b c d 31 products or job? me reason to use a predetermined overhead rate in costing Use of a predetermined overhead rate provides the most accurate costs Use of a predetermined overhead rate provides more timely cont information for Use of a predetermined overhead rate increases profits None of the above are reasons to use a predetermined overhead rate The Alpine House, Inc. sells winter sports equipment, Alpine selle snow skin at 55.00 each month What is Alpine's contribution margin per unit? $ 500 b. $ 300 C $ 200 $ 107 per pair Variable costs equal $ 300 per pair sold. Alpine incurs $28.000 of fixed costs a 32. Snowy Peaks Inc. sells a product that has a contribution margin of $250 per unit Snowy Peaks sold 300 units of the product last month yielding net operating income of $40,000 How much should Snowy Peaks net income increase if 50 more units are sold? a $10,000 b. $ 4,000 c. $12.500 d. $ 2.000 33. Found Company reports the following data: Sales price $200 per unit Variable costs $ 80 per unit Contribution margin $120 per unit Total fixed costs $ 120,000 per period 33. Found Company reports the following data: Sales price $200 per unit Variable costs $ 80 per unit Contribution margin $120 per unit Total fixed costs $ 120,000 per period What is Found's contribution margin ratio? a. 250% b. 60% C. 40% d. 167% 34. The budgeting process begins with a a. sales forecast b. production budget c. cash budget d budgeted income statement cores about you. 1 Peter 5:6-7 35. LMN Company reported absorption costing net operating income of $59,000 Variable costing net operating income was $57,000. Total fixed manufacturing overhead was $25,000, 5,000 units were produced There were no units in beginning finished goods inventory Ending finished goods inventory was 400 units What is the best explanation for the $2,000 difference between the variable costing net operating income and absorption costing net operating income? a. $25,000 of fixed MOH was expensed under Variable Costing, but $2,000 of fixed manufacturing overhead ($5 per unit - 400 units ending inventory) was deferred to the balance sheet Inventory under Absorption Costing b. $2.000 of selling costs were expensed under Absorption Costing, but were not incurred under Variable Costing $2.000 tess variable manufacturing overhead was incurred under Absorption costing than under Variable costing d. None of the above . 36. Which of the following costs would be relevant to an add drop decision? a allocated common costs unavoidable depreciation on equipment c. traceable direct costs d none of the above would be relevant b
