Question 1 of 50

2.0 Points

A partial listing of costs incurred during December at Gagnier Corporation appears below: The total of the manufacturing overhead costs listed above for December is:

A. $40,000
B. $89,000
C. $325,000
D. $635,000
Question 2 of 50	2.0 Points

A product sells for $20 per unit and has a contribution margin ratio of 40 percent. Fixed expenses total $240,000 annually. How many units of the product must be sold to yield a profit of $60,000?

A. 40,000 units

B. 37,500 units

C. 65,000 units

D. 30,000 units

Question 3 of 50

2.0 Points

A proper journal entry to close overapplied manufacturing overhead to Cost of Goods Sold would be:

A.
B.
C.
D.

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At the beginning of the year, manufacturing overhead for the year was estimated to be $267,500. At the end of the year, actual direct labor-hours for the year were 22,100 hours, the actual manufacturing overhead for the year was $262,500, and manufacturing overhead for the year was overapplied by $13,750. If the predetermined overhead rate is based on direct labor-hours, then the estimated direct labor-hours at the beginning of the year used in the predetermined overhead rate must have been:

A. 22,100 direct labor-hours
B. 19,900 direct labor-hours
C. 21,400 direct labor-hours
D. 21,000 direct labor-hours

Average maintenance costs are $1.50 per machine-hour at an activity level of 8,000 machine-hours and $1.20 per machine-hour at an activity level of 13,000 machine-hours. Assuming that this activity is within the relevant range, total expected maintenance cost for a budgeted activity level of 10,000 machine-hours would be closest to:

A. $11,433
B. $15,000
C. $16,128
D. $13,440

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Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. The best estimate of the total cost to manufacture 6,300 units is closest to:

A. $1,495,620
B. $1,355,760
C. $1,449,000
D. $1,425,690

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Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. The best estimate of the total monthly fixed manufacturing cost is:

A. $1,506,400
B. $1,465,400
C. $1,424,400
D. $932,400

Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. The best estimate of the total variable manufacturing cost per unit is:

A. $82.00
B. $70.20
C. $56.70
D. $11.80

Balonek Inc.'s contribution margin ratio is 57% and its fixed monthly expenses are $41,000. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $112,000?

A. $63,840
B. $7,160
C. $71,000
D. $22,840

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Butteco Corporation has provided the following cost data for last year when 100,000 units were produced and sold: All costs are variable except for $100,000 of manufacturing overhead and $100,000 of selling and administrative expense. There are no beginning or ending inventories. If the selling price is $10 per unit, the net operating income from producing and selling 110,000 units would be:

A. $450,000
B. $385,000
C. $405,000
D. $560,000