Question
Questions 1. The following costs were incurred in May: Direct materials $ 46,300 Direct labor $ 33,300 Manufacturing overhead $ 30,800 Selling expenses $ 21,300
Questions
1. The following costs were incurred in May:
Direct materials
$
46,300
Direct labor
$
33,300
Manufacturing overhead
$
30,800
Selling expenses
$
21,300
Administrative expenses
$
35,400
Multiple Choice
$64,100
$77,100
$167,100
$79,600
2. Abburi Company's manufacturing overhead is 40% of its total conversion costs. If direct labor is $105,000 and if direct materials are $21,000, the manufacturing overhead is:
Multiple Choice
$70,000
$157,500
$14,000
$84,000
3. Schonhardt Corporation's relevant range of activity is 4,000 units to 5,500 units. When it produces and sells 4,750 units, its average costs per unit are as follows:
Average
Cost per Unit
Direct materials$8.00
Direct labor$3.70
Variable manufacturing overhead$2.05
Fixed manufacturing overhead$3.00
Fixed selling expense$1.35
Fixed administrative expense$1.05
Sales commissions$1.15
Variable administrative expense$1.05
If 4,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to:
rev: 01_14_2020_QC_CS-195219
Multiple Choice
$27,550
$20,663
$19,238
$14,250
4. Tirri Corporation has provided the following information:
Cost per UnitCost per Period
Direct materials$6.80
Direct labor$3.70
Variable manufacturing overhead$1.30
Fixed manufacturing overhead$23,000
Sales commissions$1.25
Variable administrative expense$0.60
Fixed selling and administrative expense$7,400
If the selling price is $26.70 per unit, the contribution margin per unit sold is closest to:
Multiple Choice
$13.05
$6.85
$16.20
$9.95
5.Lagle Corporation has provided the following information:
Cost per Unit
Cost per Period
Direct materials
$
5.00
Direct labor
$
3.40
Variable manufacturing overhead
$
1.70
Fixed manufacturing overhead
$
6,000
Sales commissions
$
1.30
Variable administrative expense
$
0.45
Fixed selling and administrative expense
$
6,300
If 4,000 units are sold, the variable cost per unit sold is closest to:
Multiple Choice
$11.40
$11.85
$10.10
$10.55
6. Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $498,000 or a new model 220 machine costing $469,000 to replace a machine that was purchased 6 years ago for $453,000. The old machine was used to make product I43L until it broke down last week. Unfortunately, the old machine cannot be repaired.
Management has decided to buy the new model 220 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product I43L.
Management also considered, but rejected, the alternative of simply dropping product I43L. If that were done, instead of investing $469,000 in the new machine, the money could be invested in a project that would return a total of $478,000.
In making the decision to buy the model 220 machine rather than the model 370 machine, the differential cost was:
Multiple Choice
$29,000
$16,000
$45,000
$25,000
7.Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement for November.
Sales (6,500 units)$403,000
Variable expenses273,000
Contribution margin130,000
Fixed expenses103,500
Net operating income$26,500
If the company sells 6,400 units, its net operating income should be closest to: (Do not round intermediate calculations.)
Multiple Choice
$25,979
$24,500
$26,500
$22,000
8. Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January.
Sales (3,100 units)$86,800
Variable expenses38,192
Contribution margin48,608
Fixed expenses36,900
Net operating income$11,708
If the company sells 3,500 units, its total contribution margin should be closest to: (Do not round intermediate calculations.)
Multiple Choice
$48,608
$54,880
$79,900
$13,219
9. Last year Easton Corporation reported sales of $840,000, a contribution margin ratio of 40% and a net loss of $36,000. Based on this information, the break-even point was:
Multiple Choice
$750,000
$1,020,000
$876,000
$930,000
10.Cubie Corporation has provided the following data concerning its only product:
Selling price
$
97
per unit
Current sales
10,300
units
Break-even sales
8,961
units
What is the margin of safety in dollars?
Multiple Choice
$999,100
$129,883
$869,21
11. Newham Corporation produces and sells two products. In the most recent month, Product R10L had sales of $29,000 and variable expenses of $10,580. Product X96N had sales of $42,000 and variable expenses of $18,530. The fixed expenses of the entire company were $46,040. The break-even point for the entire company is closest to:
Noreen 5e Rechecks 2019-08-02
Multiple Choice
$41,890
$75,150
$78,034
$46,040
12.A cement manufacturer has supplied the following data:
Tons of cement produced and sold
275,000
Sales revenue
$
979,000
Variable manufacturing expense
$
232,000
Fixed manufacturing expense
$
313,000
Variable selling and administrative expense
$
110,650
Fixed selling and administrative expense
$
93,000
Net operating income
$
230,350
The company's contribution margin ratio is closest to:
rev: 07_17_2020_QC_CS-220012
Multiple Choice
44.3%
65.0%
68.0%
23.5%
13.Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below:
Estimated machine-hours72,500
Estimated variable manufacturing overhead$3.00per machine-hour
Estimated total fixed manufacturing overhead$838,750
The predetermined overhead rate for the recently completed year was closest to:
Multiple Choice
$6.86 per machine-hour
$9.00 per machine-hour
$8.64 per machine-hour
$14.57 per machine-hour
14. Longobardi Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the labor-hours for the upcoming year at 39,500 labor-hours. The estimated variable manufacturing overhead was $6.58 per labor-hour and the estimated total fixed manufacturing overhead was $972,095. The actual labor-hours for the year turned out to be 37,000 labor-hours. The predetermined overhead rate for the recently completed year was closest to:
Multiple Choice
$31.19 per labor-hour
$24.61 per labor-hour
$6.58 per labor-hour
$33.30 per labor-hour
15. The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,088. A total of 33 direct labor-hours and 273 machine-hours were worked on the job. The direct labor wage rate is $18 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $25 per machine-hour. The total cost for the job on its job cost sheet would be:
Multiple Choice
$6,882
$11,652
$6,463
$9,507
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