Management Accounting:

Question $1$: Which of the following items does not represent a manufacturing overhead?

A$.$ Depreciation of manufacturing equipment and utility costs

B$.$ Property taxes

C$.$ Insurance premiums incurred to operate a manufacturing facility

D$.$ Other indirect costs that can be readily traced to finished products

Question $2$: Which of the items does not represent a variable cost?

A$.$ Cost of goods sold for a merchandising company

B$.$ Direct materials

C$.$ Direct labor

D$.$ Commissions and shipping costs

E$.$ No of the above

Question $3$: Which of the following statement is true?

A$.$ A variable cost is constant if expressed on a per unit basis

B$.$ A variable cost is variable if expressed on a per unit basis

Question $4$: Which of the following statement is true?

A$.$ Fixed costs are not affected by changes in activity

B$.$ Fixed costs decrease as the level of activity increases

C$.$ Fixed costs decrease as the level of activity decreases

Question $5$: Which of the following statement is true?

A$.$ Average fixed cost per unit decrease as the activity level rises and increases as the

activity level fails

B$.$ Total fixed cost per unit decreases as the activity level rises and increases as the activity

level falls

C$.$ Average variable cost per unit decreases as the activity level rises and incrManagement Accounting:

Question $1$: Which of the following items does not represent a manufacturing overhead?

A$.$ Depreciation of manufacturing equipment and utility costs

B$.$ Property taxes

C$.$ Insurance premiums incurred to operate a manufacturing facility

D$.$ Other indirect costs that can be readily traced to finished products

Question $2$: Which of the items does not represent a variable cost?

A$.$ Cost of goods sold for a merchandising company

B$.$ Direct materials

C$.$ Direct labor

D$.$ Commissions and shipping costs

E$.$ No of the above

Question $3$: Which of the following statement is true?

A$.$ A variable cost is constant if expressed on a per unit basis

B$.$ A variable cost is variable if expressed on a per unit basis

Question $4$: Which of the following statement is true?

A$.$ Fixed costs are not affected by changes in activity

B$.$ Fixed costs decrease as the level of activity increases

C$.$ Fixed costs decrease as the level of activity decreases

Question $5$: Which of the following statement is true?

A$.$ Average fixed cost per unit decrease as the activity level rises and increases as the activity level fails

B$.$ Total fixed cost per unit decreases as the activity level rises and increases as the activity level falls

C$.$ Average variable cost per unit decreases as the activity level rises and increases as the activity level falls.

Direct materials $$69,000$

Direct labor $$35,000$

Variable manufacturing overhead $$15,000$

Fixed manufacturing overhead $$28,000$

Total manufacturing overhead $$43,000$

Variable selling expense $$12,000$

Fixed selling expense $$18,000$

Total selling expense $$30,000$

Variable administrative expense $$4,000$

Fixed administrative expense $$25,000$

Total administrative expense $$29,000$

Question $6$: Variable manufacturing cost?

Answer:

Question $7$: Total fixed costs

Answer:

Harrald$$s Fish house is a family$-$owned restaurant that specializes in Scandinavian$-$style seafood. Data concerning the restaurant$$s monthly revenues and costs appear below $($q refers to the number of meals served$).$

Revenue.............................................................. $$16\mathrm{.}50$q

Cost of ingredients................................................... $$6\mathrm{.}25$q

Wages & salaries................................................... $$10,400$

Utilities............................................................... $800+$ $$0\mathrm{.}20$q

Rent............................................................... $$2,200$

Miscellaneous............................................................... $$600+$ $$0\mathrm{.}80$q

Required

$1.$ Prepare the restaurant$$s planning budget for April assuming that $1,800$ meals are served.

$2.$ Assume that $1,700$ meals were actually served in April. Prepare a flexible budget for this level of activity.

$3.$ The actual results for April below. Prepare a flexible budget performance report for the restaurant for April

Revenue...............................................................$$27,920$

Cost of ingredients...................................................$$11,110$

Wages & salaries...................................................$$10,130$

Utilities................................................... $$1,080$

Rent............................................................... $$2\mathrm{.}200$

Miscellaneous............................................................$$2,240$

Question $8$: What is the Net operating income according to the planning budget?

Answer:

Question $9$: What is the net income accordingly to the flexible budget?

Answer:

Question$10$: What is the net income according to the actual results?

Answer:

Question $11$: Revenue and spending variances of the net income?

Question $12$: Activity variances of net income?

Answer: