Question
Frannie's Florist produces floral bouquets for commercial businesses (i.e. hotels) and uses an activity-based costing system. Data concerning overhead costs and activity pools is as
Frannie's Florist produces floral bouquets for commercial businesses (i.e. hotels) and uses an activity-based costing system. Data concerning overhead costs and activity pools is as follows: Activity Cost Pool: Bouquets - Estimated Wages $48,000 and Estimated Materials $18,000 Activity Cost Pool: Deliveries - Estimated Wages $24,000 and Estimated Materials $10,000 Activity Cost Pool: Other - Estimated Wages $8,000 and Estimated Materials $12,000 Total Estimated Wages were $80,000 and Total Estimated Materials were $40,000 During the year Frannie made 60,000 bouquets and made 5,000 deliveries. Using activity-based costing, what is the cost per delivery?
4 points
Question 2
- The Starbright Company makes alarm clocks. Information on the product is as follows:
Clock Sales $180,000 Clock Direct Materials $60,000 Clock Direct Labor $20,000
Overhead costs are allocated at the rate of 120% of material costs. Company profits are?
4 points
Question 3
- HN Inc. produces and sells 40,000 units of a single product, eye drops. Variable costs total $80,000 and fixed costs total $120,000. If each unit is sold for $8, what markup percentage is the company using?
4 points
Question 4
- The Jefferson Supply Company experienced the following costs in 2007: Direct materials $3.50/unit Direct labor $2.65/unit Variable Manufacturing Overhead Costs $1.50/unit Fixed Manufacturing Overhead Costs $20,000 Variable selling costs $2.15/unit Fixed selling costs $8,000 Fixed administrative costs $7,000 During the year the company manufactured and sold 85,000 units. If the average selling price per unit was $19.50 what was the company's contribution margin?
4 points
Question 5
- Two or more products which result from common inputs are called joint products?
3 points
Question 6
- When service department's fixed costs are allocated using actual costs and actual usage, the charge one production operating manager receives will depend on the usage of other production operating managers. True or False?
3 points
Question 7
- The purpose of incremental analysis is to find the alternative?
4 points
Question 8
- What is the basic premise of target costing?
4 points
Question 9
- The allocation of joint costs to joint products influences?
4 points
Question 10
- Krusty, Co. uses a capital intensive production process and allocates maintenance costs to the three producing departments. The maintenance cost for April was $100,000. The three departments had the following usage for April:
Krusty Burger Department used 500 Machine Hours and 2,000 Direct Labor Hours Ribwich Department used 800 Machine Hours and 5,000 Direct Labor Hours Salad on a Stick Department used 700 Machine Hours and 3,000 Direct Labor Hours
The maintenance cost that should be allocated to the Ribwich Department for April should be?
4 points
Question 11
- Economic theory says to set the price that will?
4 points
Question 12
- SM Press Company manufactures books. The company is trying to decide whether to print the individual pages in-house (the current practice) or have a printing company perform this task. The salary of the accounting manager at SM Press Company is relevant to this decision?
3 points
Question 13
- A company is trying to decide whether to keep or drop the sporting goods department in its department store. If the segment is dropped, the sporting goods manager will be fired. The manager's salary, in relation to the decision to keep or drop the sporting goods department, is?
4 points
Question 14
- Which of the following is not a reason that companies allocate costs?
4 points
Question 15
- SM Press Company manufactures books. The company is trying to decide whether to print the individual pages in-house (the current practice) or have a printing company perform this task. The quality of goods produced by the printing company is relevant to this decision?
3 points
Question 16
- SM Press Company manufactures books. The company is trying to decide whether to print the individual pages in-house (the current practice) or have a printing company perform this task. The original price of the printing equipment owned by SM Press Company is relevant to this decision?
3 points
Question 17
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