In order to make decisions, managers need to know:
C) both costs
2) Budgeted costs are:
C) planned or forecasted costs
Answer: C
3) Cost allocation is:
C) the assignment of indirect costs to the chosen cost object
Answer: C
4) Which statement is true?
C) A direct cost of one cost object can be an indirect cost of another cost object.
Answer: C
5) Which of the following items is NOT an assumption of CVP analysis?
C) Unit selling price, unit variable costs, and unit fixed costs are known and remain constant.
Answer: C
6) Operating income calculations use:
C) cost of goods sold and operating costs
Answer: C
7) Contribution margin equals:
C) Revenues minus variable costs
Answer: C
Sherry's Custom Jewelry sells a single product. 700 units were sold resulting in $7,000 of sales revenue, $2,800 of variable costs, and $1,200 of fixed costs.
8) Contribution margin per unit is:
C) $6.00
Answer: C
Explanation: C) ($7,000 - $2,800) / 700 u
Holly's Ham, Inc. sells hams during the major holiday seasons. During the current year 11,000 hams were sold resulting in $220,000 of sales revenue, $55,000 of variable costs, and $24,000 of fixed costs.
10) Contribution margin per ham is:
B) $15.00
Answe
Northenscold Company sells several products. Information of average revenue and costs is as follows:
Selling price per unit $20.00
Variable costs per unit:
Direct material $4.00
Direct manufacturing labor $1.60
Manufacturing overhead $0.40
Selling costs $
Stephanie's Bridal Shoppe sells wedding dresses. The average selling price of each dress is $1,000, variable costs are $400, and fixed costs are $90,000.
14) How many dresses must the Bridal Shoppe sell to yield after-tax net income of $18,000, assuming t
Assume the following cost information for Fernandez Company:
Selling price $120 per unit
Variable costs $80 per unit
Total fixed costs $80,000
Tax rate 40%
15) What minimum volume of sales dollars is required to earn an aftertax net income of $30,000?
C)
17) For a given job the direct costs associated with the job are:
B) direct material
C) direct manufacturing labor
D) Both b and c are correct.
Answer: D
18) Stewart Company's actual manufacturing overhead is $2,800,000. Overhead is allocated on the basis of direct labor hours. The direct labor hours were 50,000 for the period. What is the manufacturing overhead rate?
B) $56.00
Answer: B
Explanation: B) 2,
19) O'Reilly Enterprises manufactures digital video equipment. For each unit $2,950 of direct material is used and there is $2,000 of direct manufacturing labor at $20 per hour. Manufacturing overhead is applied at $35 per direct manufacturing labor hour.
20) In a job-costing system, a manufacturing firm typically uses an indirect-cost rate to estimate the ________ allocated to a job.
C) manufacturing overhead costs
Answer: C
For 2010, Jake's Dog Supply Manufacturing uses machine-hours as the only overhead cost-allocation base. The accounting records contain the following information:
Estimated Actual
Manufacturing overhead costs $200,000 $240,000
Machine-hours 40,000 50,000
2
Philadelphia Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $15 per direct labor-hour. The following data are obtained from the accounting records for June 2010:
Direct materials $140,
Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 20X3:
Budg
Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 20X3:
Budg
Mertens Company provides the following ABC costing information:
Activities Total Costs Activity-cost drivers
Account inquiry hours $200,000 10,000 hours
Account billing lines $140,000 4,000,000 lines
Account verification accounts $75,000 40,000 accounts
C
Happy Valley Land and Snow Company provides the following ABC costing information:
Activities Total Costs Activity-cost drivers
Labor hours $320,000 8,000 hours
Gas $36,000 6,000 gallons
Invoices $40,000 2,500 invoices
Total costs $396,000
The above activ
Why is a mission statement important to a organization ?
A mission statement is important to an organization because it provides a clearly worded view of what the organization wants to accomplish and how the organization uniquely meets or plans to meet its targeted customers' needs with products and services. W