The break-even point is the point at which...

Question 1 options:

total contribution margin equals fixed costs

fixed costs equal variable costs

sales equals variable costs

fixed costs equal sales

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Question 2(2.5 points)

If both variable costs &fixed costs increase but sales remain the same, what is expected to happen to the Contribution Margin (CM) and to the Break-Even Point (BE) respectively?

Question 2 options:

CM-decrease, BE-increase

CM-decrease, BE-decrease

CM-decrease, BE-can't be determined

CM-increase, BE-decrease

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Question 3(2.5 points)

Singer Co. reported sales of $416,000, a contribution margin of $5 per unit, fixed costs of $80,000, and a net income of $24,000.

Determine the selling price per unit?

Question 3 options:

$5

$20

$86.70

$26

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Question 4(2.5 points)

Use the following information to answer Questions 4 & 5

Projected cost information for a new product is as follows:

Variable manufacturing costs:	$8 per unit
Variable selling costs:	$2 per unit
Fixed manufacturing costs:	$25,000
Fixed selling costs:	$45,000

The product is to be sold at $18 per unit Determine the break-even point for this product (in $)?

Question 4 options:

$8,750

$126,000

$157,500

$45,000

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Question 5(2.5 points)

Use the following information to answer Questions 4 & 5

Variable manufacturing costs:	$8 per unit
Variable selling costs:	$2 per unit
Fixed manufacturing costs:	$25,000
Fixed selling costs:	$45,000

The product is to be sold at $18 per unit What price would the company have to sell this product for if they wish to sell 10,000 units and realize a profit of $50,000?

Question 5 options:

$5

$12

$22

$18

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Question 6(2.5 points)

Use the following information to answer questions 6 & 7

Trader Toms makes and sells frozen 4-cheese pizzas, New York style. The expected selling price is $10 per pizza. The projected variable cost per pizza is $6. The estimated fixed costs per month are $10,000.

Determinethe number of pizzas that must be sold to make a monthly Net Income of $20,000?

Question 6 options:

2,000

2,500

5,000

7,500

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Question 7(2.5 points)

Use the following information to answer questions 6 & 7

Trader Toms makes and sells frozen 4-cheese pizzas, New York style. The expected selling price is $10 per pizza. The projected variable cost per pizza is $6. The estimated fixed costs per month are $10,000.

Iffixed costs increase by $5,000 and 6,000 pizzas are sold in a given month, determine theNet Income for that month?

Question 7 options:

$9,000

$15,000

$19,000

$20,000

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Question 8(2.5 points)

Use the following information to answer Questions 8 & 9: The following information has been projected for Sommers Inc. for March:

Sales	50,000 units
Finished Goods Beginning Inventory	4,000 units
Finished Goods Ending Inventory	8,000 units

The selling price is $40 per unit. Each unit requires 4 pounds of material which costs $6 per pound. The beginning inventory of raw materials is 12,000 pounds. The company wants to have 3,000 pounds of material in inventory at the end of March. Determine Sommers' budgeted production for March?

Question 8 options:

46,000 units

38,000 units

62,000 units

54,000 units

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Question 9(2.5 points)

Use the following information to answer Questions 8 & 9:

The following information has been projected for Sommers Inc. for March:

Sales	50,000 units
Finished Goods Beginning Inventory	4,000 units
Finished Goods Ending Inventory	8,000 units

The selling price is $40 per unit. Each unit requires 4 pounds of material which costs $6 per pound. The beginning inventory of raw materials is 12,000 pounds. The company wants to have 3,000 pounds of material in inventory at the end of March.

Determine the budgeted material purchases (in $) for March?

Question 9 options:

$1,206,000

$1,296,000

$1,350,000

$1,242,000

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Question 10(2.5 points)

Gastone Inc. has estimated the following forecasted sales for a 3-month period:

Month	Estimated sales $
August	33,000
September	29,000
October	30,000

On average, 60% of sales are collected in the month of sale, 39% in the following month, and the remaining 1% is never collected.

Determine the budgeted cash receipts for September?

Question 10 options:

$29,100

$29,000

$31,110

$30,270

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Question 11(2.5 points)

Polar Fans has prepared all the necessary budgets and is attempting to prepare their forecasted income statement. The budgeted total manufacturing cost is $600,000, the budgeted beginning and ending WIP balances are $120,000 and $170,000 respectively, the budgeted costs of goods manufactured is $550,000, and the budgeted beginning and ending FG inventories are $60,000 and $78,000 respectively.

Determine the budgeted cost of goods sold for Polar Fans?

Question 11 options:

$532,000

$568,000

$500,000

$482,000

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Question 12(2.5 points)

The following information was reported for Lake Co.:

Beginning cash balance	$24,000
Cash payments	$42,000
Cash receipts	$29,000
Cash balance required	$22,000

How much cash will Lake Co. have to borrow to meet itscash balance requirements?

Question 12 options:

$ 11,000

$ 9,000

$ 0

$ 13,550

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Question 13(2.5 points)

Garth Inc. has determined the following monthly budget numbers based on a budgeted production level of 2,000 units:

Direct Materials	$30,000
Factory property taxes	$10,000
Factory utilities	$3,000

The actual production level during February was 3,000 units. Based on the information provided, determine thedirect material & factory property taxes, respectively, for February.

Question 13 options:

$30,000 and $10,000

$45,000 and $10,000

$30,000 and $15,000

$45,000 and $15,000

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Question 14(2.5 points)

Excel Co. has collected the following data for April: Budgeted direct labor: 3 hours per unit at $6 per hour Direct labor efficiency variance: $1,200 (U) Actual direct labor cost: $28,900 Units produced: 1,600 Determine the actual number of direct labor hours worked in April?

Question 14 options:

4,800

4,600

4,500

5,000

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Question 15(2.5 points)

What type of direct material variances for quantity and price will arise if the actual number of pounds of material used exceeds budgeted pounds but actual cost per pound is less than budgeted cost per pound?

Question 15 options:

Quantity-Unfavorable, Price-Favorable

Quantity-Favorable, Price-Favorable

Quantity-Favorable, Price-Unfavorable

Quantity-Unfavorable, Price-Unfavorable

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Question 16(2.5 points)

Use the following information to answer Questions 16-20

The budgeted and actual costs at Goodyear Company is as follows:

Budgeted costs	Actual costs
Materials (per tire): 12 lbs @ $1.80/lb	Total materials purchased: 840,000lbs
Labor (per tire): 4 hrs. @ $14/hr	Total cost of purchase: $1,554,000
Factory O/H (per tire): 3 hrs. @ $8/hr	Total material used: 849,600 lbs
	Labor (per tire): 4.1 hrs @ $13/hr
	Factory O/H (per tire): 2.8 hrs @ $8.50/hr

During October, Goodyear produced 72,000 tires.

The budgeted cost and actual cost, respectively, of producing one tire is (to the nearest $)

Question 16 options:

$102 and $98

$102 and $95

$102 and $99

$78 and $98

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Question 17(2.5 points)

Use the following information to answer Questions 16-20

The budgeted and actual costs at Goodyear Company is as follows:

Budgeted costs	Actual costs
Materials (per tire): 12 lbs @ $1.80/lb	Total materials purchased: 840,000lbs
Labor (per tire): 4 hrs. @ $14/hr	Total cost of purchase: $1,554,000
Factory O/H (per tire): 3 hrs. @ $8/hr	Total material used: 849,600 lbs
	Labor (per tire): 4.1 hrs @ $13/hr
	Factory O/H (per tire): 2.8 hrs @ $8.50/hr

During October, Goodyear produced 72,000 tires.

The direct labor efficiency variance is:

Question 17 options:

$100,800 (U)

$100,800 (F)

$72,000 (F)

$72,000 (U)

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Question 18(2.5 points)

Use the following information to answer Questions 16-20

The budgeted and actual costs at Goodyear Company is as follows:

Budgeted costs	Actual costs
Materials (per tire): 12 lbs @ $1.80/lb	Total materials purchased: 840,000lbs
Labor (per tire): 4 hrs. @ $14/hr	Total cost of purchase: $1,554,000
Factory O/H (per tire): 3 hrs. @ $8/hr	Total material used: 849,600 lbs
	Labor (per tire): 4.1 hrs @ $13/hr
	Factory O/H (per tire): 2.8 hrs @ $8.50/hr

During October, Goodyear produced 72,000 tires.

The direct materials quantity variance is:

Question 18 options:

$25,920 (F)

$44,400 (U)

$44,400 (F)

$25,920 (U)

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Question 19(2.5 points)

Use the following information to answer Questions 16-20

The budgeted and actual costs at Goodyear Company is as follows:

Budgeted costs	Actual costs
Materials (per tire): 12 lbs @ $1.80/lb	Total materials purchased: 840,000lbs
Labor (per tire): 4 hrs. @ $14/hr	Total cost of purchase: $1,554,000
Factory O/H (per tire): 3 hrs. @ $8/hr	Total material used: 849,600 lbs
	Labor (per tire): 4.1 hrs @ $13/hr
	Factory O/H (per tire): 2.8 hrs @ $8.50/hr

During October, Goodyear produced 72,000 tires.

The direct materials price variance is:

Question 19 options:

$42,480 (U)

$42,000 (U)

$42,000 (F)

$42,480 (F)

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Question 20(2.5 points)

Use the following information to answer Questions 16-20

The budgeted and actual costs at Goodyear Company is as follows:

Budgeted costs	Actual costs
Materials (per tire): 12 lbs @ $1.80/lb	Total materials purchased: 840,000lbs
Labor (per tire): 4 hrs. @ $14/hr	Total cost of purchase: $1,554,000
Factory O/H (per tire): 3 hrs. @ $8/hr	Total material used: 849,600 lbs
	Labor (per tire): 4.1 hrs @ $13/hr
	Factory O/H (per tire): 2.8 hrs @ $8.50/hr

During October, Goodyear produced 72,000 tires.

The direct labor ratevariance is:

Question 20 options:

$288,000 (U)

$288,000 (F)

$295,200 (U)

$295,200 (F)