Question
Explanations are appreciated but not necessary! 11. Manders Inc. had a per-unit conversion cost of $5.00 and a per-unit prime cost of $7.00 during July.
Explanations are appreciated but not necessary!
11. Manders Inc. had a per-unit conversion cost of $5.00 and a per-unit prime cost of $7.00 during July. Also, during July, Manders incurred $25,000 of manufacturing overhead costs and manufactured 50,000 units. What was Manders' total direct materials cost during July?
a. $250,000 b. $350,000 c. $200,000 d. $150,000
13. Claremore Clinic has identified three activities for daily maternity care: occupancy and feeding, nursing, and nursing supervision. The nursing supervisor oversees 120 nurses, 20 of whom are maternity nurses (the other nurses are located in other care areas such as the emergency room and intensive care). The nursing supervisor has three assistants, a secretary, several offices, computers, phones, and furniture. The three assistants spend 60% of their time on the supervising activity and 40% of their time as surgical nurses. They each receive a salary of $80,000. The nursing supervisor has a salary of $100,000. She spends 100% of her time supervising. The secretary receives a salary of $40,000 per year. Other costs directly traceable to the supervisory activity (depreciation, utilities, phone, etc.) average $220,000 per year. Calculate the cost for nursing supervision.
a.$220,000 b.$600,000 c.$100,000 d.$504,000
16. Which of the following items is not found on the income statement of a service organization?
a.Selling expenses b.Operating income c.Sales revenue d.Cost of goods sold
24. _____ are assigned using direct tracing and resource drivers.
a.Profits b.Products c.Activity drivers d.Product costs e.Resource costs
26. Glascro Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery. Data for the past four months were collected as follows:
Month | Lease cost | Machine hours |
April | $15,000 | 800 |
May | 10,000 | 600 |
June | 12,000 | 770 |
July | 16,000 | 1,000 |
Using the high-low method, calculate the variable rate per machine hour for the lease cost.
a.$65 per machine hour b.$59 per machine hour c.$15 per machine hour d.$25 per machine hour
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