thit of the componeat is 530 . What is tho mintmum transfet price if he divaion is operating at capacity? A) 575 B) $105 C) $150 D) None of the answers 17) Raven, Inc, has a divisioe that munufactioes a component thar sells for 3200 and hai a variable cost of $56. Another division of the compony wants to purchase the component. Fived cost per tuit of the compooent is $2L. What is the minimum transfer price if the division is operating below its capucity? A) $200 B) 577 C) 556 D) None of the answers 18) The following information is wuilable for Comoany A asil Compony B A) Company A has in ROf that is 8 peroentage poitts hiveder than Company A B) Conpuay B has an ROl that is 8 percentage points lighere than Compiny A C) Compary A has an RO1 that is 4 pereentago poiats higher ithan Coonpary B D) Company B has an ROI that is 4 pereentage poinsts bigher thas Company A Qefer to the following informanion: What w the target nall prodoct cost per unir? (Round your answet w weated oent) Assuane all units produced are sold. A) $34,00 B) $26.29 C) $35.80 D) None of the answers. 20) Conquest, Inc. produces a special kind of light-weight, recreational vehicle that has a minge design. It allows the company to follow a cost-plus pricing strategy. It has $10,900,000 of average assets, and the desired profit is a 10% return on assets. Assame all prodocts probuced are mold Additional data are ae follows: Using the cost-plus pricing approach, wnat snourd be the sales price per uni? 13) Erwin Plumbing Materials Company has a ales otfice that sells wu per pipe to cunstuction pooduet type world the cotsipany firs foctis? to adafess flesisle bodfec variances, On which A) 40 incly B) 36 inch 1008 C) 36 inclishort D) 32 inch Caveulare retum on myevimene basea on me mormation ziven abowe. (Rourd yout answer m. two docimal plices.) A) 6.99% Bi) 6.4 .53 C) 4.743 D) 6.06% 15) ABC, Inc. bas average total assets of $600,000. The anmal operating income of the comenayy is $150,000. The turget rate of return for the company is 15%. Caleslate the resibual income. A) 560,000 B) $250,000 C) 522,500 D) $90,000 16) SAS Inc, has a division that manufactures a component that sells for $150 and has a varible cost of \$75. Another division of the company wants to purchase the componen. Fixed cost per 11) CBC Company uses standard costs for its manufacturing division. Standards specify 0.1 direct labor hours per unit of product. The allocation base for variable overhead costs is direct labor hours. At the beginning of the vear tha obnti-2. for variable overhead costs included What is the variable overhead cost variance? A) 55,000U A) $5,000U B) $5,000F C) $3,752U D) None of the answers. 12) BBC Company uses standard costs for its manufacturing division. Standards specify 0.1 direct labor hours per unit of product. The allocation base for variable overhead costs is direct labor hours. At the beginaing of the year, the static budget for variable overhead cosss included iha ifillawina dara. What is the variable overhead efficiency variance? A) $1,560U B) $1,574U C) $1,560F D) None of the answers 8) Allen Boating Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Allen uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for ooe of their popular products were as follows: Direct materials: 1 pound per unit; S12 per pound Direct labor: 2 hours per unit; \$16 per hour Allen prodaced 5,000 units during the quarter. At the end of the quarter, an examination of the direct materials records showed that the company used 4,000 pounds of direct materials and actual total materials costs were $98,700. What is the direct materials efficiency variance? A) $12,000U B) $30,000U C) $60,000F D) None of the answers. 9) Johnson Company mamufactures small plastic widgets. The standard direct materials quantity required to prodice one widget is 1/2 pound at a cost of $5 per pound. Every widget requires 8 direct labor hours at a standard cost of S11 per direct labor hour. During November, 1,600 widgets were produced using 820 pounds of materials costing 53,100 . At the end of November, an examination of the labor cost records showed that the company used 13,000 dircet lubor hours (DLHr) at a cost of S8 per hour. What is the direct labor efficiency variance? A) $37,800F B) $37,800U C) $2,200F D) $2,200U 10) Home Decor Company manufactures special metallic materials for luxury homes that require highly skilled labor. Home Decor uses standard costs to prepare its flexible budge. For the first quarter of the year, direct labor standards for one of their popular products were as follows: Direct labor: 4 hours per unit; $16 per hour Home Decor produced 5,000 units during the quarter. At the end of the quarter, an exammination of the labor costs records showed that the company used 25,000 direct labor hours and actual total direct labor costs were $375,000. What is the direct labor cost variance? A) $13,000 Favorable B) $25,000 Favorable C) \$15,000 Unfavorable None of the answers. 1) ABC Company has badgeted direct materials ibveatory purchases as followr: October: $300,000 December: $450,000 ABC pays for 20% of their parchases during the moath of purchase, 70% during the mant following the purchase, and the remaining 10% turo months after the month of purchase. What in the budgeted accounts payable balance on December 317 A) $368,000 B) $438,000 D) None of the answers 2) XYZ, Ino. has bodgeted sales for the months of Septerbber and October at $300,000 and $350,000, respectively. Monthly sales are 20% credit and 80% cash. Or the credit siles, S0 whe collected in the mooth of sale, and 50 collections for the month of Octaber. A) $345,000 B) $315,00 D) None of the answers 3) The followisg information is available from previously prepared balgets for the moed of March: A) $861,000 ang ure ourugeved uncome statement, what would be the operasing thoome? B) $870,000 C) $821,000 D) None of the answers. 4) Alpha Company manufactures computer keyboards. The budgeted sales price is $66 per keyboard, the variable costs are $20 per keyboard, and budgeted fixed costs are $8,00. What is the budgeted operating income for 1,200 keyboards? A) $40,200 B) 555,200 C) 847,200 D) None of the answers 5) The static budget, at the beginning of the manth, for Wadsworli Compaby follows: Static budger: Variable costs: $13.00 per unit; Fixed costs: $25,300 per month Operating income: $48,700 Actual results, at the end of the month, followe: Sales volume: 1,800 units: Sales price $58.50 per unut Variable costs: $17 per unit; Fixed costs: \$26,000 per moeth Calculate the flexible budget varisnce for operating income. A) $7,400U B) $7,400F C) $400F D) Nooe of the answers. 6) BBB Company mamufactures a special widgot part and user sandand costs to prepare its Alexible badget For the first quarter of the yeur, direct matrrials and direcet libor tor prepare itides for toe widgel part were as follows: Ditect maserials: 6 poands per unit; 515 per pound Derect labar: 5 hoars per unit; $28 per bour During the fint quarter, BBB produced 10,600 mits of this product. Actal direct miserials and direet bbor costs were $1,030,000 and $1,300,000, respectively. For the purpose of prepuring the flexible budpet, calculite the weal standued dinect labor com at a production volume of 10,000 units. A) $1,400,000 B) 51,484,000 C) $53,000 D) None of the answers. 7) Oceanside Marine Company mamulactures special metallic manerials and docontive fituwen. for luxury yachrs that require highly skilled labot. Oceanside nges standard costs to prepore its flexible budget. For the first quarter of the year, direct materials and direct labot ssomdatis fot one of their popular products were as follows: Direct materials: 1 pound per unit; $12 per pound Direct labor: 2 hours per unit, $17 per hour Oceanside produced 4,000 units during the quarter. At the end of the quarter, ss exambabis of the direct materials records showed that the company used 7,500 pounds of direct materibls and actual total materials cost $ were $80,400. What is the direct materials cost variance? (Round any intemediate calculations to the weates cent, and your final answer to the nearest dollar.) A) $5,120 Unfavorable B) $5,120 Favorable $9,600 Unfavorable $9,600 Favorable A) $3.500 B) $4000 C) 5.000 D) None of the answen 21) Inucribe, loc. manufhctures and sells pena far \$7 ach, Cutby Con bes oftred lacile, Ine \$2. per pen for a one time onder of 3,500 pere. The loal manufichariog cons per pon, wite absoppion coning is $1 per uein and consists of varable coss of 50.50pe pon and fud income that would tevult froen acoppling the secial priting onden? A) incrrase of 54,200 B) decrease of 517,500 C) increate of 57,700 D) None of the anvwes B) Operating income will lacrease by sigowo 00 . GOperating iosome will diceralse by 5380000 . D) None of the answers company can sell ss many products as it can make, which protuct mix would detiver the thighest. operating income? A) 5,000 Bedford Lamps and 6,250 Lowell Lamps B) 0 Bedford Lamps and 5,000 Lowell Lamps C) 6,250 Lowell Lamps and 0 Bedford Lamps None of the answers 29) The following detsils are provided by Wolf, loc, for the neat month (costs are the same for beginning investory): Assuming bo ending inventory, what is the budgeted cost of goods sold for the bext moeth? A) 51,109,200 B) 52,106,000 C) $1,534,000 D) None of the answers. Assuming no ending mventory, what is uo vuugewu vou w one....nnon. monkh? A) $1,150,000 B) $2,106,000 C) 91,534,000 D) None of the answers C) decrease of 52,000 A) decline by 513200 B) incritse by C) iscrease by $2,000 D) None of the answers additional 500 u B) 25,200 inis C) 28,700 units D) None of the above 27) XYZ Mantuficharing expects to prodoce 12,000 units in Jamayy anid 14,000 truis in February. The company budyees $20 per yard for direct eniterials and each unit has been budgeted I yard of malerial. The lalance in tho Raw Materials Ieveevory accocth (ald dited. maferials) on January 1 is 2,800 yards. The company desires the ending balance in Raw Marerials Ioventory to be 20%6 of the next month's direct materials needod fot production. What is the cost of the budgeted purchases of ditect materials nepded for January? 4) 5231,240 (1) 52+2,800 C) $240,000 D) None of the answers