Use the following information to answer questions 1 - 2:

A company expects to begin the coming year with 20,000 units of a specific product in finished goods inventory. It expects to sell 80,000 units of the product and end the year with 15,000 units in finished goods inventory.

1. Calculate the number of the products budgeted for production in the coming year

1. 65,000
2. 75,000
3. 80,000
4. 115,000

2. Each unit of production requires 2kgs of raw material. The company expects to have 30,000 kg of raw material on hand at the beginning of the coming year and wishes to end the year with 50,000 kg in inventory. How many kilograms of Material must the company purchase during the year?

1. 130,000
2. 150,000
3. 170,000
4. 230,000

3. YOLO Limited supplied the following information and advised that manufacturing overhead is applied on the basis of direct labour hours.

Estimated direct labour hours	$400,000
Actual direct labour hours	$500,000
Estimated manufacturing overhead costs	$7,500,000
Actual manufacturing overhead costs	$7,200,000

What is the predetermined overhead rate?

1. $14.4
2. $15
3. $18
4. $18.75

4. The overhead budget, based on a budgeted volume of 100,000 direct labour hours, was $325,000. Actual overhead costs amounted to $340,000 and actual direct labour hours were 106,000. By how much was overhead under or over-applied?

1. $4,500 over-applied
2. $4,500 under-applied
3. $15,000 over-applied
4. $15,000 under-applied

5. Jim deals in wireless earphones of the same make and model. At the commencement of the year he held 200 units purchased for $40 each. He sells each unit for $100. His sales in the year amounted to $40,000. He purchased 300 units for $50 each during the year. Ascertain the cost of closing inventory on each cost flow assumption.

1. FIFO = $5,000 ; LIFO = $4,000
2. FIFO = $18,000 ; LIFO = $19,000
3. FIFO = $18,400 ; LIFO = $19,000
4. FIFO = $19,000 ; LIFO = $18,000

6. In a costvolumeprofit graph the break-even point will be found:

1. where the total income line crosses the fixed costs line
2. at the point where total income equals total fixed costs.
3. at the point where total income equals total fixed plus total variable costs.
4. where the predetermined overhead rate equals the contribution margin rate.

7. A small publishing house sold 10,000 copies of All about Alex in paperback at $3 per book. Fixed costs were $18,000 and variable costs were $20,000. What is the break-even point in units?

1. 9,000
2. 12,000
3. 18,000
4. 30,000

8. If selling price is $7,500, contribution margin per unit is $1,500, then contribution margin percentage will be

1. 5%
2. 12%
3. 15%
4. 20%

9. A product has a selling price of $10 and a marginal cost (variable cost per unit) of $5. Sales for April are $100,000 and fixed costs for April are $20,000. What is the gross margin for April?

1. $30,000
2. $50,000
3. $80,000
4. $120,000

10. Richard's sales for September are $500,000 and its variable cost of sales is $200,000. If its break-even sales are $300,000 what is the profit for September?

1. $0
2. $120,000
3. $180,000
4. $300,000