QUESTION 1

1. Shorter Company had originally expected to earn operating income of $210,000in the comingyear.Shorter'sdegreeof operating leverage is 1.5. Recently, Shorter revised its plans and now expects to increase sales by 20% next year. What is the percentage change in operating income expected by Shorter now in the coming year?
2. 8.33%
3. 48.0%
4. 20.0%
5. 54.17%
6. 30.0%

1 points

QUESTION 2

1. Shorter Company had originally expected to earn operating income of $210,000in the comingyear.Shorter'sdegreeof operating leverage is 1.5. Recently, Shorter revised its plans and now expects to increase sales by 20% next year. What is Shorter'srevised expected operating incomenowfor the coming year?
2. $192,400
3. $156,000
4. $273,000
5. $330,000
6. $262,400

1 points

QUESTION 3

1. Firm X and Firm Y are competitors within the same industry.Firm X has an operating leverage of 2while Firm Y has an operating leverage of 3.Projected sales for both firms are 15%less than in the prior year.Which statement regarding projected profits is true?
2. Firm X will lose more profit than Firm Y.
3. Firm Y will lose more profit than Firm X.
4. Firms X and Y will lose the same amount of profit.
5. NeitherFirm X nor Firm Y will lose profit.

1 points

QUESTION 4

1. BiggersCompany expects the following results for the next accounting period:
2. Sales revenue for sales volume of 3,000 units$240,000
3. Variable costs for sales volume of 3,000 units135,000
4. Total fixed costs40,000
5. The sales manager believes sales volume can be increased by 800 units to 3,800 units if fixed advertising expenditures were increased by $10,000. If advertising expenditures are increased by $10,000 and sales increased by 800 units, the effect on operating income will be a(n)
6. increase of $18,000
7. increase of $24,000
8. increase of $4,000
9. increase of $40,000
10. None of these.

1 points

QUESTION 5

1. The margin of safety in dollars is
2. expected sales minus expected profit
3. expected sales minus sales at break-even
4. costs at break-even minus expected profit
5. expected costs minus costs at break-even
6. expected profit minus break-even profit

1 points

QUESTION 6

1. StandlarCompany makes two different models (standard and deluxe) of wireless speakers. The standard model price is $700 and its variable expense per unit is $400. The deluxe model price is $1,400 and its variable expense per unit is $800. Total fixed expenses are $600,000. Generally, Standlar sells two standard models for every deluxe model sold. What is the number of standard models sold at break-even by Standlar?
2. 1,500
3. 500
4. 1,000
5. 1,600
6. 1,200

1 points

QUESTION 7

1. StandlarCompany makes two different models (standard and deluxe) of wireless speakers. The standard model price is $700 and its variable expense per unit is $400. The deluxe model price is $1,400 and its variable expense per unit is $800. Total fixed expenses are $600,000. Generally, Standlar sells two standard models for every deluxe model sold. What is the overall sales revenue atbreak-even forStandlar?
2. $700,000
3. $350,000
4. $1,400,000
5. $600,000
6. $2,400,000

1 points

QUESTION 8

1. Melody Company sells a product for $14,variable costs are $10per unit,and total fixed costs are $5,040.If Melody Company wants to earn an operating profit of $1,760,how many units must it sell?
2. 1,480
3. 1,260
4. 1,700
5. 1,950
6. None of the above choices

1 points

QUESTION 9

1. Which of the following costs is not included on a job-order cost sheet?
2. direct materials costs
3. applied plant-wide overhead costs
4. direct labor costs
5. actual plant-wide overhead costs

1 points

QUESTION 10

1. Time tickets are filled out for
2. indirect laborers
3. direct laborers
4. both direct and indirect laborers
5. direct materials
6. supervisors

1 points

QUESTION 11

1. Sanders Manufacturing has the following amounts listed before reconciling the overhead variance.
2. Estimated overhead$760,000
3. Applied overhead740,000
4. Actual overhead756,000
5. Pre-adjusted cost of goods sold935,000
6. Calculate the post-adjusted cost of goods sold after adjusting for the overhead variance.
7. $919,000
8. $951,000
9. $939,000
10. $955,000
11. $915,000

1 points

QUESTION 12

1. Using normal costing,which costs never enter the work-in-process account?
2. Applied overhead
3. Actual overhead
4. Direct materials
5. Direct labor
6. None of these

1 points

QUESTION 13

1. Bryant Company designs and builds fancy dining room tables for individual customers.On July 1,there were two jobs in process:Job 391with a beginning balance of $12,560and Job 392with a beginning balance of $8,790.Overhead costs were applied by using a rate of 70% of direct labor costs. Both jobs are unfinished on July 31. Data on costs incurred in July for both jobs are as follows:
2. Job 391Job 392
3. Direct materials$5,100$9,200
4. Direct labor cost2,70011,000
5. What is the total of the work-in-process account at July 31?
6. $28,000
7. $58,940
8. $68,080
9. $37,590
10. None of these choices

1 points

QUESTION 14

1. Smith has applied overhead of $72,000and actual overhead of $87,600for the month of November.It applies overhead based on direct labor hours and those equaled 12,000in November.Overhead for the year was estimated to be $900,000.How many direct labor hours were estimated for the year?
2. 175,200
3. 180,000
4. 150,000
5. None of these choices

1 points

QUESTION 15

1. Morrow Company applies overhead based on direct labor hours.At the beginning of the year,Morrow estimates overhead to be $620,000,machine hours to be 180,000, and direct labor hours to be 40,000.During February,Morrow has 4,200direct labor hours and 8,000 machine hours.If the actual overhead for February is $65,500,what is the overhead variance and is it overappliedor underapplied?
2. $400 underapplied
3. $400 overapplied
4. $200 underapplied
5. $200 overapplied
6. None of these choices

1 points

QUESTION 16

1. Sanders Company has the following information for last year:
2. Selling price$190per unit
3. Variable production costs$52 per unit produced
4. Variable selling and admin expenses$18 per unit sold
5. Fixed production costs$240,000
6. Fixed selling and admin expenses$180,000
7. Units produced12,000
8. Units sold7,000
9. There were no beginning inventories
10. What is the value of ending inventory for Sanders using using the absorption costing method?
12. $360,000
13. $220,000
14. $280,000
15. $380,000

1 points

QUESTION 17

1. Sanders Company has the following information for last year:
2. Selling price$190per unit
3. Variable production costs$52 per unit produced
4. Variable selling and admin expenses$18 per unit sold
5. Fixed production costs$240,000
6. Fixed selling and admin expenses$180,000
7. Units produced12,000
8. Units sold7,000
9. There were no beginning inventories
10. What is the operating income for Sanders using the absorption costing method?
12. $520,000
13. $500,000
14. $480,000
15. $1,200,000

1 points

QUESTION 18

1. Sanders Company has the following information for last year:
2. Selling price$190per unit
3. Variable production costs$52 per unit produced
4. Variable selling and admin expenses$18 per unit sold
5. Fixed production costs$240,000
6. Fixed selling and admin expenses$180,000
7. Units produced12,000
8. Units sold7,000
9. There were no beginning inventories
10. What is the cost of ending inventory for Sanders using the variable costing method?
12. $260,000
13. $300,000
14. $280,000
15. $120,000

1 points

QUESTION 19

1. Sanders Company has the following information for last year:
2. Selling price$190per unit
3. Variable production costs$52 per unit produced
4. Variable selling and admin expenses$18 per unit sold
5. Fixed production costs$240,000
6. Fixed selling and admin expenses$180,000
7. Units produced12,000
8. Units sold7,000
9. There were no beginning inventories
10. What is the operating income for Sanders using the variable costing method?
12. $420,000
13. $520,000
14. $500,000
15. $480,000

1 points

QUESTION 20

1. Fill in the blank with the correct answer below:
2. When production is greater than sales volume, income under absorption costing will be _____________income using variable costing procedures.
3. equal to
4. greater than
5. less than
6. randomly different than