Question 1(1 point)

Which of the following statements describes Black Fly's process costing system?

Question 1 options:

	Direct materials and direct labour are traced to each specific order.
	The subsidiary work in process inventory accounts consist of separate records for each individual order, detailing the materials, labour, and overhead assigned to that order.
	Costs flow through a sequence of work in process inventory accounts and then into finished goods inventory from the final work in process inventory account.
	Costs flow directly from a single work in process inventory account to finished goods inventory.

Question 2(1 point)

Assuming that all activity is within the relevant range, a decrease in the activity level in a flexible budget will

Question 2 options:

	decrease total fixed costs
	decrease the variable cost per unit
	decrease total costs
	increase the variable cost per unit

Question 3(1 point)

Which of the following reasons would indicate that a company should consider using departmental overhead rates rather than using a single plantwide overhead rate?

Question 3 options:

	Each department incurs different types of manufacturing overhead.
	All of the above statements are correct
	Each department spends different amounts on manufacturing overhead.
	Each product is in each department for a different length of time.

Question 4(1 point)

Spahr Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 5,000 units, are as follows:

Direct materials	$2.00
Direct labour	$4.00
Variable manufacturing overhead	$3.00
Fixed manufacturing overhead	$1.00
Total cost	$10.00
The fixed overhead costs are unavoidable.

Erickson Company has offered to sell 5,000 units of the same part to Spahr Company for $11 per unit. Assuming the company has no other use for its facilities, what should Spahr Company do?

Question 4 options:

	Make the part and save $5 per unit.
	Make the part and save $2 per unit.
	Make the part and save $1 per unit
	Buy from Erickson and save $1 per unit.

Question 5(1 point)

The formula for calculating a direct materials efficiency variance is

Question 5 options:

	(actual quantity of input - standard quantity of input allowed for the actual number of outputs) standard price per input unit.
	(actual quantity of input - standard price per input unit) standard quantity of input allowed for the actual number of outputs.
	(actual price per input unit - standard price per input unit) actual quantity of input.
	(actual price per input unit - actual quantity of input) standard price per input unit.

Question 6(1 point)

Which of the following would not be a constraint for selling a product?

Question 6 options:

	Machine time
	Available labour hours for employees
	Store hours
	Having excess capacity on the shelves

Question 7(1 point)

The full-time employees at Percy Enterprises work 8 hours per day, while the part-time employees work 4 hours per day. Percy has 2,000 full-time employees and 800 part-time employees. What is the number of full-time equivalent employees?

Question 7 options:

	2,800
	2,400
	2,000
	1,400

Question 8(1 point)

A favourable variance

Question 8 options:

	indicates something that will decrease operating income
	indicates something that will increase operating income
	is always good for the organization
	does not need to be investigated

Question 9(1 point)

In using an ABC system, which of the following steps is NOT performed before the company's year begins?

Question 9 options:

	Identify the primary activities and estimate a total cost pool for each
	Calculate an activity cost allocation rate for each activity
	Allocate the costs to the cost object using the activity cost allocation rates
	Select an allocation base for each activity

Question 10(1 point)

Gas Country is considering selling premium gasoline. It already sells regular for $1.22/litre and would sell premium gasoline for $1.28/litre. The cost to further refine the regular gas into premium would be $.02/litre. A cost that would not be considered in this decision would be

Question 10 options:

	the extra revenue generated by selling premium.
	the cost of refining the regular gasoline.
	the cost of further processing the regular gas into premium gas.
	the opportunity cost of the regular gasoline.

Question 11(1 point)

Which of the following is MOST likely to be the cost driver for the packaging and shipping activity?

Question 11 options:

	Number of orders shipped
	Number of setups
	Number of units produced
	Hours of testing

Question 12(1 point)

Green Bags Company manufactures cloth grocery bags to be sold to grocery stores and other retailers. Green Bags Company sells the bags in cases of 1,000 bags. The bags come in three sizes: Large, Medium, and Small. Currently, Green Bags Company uses a single plantwide overhead rate to allocate its $7,141,100 of annual manufacturing overhead. Of this amount, $1,875,000 is associated with the Large Bag line, $2,992,500 is associated with the Medium Bag line, and $2,273,600 is associated with the Small Bag line. Green Bags Company is currently running a total of 37,000 machine hours; 12,500 in the Large Bag line, 13,300 in the Medium Bag line, and 11,200 in the Small Bag line. Green Bags Company uses machine hours as the cost driver for manufacturing overhead costs.

Which product line(s) at Green Bags Company have been overcosted or undercosted by using the plantwide manufacturing overhead rate?

Question 12 options:

	Large, Medium, and Small Bags have all been overcosted
	Large, Medium, and Small Bags have all been undercosted
	Large Bags has been overcosted; Medium and Small have been undercosted
	Large Bags has been undercosted; Medium and Small have been overcosted

Question 13(1 point)

Green Pastures golf course is planning for the coming season. Investors would like to earn a 10% return on the company's $40 million of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $15,000,000 for the golfing season. About 400,000 golfers are expected each year. Variable costs are about $20 per golfer.

If the Green Pastures golf course is a price-taker and won't be able to charge more than its competitors who charge $75 per round of golf. What profit will it earn in terms of dollars?

Question 13 options:

	$7,000,000
	$(7,000,000)
	$15,000,000
	$(15,000,000)

Question 14(1 point)

If the operating leverage factor is 3, then a 2% change in the number of units sold should result in a 6% change in

Question 14 options:

	operating income.
	sales.
	unit contribution margin.
	variable expense.

Question 15(1 point)

The Weighted Average method is used for process costing at Davide Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

WIP beginning (60% for conversion)	17,500 units
Units started	114,500 units
Units completed and transferred out	111,700 units
WIP ending (30% for conversion)	20,300 units
Beginning WIP direct materials	$22,300
Beginning WIP conversion costs	$19,700
Costs of materials added	$370,000
Costs of conversion added	$280,000

What are the total equivalent units for conversion costs at Davide Corporation?

Question 15 options:

	117,790
	122,200
	132,000
	123,880

Question 16(1 point)

The use of departmental overhead rates will generally result in the use of a

Question 16 options:

	separate cost allocation base for each department in the factory
	single cost allocation base
	separate cost allocation base for each activity in the factory
	single overhead cost pool for the factory

Question 17(1 point)

Which of the following isfalse?

Question 17 options:

	A system that uses ABC is more refined than one that uses departmental overhead rates.
	ABC is only for manufacturing firms.
	ABC focuses on allocating indirect costs.
	Advances in information technology have made it feasible for more companies to adopt ABC.

Question 18(1 point)

Why are the benefits of adopting ABC/ABM higher for companies in competitive markets

Question 18 options:

	Because accounting /information system expertise is inexpensive to develop
	Because accurate product cost information is not as relevant for price setting
	Because companies in competitive markets have low indirect costs
	Because ABM can pinpoint opportunities for cost savings

Question 19(1 point)

Jansen Industries is considering replacing a machine that is presently used in its production process. The following information is available:

	Old Machine	Replacement Machine
Original cost	$25,000	$35,000
Remaining useful life in years	1	5
Current age in years	5	0
Book value	$5,000
Current disposal value in cash	$3,000
Future disposal value in cash (in 5 years)	$0	$2,000
Annual cash operating costs	$7,000	$4,000

Which of the information provided in the table is irrelevant to the replacement decision?

Question 19 options:

	The original cost of the old machine
	The annual operating cost of the old machine
	The future disposal value of the replacement machine
	The current disposal value of the old machine

Question 20(1 point)

The journal entry to record the transfer of units from Department A to the next processing department, Department B, includes a debit to

Question 20 options:

	Work in Process Inventory for Dept. B and a credit to Raw Materials Inventory.
	Work in Process Inventory for Dept. B and a credit to Work in Process Inventory for Dept. A.
	Work in Process Inventory for Dept. A and a credit to Work in Process Inventory for Dept. B.
	Finished Goods Inventory and a credit to work in process for Dept. A.

Question 21(1 point)

Fixed costs divided by weighted-average contribution margin per unit equals

Question 21 options:

	contribution margin ratio
	margin of safety ratio
	break-even sales in dollars
	break-even sales in units

Question 22(1 point)

Dambrodt Travel Agency's actual operating income for the current year is $25,000. The flexible budget's operating income for actual volume achieved is $32,000, while the static budget's operating income is $35,000. What is the sales volume variance for operating income

Question 22 options:

	$7,000 unfavourable
	$3,000 favourable
	$3,000 unfavourable
	$7,000 favourable

Question 23(1 point)

The benefits of using the ABC costing system are higher if the company

Question 23 options:

	produces only one product
	produces many different products that use differing amounts of resources
	has high indirect costs
	has high indirect costs and produces many different products that use differing amounts of resources

Question 24(1 point)

Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most recent year follow:

	Total	Cups	Pitchers
Sales revenue	$460,000	$310,000	$150,000
Variable expenses	355,000	235,000	120,000
Contribution margin	105,000	75,000	30,000
Fixed expenses	76,000	38,000	38,000
Operating income (loss)	$29,000	$37,000	$(8,000)

Assuming the Pitcher line at Pottery Unlimited is dropped, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $45,000 per year, how will operating income be affected?

Question 24 options:

	Decrease $15,000
	Increase $45,000
	Increase $44,000
	Increase $15,000

Question 25(1 point)

Total fixed costs for Yellow Boats Inc. are $100,000. Total costs are $500,000 if 125,000 units are produced. The total variable costs at a level of 200,000 units would be

Question 25 options:

	$800,000.
	$312,000.
	$160,000.
	$640,000.

Question 26(1 point)

The break-even point on a CVP graph is

Question 26 options:

	the intersection of the fixed expense line and the sales revenue.
	the intersection of the sales revenue line and the total expense line.
	the intersection of the sales revenue line and they-axis.
	the intersection of the fixed expense line and the total expense line.

Question 27(1 point)

If a company decides to outsource and then has freed capacity, the decision on what to do with that freed capacity would be based upon

Question 27 options:

	fixed cost allocation
	full product cost
	opportunity costs
	unavoidable fixed costs

Question 28(1 point)

Rockwell Corporation manufactures and sells computer keyboards. The keyboard sells for $55 per unit and its variable costs per unit are $42. Fixed costs are $80,000 per month for sales volumes up to 40,000 keyboards. If more than 40,000 keyboards are sold, the fixed costs will be $110,000. The flexible budget would reflect what monthly operating income for a sales volume of 52,000 keyboards?

Question 28 options:

	$596,000
	$2,860,000
	$566,000
	$676,000

Question 29(1 point)

The minimum transfer price should be

Question 29 options:

	the available market price
	the full product cost
	the variable manufacturing cost
	the direct materials cost only

Question 30(1 point)

Which of the following describes the target total cost?

Question 30 options:

	Revenue at market price minus desired profit
	Revenue at market price plus desired profit
	Total cost plus desired profit
	Total cost minus actual cost

Question 31(1 point)

Which of the following is unique to a process costing system?

Question 31 options:

	Each process has its own WIP account
	Costs for each process stay with that process until the goods are moved to finished goods
	Direct materials, direct labour and manufacturing overhead are assigned to the first department only
	Work is not started on a product until an order is received

Question 32(1 point)

The cost of supplier evaluation from a supplier would be classified as a(n)

Question 32 options:

	external failure cost
	prevention cost
	appraisal cost
	internal failure cost

Question 33(1 point)

Pittinger Company manufactures cuckoo clocks and uses an activity-based costing system. Each cuckoo clock consists of 10 separate parts totaling $120 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows:

Activity	Allocation Base	Cost Allocation Rate
Materials handling	Number of parts	$1.25 per part
Machining	Machine hours	$2.50 per machine hour
Assembling	Number of parts	$0.50 per part
Packaging	Number of finished units	$1.50 per finished unit

What is the cost of materials handling per cuckoo clock?

Question 33 options:

	$3.00
	$5.00
	$4.50
	$12.50

Question 34(1 point)

Kitchen Appliances Company manufactures two products: toaster ovens and bread machines. The following data are available:

	Toaster Ovens	Bread Machines
Sales price	$100	$200
Variable costs	$30	$150

The company can manufacture three toaster ovens per machine hour and two bread machines per machine hour. The company's production capacity is 1,200 machine hours per month.

To maximize profits, what product and how many units should Kitchen Appliances Company produce in a month?

Question 34 options:

	2,400 bread machines and 0 toaster ovens
	630 toaster ovens and 200 bread machines
	3,600 toaster ovens and 2,400 bread machines
	3,600 toaster ovens and 0 bread machines

Question 35(1 point)

Target profit analysis is used to calculate the sales volume that is needed to

Question 35 options:

	cover all fixed expenses.
	cover all expenses.
	avoid a loss.
	earn a specific amount of net operating income.

Question 36(1 point)

What does a favourable direct materials price variance indicate?

Question 36 options:

	The actual quantity of materials used was less than the standard quantity of materials used for actual
	The standard cost of materials purchased was greater than the actual cost of materials purchased
	The actual cost of materials purchased was greater than the standard cost of materials purchased
	The standard cost of materials purchased was less than the actual cost of materials purchased

Question 37(1 point)

The legal costs associated with filing a patent for a new model of oven at an appliance manufacturer is an example of which type of activity?

Question 37 options:

	Facility-level
	Batch-level
	Product-level
	Unit-level

Question 38(1 point)

The costing system used by a company producing custom window treatments would be

Question 38 options:

	job costing
	process costing
	equivalent units costing
	conversion cost costing

Question 39(1 point)

A standard cost can be thought of as

Question 39 options:

	the regular selling price for a single unit of product
	the budgeted selling price for a single unit of product
	the average cost for a single unit of product
	the budgeted cost for a single unit of product

Question 40(1 point)

The standard variable overhead cost rate for Walter Manufacturing is $23 per unit. Budgeted fixed overhead cost is $52,000. Walter Manufacturing budgeted 4,000 units for the current period and actually produced 4,100 finished units. What is the production volume variance, assuming that the allocation base for fixed overhead costs is the number of units expected to be produced?

Question 40 options:

	$2,300 favourable
	$1,300 favourable
	$2,300 unfavourable
	$1,300 unfavourable

Question 41(1 point)

Outsourcing the accounting function is an example of what facet of activity-based management

Question 41 options:

	reduce costs of non-value-added activities
	achieve planned growth
	match the company's use of resources to customer demand
	improve selection of process activities to enhance profit

Question 42(1 point)

In a process system with multiple processes, the cost of units completed in department one is transferred to

Question 42 options:

	WIP in department two
	overhead
	finished goods
	cost of goods sold

Question 43(1 point)

Assume that 6,000 units were in beginning WIP inventory, 36,000 were started, 32,000 were completed, and 10,000 were in ending WIP inventory. Direct materials are added at the beginning of the process. What are the total equivalent units for direct materials?

Question 43 options:

	38,000
	46,000
	42,000
	36,000

Question 44(1 point)

Express Company reports the following data for its first year of operation.

Cost of goods manufactured $475,000 Work in process inventory, beginning 0 Work in process inventory, ending 140,000 Direct materials used 110,000 Manufacturing overhead 185,000 Finished goods inventory, ending 101,000

What is the cost of goods sold at Express Company?

Question 44 options:

	$374,000
	$514,000
	$475,000
	$770,000

Question 45(1 point)

When making a short-term special order decision, a company should

Question 45 options:

	focus on qualitative factors only
	focus on quantitative factors only
	use a traditional direct costing approach
	separate variable costs from fixed costs

Question 46(2 points)

Goody Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. The company uses the weighted-average method for process costing. Data for the finishing department follows:

WIP, April 1	12,000 units
Transferred-in costs in WIP, April 1	$78,940
Direct materials (100%) in WIP, April 1	$22,420
Conversion costs (70%) in WIP, April 1	$21,385
Units transferred-in	45,000
Transferred-in costs during April	$540,900
Units completed	42,000
April direct materials cost	$157,500
April conversion costs	$230,837
WIP, April 30	15,000 units
(100% for materials and 60% for conversion costs)

At the Goody Company the cost per equivalent unit for conversion costs would be closest to

Question 46 options:

	$5.13
	$4.95
	$4.42
	$4.80

Question 47(1 point)

When a company uses direct materials, the amount of the debit to work in process inventory is based on the

Question 47 options:

	actual quantity of the materials used actual price per unit of the materials.
	standard quantity of the materials allowed for the actual production actual price per unit of the materials
	actual quantity of the materials used standard price per unit of the materials
	standard quantity of the materials allowed for the actual production standard price per unit of the materials

Question 48(1 point)

Which of the following condition(s) favours using departmental overhead rates in place of a plantwide overhead rate?

Question 48 options:

	Departments use a similar amount of indirect costs
	Products spend the same amount of time in each department
	Manufacturing overhead represents a small proportion of total cost
	Different jobs or products use the departments to a different extent

Question 49(1 point)

Which of the following statements regarding static budgets is TRUE?

Question 49 options:

	They are designed to estimate revenues only
	Managers use them to help plan for uncertainties
	They are prepared for a range of activity levels
	They are prepared for one level of sales volume

Question 50(1 point)

Value-added activities are

Question 50 options:

	activities for which the customer is willing to pay
	activities that neither enhance the customer's image of the product or service nor provide a competitive advantage
	also called waste activities
	activities that could be reduced or removed from the process with no ill effect on the end product or service

Question 51(1 point)

Zany Brainy projected current year sales of 50,000 units at a unit sale price of $20.00. Actual current year sales were 55,000 units at $22.00 per unit. Variable costs were budgeted at $14.00 per unit and actually totaled $15.00 per unit. Budgeted fixed costs totaled $400,000, while actual fixed costs amounted to $420,000

What is the Zany Brainy's flexible budget variance for total expenses?

Question 51 options:

	$75,000 favourable
	$55,000 unfavourable
	$75,000 unfavourable
	$55,000 favourable

Question 52(1 point)

Grayson Industries has collected the following data for one of its products:

Direct materials standard (5 kilograms per unit @ $0.50/kg.)	$2.50 per finished good
Direct materials flexible budget variance-unfavourable	$10,000
Actual direct materials purchased and used	100,000 kilograms
Actual finished goods produced	24,000 units

How much is the direct materials efficiency variance at Grayson Industries?

Question 52 options:

	$10,000 unfavourable
	$12,000 favourable
	$12,000 unfavourable
	$10,000 favourable

Question 53(1 point)

Big-box retailers such as Best Buy are considered price-takers because

Question 53 options:

	their products are unique
	there is less competition in the consumer electronics retail sector
	their products are not unique.
	they emphasize cost-plus pricing

Question 54(1 point)

Green Bags Company manufactures cloth grocery bags to be sold to grocery stores and other retailers. Green Bags Company sells the bags in cases of 1,000 bags. The bags come in three sizes: Large, Medium, and Small. Currently, Green Bags Company uses a single plantwide overhead rate to allocate its $7,141,100 of annual manufacturing overhead. Of this amount, $1,875,000 is associated with the Large Bag line, $2,992,500 is associated with the Medium Bag line, and $2,273,600 is associated with the Small Bag line. Green Bags Company is currently running a total of 37,000 machine hours; 12,500 in the Large Bag line, 13,300 in the Medium Bag line, and 11,200 in the Small Bag line. Green Bags Company uses machine hours as the cost driver for manufacturing overhead costs.

At Green Bags Company the plantwide manufacturing overhead rate would be closest to

Question 54 options:

	$150.00 per machine hour
	$225.00 per machine hour
	$50.68 per machine hour
	$193.00 per machine hour

Question 55(1 point)

Louis Corporation, which uses an activity-based costing system, produces travel trailers and boat trailers. The company allocates batch setup costs to the two products using the following basic data:

	Travel trailers	Boat trailers
Budgeted units to be produced	2,000	3,000
Budgeted number of setups	380	420
Budgeted number of direct labour hours per unit	20	10

Total budgeted setup costs for the year are $140,000.

If the setup costs are allocated using direct labour hours, how much of the total setup costs would be allocated to boat trailers?

Question 55 options:

	$60,000
	$105,000
	$140,000
	$326,667

Question 56(1 point)

Traditions Home Accessories Company manufactures pillows using an activity-based costing system to allocate all manufacturing conversion costs. The following information is provided for the month of June:

Activity	Estimated Indirect Activity Costs	Allocation Base	Estimated Quantity of Allocation Base
Materials handling	$3,000	Number of parts	6,000 parts
Assembling	$7,200	Number of parts	6,000 parts
Packaging	$4,000	Number of pillows	2,000 pillows

What is the total manufacturing cost per pillow?

Question 56 options:

	$13.10
	$5.10
	$15.10
	$7.10

Question 57(1 point)

What could cause a production volume variance for fixed expenses?

Question 57 options:

	The number of units actually sold is different that the units upon which the static budget was based
	Insurance costs on the factory rise unexpectedly during the year due to a crisis in the insurance industry
	The union calls for a strike of factory workers and temporary workers are hired to fill in for the striking employees
	The lease on the manufacturing facility is renegotiated and the lease payments increase during the year

Question 58(1 point)

Tucker Manufacturing uses weighted-average process costing. All materials at Tucker are added at the beginning of the production process. The equivalent units for materials at Tucker would be

Question 58 options:

	the units completed and transferred out plus the units in beginning work in process.
	the units started plus the units in beginning work in process.
	the units started and completed plus the units in ending work in process.
	the units started plus the units in ending work in process.

Question 59(1 point)

Ending WIP inventory has 100 units that are 80% complete for direct materials and 30% complete for conversion costs. For calculating weighted-average costs per equivalent unit, which of the following statements is true?

Question 59 options:

	The denominator would include 80 units for direct materials and 30 for conversion
	The denominator would include 20 units for direct materials and 70 for conversion
	You cannot determine what constitutes the denominator
	The denominator would include 100 units for both.

Question 60(1 point)

Pizza Company produces frozen pizzas in three departments: assembly, freezing and packaging. In assembly, crust ingredients are added at the beginning of the process. After the crust is made, the sauce, cheese, and toppings are added at the end of the process. Conversion costs are added evenly. Data for the assembly department includes:

Beginning WIP inventory	0 units
Units started	22,000 units
Units completed/transferred to freezing	19,800 units
Ending WIP (70% through assembly)	2,200 units
Crust ingredients added	$31,000
Cheese added	$16,000
Sauce and toppings added	$8,000
Direct labour	$22,216
Manufacturing overhead	$5,486

At the end of the period, what are the total equivalent units for cheese, sauce and toppings?

Question 60 options:

	19,800
	21,340
	2,200
	22,000

Question 61(1 point)

Hallow Company produces ping-pong balls using a three-step sequential process that includes molding, colouring and finishing. When costs are transferred from molding to colouring, how does the colouring department refer to those costs?

Question 61 options:

	Packaging costs
	Direct Material costs
	Conversion costs
	Transferred in costs

Question 62(1 point)

The following information is provided by Abbott Corporation:

WIP inventory, January 1	0 units
Units started	12,000
Units completed and transferred out	8,000
WIP inventory, December 31	4,000
Direct materials	$26,700
Direct labour	$15,400
Manufacturing overhead	$9,000

The units in ending WIP inventory were 80% complete for materials and 40% complete for conversion costs.

What are the total equivalent units for direct materials for the Abbott Corporation if all manufacturing costs are added during the process?

Question 62 options:

	11,200
	4,000
	3,200
	12,000

Question 63(1 point)

Southwest Electric Co-op has variable expenses of 20% of sales and monthly fixed expenses of $150,000. The monthly target operating income is $50,000.

What is the monthly margin of safety in dollars if Southwest Electric Co-op achieves its operating income goal?

Question 63 options:

	$125,000
	$437,500
	$250,000
	$62,500

Question 64(1 point)

Before these materials are used to manufacture its cars, Honda classifies steel, glass, and plastic as

Question 64 options:

	finished goods inventory.
	merchandise inventory.
	raw materials inventory.
	work in process inventory.

Question 65(1 point)

Farm Supply plans to make 10,000 tractors at its plant. Fixed costs are $1,000,000 and variable costs are $500 per tractor. What is the average cost per tractor?

Question 65 options:

	$500
	$100
	$1,500
	$600

Question 66(1 point)

Which of the following is an inventoriable cost?

Question 66 options:

	Research and development expenses
	Distribution expenses
	Direct labour expenses
	Marketing expenses

Question 67(1 point)

A company manufactures exterior paint. Last month's costs were:

Direct materials	$110,000
Direct labour	$150,000
Manufacturing overhead	$135,000

What were the conversion costs for the month?

Question 67 options:

	$395,000
	$260,000
	$285,000
	$110,000

Question 68(1 point)

A grocery store decides to drop its health and beauty section of products because it has been unprofitable. This strategy could backfire because

Question 68 options:

	the store can readily fill the available space
	it has automatically saved that department's fixed costs
	the store's sales may suffer by not having this convenience category of products
	variable costs are not avoidable

Question 69(1 point)

Compute the total standard cost per book for Publisher's Company using the following information: 1. Direct Materials: 1 ream of paper allowed per book, at $5.00 per ream. 2. Direct Labour: 0.35 labour-hours of input allowed per book, at $17.50 per direct labour hour (DLH). 3. Variable Manufacturing Overhead: assigned at $20 per direct labour hour (DLH)

Question 69 options:

	$11.13 per output unit
	$17.38 per output unit
	$18.13 per output unit
	$47.50 per output unit