6, Zhang Company reported Cost of goods sold of $835,000, ending Inventory of $41,750, and Net sales of $2,338,000. The Days sales in inventory (rounded to whole days) is:

Multiple Choice

• 7 days.

• 418 days.

• 56 days.

• 18 days.

• 20 days.

16,

Which of the following costs would not be classified as factory overhead?

Multiple Choice

• Property taxes on maintenance machinery.

• Insurance on factory building.

• Rubber for the soles of shoes produced.

• Wages of the factory janitor.

• Small tools used in production.

31,

Wilturner Company incurs $94,000 of labor related directly to the product in the Assembly Department, and $43,000 of labor related to the Assembly Department as a whole, and $30,000 of labor for services that help production in both the Assembly and Finishing departments. The amount of direct labor and factory overhead respectively are:

Multiple Choice

• $94,000 and $30,000.

• $124,000 and $43,000.

• $94,000 and $73,000.

• $167,000 and $0.

• $137,000 and $30,000.

35,

Which of the following statements is true of activity-based costing?

Multiple Choice

• An activity cost pool collects costs related to the same activity.

• ABC ignores the allocation of storage costs.

• Activities are the cost objects of the second stage of ABC.

• ABC is more likely to result in big differences from a traditional costing system if the business makes only one product rather than multiple products.

• ABC uses a single overhead rate.

36,

Which of the following is true?

Multiple Choice

• Overhead costs are often affected by many issues and are frequently too complex to be explained by any one factor.

• Allocated overhead costs will be the same no matter which allocation method is used.

• The departmental overhead rate is most accurate in assigning overhead costs that are not driven by production volume.

• The departmental overhead rate is not usually based on measures closely related to production volume.

• When cost analysts are able to logically trace cost objects to costs, costing accuracy is improved.

48,

Wang Co. manufactures and sells a single product that sells for $450 per unit; variable costs are $270 per unit. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the contribution margin per unit.

Multiple Choice

• $180.

• $270.

• $190.

• $200.

• $450.