ACC Exam 3
Quiz 19a What is the goal of a portfolio manager for an actively-managed fund? Minimize income taxes Beat the market Minimize losses Maximize income taxes
Beat the market
Quiz 20 Which ONE of the following is NOT one of the three general categories of product costs? CEO and other executive salaries Direct labor Direct materials Manufacturing overhead
CEO and other executive salaries
Quiz 19a How large was the annualized return on investment that was promised to "upgraded" members of 12daily Pro? 132% 490% 812% 1300%
1300%
Quiz 19b Consider the simple income tax system that we discussed at the very beginning of class (0% rate for the first $50 of income; 50% rate for all income above $50). - What is the AVERAGE tax rate if income is $150? 25% 40% 33% 20% 50%
40%
Quiz 22 Hayley Company reported the following data. Price per unit = $10 Variable cost per unit = $7 Fixed cost = $1,500 Given these data, compute the BREAKEVEN number of UNITS. 88 units 214 units 612 units 500 units 150 units
500 units
Quiz 22 Which ONE of the following statements is TRUE? A variable cost is fixed in total and decreases per unit as the number of units increases. A fixed cost is fixed in total and decreases per unit as the number of units increases. A variable cost is variable in total and increases per unit as the number of units increases. A variable cost is variable in total and decreases per unit as the number of units increases.
A fixed cost is fixed in total and decreases per unit as the number of units increases.
Quiz 21 If Boeing allocates overhead based on direct labor hours, which ONE of the following mistakes will Boeing make? Highly customized aircraft are sold at a price that is too high. Generic aircraft are sold at a price that is too low. Some unprofitable orders are accepted. Customers do NOT order enough design changes.
Some unprofitable orders are accepted.
Quiz 24 Which ONE of the following is the most CORRECT description of "OPPORTUNITY COST"? Budgeted costs Foregone revenues Fixed costs only Direct labor plus direct materials Variable costs only
Foregone revenues
Quiz 25b According to our in-class discussion, what is the secret to financial security? Use credit cards to purchase groceries in order to accumulate airline miles. Start your own business. Spend less than you make. Invest in gold. Refinance your house, pull out your equity, and invest it in the stock market.
Spend less than you make.
Quiz 20 Todd Company applied manufacturing overhead of $75,000 during the year. Which ONE of the following should be included in the summary journal entry necessary to record this application of manufacturing overhead? DEBIT to Manufacturing Overhead for $75,000 DEBIT to Cost of Goods Sold for $75,000 CREDIT to Cost of Goods Sold for $75,000 CREDIT to Manufacturing Overhead for $75,000 CREDIT to Work-in-Process Inventory for $75,000
CREDIT to Manufacturing Overhead for $75,000
Quiz 22 Brendan Company reported the following data. Price per unit = $20 Fixed cost = $6,000 Breakeven number of units = 1,000 units Given these data, compute the VARIABLE COST PER UNIT. $14 per unit $12 per unit $16 per unit $10 per unit $18 per unit
$14 per unit
Quiz 20 Wynne Company has a predetermined overhead rate of $15 per direct labor hour. The following data are for the current year Actual number of units sold = 2,000 units Actual number of direct labor hours worked = 10,000 hours Actual amount of manufacturing overhead = $145,000 What is the amount of manufacturing overhead APPLIED for the year? $130,000 $150,000 $30,000 $145,000 $295,000
$150,000
Quiz 21 Using the numbers given in Practice Problem #2, what is the amount of adjusted Cost of Goods Sold, after considering the necessary adjustment for over- or under-applied manufacturing overhead?
$155,500
Quiz 19a What happens to you if you withdraw money from a Traditional IRA before age 59 ½ ? NOTE: Since I made the Packet two months ago, someone has helpfully added another bullet item to the Wikipedia list of "Disadvantages" of a Traditional IRA. So, the answer to this MyEducator quiz question actually comes from the SECOND-to-the-last item in the "Disadvantages" bullet list. You don't have to pay any income taxes. You will not be able to collect Social Security. The IRS will assess a penalty. You will face a maximum 5-year federal prison sentence.
The IRS will assess a penalty.
Quiz 19b Which ONE of the following is FALSE with respect to managed funds and index funds? The stocks are chosen by a simple mathematical rule in a managed fund. An index fund represents a basic buy-and-hold strategy. The stocks are chosen by a simple mathematical rule in an index fund. Professional analysts pick the stocks in a managed fund.
The stocks are chosen by a simple mathematical rule in a managed fund.
Quiz 20 Sophie Company has decided that direct labor hours is a good basis on which to apply overhead to production. Budgeted manufacturing overhead for the coming year is $500,000. Budgeted direct materials purchases is $400,000. Budgeted direct labor cost is $720,000. Budgeted direct labor hours for the coming year is 20,000 hours. What is Sophie Company's PREDETERMINED OVERHEAD RATE? $56 per hour $20 per hour $61 per hour $25 per hour $36 per hour
$25 per hour
Quiz 23 It is January 1 of Year 2. Purchases for Yosef Company for January, February, and March are forecasted to be as follows: January, $200,000; February $400,000; March, $500,000. 40% of purchases are for cash. Of the credit purchases, 30% are paid during the month of the purchase, 50% in the month following the purchase, and 20% in the second month following the purchase. TOTAL purchases for November and December of Year 1 were $200,000 and $400,000, respectively. What is the forecasted amount of total CASH PAYMENTS FOR PURCHASES in January? Note: This is the sum of immediate payments from cash purchases, same-month cash payments of credit purchases, and cash payments for credit purchases made in prior months.
$260,000
Quiz 23 It is January 1 of Year 2. Sales for Harry Company for January, February, and March are forecasted to be as follows: January, $200,000; February $400,000; March, $500,000. ALL sales are credit sales. Of these credit sales, 10% are collected during the month of sale, 30% in the following month, and 60% in the second following month. TOTAL sales for November and December of Year 1 were $200,000 and $400,000, respectively. What is the forecasted amount of total CASH COLLECTIONS FROM SALES in January? $248,000 $236,000 $254,000 $272,000 $260,000
$260,000
Quiz 23 It is January 1 of Year 2. Sales for Harry Company for January, February, and March are forecasted to be as follows: January, $200,000; February $400,000; March, $500,000. ALL sales are credit sales. Of these credit sales, 10% are collected during the month of sale, 30% in the following month, and 60% in the second following month. TOTAL sales for November and December of Year 1 were $200,000 and $400,000, respectively. What is the forecasted amount of total CASH COLLECTIONS FROM SALES in March?
$290,000
Quiz 24 Speedy Print Shop is considering whether it should take a job to print 5,000 copies of an announcement. The costs associated with this special order have been identified as follows. Paper cost: 5,000 sheets at $0.01 each. Labor cost: The job will take 5 hours. This job must be done on a rush basis after regular business hours; the special labor rate will be $24 per hour. Printing plate cost: The cost to make a plate to print the announcements is $100. Printing press usage: Speedy has determined that maintenance costs and depreciation associated with the usage of the printing press is $10 per hour. If the printing press is not used, it does not need any maintenance and it does not depreciate. Building depreciation: Speedy normally allocates $5 of building depreciation for each direct labor hour worked on a job. However, the building depreciates strictly with the passing of time; printing one more job does not cause any extra building depreciation. Manager's salary: The manager makes $20 per hour, on average. However, the manager is on a salary and does not get paid extra for working extra hours. What is the minimum amount that Speedy Print Shop should charge for this job?
$320
Quiz 23 It is January 1 of Year 2. Purchases for Yosef Company for January, February, and March are forecasted to be as follows: January, $200,000; February $400,000; March, $500,000. 40% of purchases are for cash. Of the credit purchases, 30% are paid during the month of the purchase, 50% in the month following the purchase, and 20% in the second month following the purchases. TOTAL purchases for November and December of Year 1 were $200,000 and $400,000, respectively. What is the forecasted amount of total CASH PAYMENTS FOR PURCHASES in March? Note: This is the sum of immediate payments from cash purchases, same-month cash payments of credit purchases, and cash payments for credit purchases made in prior months.
$434,000
Quiz 22 Ramona Company reported the following data. Price per unit = $10 Variable cost per unit = $7 Fixed cost = $1,500 Number of units sold = 700 units Given these data, compute NET INCOME. $800 $1,200 $600 $5,500 $3,400
$600
Quiz 21 Look at Practice Problem #3. The following details relate to Job 244. Dept. A Dept. B Machine-hours. . . . . . . . . . . . . . . . . . . 200 50 Direct labor-hours. . . . . . . . . . . . . . . . 60 140 Direct materials cost. . . . . . . . . . . . . . . $1,000 $2,000 Direct labor cost. . . . . . . . . . . . . . . . . . $600 $900 What is the total manufacturing cost of Job 244? $6,340 $4,545 $7,345 $2,800 $4,500
$7,345
Quiz 19a For an employee with a tax rate of 25%, how much is the short-term income tax savings that comes from a $3,000 contribution to a 401(k) account? $0 $3,000 $750 $2,250
$750
Quiz 23 On September 30 of Year 1, JayBob Company had raw materials inventory of 5,000 pounds. Starting in October, JayBob intends to have an inventory policy of maintaining ending raw materials inventory at the end of every month equal to the next TWO months' production needs. For example, ending inventory at the end of October should be equal to forecasted raw materials needs for November production plus forecasted raw materials needs for December production. Four pounds of raw materials are needed in the production of one finished unit. Forecasted PRODUCTION for the months October, Year 1 through December, Year 1 is as follows. October 4,300 units November 1,000 units December 700 units What is the amount of budgeted RAW MATERIALS PURCHASES for October?
19,000 pounds
Quiz 19a Over the 15-year time horizon 2001 through 2016, what fraction of actively-managed funds beat the S&P 500 Index? 53% 29% 66% 45%
29%
Quiz 22 Yvonne Company reported the following data. Price per unit = $20 Fixed cost = $6,000 Variable cost per unit = $11 How many units must Yvonne Company sell in order to reach a TARGET PROFIT OF $30,000? 5,000 units 7,000 units 4,000 units 3,000 units 6,000 units
4,000 units
Quiz 23 On September 30 of Year 1, Julian Company had finished goods inventory of 1,000 units. Starting in October, Julian intends to have an inventory policy of maintaining ending inventory at the end of every month equal to the next month's sales. For example, ending inventory at the end of October should be equal to forecasted sales in November. Forecasted sales for the months October, Year 1 through January, Year 2 are as follows. October 2,300 units November 3,000 units December 1,000 units January 700 units What is the amount of budgeted PRODUCTION for October?
4,300 units
Quiz 25b Refer to the McDonald's data that we used in class; go back to the original data that we used in class. Now, assume that the average sale per customer visit is $4.00 instead of the $3.28 that we used in class. What is McDonald'sbreakeven number of customers per store per hour given this assumption? Note: All other assumptions that we made in class are unchanged. 57 75 31 69 64
64
Quiz 25b Refer to the Chinese airline data that we looked at in class. Assume that the average number of seats per flight for China Eastern is 180 instead of the 163 that we used in class. Given this assumption, what is China Eastern's breakeven passenger load factor? 66.1% 98.9% 90.6% 68.2% 73.2%
66.1%
Quiz 25b Refer to the McDonald's data that we used in class. In class we assumed that some of McDonald's payroll and benefits cost was variable ($3,247 million) and some was fixed ($874 million). Now assume that the payroll and benefits cost is ALL FIXED. What is McDonald's contribution margin ratio given this assumption? Note: All other assumptions that we made in class are unchanged. 48.2% 53.9% 74.8% 69.7% 67.4%
67.4%
Quiz 23 On September 30 of Year 1, Lily Company had finished goods inventory of 1,000 units. Starting in October, Lily intends to have an inventory policy of maintaining ending inventory at the end of every month equal to the next TWO months' sales. For example, ending inventory at the end of October should be equal to forecasted sales in November plus forecasted sales in December. Forecasted sales for the months October, Year 1 through January, Year 2 are as follows. October 2,300 units November 3,000 units December 1,000 units January 700 units What is the amount of budgeted PRODUCTION for November?
700 units
Quiz 19a "A fraudulent investment operation that pays returns to separate investors, not from any actual profit earned by the organization, but from their own money or money paid by subsequent investors." - What is this statement describing? A Roth IRA A Ponzi scheme An index mutual fund The University of Utah
A Ponzi scheme
Quiz 22 What is a MIXED COST? A cost that includes both a fixed portion and a variable portion A cost that includes both a relevant range and an irrelevant range A cost that includes both overhead costs and direct materials costs A cost that includes both a financial portion and a managerial portion
A cost that includes both a fixed portion and a variable portion
Quiz 25b What is the Jobs Banks? The insurance company hired by the UAW to provide medical care and life insurance to union members A program in which UAW members were paid even when not working in an automobile assembly plant The General Motors office responsible for economic analysis of all outsourcing contracts The credit union of the United Auto Workers (UAW) The largest commercial bank in Detroit (in 1984)
A program in which UAW members were paid even when not working in an automobile assembly plant
Quiz 20 Which ONE of the following is the BEST description of JOB ORDER COSTING? A system commonly used in the oil exploration industry in order to generate world-wide oil and natural gas information A system in which manufacturing costs are accumulated by separate product orders or batches A system in which period costs are systematically allocated to weekly budget reports A system commonly used in the home construction industry in order to generate market-wide selling price information
A system in which manufacturing costs are accumulated by separate product orders or batches
Quiz 21 In Practice Problem #1, what is represented by the $172,000 debit to Work-in-Process Inventory? Amount paid to production laborers Raw materials used Completed products transferred to the finished goods warehouse Amount paid for factory electricity Raw materials purchased
Amount paid to production laborers
Quiz 19a What is the "better estimate" of how much was lost by the investors in Bernie Madoff's scheme? About $65 billion Between $12 billion and $20 billion In excess of $75 billion About $50 billion
Between $12 billion and $20 billion
Quiz 20 For the year, Jay Bug Company had actual manufacturing overhead of $117,000 and applied manufacturing overhead of $100,000. Which ONE of the following should be included in the journal entry necessary to close the manufacturing overhead account? DEBIT to Cost of Goods Sold for $100,000 DEBIT to Manufacturing Overhead for $100,000 CREDIT to Cost of Goods Sold for $17,000 CREDIT to Manufacturing Overhead for $17,000 CREDIT to Work-in-Process Inventory for $100,000
CREDIT to Manufacturing Overhead for $17,000
Quiz 23 Which ONE of the following statements is TRUE regarding operational budgeting or capital budgeting? Operational budgeting is the planning for the acquisition of property, plant, and equipment. Operational budgeting is the planning for how to obtain the financing for both short-term and long-term projects. Capital budgeting is the planning for the acquisition of property, plant, and equipment. Capital budgeting is the planning for how to obtain the financing for both short-term and long-term projects.
Capital budgeting is the planning for the acquisition of property, plant, and equipment.
Quiz 24 Sophie Company is considering closing one of its product lines. Current data on the product line are as follows. Sales revenue $27,000 Variable costs 19,000 Direct avoidable fixed costs* 5,000 Indirect allocated fixed costs** 7,000 Net Income (Loss) on the product line ($4,000) *The direct avoidable fixed costs will be eliminated if the product line is closed. **The indirect allocated fixed costs will remain the same whether the product line is continued or closed. Assume that Sophie decides to discontinue this product line. By how much will overall company net income change?
Company net income will DECREASE by $3,000 if the product line is discontinued.
Quick-Rite Company manufactures and sells computers. The following cost information for the manufacture of one computer has been compiled. Direct materials $48 Direct labor 64 Variable manufacturing overhead 48 *Fixed manufacturing overhead 32 Total cost per unit $192 *The $32 amount reflects the amount of indirect cost allocated to each unit. However, as indicated, the total of these indirect costs is fixed. Quick-Rite has received a special order from a customer for 500 computers at a price of $175 per unit. By how much will overall company net income change if Quick-Rite ACCEPTS this order? [Note: Quick-Rite is the SELLER.]
Company net income will INCREASE by $7,500 if the order is accepted.
Quiz 21 In Practice Problem #1, what is represented by the $673,000 credit to Finished Goods Inventory? Amount paid to production laborers Cost of goods sold Raw materials used Manufacturing overhead applied Raw materials purchased
Cost of goods sold
Quiz 21 In Practice Problem #2, assume that the number of direct labor hours worked was 19,000 hours instead of 18,000 hours. Which ONE of the following would be included in the journal entry necessary to close the Manufacturing Overhead account at the end of the year?
DEBIT to Cost of Goods Sold for $1,500
Quiz 20 Indirect materials costing $1,000 were transferred from the materials warehouse to be used in production. Which ONE of the following should be included in the journal entry necessary to record this transaction? DEBIT to Raw Materials Inventory for $1,000 DEBIT to Manufacturing Overhead for $1,000 CREDIT to Cost of Goods Sold for $1,000 DEBIT to Cost of Goods Sold for $1,000 CREDIT to Manufacturing Overhead for $1,000
DEBIT to Manufacturing Overhead for $1,000
Quiz 20 Which ONE of the following is the most common sequence of the FLOW of costs through a job order cost system? First, add direct labor and manufacturing overhead costs; then transfer the cost of completed goods to finished goods inventory; then purchase raw materials; then transfer raw materials to production; finally, sell goods and transfer cost to cost of goods sold First, purchase raw materials; then transfer raw materials to production; then add direct labor and manufacturing overhead costs; then transfer the cost of completed goods to finished goods inventory; finally, sell goods and transfer cost to cost of goods sold First, transfer the cost of completed goods to finished goods inventory; then purchase raw materials; then transfer raw materials to production; then sell goods and transfer cost to cost of goods sold; finally, add direct labor and manufacturing overhead costs First, purchase raw materials; then sell goods and transfer cost to cost of goods sold; then transfer the cost of completed goods to finished goods inventory; then transfer raw materials to production; finally, add direct labor and manufacturing overhead costs
First, purchase raw materials; then transfer raw materials to production; then add direct labor and manufacturing overhead costs; then transfer the cost of completed goods to finished goods inventory; finally, sell goods and transfer cost to cost of goods sold
Quiz 24 Which ONE of the following is the most CORRECT description of "DIFFERENTIAL COST"? Future costs that are common among all decision alternatives Predicted costs based on future input factors Past costs that are different from budgeted amounts Future costs that vary among decision alternatives
Future costs that vary among decision alternatives
Quiz 20 Which ONE of the following statements describes MANAGERIAL accounting BETTER than it describes financial accounting? Has standardized information requirements Is subject to an independent external audit Includes budget and forecast data Is disseminated to the public
Includes budget and forecast data
Quiz 23 Which ONE of the following is a BENEFIT of participative budgeting? Local managers are interested only in the benefit of the company as a whole, not in their own special interests. Local managers are easily able to inflate reported results in order to meet budget targets. Local managers have the best information on specific products, services, and customers. Local managers have a full understanding of the strategic direction of the company.
Local managers have the best information on specific products, services, and customers.
Quiz 24 Logan Company manufactures several toy products. Logan presently manufactures and assembles all the parts for its toy truck product. Another toy company has offered to sell the parts to Logan for $2.00 per truck. Logan is considering this offer. If Logan buys the truck parts instead of making them, the space used in producing the parts could be used for a new toy monster, which is scheduled to begin production next year. If Logan continues to produce the parts for the toy truck, then Logan will have to lease manufacturing space from another company in an adjacent building in order to produce the parts for the new toy monster. The rent that Logan would have to pay would be $8,000 per year. Cost information related to the production of the toy truck parts is as follows. Direct materials $1.10 Direct labor 0.30 Variable manufacturing overhead 0.20 Fixed manufacturing overhead 0.20 Total manufacturing costs $1.80 The marketing department has estimated that sales for the toy truck will be approximately 16,000 units per year for the next three years. The fixed manufacturing overhead is indirect and will still be incurred regardless of which decision is made. By how much will overall Logan Company's net income change if Logan decides to stop making the parts itself and instead BUY the parts from another toy company?
Logan Company net income will INCREASE by $1,600 if Logan stops making the parts itself and instead buys them from another toy company.
Quiz 24 Midwest Company manufactures lamps. Shop Smart, a large retail merchandiser, wants to buy 200,000 lamps from Midwest Company for $12 each. The lamp would carry Shop Smart's name and would be sold in its stores. Midwest Company normally sells 420,000 lamps a year at $16 each; its production capacity is a total of 450,000 units a year. Cost information for the lamps is as follows: Production costs: Variable production costs $6 per unit Fixed manufacturing overhead: ($2,100,000 / 420,000 units) $5 per unit Selling and administrative expenses: Fixed ($840,000 / 420,000 units) $2 per unit Shop Smart has indicated that the company is not interested in signing a contract for less than 200,000 lamps. Total fixed costs will not change regardless of whether the Shop Smart order is accepted. By how much will overall Midwest Company's net income change if the Shop Smart order is accepted?
Midwest Company net income will DECREASE by $500,000 if the order is accepted.
Quiz 19a Are contributions to a Roth IRA tax deductible? Only if you are older than 50 when you start the Roth IRA. Yes No Only if you are younger than 30 when you start the Roth IRA.
No
Quiz 19b Can we, as individual investors, use our ability to analyze financial statements to identify winning and losing stocks? No Don't pick this one; pick the first answer: "No." Don't pick this one; pick the first answer: "No." Don't pick this one; pick the first answer: "No." Don't pick this one; pick the first answer: "No."
No
Quiz 21 What is the essential idea behind "Activity-Based Costing"? Overhead costs should be assigned to those products or customers that cause those costs. Overhead costs should not be assigned to individual products or customers. Overhead costs should be assigned based on relative selling prices. Overhead costs should be assigned strictly based on the number of direct labor hours used.
Overhead costs should be assigned to those products or customers that cause those costs.
Quiz 24 Which ONE of the following is the most CORRECT description of "SUNK COST"? Fixed costs Differential costs Past costs Period costs Budgeted costs
Past costs
Quiz 22 In a graph used for breakeven analysis, what is represented by the SLOPE of the TOTAL REVENUE LINE? Variable cost per unit Fixed cost per unit Total fixed cost Price per unit Total revenue
Price per unit
Quiz 19a What is Baby Step #1 in Dave Ramsey's Seven Baby Steps to financial peace? Buy life insurance Put $1,000 in an emergency fund Invest $5,000 in a Roth IRA Sell your car and lease a new one
Put $1,000 in an emergency fund
Quiz 21 Consider the Wild Horse Wedding Announcements example that we did together in class. Which two OPPORTUNITY COSTS are important to consider in setting the price of the wedding announcements? Return on the owner's savings and the value of the owner/operator's time Bookkeeping costs and income taxes Equipment depreciation and return on the owner's savings. Return on the owner's savings and the cost of raw materials Bookkeeping costs and the value of the owner/operator's time Income taxes and the cost of raw materials
Return on the owner's savings and the value of the owner/operator's time
Quiz 23 Which ONE of the following is the CORRECT sequence of budgets in a manufacturing business? Cash flow, production, sales, direct materials Cash flow, direct materials, sales, production Cash flow, sales, production, direct materials Sales, production, direct materials Sales, direct materials, production
Sales, production, direct materials
Quiz 19b Which basic tax planning strategy is illustrated with a 401(k) plan? Shift income from one time period to another. Consolidate the filing of all income. Shift income from one pocket to another. Change the character of the income (or the rate at which income will be taxed).
Shift income from one time period to another.
Quiz 19b Which economic theory is illustrated with the Laffer Curve? Macroeconomics Ricardian economics Mercantile economics Keynesian economics Supply-side economics
Supply-side economics
Quiz 21 Consider the Wild Horse Wedding Announcements example that we did together in class. Assume that your friend can get a job and make $7,000 per month after taxes instead of $5,000 per month as assumed in class. Also assume that the selling price for each of the 40 monthly orders is $860. Which ONE of the following statements is TRUE? The after-tax profit from the Wild Horse business is $760 LESS than your friend's total opportunity cost (opportunity cost of the $300,000 invested money plus opportunity cost of the alternate job making $7,000 per month after tax). The after-tax profit from the Wild Horse business is $5,400 LESS than your friend's total opportunity cost (opportunity cost of the $300,000 invested money plus opportunity cost of the alternate job making $7,000 per month after tax). The after-tax profit from the Wild Horse business is $5,400 MORE than your friend's total opportunity cost (opportunity cost of the $300,000 invested money plus opportunity cost of the alternate job making $7,000 per month after tax). The after-tax profit from the Wild Horse business is $67 MORE than your friend's total opportunity cost (opportunity cost of the $300,000 invested money plus opportunity cost of the alternate job making $7,000 per month after tax).
The after-tax profit from the Wild Horse business is $760 LESS than your friend's total opportunity cost (opportunity cost of the $300,000 invested money plus opportunity cost of the alternate job making $7,000 per month after tax).
Quiz 22 What is the RELEVANT RANGE? The range of volume over which the variable cost per unit is expected to remain the same. The range of volume over which the fixed cost per unit is expected to remain the same. The range of volume over which the variable cost per unit is expected to increase. The range of volume over which the selling price per unit is expected to increase.
The range of volume over which the variable cost per unit is expected to remain the same.
Quiz 22 In a graph used for breakeven analysis, what is represented by the y-INTERCEPT of the TOTAL COST LINE? Total fixed cost Total revenue Fixed cost per unit Price per unit Variable cost per unit
Total fixed cost
Quiz 22 In a graph used for breakeven analysis, what is represented by the SLOPE of the TOTAL COST LINE? Total revenue Price per unit Variable cost per unit Fixed cost per unit Total fixed cost
Variable cost per unit
Quiz 20 Which ONE of the following is MOST LIKELY to be a PERIOD cost? Wages of secretarial staff in administration building Direct materials Direct labor Factory maintenance worker wages
Wages of secretarial staff in administration building
Quiz 21 Under which ONE of the following circumstances is cost an important input into determining selling price? When products are specialized When costs are fixed When direct materials cost is high When direct labor cost is high When work-in-process inventory levels are low
When products are specialized
Quiz 19a What is the "main advantage" of a Traditional IRA compared to a Roth IRA? With a Roth IRA, employer participation is required. With a Roth IRA, contributions are often tax deductible. With a traditional IRA, employer participation is required. With a traditional IRA, contributions are often tax deductible.
With a traditional IRA, contributions are often tax deductible.
Sophie Company has decided that direct labor hours is a good basis on which to apply overhead to production. The following data are for the most recent year. Budgeted number of direct labor hours worked = 20,000 hours Budgeted amount of manufacturing overhead = $100,000 Actual number of direct labor hours worked = 25,000 hours Actual amount of manufacturing overhead = $115,000 6. Sophie Company applied manufacturing overhead during the year. Which ONE of the following should be included in the summary journal entry necessary to record this application of manufacturing overhead? a. CREDIT to Manufacturing Overhead for $125,000 b. CREDIT to Manufacturing Overhead for $115,000 c. CREDIT to Manufacturing Overhead for $100,000 d. CREDIT to Work-in-Process Inventory for $125,000 e. CREDIT to Work-in-Process Inventory for $115,000 f. CREDIT to Work-in-Process Inventory for $100,000
a. CREDIT to Manufacturing Overhead for $125,000
Which ONE of the following sequences is the CORRECT sequence for the flow of materials costs through a production process? a. Raw materials inventory, work-in-process inventory, cost of goods sold, finished goods inventory b. Raw materials inventory, cost of goods sold, work-in-process inventory, finished goods inventory c. Raw materials inventory, work-in-process inventory, finished goods inventory, cost of goods sold d. Cost of goods sold, raw materials inventory, work-in-process inventory, finished goods inventory e. Raw materials inventory, finished goods inventory, cost of goods sold, work-in-process inventory
c. Raw materials inventory, work-in-process inventory, finished goods inventory, cost of goods sold