QUESTION 16

1. If a company is to succeed voer the long-term, positive cash flows are necessary from

		Operating activities
		Investing activities
		Financing activities
		Both investing and financing activities

QUESTION 17

1. Given the following data and using the high-low method of analysis, total fixed costs are approximately:

Month			Overhead Cost	Direct Labor Hours
July			$32,000	4,200
August			$28,500	3,400
September			$24,000	2,000
October			$38,500	6,000
November			$45,000	9,000
December			$41,000	7,500
		$8,000
		$12,000
		$10,000
		$18,000

QUESTION 18

1. Using the following partial income statement, what is the company's contribution margin?

Sales revenue (4,500 at $75)				$337,500
Variable expenses:
Production Expenses			$62,000
Selling Expenses			$35,000
Administrative Expenses			$38,000
Total variable expenses				$135,000
				$202,500
				$90,000
Net Income				$112,500
		$20
		$30
		$45
		$75

QUESTION 19

1. Using the information below, determine the cost of good manufactured for the year.

Beginning work-in-process inventory	$130,000
Beginning raw materials inventory	$47,500
Ending work-in-process inventory	$112,500
Ending raw materials inventory	$60,000
Raw materials purchased	$97,500
Direct labor	$93,000
Manufacturing overhead	$60,000

		$238,000
		$255,500
		$373,000
		$485,500

QUESTION 20

1. Mackie Co. manufactures hunting clothing. The standard variable costs to produce on batch of the Big Mac vests are as follows: direct material average cost is $6 per yard; average yards per batch is 30; direct labor average per hour is $5; average hours per batch is 4. The standard monthly fixed costs are as follows: manufacturing overhead is $3,200; selling and administrative costs are $1,900. Mackie produces 100 batches per month. (Ten vests are produced in each batch). What is th manufacturing cost per vest?

		$5.10
		$12.00
		$23.20
		$25.10