MANAGERIAL ACCOUNTING

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Toledo Toy Company incurred the following costs during 20x4. The company sold all of its products manufactured during the year.

Direct Materials	5,000,000
Direct Labor	3,500,000
Manufacturing Overhead:
Utilities (primarily electricity)	250,000
Depreciation Plant and Equipment	350,000
Insurance	260,000
Supervisory Salary	470,000
Property Taxes	330,000
Selling Cost:
Advertising	315,000
Sales Commission	145,000
Administrative Costs:
Salaries of Top management	580,000
Office Supplies (fixed)	70,000
Depreciation on Building and Equipment	140,000

During 20x4, the company operated at about half of its capacity, due to a slowdown in the economy. Prospects for 20x5 are slightly better. Jared Lowes, the marketing manager, forecasts a 30 percent growth in sales over the 20x4 level

How much is the TOTAL VARIABLE COST of Toledo Toy Company in 20x4?

Group of answer choices

8,895,000

8,500,000

8,750,000

8,645,000

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Tarzan Co. employs a job order costing system. Its manufacturing activities in July 20X9, its first month of operation, are summarized as follows:

	J O B N U M B E R S
1201	1202	1203	1204
Direct Materials	7,000	5,800	11,600	5,000
Direct Labor Cost	6,600	6,000	8,400	2,400
Direct Labor Hours	01,100	01,000	01,400	400
Units produced	200	100	01,000	0. 300

Manufacturing overhead is applied at a rate of 2 per direct labor hour for variable overhead, 3 per hour fixed overhead. Jobs 1201, 1202, and 1203 were completed in July.

The COST OF COMPLETED JOBS is ____________ .

Group of answer choices

65,900

72,900

62,900

62,500

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The U.R. Good Company produces a product using standard costs as follows:

a. Standard cost per unit
Materials	7 kilos at 3.50 per kilo
Labor	8 hours at 1.75 per kilo
FixedMOH	1.15 per hour or 9.20 per unit
Variable MOH	0.85 per hour or 6.80 per unit
b. Overhead is applied on direct labor hours
c. Actual performance (1 month)
Volume produced	800
Labor hours	6,300
Overhead	13,200
Material Cost	3.45 per kilo
Labor Cost	1.80 per hour
Material Used	4,800 kilos

The Material Price Variance is ____________________ .

Group of answer choices

2,800 Unfavorable

240 Unfavorable

360 Favorable

240 Favorable

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Premier Corporation sells two models of home ice cream makers, Mister Ice Cream and Cold King. Current sales total 60,000 units, consisting of 21,000 Mister Ice Cream units and 39,000 Cold King units. Selling price and variable cost information follow:

	Mr. Ice Cream	Cold King
Selling Price	37.00	43.00
Variable Cost	20.50	32.50

Salespeople currently receive flat salaries that total 200,000. Management is contemplating a change to a compensation plan that is based on commissions in an effort to boost the company's presence in the marketplace. Two plans are under consideration:

• Plan A: 10% commission computed on grosspeso sales. Mister Ice Cream sales are anticipated to be 19,500 units. Cold King sales are expected to total 45,500 units.
• Plan B: 30% commission computed on the basis of production contribution margins. Mister Ice Cream sales are expected to total 39,000 units. Cold King sales are anticipated to be 26,000 units

How much will bethe new total commission under Plan B?

Group of answer choices

200,000

641,550

556,000

274,950

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The following selected information pertains to Ajax Processing Co.: direct materials, 62,500; indirect materials, 12,500; factory payroll, 75,000 of direct labor and 11,250 of indirect labor; and other factory overhead incurred. 37,500.

The total CONVERSION COST was ____________ .

Group of answer choices

250,000

137,500

273,750

136,250