accounting

The order to follow when preparing the operating budget is ________. 1. order to follow when preparing the operating budget is ________.

revenues budget, production budget, direct manufacturing labor costs budget, and cost of goods sold

Which of the following is true of planning in decision making?

It helps an organization to select goals and strategies.

1. Mangers are examining a possible replacement of a machine decision and generate the following numbers: Book value of old machine $1,000,000 Current disposal value of old machine $50,000 Loss on disposal of old machine $300,000 Cost of new machine $600,000 In performing an analysis and in attempt to answer the question, "should we replace the old machine", which of the following statements would be true

the cost of the new machine and the current disposal value of the old machine are relevant

1. McMurphy Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000 units of this part are as follows: Direct materials $86,000 Direct labor 126,000 Variable factory overhead 58,000 Fixed factory overhead 138,000 Total costs $408,000 Of the fixed factory overhead costs, $55,000 is avoidable. Conners Company has offered to sell 12,000 units of the same part to McMurphy Corporation for $41 per unit. Assuming there is no other use for the facilities, Schmidt should

make the part, as this would save $14 per unit

The contribution income statement highlights________.

variable and fixed costs

1. Heavy Products, Inc. developed standard costs for direct material and direct labor. In 2017, AII estimated the following standard costs for one of their major products, the 10-gallon plastic container. Direct materials Budgeted Quantity: .70 pounds Direct materials Budgeted Price: $70 per pound Direct labor Budgeted Quantity: .10 hours Direct labor Budgeted price: $35 per pound During June, Heavy Products produced and sold 25,000 containers using 23,000 pounds of direct materials at an average cost per pound of $75 and 17,500 direct manufacturing labor-hours at an average wage of $31.25 per hour. The direct material price variance during June is ________.

$115,000 unfavorable

When deciding to lease a new cutting machine or continue using the old machine, the irrelevant cost is

$50,000, cost of the old machine

Tally Corp. sells software during the recruiting seasons. During the current year, 10,000 software packages were sold resulting in $470,000 of sales revenue, $130,000 of variable costs, and $48,000 of fixed costs. If sales increase by $80,000, operating income will increase by ________. (Round interim calculations to two decimal places and the final answer to the nearest whole dollar.)

$57,872

Sparkle Jewelry sells 800 units resulting in $9,000 of sales revenue, $3,000 of variable costs and $1,500 of fixed costs. Contribution margin per unit is______. (Round the final answer to the nearest cent.)

$7.50

For next year, Roberts, Inc., has budgeted sales of 20,000 units, targeted ending finished goods inventory of 1,650 units, and beginning finished goods inventory of 750 units. All other inventories are zero. How many units should be produced next year?

20,900 units

Dr. Charles Hunter, MD, performs a certain outpatient procedure for $1300. His fixed costs are $24,000 per month and his variable costs are $500 per procedure. Dr. Hunter currently plans to perform 400 procedures this month. What is the breakeven point for the month assuming that Dr. Hunter plans to perform the procedure 400 times?

30 times

Firebird Ltd. sells packaged birdseed for $6.00 per package. Variable product costs are $3.00 per package. Fixed costs are $12,000 per period. How many packages must Firebird sell to earn a target operating income of $7,900?

6,633 packages

Over the past year Johnson Company has experienced favorable direct labor price variance and unfavorable direct labor efficiency variance. Which is the most plausible reason for those variances?

An unusually large number of the company's experienced employees retired and was replaced by recent college graduates.

Which of the following is not an inventoriable cost of a manufacturer?

Sales commissions paid to sales representatives who sell the products made by the manufacturer

Which of the following statements refers to management accounting information?

There are no regulations governing the reports.

1. What is the primary reason that companies analyze direct cost variances

To evaluate past performance and try to improve future performance.

1. John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $10,000 to make it roadworthy again. His wife, Sherry, suggested that he should buy a 5-year-old used Jeep Grand Cherokee instead for $10,000 cash. Sherry estimated the following costs for the two cars: Acquisition Trial Blazer: $25,000 Grand Cherokee: $10,000 Repairs Trial Blazer: $10,000 Grand Cherokee: --- Annual operating costs (Gas, maintenance, insurance) Trial Blazer: $2,780 Grand Cherokee: $1,800 The cost NOT relevant for this decision is the:

acquisition cost of the Trail Blazer

Which of the following is a fixed cost for an automobile manufacturing plant?

administrative salaries

Control measures should_______.

be linked by feedback to help learning and future planning

Which of the tools shown below would be the most effective planning tool?

budget

Which of the following is a period cost?

costs incurred to provide customer service such as the operation of a 800 phone line to trouble shoot product problems and to answer questions about product warranties

1. Giant Company has three products, A, B, and C. The following information is available: Sales A. $70,000 B. $97,000 C. $23,000 Less: Variable costs A. 37,000 B. 51,000 C. 15,000 Contribution margin A. 33,000 B. 46,000 C. 8,000 Fixed costs: Avoidable A. 10,000 B. 20,000 C. 2,000 Unavoidable A. 7,000 B. 12,000 C. 9,400 Operating income A. $16,000 B. $14,000 C.$(3,400) Giant Company is thinking of dropping Product C because it is reporting a loss. Assuming Giant Company drops Product C and does NOT replace it, operating income will______.

decrease by $6,000

When deciding to accept a one-time-only special order from a wholesaler, management should_______.

determine whether excess capacity is available

Which one of the following is a variable cost for an insurance company?

electricity expenses

Which of the following is true if the production volume decreases

fixed cost per unit increases

Which of the following is a direct manufacturing cost?

fringe benefits paid to assemblers

A relevant cost is a cost that is a(n).

future cost

Work-in-process inventory would normally include

goods partially worked on but not yet fully completed

Indirect manufacturing costs

may include both variable and fixed costs

The most likely cost driver of distribution costs is the

number of miles driven

The cost function y = 13,000 + 9X

represents a mixed cost

Which of the following is true if the volume of sales increases (within a relevant range)

total variable cost increases

Which of the following is the basic formula for the direct materials purchase budget?

units used in production + target ending inventory - beginning inventory = purchases to be made for the budget period