Question
Multiple choice questions 37. Which of the following costs is a mixed cost? a. Salary of a factory supervisor b. Electricity costs of $2 per
Multiple choice questions
37. Which of the following costs is a mixed cost?
| a. | Salary of a factory supervisor |
| b. | Electricity costs of $2 per kilowatt-hour |
| c. | Rental costs of $5,000 per month plus $.30 per machine hour of use |
| d. | Straight-line depreciation on factory equipment |
____ 38. Assume that QMW Co. sold 8,000 units of Product A and 2,000 units of Product B during the past year. The unit contribution margins for Products A and B are $20 and $45 respectively. QMW has fixed costs of $350,000. The break-even point in units is:
| a. | 14,000 units |
| b. | 25,278 units |
| c. | 8,000 units |
| d. | 10,769 units |
____ 39. Production estimates for July are as follows:
| Estimated inventory (units), July 1 | 8,500 |
| Desired inventory (units), July 31 | 10,500 |
| Expected sales volume (units), July | 76,000 |
For each unit produced, the direct materials requirements are as follows:
| Direct material A ($5 per lb.) | 3 lbs. |
| Direct material B ($18 per lb.) | 1/2 lb. |
The total direct materials purchases of materials A and B (assuming no beginning or ending material inventory) required for July production is:
| a. | $1,080,000 for A; $648,000 for B |
| b. | $1,080,000 for A; $1,296,000 for B |
| c. | $1,170,000 for A; $702,000 for B |
| d. | $1,125,000 for A; $675,000 for B |
____ 40. The difference between the current sales revenue and the sales at the break-even point is called the:
| a. | contribution margin |
| b. | margin of safety |
| c. | price factor |
| d. | operating leverage |
____ 41. JPW Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $240,000, $300,000, and $420,000, respectively, for September, October, and November. Each month, the company expects to sell 100% of its merchandise on account. The sales on account are collected as follows70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remaining 5% in the following month. In preparing a Cash Budget for the month of November, the anticipated TOTAL cash receipts are:
| a. | $381,000 |
| b. | $340,000 |
| c. | $276,000 |
| d. | $302,000 |
____ 42. The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows:
| Actual: | Variable factory overhead | $360,000 |
|
| Fixed factory overhead | 104,000 |
| Standard hours allowed for units produced: | 60,000 hours at $7.50 | 450,000 |
What is the amount of the factory overhead volume variance?
| a. | $12,000 unfavorable |
| b. | $12,000 favorable |
| c. | $14,000 unfavorable |
| d. | $26,000 unfavorable |
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The Impact Of Globalization On International Finance And Accounting
Authors: David Procházka
1st Edition
3319687611, 9783319687612
