1.) Based on a predicted level of production and sales of 29,000 units, a company anticipates total...
Question:
1.)
Based on a predicted level of production and sales of 29,000 units, a company anticipates total variable costs of $113,100, fixed costs of $29,000, and operating income of $203,580. Based on this information, the budgeted amount of fixed costs for 26,000 units would be:
Multiple Choice
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$159,400.
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$232,580.
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$29,000.
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$113,100
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$101,400
2.)
Product A has a sales price of $21 per unit. Based on a 12,000-unit production level, the variable costs are $9 per unit and the fixed costs are $8 per unit. Using a flexible budget for 14,500 units, what is the budgeted operating income from Product A?
Multiple Choice
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$14,500.
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$78,000.
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$96,000.
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$22,500.
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$52,500.
3.)
Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials quantity variance is:
Direct materials standard (7 kg. @ $2.50/kg) | $17.50 | per finished unit |
Actual cost of materials purchased | $423,500 | |
Actual direct materials purchased and used | 160,000 | kg |
Multiple Choice
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$14,000 unfavorable.
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$37,500 unfavorable.
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$37,500 favorable.
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$23,500 unfavorable.
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$23,500 favorable.
4.)
Georgia, Inc. has collected the following data on one of its products. The direct materials quantity variance is:
Direct materials standard (3 lbs @ $1/lb) | $3 | per finished unit |
Total direct materials cost variance—unfavorable | $19,250 | |
Actual direct materials used | 140,000 | lbs. |
Actual finished units produced | 35,000 | units |
Multiple Choice
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$15,750 favorable.
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$35,000 unfavorable.
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$35,000 favorable.
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$19,250 unfavorable.
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$19,250 favorable.
5.)
Grant Co. uses the following standard to produce a single unit of its product: Variable overhead (1.40 hrs. per unit @ $3.90/hr.) Actual data for the month show total variable overhead costs of $150,260, and 26,000 units produced. The total variable overhead variance is:
Multiple Choice
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$8,300F.
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$8,300U.
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$76,900U.
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$76,900F.
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$0.
6.)
The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard price of $44 per pound. In manufacturing 6,600 units, 37,500 pounds of material were used at a cost of $46 per pound. What is the direct materials quantity variance?
Multiple Choice
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$75,000 unfavorable.
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$75,000 favorable.
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$92,400 unfavorable.
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$92,400 favorable.
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$17,400 favorable.
7.)
laymore Corp. has the following information about its standards and production activity for September. The volume variance is:
Actual total factory overhead incurred | $ | 29,620 | ||
Standard factory overhead: | ||||
Variable overhead | $ | 5.90 | per unit produced | |
Fixed overhead | ||||
($7,740 / 4,300 estimated units to be produced) | $ | 1.80 | per unit | |
Actual units produced | 3,200 | units | ||
Multiple Choice
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$3,000U.
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$3,000F.
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$1,980U.
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$1,980F.
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$4,980U.
8.)
Milltown Company specializes in selling used cars. During the month, the dealership sold 24 cars at an average price of $15,200 each. The budget for the month was to sell 22 cars at an average price of $16,200. Compute the dealership's sales volume variance for the month.
Multiple Choice
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$24,000 unfavorable.
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$10,200 favorable.
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$24,000 favorable.
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$32,400 unfavorable.
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$32,400 favorable.
9.)
Brownley Company has two service departments and two operating (production) departments. The Payroll Department services all three of the other departments in proportion to the number of employees in each. The Maintenance Department costs are allocated to the two operating departments in proportion to the floor space used by each. Listed below are the operating data for the current period:
Service Depts. | Production Depts. | ||||||||||||
Payroll | Maintenance | Cutting | Assembly | ||||||||||
Direct costs | $ | 40,400 | $ | 45,500 | $ | 96,500 | $ | 125,400 | |||||
No. of personnel | 35 | 35 | 105 | ||||||||||
Sq. ft. of space | 12,000 | 17,000 | |||||||||||
The total cost of operating the Maintenance Department for the current period is:
Multiple Choice
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$26,280.
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$30,251.
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$45,500.
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$53,580.
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$46,751.
10.)
The Menswear Department of Major's Department Store had sales of $203,000, cost of goods sold of $140,000, indirect expenses of $14,750, and direct expenses of $29,000 for the current period. The Menswear Department's contribution to overhead as a percent of sales is:
Multiple Choice
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85.71%.
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31.03%.
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16.75%.
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68.75%.
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9.48%.
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer