | 6. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: | | Units in beginning inventory | 0 | | Units produced | 4,500 | | Units sold | 4,400 | | Units in ending inventory | 100 | Variable costs per unit: | Direct materials | $ | 51 | | Direct labor | $ | 53 | | Variable manufacturing overhead | $ | 16 | | Variable selling and administrative | $ | 14 | Fixed costs: | Fixed manufacturing overhead | $ | 94,500 | | Fixed selling and administrative | $ | 44,000 | What is the variable costing unit product cost for the month? A.$134 per unit B.$155 per unit C.$120 per unit D.$131 per unit | 7. A company produces a single product. Variable production costs are $12.7 per unit and variable selling and administrative expenses are $3.7 per unit. Fixed manufacturing overhead totals $43,000 and fixed selling and administration expenses total $47,000. Assuming a beginning inventory of zero, production of 4,700 units and sales of 3,950 units, the dollar value of the ending inventory under variable costing would be: | A.$9,525 B.$16,275 C.$12,300 D.$6,750 | 9. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: | | Selling price | $145 | | | | | Units in beginning inventory | 0 | | Units produced | 2,440 | | Units sold | 2,280 | | Units in ending inventory | 160 | | | | | Variable cost per unit: | | | Direct materials | $49 | | Direct labor | $17 | | Variable manufacturing overhead | $17 | | Variable selling and administrative | $10 | | Fixed costs: | | | Fixed manufacturing overhead | $85,400 | | Fixed selling and administrative expenses | $22,800 | | The total gross margin for the month under absorption costing is: | A.$61,560 B.$15,960 C.$107,760 D.$118,560 | 10. Brummitt Corporation has two divisions: the BAJ Division and the CBB Division. The corporation's net operating income is $12,500. The BAJ Division's divisional segment margin is $85,100 and the CBB Division's divisional segment margin is $49,500. What is the amount of the common fixed expense not traceable to the individual divisions? | A.$97,600 B.$122,100 C.$62,000 D.$134,600 | 12. Aaker Corporation, which has only one product, has provided the following data concerning its most recent month of operations: | | Selling price | $171 | | Units in beginning inventory | 0 | | Units produced | 7,200 | | Units sold | 6,900 | | Units in ending inventory | 300 | | Variable costs per unit: | | | Direct materials | $30 | | Direct labor | $60 | | Variable manufacturing overhead | $24 | | Variable selling and administrative | $24 | | Fixed costs: | | | Fixed manufacturing overhead | $194,400 | | Fixed selling and administrative | $29,400 | What is the unit product cost for the month under variable costing? A.$138 per units B.$165 per units C.$141 per units D.$114 per units | 13. Khanam Corporation, which has only one product, has provided the following data concerning its most recent month of operations: | | Selling price | $159 | | Units in beginning inventory | 0 | | Units produced | 7,050 | | Units sold | 6,750 | | Units in ending inventory | 300 | | Variable costs per unit: | | | Direct materials | $27 | | Direct labor | $57 | | Variable manufacturing overhead | $21 | | Variable selling and administrative | $21 | | Fixed costs: | | | Fixed manufacturing overhead | $190,350 | | Fixed selling and administrative | $28,500 | | The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. | What is the unit product cost for the month under absorption costing? A.$132 per unit B.$105 per unit C.$126 per unit D.$153 per unit | 20. Activity rates from Quattrone Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products: | | Activity Cost Pools | Activity Rate | | Processing customer orders | $93.82 | per customer order | | Assembling products | $2.99 | per assembly hour | | Setting up batches | $62.36 | per batch | | Last year, Product F76D involved 4 customer orders, 485 assembly hours, and 21 batches. How much overhead cost would be assigned to Product F76D using the activity-based costing system? | A.$1,309.56 B.$68,043.83 C.$3,134.99 D.$1,281.68 | 21. Lehner Corporation has provided the following data from its activity-based costing accounting system: | | Indirect factory wages | $522,000 | | Factory equipment depreciation | $271,000 | | Distribution of Resource Consumption across Activity Cost Pools: | | | Customer Orders | Product Processing | Other | Total | | Indirect factory wages | 65% | 20% | 15% | 100% | | Factory equipment depreciation | 25% | 65% | 10% | 100% | | The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products | | How much indirect factory wages and factory equipment depreciation cost would be assigned to the Customer Orders activity cost pool? | A.$793,000 B.$550,050 C.$407,050 D.$374,550 | 22. Lehner Corporation has provided the following data from its activity-based costing accounting system: | | Indirect factory wages | $615,000 | | Factory equipment depreciation | $321,000 | | Distribution of Resource Consumption across Activity Cost Pools: | | | Customer Orders | Product Processing | Other | Total | | Indirect factory wages | 55% | 20% | 25% | 100% | | Factory equipment depreciation | 10% | 55% | 35% | 100% | | The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products. | | How much indirect factory wages and factory equipment depreciation cost would NOT be assigned to products using the activity-based costing system? | A.$615,000 B.$266,100 C.$0 D.$321,000 | 23. Fogle Florist specializes in large floral bouquets for hotels and other commercial spaces. The company has provided the following data concerning its annual overhead costs and its activity based costing system: | | Overhead costs: | | | Wages and salaries | $162,000 | | Other expenses | 61,000 | | Total | $223,000 | | Distribution of resource consumption: | | | Activity Cost Pools | | | | Making Bouquets | Delivery | Other | Total | | Wages and salaries | 45% | 25% | 30% | 100% | | Other expenses | 30% | 45% | 25% | 100% | | The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. | | The amount of activity for the year is as follows: | | Activity Cost Pool | Activity | | Making bouquets | 140,308 bouquets | | Delivery | 12,700 deliveries | | What would be the total overhead cost per bouquet according to the activity based costing system? In other words, what would be the overall activity rate for the making bouquets activity cost pool? (Round to the nearest whole cent.) | A.$.65 per bouquets B.$.70 per bouquets C.$.63 per bouquets D.$.55 per bouquets | 24. Fogle Florist specializes in large floral bouquets for hotels and other commercial spaces. The company has provided the following data concerning its annual overhead costs and its activity based costing system: | | Overhead costs: | | | Wages and salaries | $174,000 | | Other expenses | 100,000 | | Total | $274,000 | | Distribution of resource consumption: | | | Activity Cost Pools | | | | Making Bouquets | Delivery | Other | Total | | Wages and salaries | 55% | 30% | 15% | 100% | | Other expenses | 25% | 60% | 15% | 100% | | The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. | | The amount of activity for the year is as follows: | | Activity Cost Pool | Activity | | Making bouquets | 72,710 bouquets | | Delivery | 10,900 deliveries | | What would be the total overhead cost per delivery according to the activity based costing system? In other words, what would be the overall activity rate for the deliveries activity cost pool? (Round to the nearest whole cent.) | $11.15 per delivery $8.58 per delivery $9.86 per delivery $10.29 per delivery | 25. Ollivier Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: | | Overhead costs: | | | Equipment expense | $83,000 | | Indirect labor | $8,200 | | Distribution of Resource Consumption Across Activity Cost Pools: | | | Activity Cost Pools | | | Processing | Supervising | Other | | Equipment expense | 0.40 | 0.50 | 0.10 | | Indirect labor | 0.40 | 0.40 | 0.20 | | Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: | | Activity: | | | | | MHs (Processing) | Batches (Supervising) | | Product C4 | 13,000 | 1,160 | | Product L7 | 1,130 | 550 | | Total | 14,130 | 1,710 | | The activity rate for the Supervising activity cost pool under activity-based costing is closest to: | A.$53.33 per batch B.$26.19 per batch C.$10.75 per batch D.$21.49 per batch | 34. The manufacturing overhead budget at Cutchin Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,500 direct labor-hours will be required in September. The variable overhead rate is $5 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,010 per month, which includes depreciation of $3,750. All other fixed manufacturing overhead costs represent current cash flows. The September cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: | A.$39,260 B.$51,760 C.$12,500 D.$55,510 | 35. Mosbey Inc. is working on its cash budget for June. The budgeted beginning cash balance is $12,000. Budgeted cash receipts total $181,000 and budgeted cash disbursements total $180,000. The desired ending cash balance is $37,000. The excess (deficiency) of cash available over disbursements for June will be: | A.$1,000 B.$13,000 C.$11,000 D.$193,000 | 36. Sparks Corporation has a cash balance of $17,100 on April 1. The company must maintain a minimum cash balance of $14,000. During April, expected cash receipts are $64,000. Cash disbursements during the month are expected to total $76,000. Ignoring interest payments, during April the company will need to borrow: | A.$5,100 B.$8,900 C.$14,000 D.$12,000 | 39. LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.7 hours of direct labor at the rate of $23.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June. | The budgeted direct labor cost per unit of Product WZ would be: A.$6.40 per unit B.$33.70 per unit C.$23.00 per unit D.$62.10 per unit | 40. LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.9 hours of direct labor at the rate of $18.00 per direct labor-hour. The company plans to sell 30,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 520 and 100 units, respectively. Budgeted direct labor costs for June would be:(Do not round intermediate calculations.) | A.$2,095,266 B.$532,500 C.$2,114,016 D.$2,076,516 | 41. Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $1,007. Selected data for the companys operations last year follow: | | | | | | Units in beginning inventory | | 0 | | Units produced | | 18,000 | | Units sold | | 15,000 | | Units in ending inventory | | 3,000 | | Variable costs per unit: | | | | Direct materials | | $ 280 | | Direct labor | | $ 470 | | Variable manufacturing overhead | | $ 65 | | Variable selling and administrative | | $ 24 | | Fixed costs: | | | | Fixed manufacturing overhead | | $ 930,000 | | Fixed selling and administrative | | $ 760,000 | | | | | 1.Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. | | | Unit product cost= | | | 2.Assume that the company uses variable costing. Compute the unit product cost for one gamelan. | | | Unit prodcut cost= | 42. Klumper Corporation is a diversified manufacturer of industrial goods. The companys activity based costing system contains the following six activity cost pools and activity rates: | | Activity Cost Pool | Activity Rates | | Supporting direct labor | | $10.00 | per direct labor-hour | | Machine processing | | $3.00 | per machine-hour | | Machine setups | | $45.00 | per setup | | Production orders | | $160.00 | per order | | Shipments | | $130.00 | per shipment | | Product sustaining | | $775.00 | per product | | | | Activity data have been supplied for the following two products: | | | Total Expected Activity | | | K425 | M67 | | Number of units produced per year | 200 | 2,000 | | Direct labor-hours | 950 | 50 | | Machine-hours | 2,400 | 40 | | Machine setups | 7 | 2 | | Production orders | 7 | 2 | | Shipments | 14 | 2 | | Product sustaining | 2 | 2 | | | | Required: | | Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system. Supporting director labor machine processing machine setups production orders shipments product sustaining | 43. Silver Company makes a product that is very popular as a Mothers Day gift. Thus, peak sales occur in May of each year, as shown in the companys sales budget for the second quarter given below: | | | April | May | June | Total | | Budgeted sales (all on account) | $410,000 | $610,000 | $210,000 | $1,230,000 | | | | From past experience, the company has learned that 25% of a months sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 15% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $340,000, and March sales totaled $370,000. | | Required: | | | 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. | | | | | | 2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date. | | | | | | |
