Question 4
Question 2 5 points Save Christi Manufacturing provided the following information for last month: Sales $10,000 Variable costs 3,000 Fixed costs 5,000 Operating income $2,000 If sales double next month, what is the projected operating income? $12,000 $9,000 $7,000 $4,000 Question 3 5 points Save The MOST likely cost driver of distribution costs is the: number of parts within the product number of miles driven number of production hours number of products manufactured Question 4 5 points Save Answer the following questions using the information below: Happy Valley Land and Snow Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Labor hours $160,000 8,000 hours Gas $18,000 6,000 gallons Invoices $20,000 2,500 invoices Total costs $198,000 The above activities used by their three departments are: Lawn Department Bush Department Plowing Department Labor hours 2,500 hours 1,200 hours 4,300 hours Gas 1,500 gallons 800 gallons 3,700 gallons Invoices 1,600 invoices 400 invoices 500 invoices How much of the total costs will be assigned to the Lawn Department? $29,600 $100,000 $67,300 $50,000 Question 5 5 points Save Answer the following questions using the information below: Cheaney Manufacturing produces a single product that sells for $200. Variable costs per unit equal $50. The company expects total fixed costs to be $120,000 for the next month at the projected sales level of 2,000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. Suppose that management believes that a 20% reduction in the selling price will result in a 20% increase in sales. If this proposed reduction in selling price is implemented: operating income will decrease by $80,000 operating income will increase by $36,000 operating income will decrease by $36,000 operating income will increase by $44,000 Question 6 5 points Save Answer the following questions using the information below: Ernsting Printers has contracts to complete weekly supplements required by forty-six customers. For the year 20X5, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 12 million pages. For 20X5 Ernsting Printers has decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis: Cost pool Manufacturing overhead costs Activity level Design changes $ 60,000 300 design changes Setups 320,000 5,000 setups Inspections 40,000 8,000 inspections Total manufacturing overhead costs $420,000 During 20X5, two customers, Wealth Managers and Health Systems, are expected to use the following printing services: Activity Wealth Managers Health Systems Pages 60,000 76,000 Design changes 10 0 Setups 20 10 Inspections 30 38 What is the cost driver rate if manufacturing overhead costs are considered one large cost pool and are assigned based on 12 million pages of production capacity? $0.035 per page $0.35 per page $0.05 per page $0.025 per page Question 7 5 points Save Answer the following questions using the information below: Dr. Charles Hunter, MD, performs a certain outpatient procedure for $1,000. His fixed costs are $20,000, while his variable costs are $500 per procedure. Dr. Hunter currently plans to perform 200 procedures this month. What is the budgeted revenue for the month assuming that Dr. Hunter plans to perform this procedure 200 times? $400,000 $100,000 $200,000 $300,000 Question 8 5 points Save Answer the following questions using the information below: Mayan Potters manufactures two sizes of ceramic paperweights, regular and jumbo. The following information applies to their expectations for the planning period: Cost Pool Overhead Costs Activity-cost driver Materials handling $ 45,000 90,000 orders Machine maintenance $300,000 15,000 maintenance hours Setups $270,000 45,000 setups Inspections $105,000 21,000 inspections Total support costs $720,000 Production Estimates Production units: Regular = 8,000,000 units Jumbo = 16,000,000 units Machine-hours = 200,000 mh Labor-hours = 400,000 dlh Mayan Potters uses an ABC system and assigns overhead costs based on the overhead activity information provided above. The materials handling activity-cost driver rate is: $5.00 $20.00 $0.50 $2.00 Question 9 5 points Save Answer the following questions using the information below: The Taranto Company uses the high-low method to estimate it's cost function. The information for 2008 is provided below: Machine-hours Costs Highest observation of cost driver 2,000 $225,000 Lowest observation of cost driver 1,000 $ 125,000 What is the constant for the estimating cost equation? $0 $125,000 $25,000 $225,000 Question 10 5 points Save Which of the following is a mixed cost? direct materials manager's salary monthly rent payment monthly telephone bill Question 11 5 points Save Answer the following questions using the information below: Beginning finished goods, 1/1/20X3 $ 80,000 Ending finished goods, 12/31/20X3 67,000 Cost of goods sold 270,000 Sales revenue 500,000 Operating expenses 145,000 What is operating income for 20X3? $230,000 $85,000 $62,000 $112,000 Question 12 5 points Save When 10,000 units are produced, variable costs are $6 per unit. Therefore, when 20,000 units are produced: variable unit costs will decrease to $3 per unit variable costs will total $120,000 variable unit costs will increase to $12 per unit variable costs will total $60,000 Question 13 5 points Save Answer the following questions using the information below: Happy Valley Land and Snow Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Labor hours $160,000 8,000 hours Gas $18,000 6,000 gallons Invoices $20,000 2,500 invoices Total costs $198,000 The above activities used by their three departments are: Lawn Department Bush Department Plowing Department Labor hours 2,500 hours 1,200 hours 4,300 hours Gas 1,500 gallons 800 gallons 3,700 gallons Invoices 1,600 invoices 400 invoices 500 invoices How much of the labor cost will be assigned to the Lawn Department? $12,800 $20,000 $50,000 None of these answers are correct. Question 14 5 points Save Answer the following questions using the information below: Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Overhead Costs Cost driver Activity level Supervision of direct labor $320,000 Direct labor-hours 800,000 Machine maintenance $120,000 Machine-hours 960,000 Facility rent $200,000 Square feet of area 100,000 Total overhead costs $640,000 The accounting records show the Mossman Job consumed the following resources: Cost driver Actual level Direct labor-hours 200 Machine-hours 1,600 Square feet of area 50 Using the three cost pools to allocate overhead costs, what is the total amount of overhead costs to be allocated to the Mossman Job? $200 $170 $380 $675 Question 15 5 points Save XIAN Manufacturing produces a unique valve, and has the capacity to produce 50,000 valves annually. Currently XIAN produces 40,000 valves and is thinking about increasing production to 45,000 valves next year. What is the most likely behavior of total manufacturing costs and unit manufacturing costs given this change? Total manufacturing costs will increase and unit manufacturing costs will decrease. Total manufacturing costs will stay the same and unit manufacturing costs will decrease. Total manufacturing costs will stay the same and unit manufacturing costs will stay the same. Total manufacturing costs will increase and unit manufacturing costs will stay the same. Question 16 5 points Save Answer the following questions using the information below: King Corporation has two departments, Small and Large. Central costs could be allocated to the two departments in various ways. Small Department Large Department Square footage 6,000 18,000 Number of employees 1,120 480 Sales $400,000 $2,000,000 If total payroll processing costs of $96,000 are allocated on the basis of number of employees, the amount allocated to the Small Department would be: $16,000 $28,000 $67,200 $24,000 Question 17 5 points Save Answer the following questions using the information below: Dr. Charles Hunter, MD, performs a certain outpatient procedure for $1,000. His fixed costs are $20,000, while his variable costs are $500 per procedure. Dr. Hunter currently plans to perform 200 procedures this month. What is the breakeven point for the month assuming that Dr. Hunter plans to perform the procedure 200 times? 40 times 30 times 20 times 10 times Question 18 5 points Save At the breakeven point of 200 units, variable costs total $400 and fixed costs total $600. The 201st unit sold will contribute ________ to profits. $1 $2 $3 $5 Question 19 5 points Save A manufacturing plant produces two product lines: football equipment and hockey equipment. Direct costs for the football equipment line are the: monthly lease payments for a specialized piece of equipment needed to manufacture the football helmet salaries of the clerical staff that work in the company administrative offices beverages provided daily in the plant break room utilities paid for the manufacturing plant Question 20 5 points Save Answer the following questions using the information below: Schmidt Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows: Direct materials $ 45,000 Direct labor 65,000 Variable factory overhead 30,000 Fixed factory overhead 70,000 Total costs $210,000 Of the fixed factory overhead costs, $30,000 is avoidable. Phil Company has offered to sell 10,000 units of the same part to Schmidt Corporation for $18 per unit. Assuming there is no other use for the facilities, Schmidt should: buy the part, as this would save the company $30,000 make the part, as this would save $3 per unit make the part, as this would save $1 per unit buy the part, as this would save $3 per unit Question 21 5 points Save Answer the following questions using the information below: Merriman Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry hours $400,000 10,000 hours Account billing lines $280,000 4,000,000 lines Account verification accounts $150,000 40,000 accounts Correspondence letters $ 50,000 4,000 letters Total costs $880,000 The above activities are used by Departments A and B as follows: Department A Department B Account inquiry hours 2,000 hours 4,000 hours Account billing lines 400,000 lines 200,000 lines Account verification accounts 10,000 accounts 8,000 accounts Correspondence letters 1,000 letters 1,600 letters How much of the total costs will be assigned to Department B? $880,000 $224,000 $158,000 $80,000 Question 22 5 points Save Answer the following questions using the information below: The following information is for Nichols Company: Selling price $150 per unit Variable costs $90 per unit Total fixed costs $300,000 If targeted operating income is $120,000, then targeted sales revenue is: $1,050,000 $750,000 $500,000 $700,000 Question 23 5 points Save Assume only the specified parameters change in a cost-volume-profit analysis. If the contribution margin increases by $2 per unit, then operating profits will: decrease by $2 per unit increase by less than $2 per unit also increase by $2 per unit be indeterminable Question 24 5 points Save Answer the following questions using the information below: King Corporation has two departments, Small and Large. Central costs could be allocated to the two departments in various ways. Small Department Large Department Square footage 6,000 18,000 Number of employees 1,120 480 Sales $400,000 $2,000,000 If total payroll processing costs of $60,000 are allocated on the basis of number of employees, the amount allocated to the Large Department would be: $18,000 $42,000 $50,000 $45,000 Question 25 5 points Save Which of the following companies is part of the service sector of our economy? Bank of America General Motors Amazon.com Wal-Mart Question 26 5 points Save Answer the following questions using the information below: The Hunter Company uses the high-low method to estimate the cost function. The information for 20X5 is provided below: Machine-hours Labor Costs Highest observation of cost driver 400 $10,000 Lowest observation of cost driver 240 $ 6,800 What is the constant for the estimating cost equation? $2,000 $6,800 $8,000 $10,000 Question 27 5 points Save Answer the following questions using the information below: Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: T-SHIRTS SWEATSHIRTS Production and sales volume 60,000 units 35,000 units Selling price $16.00 $29.00 Direct material $ 2.00 $ 5.00 Direct labor $ 4.50 $ 7.20 Manufacturing overhead $ 2.00 $ 3.00 Gross profit $ 7.50 $13.80 Selling and administrative $ 4.00 $ 7.00 Operating profit $ 3.50 $ 6.80 Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information: Activity Activity cost Activity-cost driver Supervision $100,920 Direct labor hours (DLH) Inspection $124,000 Inspections Activities demanded T-SHIRTS SWEATSHIRTS 0.75 DLH/unit 1.2 DLH/unit 45,000 DLHs 42,000 DLHs 60,000 inspections 17,500 inspections Using an ABC system, next year's estimates show manufacturing overhead costs will total $228,300 for 52,000 T-shirts. If all other T-shirt costs and sales prices remain the same, the profitability that can be expected is: $1.11 per t-shirt $4.39 per t-shirt ($0.81) per t-shirt $5.41 per t-shirt Question 28 5 points Save Which of the following groups would be LEAST likely to receive detailed management accounting reports? production supervisors stockholders sales representatives managers Question 29 5 points Save For last year, Wampum Enterprises reported revenues of $420,000, cost of goods sold of $108,000, cost of goods manufactured of $101,000, and total operating costs of $70,000. Operating income for that year was: $249,000 $312,000 $242,000 $319,000 Question 30 5 points Save If each furnace requires a hose that costs $20 and 2,000 furnaces are produced for the month, the total cost for hoses is: considered to be an indirect fixed cost considered to be a direct fixed cost considered to be a direct variable cost considered to be an indirect variable cost Question 31 5 points Save Fixed costs equal $12,000, unit contribution margin equals $20, and the number of units sold equal 1,600. Operating income is: $12,000 $40,000 $20,000 $32,000 Question 32 5 points Save Answer the following questions using the information below: King Corporation has two departments, Small and Large. Central costs could be allocated to the two departments in various ways. Small Department Large Department Square footage 6,000 18,000 Number of employees 1,120 480 Sales $400,000 $2,000,000 If total rent expense of $120,000 is allocated on the basis of square footage, the amount allocated to the Small Department would be: $84,000 $90,000 $20,000 $30,000 Question 33 5 points Save Answer the following questions using the information below: Beginning finished goods, 1/1/20X3 $ 80,000 Ending finished goods, 12/31/20X3 67,000 Cost of goods sold 270,000 Sales revenue 500,000 Operating expenses 145,000 What is gross margin for 20X3? $283,000 $257,000 $230,000 $355,000 Question 34 5 points Save Kym Manufacturing provided the following information for last month: Sales $12,000 Variable costs 4,000 Fixed costs 1,000 Operating income $7,000 If sales double next month, what is the projected operating income? $18,000 $19,000 $15,000 $14,000 Question 35 5 points Save Answer the following questions using the information below: The following information is for Barnett Corporation: Product X: Revenue $10.00 Variable Cost $2.50 Product Y: Revenue $15.00 Variable Cost $5.00 Total fixed costs $50,000 What is the operating income, assuming actual sales total 150,000 units, and the sales mix is two units of Product X and one unit of Product Y? $1,200,000 $1,750,000 $1,250,000 None of these answers are correct. Question 36 5 points Save Answer the following questions using the information below: The following information is for the Jeffries Corporation: Product A: Revenue $16.00 Variable Cost $12.00 Product B: Revenue $24.00 Variable Cost $16.00 Total fixed costs $75,000 If the sales mix shifts to four units of Product A and one unit of Product B, then the breakeven point will: stay the same increase decrease be indeterminable Question 37 5 points Save Undercosting a particular product may result in: understating total product costs operating inefficiencies loss of market share lower profits Question 38 5 points Save Answer the following questions using the information below: Ernsting Printers has contracts to complete weekly supplements required by forty-six customers. For the year 20X5, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 12 million pages. For 20X5 Ernsting Printers has decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis: Cost pool Manufacturing overhead costs Activity level Design changes $ 60,000 300 design changes Setups 320,000 5,000 setups Inspections 40,000 8,000 inspections Total manufacturing overhead costs $420,000 During 20X5, two customers, Wealth Managers and Health Systems, are expected to use the following printing services: Activity Wealth Managers Health Systems Pages 60,000 76,000 Design changes 10 0 Setups 20 10 Inspections 30 38 Using the three cost pools to allocate overhead costs, what is the total manufacturing overhead cost estimate for Wealth Managers during 20X5? $3,430 $5,096 $3,250 $6,850 Question 39 5 points Save If the contribution margin ratio is 0.30, targeted net income is $76,800, and targeted sales volume in dollars is $480,000, then total fixed costs are: $67,200 $144,000 $44,160 $23,000 Question 40 5 points Save Answer the following questions using the information below: The following information is for Nichols Company: Selling price $150 per unit Variable costs $90 per unit Total fixed costs $300,000 The number of units that Nichols Company must sell to reach targeted operating income of $90,000 is: 5,000 units 4,334 units 3,334 units 6,500 units,have you accepted the entire assignment for the agreed upon price? Or is that just the first question?,Thank you for your response. Are you certain you will have each question done in approximately one hour? After that I won't be available, and I need the answers tonight by 10pm. Thank you again.,some of your responses conflicted with the answers I got
