PhotoPrinting Corp. uses a Least-pool system to allocate overhead costs to photo products. One cost pool includes machine-related overhead, and has a cost driver (allocation base) of machine hours. The second cost pool includes labor-related overhead and has a cost driver (allocation base) of direct labor hours. The following information is given for it's two main products, framed canvas prints and mounted metal prints. Calculate the total cost of framed canvas prints. For framed canvas rints direct materials cost $1,000 $5,000 $6,000 direct labor cost $4,000 $1,000 $5,000 direct labor hours 1,000 500 1,500 machine-related overhead $10,000 labor-related overhead $30,000 machine hours 100 400 A. $5,000 B. $6,100 (3. $22,500 D. $27,500 E. $45,000 Heal Co estimates that 70% ofthe credit sales will be collected in the month following the month of sale (cg, for January Sales, 70% ofthe credit sales would be collected in February}, with the balance collected in the second month following the month of sale {e.g., for January Sales, the rest would be collected in March). [fit helps, you may use this blank table to organize your work. This table will not be graded. Make sure to mark your choices on the scantron. 5. Based on these data, the balance in accounts receivable on Januagg 31 will be: A. $40,000 B. $50,000 C. $22,000 D. $58,000 E. $120,000 6. In a cash budget for the month ot'April, the total cash receipts will be: A. $57,000 B. $74,000 C. $133,000 D. $114,000 E. $97,000 Use the following information to answer the next two questions: Yuta Snow Removal's cost formula for its vehicle operating cost is $2,130 per month plus $408 per snowday. For the month of November. the company planned for activity of 20 snowdays, but the actual level of activity was 15 snowdays. The actual vehicle operating cost for November was $3.400. l l. The vehicle operating cost in the flexible budget for November would be closest to: A. $0.135 B. $8.180 C. $8.400 D. $10.310 E. $8.265 12. The activity variance for the vehicle operating cost is closest to: A. $1.910 F B. $135 F C. $135 U D. $2.045 F E. $2.045 U 24. The Milham Corporation has two divisionsNorth and South. The divisions have the following revenues and expenses: North South Sales $540,000 $880,000 Variable costs $250,000 $550,000 Contribution Margin $290,000 $330,000 Traceable fixed costs $2 50000 $80,000 Allocated common corporate costs $100,000 $50,000 Net operating income (loss) ($60,000) $200,000 Management at Milham is considering the elimination of the North Division. If the North Division were eliminated. its traceable fixed costs could be avoided. Total common corporate costs would be unaffected. Given these data. the elimination ofthe North Division would result in an increase or decrease to net operating income of: A. $60,000 decrease in net operating income B. $290,000 decrease in net operating income C. $40,000 decrease in net operating income D. $60,000 increase in net operating income E. $40,000 increase in net operating income 25. Beery Inc. reported the following results from last year's operations: Sales $ 1 1,400,000 Variable expenses 8,180,000 Contribution margin 3,220,000 Fixed expenses 2,422,000 Net operating income $ 798,000 Average operating assets $ 6,000,000 At the beginning of this year, the company has an opportunity to invest in $800,000 of additional assets which will create additional revenues and expenses with the following characteristics: Sales $ 2,880,000 Contribution margin ratio (contribution margin/sales) 30 % Fixed expenses 33 720,000 The company's minimum required rate of return is 12%. If the company pursues the investment opportunity, this year's combined residual income for the entire company will be closest to: A. $848,700 B. $942,000 C. $126,000 D. $78,000 E. $114,000 Each of Rajison's production managers gets paid an annual salary of $45,000. Each one can oversee 20,000 machine hours of manufacturing activity. Thus, if the company has 15,000 hours of manufacturing activity, one manager is needed; for 30,000 hours, two managers are needed; for 50,000 hours, three managers are needed; and so forth. It is unlikely Rajison will ever need more than 4 production managers. Currently, Rajison has 2 production managers, however they can hire or re managers quickly and easily if necessary. Among the following, what is the relevant range over which Rajison's production manager salary cost is fixed at the current level: A. 0 to 20,000 machine hours B. 20,001 to 40,000 machine hours C. 0 to 40,000 machine hours D. 40,001 to 60,000 machine hours B. 0 to 60,000 machine hours Use the following information to answer the next two questions: Hand Company manufactures a product with a standard direct labor cost of two hours at $18.00 per hour. During July, 2,000 units were produced using 4,200 hours at $18.50 per hour. They have calculated that the labor spending variance is $5,700, but they need help determining if it is favorable or unfavorable, and they need help determining how much of this is due to labor rate vs. labor efficiency. The labor efficiency variance was A. $3,660 F B. $3,600 F C. $3,600 U D. $2,460 U E. $3,660 U 8. The labor rate variance was A. $2,160 U B. $2,100 U C. $2,100 F D. $3,600 U E. $3,600 F