1.
Under Ricky Co.’s job
order costing system, manufacturing overhead is applied to work in process
using apredetermined annual overhead rate. During January, Ricky’s transactions
included the following:
Direct
materials issued to production $ 90,000
Indirect
materials issued to production $ 8,000
Manufacturing
overhead incurred $125,000
Manufacturing
overhead applied $113,000
Direct labor costs
$107,000
Ricky had neither
beginning nor ending work-in-process inventory. What was the cost of jobs
completed inJanuary?
a. $302,000
b. $310,000
c. $322,000
d. $330,000
2.
Quack Co. was analyzing
variances for one of its operations. The initial budget forecast production
of20,000 units during the year with a variable manufacturing overhead rate of
$10 per unit. Quack produced 19,000 units during the year. Actual variable
manufacturing costs were $210,000. What amount would be Quack’s flexible budget
variance for the year?
a. $10,000 favorable
b. $20,000 favorable
c. $10,000 unfavorable
d. $20,000 unfavorable
3.
During June, Dinky Co.
experienced scrap, normal spoilage, and abnormal spoilage in its manufacturing
process. The cost of units produced includes
a. Scrap, but not spoilage
b. Normal spoilage, but
neither scrap nor abnormal spoilage
c. Scrap and normal
spoilage, but not abnormal
spoilage
d. Scrap, normal
spoilage, and abnormal spoilage
4.
Veggie Corp. uses a
standard cost system. In May, Veggie purchased and used 17,500 pounds of
materialsat a cost of $70,000. The materials usage variance was $2,500
unfavorable and the standard materialsallowed for May production was 17,000
pounds. What was the materials price variance for May?
a. $17,500 favorable
b. $17,500 unfavorable
c. $15,000 favorable
d. $15,000 unfavorable
5.
Kaffy Caterers quotes a
price of $60 per person for a dinner party. This price includes the 6% sales
tax andthe 15% service charge. Sales tax is computed on the food plus the
service charge. The service chargeis computed on the food only. At what amount
does Kaffy price the food?
a. $56.40
b. $51.00
c. $49.22
d. $47.40
6.
Product Cott has sales
of $200,000, a contribution margin of 20%, and a margin of safety of
$80,000.What is Cott’s fixed cost?
a. $16,000
b. $24,000
c. $80,000
d. $96,000
7.
Nonfinancial measures provide information about
A.the economic effect of operations and
decisions
B.aspects of operations that cannot be measured in dollars
C. the dollar value of a particular cost containment strategy
D. the operating margin
8.
Why
is the evaluation of subunits and subunit managers important?
A. It helps determine
whether or not to expand or contract operations.
B. It encourages
manager motivation to take actions that maximize the value of the firm.
C.
Both a and b.
D. They should not be
evaluated separately.
9.
Which of the following
is a problem with the ROI calculation?
A. Increased profits
cause ROI to decrease.
B. Investment in assets
is measured using current value costs.
C.An undue emphasis on ROI may lead managers to delay
the purchase of modern equipment needed to stay competitive.
D. It does not hold
managers responsible for assets.
10.
Beam Company currently
has 100,000 shares of common stock outstanding and a price-earnings ratio of seven.
Net income for the recently ended year is $375,000. Beam’s board of directors
declared a 15-for-2 stock split. Sunshine owned 100 shares of Beam before the
split. What is the approximate value of Sunshine’s investment in Beam
immediately after the split?
a. $ 26
b. $ 350
c. $2,625
d. $5,250
