Question: 17. Beau County Cable Services, Inc. is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended as
17. Beau County Cable Services, Inc. is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended as follows:
| Metro | Suburban | Outlying | |
| Service Revenue | 90,000 | 70,000 | 35,000 |
| Variable Expenses | 15,000 | 10,000 | 5,000 |
| Controllable Fixed Expenses | 30,000 | 25,000 | 10,000 |
| Fixed Expenses controllable by others | 20,000 | 15,000 | 5,000 |
In addition to the expenses listed above, the company has 6,000 common fixed expenses. The income tax expense for the year is 21,000.
What is the segment margin associated with the Suburban Division?
A. 25,000
B. 20,000
C. 35,000
D. 15,000
18. Kyrie Inc. can make 10,000 banners per month. Kyrie can sell 9,000 banners per month to NBA fans for 10 per banner. The company's costs per banner based on making 10,000 banners are:
| Prime cost | 5.00 |
| Overhead cost | 3.00 overhead is 2/3 fixed at that volume |
WBA offers to buy 1,000 banners with special WBA insignias for 7 per banner. Printing the special insignias will cost Kyrie 200.
What is the incremental profit/(loss) associated with this special order?
A. (800)
B. (1,000)
C. 1,000
D. 800
19. The following data were taken from the records of Westbrooks Company:
| INVENTORIES | Aug. 31, 2020 | Sept. 30, 2020 |
| Raw Materials | ? | 50,000 |
| Work-in-Process | 80,000 | 95,000 |
| Finished Goods | 60,000 | 78,000 |
Additional Information:
| Raw materials purchased | 46,000 |
| Factory overhead, 75% of direct labor cost | 63,000 |
| Selling and administrative expenses, 12.5% of sales | 25,000 |
| Net Income for September 2020 | 25,000 |
What is the cost of raw materials inventory on August 31, 2020?
A. 63,000
B. 36,000
C. 40,000
D. 46,000
20. Information for Duncan Corporation is shown below:
| 20X1 | |
| Net Income | 400,000 |
| Average Investment | 1,000,000 |
| Sales Revenue | 2,000,000 |
If the average investment of the company increased by 10% without any change in net income, what would be the new ROI?
A. 18.18%
B. 36.36%
C. 44.00%
D. 44.44%
21.
| Selling price per unit | 25 |
| Number of units sold | 15,000 |
| Contribution margin ratio | 30% |
| Net Income | 50,000 |
What is the fixed costs?
A. 112,500
B. 62,500
C. 375,000
D. 300,000
22. Handy Crafts manufactures to customers' specifications. The company uses a job order cost system and, for the month of May 2020, summarized the following information:
| Beginning WIP (5 partially completed jobs) | 300,000 |
| Orders completed (18) | 2,400,000 |
| Orders shipped out (14) | 2,000,000 |
| Materials requisitioned | 1,700,000 |
| Direct Labor Cost | 800,000 |
| Overhead | 150% of direct labor cost |
What is the total manufacturing cost and cost of goods manufactured?
A. 4,100,000; 2,000,000
B. 3,700,000; 2,000,000
C. 3,700,000; 2,400,000
D. 4,100,000; 2,400,000
23. Jordan Company has two divisions, which reported the following results for the most recent year.
| Division I | Division II | |
| Income | 2,700,000 | 600,000 |
| Average invested capital | 18,000,000 | 3,000,000 |
| ROI | 15% | 20% |
Imputed interest rate = 10%
What is the residual income of Division II?
A. 300,000
B. 294,000
C. 900,000
D. 0
24. Davis Corporation reported the following for the month of November:
| Total hourly wages of plant workers | 80,000 |
| Advertising | 134,000 |
| Sales Commission | 40,000 |
| Depreciation of machine used in production | 28,000 |
| Depreciation of administrative equipment | 27,000 |
| Indirect Labor | 25,000 |
| Administrative Salaries | 95,000 |
| Utilities, factory | 11,000 |
| Direct Materials | 200,000 |
| Freight Out | 20,000 |
What is the total inventoriable costs for November?
A. 364,000
B. 296,000
C. 344,000
D. 316,000
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