1.
Compute conversion costs given the following data: Direct Materials, $352,700; Direct
Labor, $196,300; Factory Overhead, $177,600.
$549,000
$726,600
$373,900
$530,300
2 points
Question 2
1.
Conversion costs are
direct materials and direct labor
direct materials and factory overhead
factory overhead and direct labor
direct materials and indirect labor
2 points
Question 3
1.
Which of the following is not a prime cost?
Supervisor’s wages
Direct labor wages
Machine operator wages
Assembly line wages
2 points
Question 4
1.
The Cake Factory has the following information for the month of March. Prepare a (a)
schedule of cost of goods manufactured, (b) an income statement for the month ended March
31, and (c) prepare only the inventory section of the balance sheet.
Purchases
Materials inventory, March 1
Materials inventory, March 31
Direct labor
Factory overhead
Work in process, March 1
Work in process, March 31
$85,000
6,000
7,000
25,000
34,000
17,000
18,500
Finished goods inventory, March 1
Finished goods inventory, March 31
Sales
Sales and administrative expenses
21,000
23,000
235,000
78,000
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20 points
Question 5
1.
The Collins Company forecasts that total overhead for the current year will be
$12,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual
overhead is $8,000,000 and the actual machine hours are 100,000 hours. If the Collins
Company uses a predetermined overhead rate based on machine hours for applying overhead,
what is that overhead rate?
$80 per machine hour
$120 per machine hour
$40 per machine hour
$60 per machine hour
2 points
Question 6
1.
When job 711 was completed, direct materials totaled $4,000; direct labor, $4,600; and
factory overhead, $2,400, respectively. Units produced totaled 1,000. Unit costs are:
$11,000
$1,100
$110
$11
2 points
Question 7
1.
The following budget data are available for Newest Company:
Estimated direct labor hours
Estimated direct dollars
Estimated factory overhead costs
9,000
$60,000
$154,00
0
2.
If factory overhead is to be applied based on direct labor hours, the predetermined overhead
rate is
$2.57
$.39
$6.67
$17.11
2 points
Question 8
1.
The Good News Company accumulated 460 hours of direct labor on Job 345 and 810
hours on Job 777. The direct labor was incurred at a rate of $15 per direct labor hour for Job
345 and $13 per direct labor for Job 777. Journalize the entry to record the flow of labor costs
into production.
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20 points
Question 9
1.
Given the following cost and activity observations for Wondrous Company’s utilities, use
the high-low method to calculate Wondrous’ variable utilities costs per machine hour.
Cost
March
April
Machine Hours
$3,100
15,000
2,700
10,000
May
2,900
12,000
June
3,500
18,000
$10.00
$.67
$.63
$.10
2 points
Question 10
1.
Salter Inc.’s unit selling price is $50, the unit variable costs are $35, fixed costs are
$125,000, and current sales are 10,000 units. How much will operating income change if sales
increase by 5,000 units?
$150,000 decrease
$175,000 increase
$75,000 increase
$150,000 increase
2 points
Question 11
1.
If sales are $525,000, variable costs are 64% of sales, and operating income is $50,000,
what is the contribution margin ratio?
36%
26.5%
9.5%
64%
2 points
Question 12
1.
If fixed costs are $1,400,000, the unit selling price is $220, and the unit variable costs are
$120, what is the amount of sales required to realize an operating income of $200,000?
14,000 units
12,000 units
16,000 units
13,333 units
2 points
Question 13
1.
Jonus Company has fixed costs of $160,000. The unit selling price, variable cost per unit,
and contribution margin per unit for the company’s two products are provided below.
Product
Selling Price
X
Y
$180
$100
Variable Cost per
unit
$80
$50
Contribution Margin
per unit
$100
$50
2.
The sales mix for product X and Y is 60% and 40% respectively. Determine the break-even
point in units of X and Y.
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20 points
Question 14
1.
Barrack Inc. manufactures laser printers within a relevant range of production of 50,000
to 70,000 printers per year. The following partially completed manufacturing cost schedule
has been prepared:
Number of Printers Produced
70,000
90,000
100,000
Total costs:
Total variable costs
$350,000
(d)
(j)
Total fixed costs
630,000
(e)
(k)
Total costs
$980,000
(f)
(l)
Cost per unit:
Variable cost per unit
(a)
(g)
(m)
Fixed cost per unit
(b)
(h)
(n)
Total cost per unit
(c)
(i)
(o)
2.
Complete the preceding cost schedule, identifying each cost by the appropriate letter (a)
through (o).
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20 points
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