please open the attachment. there are my questions

1. In computing its predetermined overhead rate, Marple Company inadvertently left its indirect labor costs out of the computation. This oversight will cause: A. Manufacturing Overhead to be overapplied. B. The Cost of Goods Manufactured to be understated. C. The debits to the Manufacturing Overhead account to be understated. D. The ending balance in Work in Process to be overstated. 2. Which of the following is the correct formula to compute the predetermined overhead rate? A. Estimated total units in the allocation base divided by estimated total manufacturing overhead costs. B. Estimated total manufacturing overhead costs divided by estimated total units in the allocation base. C. Actual total manufacturing overhead costs divided by estimated total units in the allocation base. D. Estimated total manufacturing overhead costs divided by actual total units in the allocation base. 3. Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves? A. Machine-hours B. Power consumption C. Direct labor-hours D. Machine setups 4. What document is used to determine the actual amount of direct labor to record on a job cost sheet? A. Time ticket B. Payroll register C. Production order D. Wages payable account 5. A proper journal entry to close overapplied manufacturing overhead to Cost of Goods Sold would be: A. B. C. D.MANAGERIAL ACCOUNTING - X122 MID-TERM 2 OF 27 Solum Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, V47Q and K41P, about which it has provided the following data: V47Q K41P Direct materials per unit $27.50 $62.10 Direct labor per unit $15.60 $52.00 Direct labor-hours per unit 0.60 2.00 Annual production 40,000 15,000 The company's estimated total manufacturing overhead for the year is $2,449,440 and the company's estimated total direct labor-hours for the year is 54,000. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activity & Activity Measures Estimated Overhead Cost Assembling products (DLHs) Preparing batches (batches) $ 918,000 397,440 Product support (product variations) 1,134,000 Total $2,449,440 Expected Activity V47Q K41P Total DLHs 24,000 30,000 54,000 Batches 1,458 1,026 2,484 Product variations 2,592 1,188 3,780 6. The unit product cost of product K41P under the company's traditional costing system is closest to: A. $204.82 B. $68.70 C. $182.80 D. $114.10 7. The unit product cost of product V47Q under the activity-based costing system is closest to: A. $53.30 B. $70.32 C. $43.10 D. $78.57 Diltex Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $200,000 for November, $220,000 for December, and $210,000 for January. Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible. The cost of goods sold is 62% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 50% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $22,500. Monthly depreciation is $19,000. Ignore taxes.MANAGERIAL ACCOUNTING - X122 MID-TERM 3 OF 27 Statement of Financial Position October 31 Assets Cash $ 16,000 Accounts receivable (net of allowance for uncollectible accounts) Merchandise inventory 76,000 71,500 Property, plant & equipment (net of $536,000 accumulated depreciation) Total assets $1,119,500 Liabilities & Stockholders' Equity 956,000 Accounts payable $ 147,000 Common stock Retained earnings 840,000 132,500 Total Liabilities & Stockholders' equity $1,119,500 8. Expected cash collections in December are: A. $67,400 B. $148,000 C. $207,400 D. $208,000 9. The cost of December merchandise purchases would be: A. $143,150 B. $78,150 C. $139,900 D. $152,900 10. December cash disbursements for merchandise purchases would be: A. $127,200 B. $58,950 C. $123,950 D. $120,700 11. The difference between cash receipts and cash disbursements for December would be: A. $16,900 B. $54,800 C. $38,400 D. $45,600 12. The net income for December would be: A. $47,400 B. $29,500 C. $54,500 D. $35,500MANAGERIAL ACCOUNTING - X122 MID-TERM 4 OF 27 13. The cash balance at the end of December would be: A. $127,300 B. $26,400 C. $111,300 D. $66,800 14. The accounts receivable balance, net of uncollectible accounts, at the end of December would be: A. $81,400 B. $112,800 C. $59,400 D. $53,400 Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budgeted production of Biks for the next five months is as follows: February 14,500 units March 11,900 units April 14,000 units May 15,500 units June 12,600 units The company wants to maintain monthly ending inventories of Material A equal to 20% of the following month's production needs. On January 31, this target had not been attained since only 2,000 yards of Material A were on hand. The cost of Material A is $0.80 per yard. The company wants to prepare a Direct Materials Purchases Budget. 15. The total cost of Material A to be purchased in February is: A. $49,792 B. $47,492 C. $44,032 D. $38,912 16. The desired ending inventory of Material A for the month of March is: A. 9,300 yards B. 7,140 yards C. 3,100 yards D. 8,400 yards 17. The total needs (i.e., production requirements plus desired ending inventory) of Material A for the month of May are: A. 46,500 yards B. 54,060 yards C. 55,200 yards D. 47,640 yardsMANAGERIAL ACCOUNTING - X122 MID-TERM 5 OF 27 Carpon Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: Sales are budgeted at $350,000 for November, $340,000 for December, and $330,000 for January. Collections are expected to be 55% in the month of sale, 44% in the month following the sale, and 1% uncollectible. The cost of goods sold is 75% of sales. The company desires to have an ending merchandise inventory equal to 60% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $21,100. Monthly depreciation is $19,000. Ignore taxes. Statement of Financial Position October 31 Assets Cash $ 13,000 Accounts receivable (net of allowance for uncollectible accounts) Inventory 82,000 153,000 Property, plant & equipment (net of $598,000 accumulated depreciation) 1,138,000 Total assets $1,386,000 Liabilities & Stockholders' Equity Accounts payable Common stock Retained earnings 257,000 600,000 529,000 Total Liabilities & stockholders' equity $1,386,000 18. The net income for December would be: A. $60,500 B. $38,000 C. $41,500 D. $55,600 19. The cash balance at the end of December would be: A. $15,300 B. $44,700 C. $57,700 D. $66,800 20. The accounts receivable balance, net of uncollectible accounts, at the end of December would be: A. $146,100 B. $149,600 C. $77,600 D. $295,700MANAGERIAL ACCOUNTING - X122 MID-TERM 6 OF 27 21. For a lamp manufacturing company, the cost of the insurance on its vehicles that deliver lamps to customers is best described as a: A. prime cost. B. manufacturing overhead cost. C. period cost. D. differential (incremental) cost of a lamp. 22. Manufacturing overhead consists of: A. all manufacturing costs. B. indirect materials but not indirect labor. C. all manufacturing costs, except direct materials and direct labor. D. indirect labor but not indirect materials. 23. Which of the following should NOT be included as part of manufacturing overhead at a company that makes office furniture? A. Sheet steel in a file cabinet made by the company. B. Manufacturing equipment depreciation. C. Idle time for direct labor. D. Taxes on a factory building. 24. Conversion cost consists of which of the following? A. Manufacturing overhead cost. B. Direct materials and direct labor cost. C. Direct labor cost. D. Direct labor and manufacturing overhead cost. 25. The advertising costs that Pepsi incurred to air its commercials during the Super Bowl can best be described as a: A. variable cost. B. fixed cost. C. product cost. D. prime cost. 26. Each of the following would be a period cost except: A. the salary of the company president's secretary. B. the cost of a general accounting office. C. depreciation of a machine used in manufacturing. D. sales commissions. 27. Which of the following costs is an example of a period rather than a product cost? A. Depreciation on production equipment. B. Wages of salespersons. C. Wages of production machine operators. D. Insurance on production equipment.MANAGERIAL ACCOUNTING - X122 MID-TERM 7 OF 27 28. At an activity level of 9,300 machine-hours in a month, Nooner Corporation's total variable production engineering cost is $761,300 and its total fixed production engineering cost is $154,008. What would be the total production engineering cost per unit, both fixed and variable, at an activity level of 9,200 machinehours in a month? Assume that this level of activity is within the relevant range. A. $98.60 B. $99.67 C. $99.49 D. $99.14 29. Jumpst Corporation uses the cost formula Y = $3,000 + $0.30X for the maintenance cost in Department B, where X is machine-hours. The August budget is based on 20,000 hours of planned machine time. Maintenance cost expected to be incurred during August is: A. $6,600 B. $9,000 C. $9,300 D. $9,600 30. Blore Corporation reports that at an activity level of 7,000 units, its total variable cost is $512,000 and its total fixed cost is $76,650. What would be the total cost, both fixed and variable, at an activity level of 7,500 units? Assume that this level of activity is within the relevant range. A. $625,221 B. $623,121 C. $617,160 D. $609,099 31. Given the cost formula Y = $15,000 + $5X, total cost at an activity level of 6,000 units would be: A. $28,000 B. $20,000 C. $60,000 D. $45,000 32. At a volume of 10,000 units, Company P incurs $40,000 in factory overhead costs, including $10,000 in fixed costs. Assuming that this activity is within the relevant range, if volume increases to 12,000 units, Company P would expect to incur total factory overhead costs of: A. $46,000 B. $44,000 C. $40,000 D. $42,000 33. At an activity level of 4,400 units in a month, Goldbach Corporation's total variable maintenance and repair cost is $313,000 and its total fixed maintenance and repair cost is $93,104. What would be the total maintenance and repair cost, both fixed and variable, at an activity level of 4,600 units in a month? Assume that this level of activity is within the relevant range. A. $392,495 B. $420,331 C. $415,980 D. $426,736MANAGERIAL ACCOUNTING - X122 MID-TERM 8 OF 27 34. Which of the following methods of analyzing mixed costs can be used to estimate an equation for the mixed cost? High-Low Least-Square A. Yes Yes B. Yes No C. No Yes D. No No 35. Which of the following would be classified as a prevention cost on a quality cost report? A. Lost sales arising from a reputation for poor quality. B. Final product testing and inspection. C. Net cost of spoilage. D. Quality data gathering, analysis, and reporting. 36. Which of the following would be classified as a prevention cost on a quality cost report? A. Systems development. B. Disposal of defective products. C. Returns and allowances arising from quality problems. D. Supervision of testing and inspection activities. 37. Which of the following would be classified as an appraisal cost on a quality cost report? A. Liability arising from defective products. B. Supervision of testing and inspection activities. C. Technical support provided to suppliers. D. Debugging software errors. 38. Which of the following would be classified as an appraisal cost on a quality cost report? A. Rework labor and overhead. B. Lost sales arising from a reputation for poor quality. C. Net cost of scrap. D. Depreciation of test equipment. 39. Which of the following would be classified as an internal failure cost on a quality cost report? A. Supplies used in testing and inspection. B. Final product testing and inspection. C. Net cost of scrap. D. Depreciation of test equipment. 40. Which of the following would be classified as an internal failure cost on a quality cost report? A. Cost of field servicing and handling complaints. B. Rework labor and overhead. C. Supervision of testing and inspection activities. D. Final product testing and inspection. 41. Which of the following would be classified as an external failure cost on a quality cost report? A. Quality training. B. Systems development. C. Repairs and replacements beyond the warranty period. D. Quality engineering.MANAGERIAL ACCOUNTING - X122 MID-TERM 9 OF 27 42. Which of the following would be classified as an external failure cost on a quality cost report? A. Net cost of scrap. B. Product recalls. C. Rework labor and overhead. D. Downtime caused by quality problems. 43. Greater internal failure costs as a result of appraisal activities generally result in less: A. prevention costs. B. appraisal costs. C. external failure costs. D. all of the above. 44. Quality costs: A. relate only to the manufacturing process. B. should be focused on appraisal activities. C. are minimized by having a team of well-trained quality control inspectors. D. cut across departmental lines and often are not accumulated and reported to management. 45. In classifying the costs of quality, which of the following is considered an internal failure cost? A. The cost of inspections. B. The cost of rework. C. The cost of technical support provided to suppliers. D. The cost of processing warranty claims. E. The cost of statistical process control. 46. An example of an internal failure cost is: A. maintenance. B. inspection. C. rework. D. product recalls. Eade Company's quality cost report is to be based on the following data: Systems development $32,000 Final product testing & inspection $13,000 Quality data gathering, analysis & reporting $12,000 Net cost of scrap $60,000 Returns arising from quality problems $60,000 Depreciation of testing equipment $56,000 Rework labor & overhead $18,000 Test & inspection of incoming materials $40,000 Product recalls $36,000 47. What would be the total prevention cost appearing on the quality cost report? A. $44,000 B. $46,000 C. $50,000 D. $42,000MANAGERIAL ACCOUNTING - X122 MID-TERM 10 OF 27 48. What would be the total appraisal cost appearing on the quality cost report? A. $60,000 B. $109,000 C. $100,000 D. $87,000 49. What would be the total internal failure cost appearing on the quality cost report? A. $57,000 B. $78,000 C. $83,000 D. $124,000 50. What would be the total external failure cost appearing on the quality cost report? A. $286,000 B. $96,000 C. $137,000 D. $133,000 51. In a job-order costing system, direct labor cost is ordinarily debited to: A. Manufacturing Overhead. B. Cost of Goods Sold. C. Finished Goods. D. Work in Process. 52. The balance in the Work in Process account equals: A. the balance in the Finished Goods inventory account. B. the balance in the Cost of Goods Sold account. C. the balances on the job cost sheets of uncompleted jobs. D. the balance in the Manufacturing Overhead account. 53. Martinez Aerospace Company uses a job-order costing system. The direct materials for Job #045391 were purchased in July and put into production in August. The job was not completed by the end of August. At the end of August, in what account would the direct material cost assigned to Job #045391 be located? A. Raw materials inventory B. Work in process inventory C. Finished goods inventory D. Cost of goods manufactured 54. Which terms will make the following statement true? When manufacturing overhead is overapplied, the Manufacturing Overhead account has a __________ balance and applied manufacturing overhead is greater than __________ manufacturing overhead. A. debit, actual B. credit, actual C. debit, estimated D. credit, estimatedMANAGERIAL ACCOUNTING - X122 MID-TERM 11 OF 27 55. Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Cost of Goods Sold and Finished Goods and Work in Process inventories? A. The balance in the Work in Process account after allocation will be higher if the overapplied manufacturing overhead is closed out by allocating it to all appropriate accounts. B. The balance in the Work in Process account after allocation will be the same under either method. C. Net operating income will be higher if all of the overapplied manufacturing overhead is closed out to Cost of Goods Sold. D. Cost of Goods Sold will be lower if the overapplied manufacturing overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold. Carter Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $135,850. Actual manufacturing overhead for the year amounted to $145,000 and actual machine-hours were 5,660. The company's predetermined overhead rate for the year was $25.11 per machine-hour. 56. The predetermined overhead rate was based on how many estimated machine-hours? A. 6,120 B. 5,750 C. 6,331 D. 5,410 57. The applied manufacturing overhead for the year was closest to: A. $134,104 B. $147,472 C. $142,123 D. $138,056 58. The overhead for the year was: A. $2,377 overapplied B. $1,131 underapplied C. $1,131 overapplied D. $2,377 underapplied 59. The management of Griswell Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 39,000 machine-hours. In addition, capacity is 45,000 machine-hours and the actual level of activity for the year is 41,000 machine-hours. All of the manufacturing overhead is fixed and is $702,000 per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for the year as well as the manufacturing overhead at capacity. It is further assumed that this is also the actual amount of manufacturing overhead for the year. If the company bases its predetermined overhead rate on capacity, by how much was manufacturing overhead underapplied or overapplied? A. $74,880 Overapplied B. $62,400 Overapplied C. $62,400 Underapplied D. $74,880 UnderappliedMANAGERIAL ACCOUNTING - X122 MID-TERM 12 OF 27 The management of Bow Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 54,000 machine-hours. In addition, capacity is 68,000 machinehours and the actual level of activity for the year is 53,100 machine-hours. All of the manufacturing overhead is fixed and is $2,129,760 per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for the year as well as the manufacturing overhead at capacity. It is further assumed that this is also the actual amount of manufacturing overhead for the year. A number of jobs were worked on during the year, one of which was Job E82X. This job required 100 machine-hours. 60. If the company bases its predetermined overhead rate on capacity, the predetermined overhead rate is closest to: A. $41.92 B. $31.32 C. $39.44 D. $40.11 61. If the company bases its predetermined overhead rate on capacity, the amount of manufacturing overhead charged to the job E82X is closest to: A. $4,010.85 B. $3,672.00 C. $3,132.00 D. $4,192.44 62. If the company bases its predetermined overhead rate on capacity, by how much was manufacturing overhead underapplied or overapplied? A. $466,668 Underapplied B. $466,668 Overapplied C. $35,496 Overapplied D. $35,496 Underapplied Wendy works on the assembly line of a manufacturing company where she installs a component part for one of the company's products. She is paid $20 per hour for regular time and time and a half for all work in excess of 40 hours per week. 63. Wendy works 45 hours during a week in which there was no idle time. The allocation of Wendy's wages for the week between direct labor cost and manufacturing overhead cost would be: Direct Labor Manufacturing Overhead A. $800 $150 B. $950 $0 C. $875 $75 D. $900 $50 64. Which of the following characteristics applies to process costing, but does not apply to job order costing? A. The need for averaging. B. The use of equivalent units of production. C. Separate, identifiable jobs. D. The use of predetermined overhead rates.MANAGERIAL ACCOUNTING - X122 MID-TERM 13 OF 27 65. The cost of beginning inventory under the weighted-average method is: A. added in with current period costs in determining costs per equivalent unit for a given period. B. ignored in determining the costs per equivalent unit for a given period. C. considered separately from costs incurred during the current period. D. subtracted from current period costs in determining costs per equivalent unit for a given period. 66. The Nichols Company uses the weighted-average method in its process costing system. The company recorded 29,500 equivalent units for conversion costs for November in a particular department. There were 6,000 units in the ending work in process inventory on November 30, 75% complete with respect to conversion costs. The November 1 work in process inventory consisted of 8,000 units, 50% complete with respect to conversion costs. A total of 25,000 units were completed and transferred out of the department during the month. The number of units started during November in the department was: A. 24,500 units B. 23,000 units C. 27,000 units D. 21,000 units 67. The Assembly Department started the month with 14,000 units in its beginning work in process inventory. An additional 296,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 14,000 units in the ending work in process inventory of the Assembly Department. How many units were transferred to the next processing department during the month? A. 293,000 B. 310,000 C. 324,000 D. 296,000 68. Diston Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 18,000 units in its beginning work in process inventory that were 30% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $44,820. An additional 90,000 units were started into production during the month. There were 21,000 units in the ending work in process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $677,970 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.) A. $8.112 B. $8.300 C. $7.533 D. $6.108MANAGERIAL ACCOUNTING - X122 MID-TERM 14 OF 27 69. Hardouin Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 22,000 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $23,320. An additional 97,000 units were started into production during the month and 101,000 units were completed in the Welding Department and transferred to the next processing department. There were 18,000 units in the ending work in process inventory of the Welding Department that were 40% complete with respect to conversion costs. A total of $529,380 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.) A. $5.300 B. $5.458 C. $4.603 D. $5.108 70. Scheney Company uses the weighted-average method in its process costing system. The company's work in process inventory on March 31 consisted of 20,000 units. The units in the ending work in process inventory were 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the cost per equivalent unit for March was $2.50 for materials and $4.75 for labor and overhead, the total cost in the March 31 work in process inventory was: A. $145,000 B. $116,500 C. $101,500 D. $78,500 71. The following data were taken from the accounting records of the Hazel Corporation which uses the weighted-average method in its process costing system: Beginning work in process inventory (materials 100% complete; conversion 70% complete) 30,000 units Started in process during the period 90,000 units Ending work in process inventory (materials 100% complete; conversion 60% complete) 20,000 units The equivalent units for conversion costs was: A. 102,000 units B. 112,000 units C. 111,000 units D. 100,000 unitsMANAGERIAL ACCOUNTING - X122 MID-TERM 15 OF 27 72. Borwan Company uses the weighted-average method in its process costing system. The Assembly Department started the month with 8,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 69,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 5,000 units in the ending work in process inventory of the Assembly Department that were 20% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month? A. 67,400 B. 73,000 C. 72,000 D. 66,000 73. Bennett Company uses the FIFO method in its process costing system. During April the equivalent units of production with respect to conversion costs totaled 24,600 units. Work in process inventory on April 1 consisted of 8,000 units, 40% complete with respect to conversion costs. A total of 25,000 units were started into production during the month and 20,000 units were transferred to finished goods. Based on this information, Bennett Company's work in process inventory on April 30 consisted of: A. 13,000 units, 40% complete with respect to conversion costs B. 5,000 units, 40% complete with respect to conversion costs C. 13,000 units, 60% complete with respect to conversion costs D. 4,600 units, 40% complete with respect to conversion costs 74. Cargin Company uses the FIFO method in its process costing system. The Assembly Department started the month with 15,000 units in its beginning work in process inventory that were 50% complete with respect to conversion costs. An additional 71,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 9,000 units in the ending work in process inventory of the Assembly Department that were 30% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month? A. 77,000 B. 79,700 C. 65,000 D. 72,200 75. Branden Company uses the FIFO method in its process costing system. All materials are introduced at the beginning of the process in Department 1. The following data relate to the month of May for Department 1: Units Work in process, May 1 (conversion 60% complete) 1,500 Started in May 7,500 Transferred to Department 2 during May 8,000 Work in process, May 31 (conversion 30% complete) 1,000 What are the equivalent units for the month of May? Materials Conversion A. 9,000 units 8,300 units B. 9,000 units 7,400 units C. 7,500 units 7,400 units D. 7,500 units 7,700 unitsMANAGERIAL ACCOUNTING - X122 MID-TERM 16 OF 27 76. Hidden Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Administrative and Facilities, and two operating departments, Assembly and Wholesaling. Service Department Operating Department Administrative Facilities Assembly Wholesaling Departmental costs $38,400 $67,860 $439,000 $368,460 Employee hours 3,000 2,000 26,000 14,000 Space occupied 2,000 2,000 33,000 6,000 Administrative costs are allocated on the basis of employee hours and Facilities costs are allocated on the basis of space occupied. The total Wholesaling Department cost after the allocations of service department costs is closest to: A. $389,876 B. $378,900 C. $392,340 D. $392,544 77. Balthazar Clinic uses the direct method to allocate service department costs to operating departments. The clinic has two service departments, Personnel and Support, and two operating departments, Prenatal and Pediatrics. Service Department Operating Department Personnel Support Prenatal Pediatrics Departmental costs $20,520 $43,430 $109,680 $298,820 Employee hours 5,000 1,000 23,000 13,000 Space occupied 6,000 2,000 37,000 6,000 Personnel Department costs are allocated on the basis of employee hours and Support Department costs are allocated on the basis of space occupied in square feet. The total Pediatrics Department cost after the allocations of service department costs is closest to: A. $304,880 B. $310,281 C. $312,290 D. $312,554 78. Rich Company has a Custodial Services department which services the company's Maintenance department and two operating departments, Machinery and Milling. Costs of Custodial Services are allocated to the other departments on the basis of square footage of space occupied. The amount of space occupied by each department is given below: Square Ft. Custodial services Maintenance 6,000 9,000 Machinery 45,000 Milling 90,000 Total 150,000MANAGERIAL ACCOUNTING - X122 MID-TERM 17 OF 27 Budgeted costs in Custodial Services amount to $86,400. The amount of Custodial Services cost allocated to Maintenance under the step-down method would be: A. $5,184 B. $5,400 C. $0 D. $5,760 79. Bankert Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, General Management and Physical Plant, and two operating departments, Sales and After-Sales. Data concerning those departments follow: Service Department Operating Department Gen.Maintenance Physical Plant Sales After-Sales Departmental costs $37,440 $49,690 $232,590 $290,100 Employee time 3,000 2,000 33,000 13,000 Space occupied 7,000 2,000 33,000 8,000 General Management Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis of space occupied. The total After-Sales Department cost after allocations is closest to: A. $307,594 B. $300,100 C. $310,240 D. $310,376 80. Poteete, Inc., allocates service department costs to operating departments using the step-down method. The company has two service departments, Administration and Physical Plant, and two operating departments, Assembly and Testing. Data concerning those departments follow: Service Department Operating Department Administration Physical Plant Assembly Testing Department costs $33,000 $54,450 $207,030 $523,420 Employee time 4,000 1,000 26,000 17,000 Space occupied 7,000 1,000 38,000 2,000 Administration Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis of space occupied. The total Testing Department cost after allocations is closest to: A. $539,189 B. $526,180 C. $538,930 D. $537,376 81. Gaudy Inc. produces and sells a single product. The company has provided its contribution format income statement for May. Sales (4,500 units) $427,500 Variable expenses 265,500 Contribution margin 162,000 Fixed expenses 135,300MANAGERIAL ACCOUNTING - X122 MID-TERM 18 OF 27 Net operating income 26,700 If the company sells 4,300 units, its net operating income should be closest to: A. $7,700 B. $25,513 C. $26,700 D. $19,500 82. The contribution margin ratio is 25% for Grain Company and the break-even point in sales is $200,000. To obtain a target net operating income of $60,000, sales would have to be: A. $260,000 B. $440,000 C. $280,000 D. $240,000 83. Rothe Company manufactures and sells a single product that it sells for $90 per unit and has a contribution margin ratio of 35%. The company's fixed expenses are $46,800. If Rothe desires a monthly target net operating income equal to 15% of sales, the amount of sales in units will have to be (rounded): A. 1,486 units B. 3,467 units C. 1,040 units D. 2,600 units 84. The Herald Company manufactures and sells a single product which sells for $50 per unit and has a contribution margin ratio of 30%. The company's monthly fixed expenses are $25,000. If Herald desires a monthly target net operating income equal to 20% of sales dollars, sales in units will have to be (rounded): A. 2,500 units B. 5,000 units C. 1,666 units D. 1,000 units The following is Allison Corporation's contribution format income statement for last month: Sales $800,000 Variable expenses 300,000 Contribution margin 500,000 Fixed expenses 400,000 Net operating income 100,000 The company has no beginning or ending inventories. The company produced and sold 10,000 units last month. 85. What is the company's contribution margin ratio? A. 62.5% B. 160.0% C. 500% D. 20%MANAGERIAL ACCOUNTING - X122 MID-TERM 19 OF 27 86. What is the company's break-even sales in dollars? A. $0 B. $640,000 C. $700,000 D. $400,000 87. If sales increase by 200 units, by how much should net operating income increase? A. $16,000 B. $5,000 C. $2,000 D. $10,000 88. How many units would the company have to sell to attain target profits of $120,000? A. 10,800 units B. 12,000 units C. 10,400 units D. 11,200 units 89. What is the company's margin of safety percentage? A. 25% B. 20% C. 40% D. 10% 90. What is the company's degree of operating leverage? A. 0.2 B. 8.0 C. 1.7 D. 5.0 Henning Corporation produces and sells two models of hair dryers, Standard and Deluxe. The company has provided the following data relating to these two products: Standard Deluxe Selling price $40 $55 Variable production cost $10 $16 Variable selling & administrative expense $15 $12 Expected monthly sales in units 600 1,200 The company's total monthly fixed expense is $13,800. 91. The break-even in sales dollars for the expected sales mix is (rounded): A. $36,800 B. $30,000 C. $28,105 D. $31,222MANAGERIAL ACCOUNTING - X122 MID-TERM 20 OF 27 92. If the expected monthly sales in units were divided equally between the two models (900 Standard and 900 Deluxe), the break-even level of sales would be: A. lower than with the expected sales mix. B. higher than with the expected sales mix. C. the same as with the expected sales mix. D. cannot be determined with the available data. Kuhner Corporation produces and sells two products. Data concerning those products for the most recent month appear below: Product B64P Product I00E Sales $10,000 $46,000 Variable expenses $ 2,500 $15,420 Fixed expenses for the entire company were $33,100. 93. The break-even point for the entire company is closest to: A. $48,676 B. $33,100 C. $22,900 D. $51,020 94. If the sales mix were to shift toward Product B64P with total dollar sales remaining constant, the overall break-even point for the entire company: A. would not change. B. would decrease. C. would increase. D. could increase or decrease. Schlender Corporation produces and sells two products. In the most recent month, Product L40O had sales of $22,000 and variable expenses of $8,580. Product Y27L had sales of $49,000 and variable expenses of $17,690. The fixed expenses of the entire company were $43,950. 95. The break-even point for the entire company is closest to: A. $27,050 B. $70,220 C. $69,762 D. $43,950 96. If the sales mix were to shift toward Product L40O with total dollar sales remaining constant, the overall break-even point for the entire company: A. would not change. B. would increase. C. would decrease. D. could increase or decrease.MANAGERIAL ACCOUNTING - X122 MID-TERM 21 OF 27 97. Stephen Company has the following data for its three stores last year: A B C Contribution margin ratio Contribution margin ? 20% ? $120,000 Variable expenses $240,000 40% ? ? $150,000 Variable expenses as a percentage of sales 60% ? ? Given the above data, the total company sales were: A. $1,250,000 B. $1,375,000 C. $1,450,000 D. $800,000 98. Johnson Company operates two plants, Plant A and Plant B. Last year, Johnson Company reported a contribution margin of $40,000 for Plant A. Plant B had sales of $200,000 and a contribution margin ratio of 40%. Net operating income for the company was $27,000 and traceable fixed expenses for the two stores totaled $50,000. Johnson Company's common fixed expenses were: A. $43,000 B. $50,000 C. $93,000 D. $120,000 99. The ARB Company has two divisions: Electronics and DVD/Video Sales. Electronics has traceable fixed expenses of $146,280 and the DVD/Video Sales has traceable fixed expenses of $81,765. If ARB Company has a total of $322,490 in fixed expenses, what are its common fixed expenses? A. $94,445 B. $322,490 C. $228,045 D. $47,223 100. Leis Retail Company has two Stores, M and N. Store N had sales of $180,000 during March, a segment margin of $54,000, and traceable fixed expenses of $26,000. The company as a whole had a contribution margin ratio of 25% and $120,000 in total contribution margin. Based on this information, total variable expenses in Store M for the month must have been: A. $140,000 B. $260,000 C. $300,000 D. $360,000 101. Sugiki Corporation has two divisions: the Alpha Division and the Delta Division. The Alpha Division has sales of $820,000, variable expenses of $369,000, and traceable fixed expenses of $347,300. The Delta Division has sales of $460,000, variable expenses of $294,400, and traceable fixed expenses of $134,100. The total amount of common fixed expenses not traceable to the individual divisions is $97,300. What is the company's net operating income? A. $135,200 B. $37,900 C. $616,600 D. $519,300MANAGERIAL ACCOUNTING - X122 MID-TERM 22 OF 27 102. Phillipson Corporation has two divisions: the IEB Division and the PIH Division. The corporation's net operating income is $83,900. The IEB Division's divisional segment margin is $149,700 and the PIH Division's divisional segment margin is $60,100. What is the amount of the common fixed expense not traceable to the individual divisions? A. $233,600 B. $209,800 C. $144,000 D. $125,900 Mennig Corporation produces a single product and has the following cost structure: Number of units produced each year 8,000 Variable costs per unit: Direct materials Direct labor $26 $59 Variable manufacturing overhead $7 Variable selling & administrative expenses $2 Fixed costs per year: Fixed manufacturing overhead $720,000 Fixed selling & administrative expenses $352,000 103. The unit product cost under absorption costing is: A. $92 B. $228 C. $182 D. $85 104. The unit product cost under variable costing is: A. $182 B. $92 C. $87 D. $94 During the last year, Snyder Co. produced 10,000 units of its only product. Costs incurred by Snyder during the year were as follows: Direct materials $11,000 Direct labor 21,000 Variable manufacturing overhead Variable selling & general 3,100 Fixed manufacturing overhead Fixed selling & general 6,100 9,000 4,100 Total $54,300 MANAGERIAL ACCOUNTING - X122 MID-TERM 23 OF 27 105. The unit product cost under absorption costing was: A. $5.43 B. $3.81 C. $4.71 D. $4.12 106. The unit product cost under variable costing was: A. $3.20 B. $3.81 C. $4.12 D. $3.51 Data for June for Ozaki Corporation and its two major business segments, North and South, appear below: Sales revenues, North $550,000 Variable expenses, North $270,000 Traceable fixed expenses, North $88,000 Sales revenues, South $110,000 Variable expenses, South $47,000 Traceable fixed expenses, South $21,000 In addition, common fixed expenses totaled $145,000 and were allocated as follows: $73,000 to the North business segment and $72,000 to the South business segment. 107. The contribution margin of the South business segment is: A. $343,000 B. $63,000 C. $119,000 D. $192,000 108. A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is: A. $270,000 B. $119,000 C. $207,000 D. $192,000 109. A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is: A. $(56,000) B. $89,000 C. $343,000 D. $234,000MANAGERIAL ACCOUNTING - X122 MID-TERM 24 OF 27 Falquez Company sells three products: R, S, and T. Data for activity of Falquez Company during July are as follows: Products Total Sales R S $800,000 $150,000 Contribution margin ratio Traceable fixed expenses T ? 32% $200,000 ? 25% 40% $120,000 $25,000 $60,000 Common fixed expenses for July amounted to $90,000. 110. Net operating income for the company was: A. $166,000 B. $256,000 C. $334,000 D. $46,000 111. The contribution margin for Product R was: A. $48,750 B. $63,500 C. $51,000 D. $48,000 112. The segment margin for Product T was: A. $45,000 ? B. $85,000 C. $(10,000) D. $80,000 Dillner Company uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system: Costs: Manufacturing overhead $300,000 Selling & administrative expenses 220,000 Total $520,000 Distribution of resource consumption: Activity Cost Pools Customer Order Size Support Other Total Manufacturing overhead 20% 70% 10% 100% Selling & administrative expenses 15% 65% 20% 100% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of costs to the activity cost pools.MANAGERIAL ACCOUNTING - X122 MID-TERM 25 OF 27 113. How much cost, in total, would be allocated in the first-stage allocation to the Order Size activity cost pool? A. $78,000 B. $93,000 C. $104,000 D. $91,000 114. How much cost, in total, would be allocated in the first-stage allocation to the Customer Support activity cost pool? A. $353,000 B. $364,000 C. $338,000 D. $351,000 115. How much cost, in total, should NOT be allocated to orders and products in the second stage of the allocation process if the activity-based costing system is used for internal decision-making? A. $104,000 B. $0 C. $52,000 D. $74,000 The controller of Ferrence Company estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below: Wall Mirrors Specialty Windows Total expected units produced 7,000 1,000 Total expected material moves 700 900 Expected direct labor-hours per unit 6 4 The total materials handling cost for the year is expected to be $16,486.40. 116. If the materials handling cost is allocated on the basis of direct labor-hours, how much of the total materials handling cost would be allocated to the wall mirrors? (Round off your answer to the nearest whole dollar.) A. $13,220 B. $15,053 C. $9,892 D. $8,243 117. If the materials handling cost is allocated on the basis of material moves, how much of the total materials handling cost would be allocated to the specialty windows? (Round off your answer to the nearest whole dollar.) A. $3,266 B. $9,274 C. $8,243 D. $6,595MANAGERIAL ACCOUNTING - X122 MID-TERM 26 OF 27 Pedroni Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools-Machining, Order Filling, and Other. The costs in those activity cost pools appear below: Machining $11,600 Order Filling $4,100 Other $4,300 Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: MHs (Machining) Orders (Order Filling) Product T8 3,900 500 Product F2 16,100 1,500 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Sales & Direct Cost Data: Product T8 Product F2 Sales (total) $55,300 $49,000 Direct materials (total) $27,900 $16,400 Direct labor (total) $22,600 $18,800 118. The activity rate for the Order Filling activity cost pool under activity-based costing is closest to: A. $10.00 per order B. $0.50 per order C. $0.67 per order D. $2.05 per order 119. What is the overhead cost assigned to Product F2 under activity-based costing? A. $10,000 B. $3,075 C. $12,413 D. $9,338 120. What is the product margin for Product F2 under activity-based costing? A. $13,800 B. $11,262 C. $1,387 D. $19,000 Figurski Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Machining, $38,500; Order Filling, $23,000; and Other, $15,500. Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: MHs (Machining) Orders (Order Filling) Product W3 3,500 700 Product I6 6,500 300MANAGERIAL ACCOUNTING - X122 MID-TERM 27 OF 27 121. The activity rate for the Order Filling activity cost pool under activity-based costing is closest to: A. $23.00 per order B. $77.00 per order C. $1.00 per order D. $3.33 per order 122. What is the overhead cost assigned to Product I6 under activity-based costing? A. $38,500 B. $25,025 C. $6,900 D. $31,925 Groenen Catering uses activity-based costing for its overhead costs. The company has provided the following data concerning the activity rates in its activity-based costing system: Activity Cost Pools Preparing Meals Arranging Functions Wages $0.85 $170.00 Supplies $0.40 $360.00 Other expenses $0.35 $80.00 The number of meals served is the measure of activity for the Preparing Meals activity cost pool. The number of functions catered is used as the activity measure for the Arranging Functions activity cost pool. Management would like to know whether the company made any money on a recent function at which 120 meals were served. The company catered the function for a fixed price of $20.00 per meal. The cost of the raw ingredients for the meals was $13.05 per meal. This cost is in addition to the costs of wages, supplies, and other expenses detailed above. For the purposes of preparing action analyses, management has assigned ease of adjustment codes to the costs as follows: wages are classified as a Yellow cost; supplies and raw ingredients as a Green cost; and other expenses as a Red cost. 123. According to the activity-based costing system, what was the total cost (including the costs of raw ingredients) of the function mentioned above? (Round to the nearest whole dollar.) A. $1,868 B. $2,368 C. $2,568 D. $1,718 124. Suppose an action analysis report is prepared for the function mentioned above. What would be the "red margin" in the action analysis report? (Round to the nearest whole dollar.) A. $(68) B. $32 C. $(118) D. $182 125. Suppose an action analysis report is prepared for the function mentioned above. What would be the "yellow margin" in the action analysis report? (Round to the nearest whole dollar.) A. $229 B. $334 C. $279 D. $154