accounting 321 homework - 14 questions
Which of the following is not part of manufacturing overhead for producing a computer? A. Depreciation on delivery trucks B. Manufacturing plant utilities C. Manufacturing plant property taxes D. Insurance on plant and equipment Which of the following is a philosophy of providing customers with superior products and services? A. Enterprise resource planning (ERP) B. Total quality management C. Supply chain management D. Just-in-time (JIT) inventory management Bambridge Services reported the following information for the year 2012: Service Revenue: $ 20,000 Operating Expenses: $ 15,750 Net Income: $ 4,250 Number of service calls for the year: 21,000 How much was the unit cost per service call? A. $ .75 B. $ .95 C. $ 2.20 D. $ .20 Which of the following is an example of a period cost? A. Property taxes for the factory B. Advertising expense C. Indirect materials D. Depreciation on factory equipment Which of the following is an example of direct labor? A. Salary of vice president of production B. Wages of assembly line personnel C. Salary of production manager D. Wages of factory security guard Selected data for Young Company for 2012 is presented below: Direct labor incurred: $ 30,000 Indirect labor incurred: $ 21,000 Factory depreciation: $ 5,000 Factory utilities: $ 7,000 Indirect materials used: $ 2,000 Direct materials used: $ 12,000 Property taxes on factory building: $ 3,000 Sales commissions: $ 8,000 What is the manufacturing overhead? A. $ 46,000 B. $ 38,000 C. $ 47,000 D. $ 50,000 The following information pertains to Bright Toy Company's operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012. Purchases: $ 126,000 Selling & Administrative Expenses: $ 90,000 Merchandise inventory, 1/1/2012: $ 14,000 Merchandise inventory, 12/31/2012: $ 10,000 Sales revenue: $ 250,000 What is the gross profit percentage? A. 56% B. 36% C. 48% D. 100% If Blue Ridge Railway's fixed costs total $60,000 per month, the variable cost per passenger is $13, and tickets sell for $65, how much revenue must the railway have to generate to earn $135,000 in operating income per month? A. $ 975,000 B. $ 195,000 C. $ 3,750 D. $ 243,750 Which of the following statements is correct with respect to total fixed costs, within the relevant range? A. They will remain the same as production levels change. B. They will decrease as production decreases. C. They will increase as production decreases. D. They will decrease as production increases. Fairfield Company management has budgeted the following amounts for its next fiscal year: Total fixed expenses: $ 832,500 Sale price per unit: $ 40 Variable expenses per unit: $ 25 What will happen to the breakeven point in units if Fairfield can reduce fixed expenses by $22,500? A. The breakeven point will decrease by 900 units. B. The breakeven point will increase by 562 units. C. The breakeven point will decrease by 562 units. D. The breakeven point will decrease by 1500 units. Lightfoot company sells it product for $55 and has variable costs of $30 per unit. Total fixed costs are $25,000. What will be the effect on the breakeven point if variable costs increase by 10% due to an increase in the cost of direct materials? A. It will increase by approximately 136 units. B. It will decrease by approximately 136 units. C. It will decrease by approximately 242 units. D. It will increase by approximately 242 units. Gold enterprise sells computer disks for $1.50 per disk. Unit variable expenses total $ .90. The breakeven point in units is 3,000 and budgeted sales in units are 4,300. What is the margin of safety in dollars? A. $ 1,950 B. $ 2,580 C. $ 780 D. $ 4,500 Taizhong Semiconduct Company mass produces several common computer chips. Type A sells for $1.20 per unit. Variable cost is $ 0.95 per unit and the fixed costs are $32,000 per month. Taizhong currently sells 140,000 units per month. Under intense pressure to boost profits, the production manager has a plan which will reduce fixed costs by 10%. How will this affect net operating income? A. It will go up approximately 107% B. It will go down approximately 40% C. It will go up exactly 10% D. It will go up approximately 12% Becky's Bakery sells three large muffins for every two small ones. A small muffin sells for $3, with a variable costs of $2.00. A large muffin sells for $5 with a variable cost of $2.50. Fixed costs are $3,000 per month. How much is the breakeven in terms of total units? A. 1,579 B. 1,240 C. 1,180 D. 946
