BC Ltd. absorbs overhead using a predetermined machine hour rate. Relevant information for the year just ended is: Actual machine hours worked 120,000 Estimate overhead cost $ 312,000 Actual overhead cost $ 374,400 Estimate machine hours 130,000 What was the absorption rate per machine hour? Select one: O a. $2.60 O b. $2.40 O c. $2.88 O d. $3.12 The following are the data of Freeway Company: $ $ Sales (4,000 units @ $25) 100,000 Variable costs (4,000 units) 40,000 Materials 20,000 Wages 20,000 Variable overhead 10,000 Fixed overheads 18,000 88,000 Operating Profit 12,000 Calculate the sales units to maintain the existing profit if the selling price is reduced by 20% Select one: O a. 12,000 units O b. 8,000 units O c. 10,000 units O d. 6,000 units Which of the following is NOT one of the purpose for cost allocation? Select one: O a. Defining a firm's core competencies and the activities in which it can pursue a competitive advantage. O b. Provide desired motivation and feedback for performance evaluation. O c. Compute income and assets valuations for financial reporting. O d. Predict economic effects of strategic and operational control decisions. HK Hotel anticipates that the number of guests in September will be 3,000. Given the data below, develop a cost model and predict the costs that will be incurred in September Number of Guests 1,335 1,000 Month April May June July August Total Costs $125,540 $105,450 $302,200 $371,255 $288,500 3,500 4,545 2,950 Select one: O a. $321,250 O b. $299,250 O c. $278,420 O d. $255,390 analysis is a method of cost accounting that looks at the impact that varying levels of costs and volume have on operating profit. Select one: O a. Accounting rate of return O b. Value chain function O c. Cost-volume-profit O d. Sales mix The code of conduct developed by IMA includes: Select one: O a. Competence and Due Care; Credibility; Integrity; Professional Behaviour O b. Competence; Confidentiality; Integrity; Credibility O c. Objectivity; Professional Competence and Due Care; Professional Behaviour; Integrity O d. Competence; Credibility; Professional Behaviour; Integrity analysis seeks to place a straight line among data points on a plot of each cost and its appropriate cost driver. Select one: O a. Account O b. Least-square regression O c. Visual-fit O d. High-low analysis entails a systematic review of materials, supplies, labor, support services, and facilities needed for products and services. Select one: O a. Engineering O b. Account O c. High-low O d. Least-squares regression ABC Ltd. manufactures and sells baby car seats. Last year, the following data applied: Car seats manufactured: 8,000 Car seats sold: 6,000 @$40 each Average cost per car seat: Variable $8 Fixed $12 What was the total contribution from sales of car seats during the year? Select one: O a. $192,000 O b. $184,000 O c. $204,000 O d. $330,000
