If sales are $820,000, variable costs are 55% of sales, and operating income is $260,000, what is the contribution margin ratio?

		A. 32%
		B. 45%
	C.	62%
		D. 55%

The point in operations at which revenues and expenses are exactly equal is called the break-even point.

True

False

The following data relate to direct materials costs for February:

Materials cost per yard: standard, $2.00; actual, $2.10

Standard yards per unit: standard, 4.5 yards; actual, 4.75 yards

Units of production: 9,500

Calculate the direct materials quantity variance.

		$4,750.00 favorable
		$4,512.50 unfavorable
		$4,512.50 favorable
		$4,750.00 unfavorable

While setting standards, managers should never allow for spoilage or machine breakdowns in their calculations.

True

False

Selected accounts with some amounts omitted are as follows

Work in Process
Oct. 1	Balance	20,000	Oct. 31	Goods finished	X
31	Direct materials	96,700
31	Direct labor	201,000
31	Factory overhead	X

Finished Goods
Oct. 1	Balance	52,000
31	Goods finished	360,000

If the balance of Work in Process at October 31 is $21,000, what was the amount of factory overhead applied in October?

		$42,300
		$63,300
		$21,300
		$11,300