Tutors, your help will be greatly appreciated on my Accounting quiz that I have attached. Thank you.

Question 1 In the contribution margin statement: A. fixed costs are deducted to determine contribution margin. B. fixed costs are deducted to determine gross margin. C. variable selling costs are deducted to determine contribution margin. D. All of the other answers are correct. 2 points Question 2 When deciding to make or buy a product, the only relevant costs are differential costs. True False 2 points Question 3 The Hancock Manufacturing Company presently manufactures all component parts of its product-the Streamline Shower Head. The costs of manufacturing the mounting bracket for this product are: Material........................... $ 6.00 Labor.............................. 5.60 Fixed overhead..................... 1.40 Variable overhead.................. 2.00 Total............................. $15.00 The company has investigated the possibility of buying the mounting bracket from a subcontractor and has been quoted a price of $13.30 per unit. The relevant cost of manufacturing to be considered in deciding whether to buy the component instead of manufacturing it is: A. $6.00 B. $13.60 C. $11.60 D. $13.00 2 points Question 4 Differential analysis: A. would be used to review past performance. B. compares two courses of action by determining net income for each. C. is an analysis of the different costs and benefits from alternative solutions to a problem. D. is a procedure employing the gross margin to determine the best selling price. 2 points Question 5 A company has revenues of $500,000, fixed manufacturing costs of $100,000, variable manufacturing costs of $150,000, variable selling costs of $50,000, fixed selling costs of $30,000, and fixed administrative costs of $70,000. The contribution margin is: A. $100,000 B. $250,000 C. $300,000 D. All of the other answers are incorrect. 2 points Question 6 If a company is going to make a special bid, the minimum bid should be for the amount of total variable costs. True False 2 points Question 7 Jordan, Inc., is considering dropping the production of Product J. It provides revenues of $350,000 but incurs costs of $490,000, 20% of which are fixed costs. The net advantage (disadvantage) of retaining Product J is: A. $0 B. ($42,000) C. ($140,000) D. $42,000 2 points Question 8 Discretionary fixed costs are subject to management control from year to year. True False 2 points Question 9 When using differential analysis to decide whether to eliminate certain products, segments, or customers, costs must be reclassified into those that would be eliminated or changed by the elimination and those that would not. True False 2 points Question 10 Department 2 of Simmons, Inc. has revenues of $300,000, variable expenses of $180,000, and allocated, indirect fixed expenses of $150,000. If the department is eliminated, what will be the effect on net income? A. $120,000 decrease B. $ 30,000 increase C. $ 30,000 decrease D. $150,000 decrease 2 points Question 11 The Casey Company produces two joint products. At the split-off point, product A has a sales value of $8 per unit, while product B can be sold for $10 per unit. After further processing, which costs $5 and $9, respectively, product A can be sold for $12 and product B for $22 per unit. Which, if any, of the two products should be processed further? A. Product B B. Product A C. Product A and B D. Neither product A or B 2 points Question 12 Sunk costs are: A. irrelevant for decision making. B. past costs. C. costs such as the previous year's wages. D. All of the other answers are correct. 2 points Question 13 In make or buy decisions, differential analysis would compare the cost to buy a product from an outside party to: A. the differential costs of producing the product. B. those costs that would disappear if production of the product stopped plus a percentage factor for profit. C. only the variable costs of producing the product even if some of the fixed overhead costs would be eliminated under the "buy" alternative. D. the full cost of producing the product. 2 points Question 14 Tisdale Company is considering a plan to discontinue their widgets line, which produces revenues of $250,000 and costs of $400,000 (75% variable, 25% fixed). The effect on net income of no longer manufacturing widgets is a: A. $0 B. $50,000 decrease. C. $50,000 increase. D. $150,000 increase. 2 points Question 15 Which of the following is NOT true of joint costs? A. They involve a common raw material or manufacturing process. B. They are sunk costs in deciding whether to process a joint product further before selling it, or to sell it in its condition at split off. C. They are incurred after the point where the joint products split off from each other. D. Management can use differential analysis to decide whether to process a joint product further. 2 points Question 16 The Chang Company has predicted sales for the first three quarters of 2017. The predictions are: first quarter, $250,000; second quarter, $200,000; third quarter, $300,000. 80% of sales are collected in the quarter of sale, and 20% of sales are collected in the following quarter. The company's expected cash receipts for the third quarter of 2017 are: A. $280,000 B. $210,000 C. $370,000 D. $340,000 2 points Question 17 Roberto Corporation has a December 31, 2016, Accounts Receivable balance of $100,000 of which $80,000 applies to December's sales. Sales for January 2017 are budgeted at $400,000. 75% of sales are collected in the month of sale, 20% in the following month, and 5% in the second following month. Which of the following statements is TRUE? A. Sales for December 2016 were $320,000. B. Sales for November 2016 were $400,000. C. Collections of receivables during January will be $384,000. D. All of the other answers are true. 2 points Question 18 Crandell Co. forecasts monthly production of 20,000 units at a cost of $20 each. The cost breakdown is as follows: In September, Crandell produced 18,000 units at a cost of $397,500. If payroll for September amounted to $150,000 at an hourly rate of $5, compute the labor budget variance. A. $6,000 favorable B. $30,000 favorable C. $6,000 unfavorable D. $24,000 unfavorable 2 points Question 19 The Schraeger Company has estimated that sales for next quarter would be 30,000 units. The company has a beginning finished goods inventory of 2,000 units and wishes to have finished goods inventory of 5,000 units at the end of the quarter. How many units must the company produce in order to have its desired ending inventory? A. 27,000 units B. 30,000 units C. 33,000 units D. 37,000 units 2 points Question 20 The use of the master budget allows management to appraise new policies before they are put into effect. True False 2 points Question 21 Financial budgets do not aid management in planning. True False 2 points Question 22 Zero-based budgeting requires that managers start budgeting at point zero. True False 2 points Question 23 The production budget is often dependent on the sales budget. True False 2 points Question 24 The Odon Company has prepared its sales budget for the first two quarters of 2016. Expected sales in units are 480,000 in the first quarter and 840,000 in the second quarter. The company likes to maintain an inventory at the end of each quarter equal to one fourth the next quarter's expected sales. The company had 140,000 units in inventory on December 31, 2015. How many units does the company need to produce during the first quarter of 2016? A. 550,000 units B. 1,080,000 units C. 340,000 units D. 690,000 units 2 points Question 25 The Stanley Company expects its sales to be $100,000 for the first quarter of 2017. It estimates that sales will increase by $10,000 each quarter. Based on past experience, it estimates that 60% of each quarter's sales will be charged by the customer, 75% of which will be collected in that same quarter and 25% of which will be collected in the following quarter. The beginning balance in the Accounts Receivable account is $14,400, all of which will be collected in cash in the first quarter. What amount of the Accounts Receivable will be collected in the fourth quarter? A. $58,500 B. $76,500 C. $12,900 D. $97,500 2 points Question 26 Fixed production costs for the Velvet Corporation are budgeted at $80,000, assuming 40,000 units of production. Actual sales for the period were 35,000 units, while actual production was 40,000 units. Actual fixed costs were $70,000. What is the budget variance? A. $10,000 favorable B. $10,000 unfavorable C. $0 D. All of the other answers are incorrect. 2 points Question 27 Manor, Inc., forecasts monthly production of 15,000 units at a labor cost of $30 each. In July, Manor produced 16,000 units. If the payroll for July amounted to $494,000, compute the labor budget variance. A. $19,200 unfavorable B. $5,000 unfavorable C. $44,000 unfavorable D. $14,000 unfavorable 2 points Question 28 Sales for next quarter are budgeted at 100,000 units. Finished goods inventory at the end of this quarter is 20,000 units. Planned production for next quarter is 140,000 units. What will be the budgeted finished goods inventory at the end of the next quarter? A. 50,000 units B. 60,000 units C. 40,000 units D. 20,000 units 2 points Question 29 The master budget: A. is the organization's five-year plan for financing and investing activities. B. consists of a projected income statement and a projected balance sheet, with supporting budgets and schedules. C. is initiated by first developing the cash budget. D. is prepared as the first step in developing the planned operating budget and the financial budget. 2 points Question 30 A series of budgets for differing levels of activity for the same item is called a(n): A. flexible budget. B. financial budget. C. master budget. D. operating budget