Accounting 2

A company has a unit contribution margin of $120 and a contribution margin ratio of 40%. What is the unit selling price?

$300

A process with no beginning work in process, completed and transferred out 85,000 units during a period and had 50,000 units in the ending work in process inventory that were 30% complete. The equivalent units of production for the period were

C) 100,000 equivalent units

In the month of June, a department had 20,000 units in beginning work in process that were 70% complete. During June, 90,000 units were transferred into production from another department. At the end of June there were 10,000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. How many units were transferred out of the process in June?

C) 100,000 units

If beginning work in process is 4,000 units, ending work in process is 2,000 units, and the units accounted for equals 15,000 units, what must units started into production be?

C) 11,000

20,000 units in a process that are 70% complete are referred to as

C) 14,000 equivalent units of production

If there are no units in process at the beginning of the period, then

D) the units to be accounted for will equal the units transferred out and the units in process at the end of the period.

For analysis purposes, the high-low method usually produces a(n)

A) reasonable estimate

A fixed cost is a cost which

D) remains constant in total with changes in the level of activity

If a company had a contribution margin of $1,000,000 and a contribution margin ratio of 40%, total variable costs must have been

A) $1,500,000

One of Matheny Company's activity cost pools is inspecting, with estimated overhead of $200,000. Matheny produces throw rugs (700 inspections) and area rugs (1,300 inspections). How much of the inspecting cost pool should be assigned to throw rugs?

A) $70,000

An activity that has a direct cause-effect relationship with the resources consumed is a(n)

A) Cost driver

Activity-based costing

A) allocates overhead to activity cost pools, and it then assigns the activity cost pools to products and services by means of cost drivers

The last step in activity-based costing is to

A) assign overhead costs to products, using overhead rates determined for each cost pool

The costs that are easiest to trace directly to products are

A) direct materials and direct labor

.The increased use of automation and less use of the work force in companies has caused a trend towards an increase in

B) fixed costs and a decrease in variable costs

Which of the following would not be an acceptable way to express contribution margin?

B) sales minus unit cost

If graphed, fixed costs that behave in a curvilinear fashion resemble a(n)

D) stair step pattern

For its inspecting cost pool, Ellsworth, Inc. expected overhead cost of $400,000 and 4,000 inspections. The actual overhead cost for that cost pool was $480,000 for 5,000 inspections. The activity-based overhead rate used to assign the costs of the inspecting cost pool to product is

C) $100 per inspection

A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January, there were no units in the beginning work in process inventory; 90,000 units were started into production in January; and there were 20,000 units that were 40% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for conversion costs for the month of January?

C) 78,000 equivalent units

In a process cost system, a production cost report is prepared

C) for each processing department

The relevant range of activity refers to the

C) levels of activity over which the company expects to operate

In process cost accounting, manufacturing costs are summarized on a

C) production cost report

Which of these best reflects a distinguishing factor between a job order cost system and a process cost system?

C) the number of work in process accounts

GribbleCompany's high and low level of activity last year was 60,000 units of product produced in May and 20,000 units produced in November. Machine maintenance costs were $156,000 in May and $60,000 in November. Using the high-low method, determine an estimate of total maintenance cost for a month in which production is expected to be 45,000 units

D) $120,000

If Qualls Quality Airline cuts its domestic fares by 30%

D) a profit can be earned either by increasing the number of passengers or by decreasing variable costs.

.Price Company assigns overhead based on machine hours. The Milling Department logs 2,400 machine hours and Cutting Department shows 4,000 machine hours for the period. If the overhead rate is $5 per machine hour, the entry to assign overhead will show a

D) credit to Manufacturing Overhead for $32,000

Advances in computerized systems, technological innovation, global competition, and automation have changed the manufacturing environment drastically by

D) decreasing direct labor costs and increasing overhead costs

An activity-based overhead rate is computed as follows

D) estimated overhead divided by estimated use of cost drivers

If the activity level increases 10%, total variable costs will

D) increase 10%

Which of the following is not an example of an activity cost pool

D) machine hours