At production levels beyond the breakeven point?

Answer

		profit is positive.
		variable costs are zero.
		profit is negative.
		fixed costs are not recovered.

Overhead applied to jobs during the period was $270,000. Actual overhead costs incurred were $268,000. Budgeted overhead used to calculate the predetermined overhead rate was $275,000. Which of the following is a correct entry to close the Manufacturing Overhead account?

Answer

		Debit - Cost of Goods Sold 2,000 Credit - Manufacturing Overhead 2,000
		Debit - Manufacturing Overhead 2,000 Credit - Cost of Goods Sold 2,000
		Debit - Manufacturing Overhead 5,000 Credit - Cost of Goods Sold 5,000
		Debit - Cost of Goods Sold 7,000 Credit - Manufacturing Overhead 7,000

Excerpts from a cost-volume-profit analysis indicate fixed costs of $51,000, a contribution margin per unit of $35, a selling price of $90, and a sales level of 4,000 units. What must be the targeted level of profit?

Answer

		$140,000
		$89,000
		$79,000
		$104,000

Laker Company bought $100,000 of direct material during June, incurred $90,000 in direct labor cost, and had $130,000 in manufacturing overhead. Inventories for June were as follows: Beginning Ending Raw material $14,000 $18,000 Work in Process $19,000 $17,000 Finished Goods $18,000 $15,000 What is the cost of goods sold for June?

Depreciation expense could be?

Answer

		a fixed cost.
		a period cost.
		a product cost.
		all of these.

Lopar Company uses a predetermined overhead rate based on direct labor dollars. Lopar Company estimated that its 20x9 overhead would total $938,000 and that 20x9 direct labor costs would be $670,000. During 20x9, actual overhead costs were $960,000, and actual direct labor costs were $700,000. By how much was Lopar's overhead over- or underapplied?

Answer

		$20,000 underapplied
		$10,000 underapplied
		$20,000 overapplied
		$18,000 overapplied

WiseBooks, a manufacturing company, utilizes job-order costing and the company allocates overhead at a rate of 120% of direct labor costs. The following is data for three jobs regarding the WIP balance at 2/1, Direct Labor Costs added in February and Direct Materials Costs added in February, respectively: Job #1 $400 $500 $200 Job #2 $500 $300 $300 Job #3 $300 $100 $250 Jobs #1 and #2 were completed and sold in February. The balance in the WIP account at the end of February is?

WiseBooks, a manufacturing company, utilizes job-order costing and the company allocates overhead at a rate of 120% of direct labor costs. The following is data for three jobs regarding the WIP balance at 2/1, Direct Labor Costs added in February and Direct Materials Costs added in February, respectively:

Job #1 $400 $500 $200 Job #2 $500 $300 $300 Job #3 $300 $100 $250

Total manufacturing overhead costs for February are?

Dilly LLC, wants to make a profit of $30,000. It has variable costs of $67 per unit and fixed costs of $20,000. How much must it charge per unit if 5,000 units are sold?

Answer

		$37
		$67
		$52
		$77