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1. Which of the following activities would not be included in the value chain of a manufacturing company? (Points : 4) Research and development Customer service Design Accounting Question 2. 2. (TCO 1) A company which manufactures custom-made machinery routinely incurs sizable telephone costs in the process of taking sales orders from customers. Which of the following is a proper classification of this cost? (Points : 4) Product cost Period cost Conversion cost Prime cost Question 3. 3. (TCO 1) The beginning Finished Goods Inventory plus the cost of goods manufactured equals (Points : 4) ending finished goods inventory. cost of goods sold for the period. total work-in-process during the period. cost of goods available for sale for the period. Question 4. 4. (TCO 1) Tony's Pizza has four pizza makers and ten other employees who take orders from customers and perform other tasks. The four pizza makers and the other employees are paid an hourly wage. How would you classify the wages paid to the pizza makers? Assume the activity is the number of pizzas made. (Points : 4) Fixed cost Mixed cost Variable cost Step cost Question 5. 5. (TCO 1) Honey Company has the following unit costs: Variable manufacturing overhead $25 Direct materials $20 Direct labor $19 Fixed manufacturing overhead $12 Variable marketing and administrative $7 Honey produced and sold 10,000 units. If the product sells for $100, what is the gross margin? (Points : 4) $170,000 $240,000 $290,000 $360,000 Question 6. 6. (TCO 1) Cone Company manufactures a single product. The product's conversion cost consists of (Points : 4) direct material and direct labor. direct material and factory overhead. direct labor and factory overhead. direct material, direct labor, and factory overhead. Question 7. 7. (TCO 6) JJ Company had $2,200,000 in sales last month. The contribution margin ratio is 30% and operating profits were $180,000. What is the break-even sales volume? (Points : 4) $660,000 $1,540,000 $1,600,000 $2,020,000 Question 8. 8. (TCO 5) The Baking Company is considering the expansion of its business into door-to-door delivery service. This would require an additional $12,500 in labor costs per month. Company-owned vehicles now used to make morning deliveries to restaurants could be used in the afternoons to make the home deliveries. However, it is estimated that an additional $5,000 would be required per month for gas, oil, and maintenance. It is further estimated that the home delivery use of the trucks would be allocated 45% of the existing $6,500 fixed vehicle costs. What is the differential delivery cost per month for expanding into the home delivery market? (Points : 4) $12,500 $17,500 $19,750 $20,425 Question 9. 9. The Manufacturing Company recorded overhead costs of $14,182 at an activity level of 4,200 machine hours and $8,748 at 2,300 machine hours. What is the total estimated cost for 3,500 machine hours using the high-low method to estimate the cost equation? (Points : 4) $10,178 $9,606 $12,180 $8,788 Question 10. 10. (TCO 2) The predetermined manufacturing overhead rate for the year was $7.00 per direct labor hour; employees were paid $7.00 per hour. If the estimated direct labor cost was $70,000, what was the estimated manufacturing overhead? (Points : 4) $60,000 $70,000 $50,000 $40,000 Question 11. 11. (TCO 2) What is the beginning balance? Ending Balance: $67,000 Transferred In: $149,600 Transferred Out: $164,600 (Points : 4) $93,900 $101,500 $52,000 $82,000 Question 12. 12. (TCO 4) Masters Industries applies manufacturing overhead to its cost objects on the basis of 75% of direct material cost. If Job 17X had $72,000 of manufacturing overhead applied to it during May, the direct materials assigned to Job 17X was (Points : 4) $54,000 $72,000 $96,000 $126,000 Question 13. 13. (TCO 4) Concrete Company produces quick-setting concrete mix. Production of 200,000 tons was started in April, and 190,000 tons were completed. Material costs were $3,152,000 for the month while conversion costs were $591,000. There was no beginning work-in-process; the ending work-in-process was 70% complete. What is the cost of the product that remains in work-in-process? (Points : 4) $591,000 $131,005 $187,500 $133,000