.gif”>ACC 312 Fundamentals of Managerial Accounting
\nMidterm Exam ITest FormA<\/p>\n
Name UTEID<\/p>\n
Instructor ClassDay_____________Time <\/p>\n
.gif”><\/p>\n
Instructions
\nConfirmthatyou have 25
\nmultiple-choice questions
\nand6 workout problems
\n(16 pages).<\/p>\n
1. Answers toMultiple-Choicequestions should be recordedontheScantron.<\/p>\n
A.
\nOnyour Scantronanswersheet, writeand bubbleinyour
\nname, UTEID, and the \u00e2\u0080\u009cTest Form\u00e2\u0080\u009d letternoted
\nabove.<\/p>\n
B. Usea#2
\npencil onlytomark your responses onyour
\nScantronanswer sheet.Markclearlyanderase
\ncompletelyas needed.Onlymultiple
\nchoice answersmarkedon
\nyour Scantronanswer
\nsheetwill be graded.<\/p>\n
C.
\nThe time allotted
\nfor
\nan examincludesthetime required
\nto \u00e2\u0080\u009cbubble-in\u00e2\u0080\u009d yourScantron answersheets.
\nIt
\nis cheatingtotake extratime
\nto bubble inthe answersheetaftertime is
\nup forthe exam.<\/p>\n
2. Answers to
\nProblems
\nshould be recordedontheexam where
\nindicated.Show your workinthespaceprovidedor
\nattach scratch paper.<\/p>\n
3. Cellphones,
\nbooks,notes,PDAsand
\nprogrammable calculatorsare
\nNOT
\nallowed at yourdeskduring
\nthe exam.Calculatorscapable
\nof storing text are NOT
\nallowed.<\/p>\n
4. Inthe interestofminimizingdisruptions
\nand
\nmakingsureallstudents
\nhave exactlythe same informationonthe exam, wewillanswer onlythe followingkinds of questions duringthe exam:
\na. Vocabularyquestions relatingto
\nnon-managerial-specificwords;
\nb. Questions abouta possible mistakeinthe exam.
\nInthe latter case,ifamistakeisconfirmed, we willanswer
\nbymakinganannouncement
\nto the whole class.If no
\nannouncementismadeina
\nshort period of time, you mayassume thatthe problemiscorrectaswritten.<\/p>\n
5.
\nBringyour entire exam,scratch paper, Scantronanswer sheet, and studentID to
\nthe front of the roomwhenyou
\nhave finished.<\/p>\n
6.
\nYou are remindedof the University\u00e2\u0080\u0099shonor policywhich
\nrequires youdo your own
\nwork and not giveorreceive Helpanceon this exam.<\/p>\n
SECTIONI-MULTIPLE
\nCHOICE (50points\u00e2\u0080\u009325questions,2pointseach)-PleasechoosetheONE
\nBEST
\nanswerforeachquestionand
\nrecordyouranswer
\nontheScantronanswersheet.
\n.gif”><\/p>\n
1.
\nFancyTechnologycurrentlysells
\n100 units, incurs fixed costs, generates
\naprofit
\nand has aunitcontribution
\nmargin of$4. FancyTechnologycan automateits production process, whichwill
\nincreaseitsfixed costs an additional
\n$100 and decreaseits variable costs
\nby
\n$1 perunit. Also, if
\nFancyTechnologydecreases
\nits priceby$1,it will
\nsell 20% moreunits. Byhow
\nmuch will FancyTechnology\u00e2\u0080\u0099s
\nprofit change(compared to current profit)ifit automates theproduction process
\nAND decreases theprice
\nby$1?
\nA. Increaseby$180
\nB. Increaseby$480
\nC. Decreaseby$100
\nD. Decreaseby$20
\nE. Noneoftheabove<\/p>\n
2.
\nDent Manufacturinghas31,000 labor
\nhours available forproducingMandN. Considerthe followinginformation:<\/p>\n
ProductM<\/p>\n
ProductN<\/p>\n
Requiredlabortimeperunit(hours)<\/p>\n
2<\/p>\n
3<\/p>\n
Totaldemand(units)<\/p>\n
6,500<\/p>\n
8,000<\/p>\n
SalesPrice<\/p>\n
$7.50<\/p>\n
$9.00<\/p>\n
Contributionmarginperunit<\/p>\n
$5.00<\/p>\n
$5.70<\/p>\n
IfDentmakestheoptimalproduction
\nscheduletomaximize
\nprofit,howmuchcontributionmarginwouldthecompanyexpecttogenerate?<\/p>\n
A.<\/p>\n
$102,750<\/p>\n
B.<\/p>\n
$32,500<\/p>\n
C.<\/p>\n
$66,700<\/p>\n
D.<\/p>\n
$78,100<\/p>\n
E.<\/p>\n
Noneoftheabove.<\/p>\n
Skip- this topic (sample nursing essay examples by the best nursing assignment writing service)not coveredinSpr2014.<\/p>\n
3.
\nThe
\nGilligan Companyincurs
\ntotal fixed costs of$1,400,000 forthe
\nproduction of50,000 units or less, and
\n$1,500,000 iftheyproduce
\nmore than 50,000 units (additional
\n$100,000). Theyhavea contributionmarginratio
\nof 40%. Theproduct will sell for
\n$80 perunit. What is the smallest numberofunits that must besoldto earn a
\npre-taxprofit of$420,000?<\/p>\n
A.<\/p>\n
56,875<\/p>\n
B.<\/p>\n
100,000<\/p>\n
C.<\/p>\n
58,000<\/p>\n
D.<\/p>\n
44,375<\/p>\n
E.<\/p>\n
60,000<\/p>\n
4.
\nTaylor
\nCompanyhad
\nthefollowingdata(in
\nmillions of$) fora
\nrecent period.There werenobeginningorendinginventories.<\/p>\n
Sales<\/p>\n
$990<\/p>\n
DirectMaterialsused<\/p>\n
$360<\/p>\n
Directlabor(variable)<\/p>\n
$190<\/p>\n
Factoryoverhead<\/p>\n
Variable<\/p>\n
$125<\/p>\n
Fixed<\/p>\n
$75<\/p>\n
Sellingand
\nadministrativeexpenses Variable $60
\nFixed $40<\/p>\n
Whichofthefollowingiscorrect(inmillionsof$)?<\/p>\n
CostofGood Sold<\/p>\n
ContributionMargin<\/p>\n
OperatingIncome<\/p>\n
A.
\n $360<\/p>\n
$240<\/p>\n
$140<\/p>\n
B.<\/p>\n
$750<\/p>\n
$240<\/p>\n
Cannot
\n be determined<\/p>\n
C.<\/p>\n
$550<\/p>\n
$255<\/p>\n
$140<\/p>\n
D.<\/p>\n
$550<\/p>\n
$240<\/p>\n
$140<\/p>\n
E.<\/p>\n
$750<\/p>\n
$255<\/p>\n
$140<\/p>\n
5.
\nRockyProduction
\nSpecialists (RPS)is considering whetherto makeorbuya component that is usedin theproduction of faxmachines.
\nTheannual cost of
\nproducingthe100,000 units ofthe component needed
\nby
\nthecompanyis as
\nfollows:<\/p>\n
Fax
\nmachinecomponentvariablemanufacturingcosts $300,000Fixedmanufacturingcostsofthecomponent-makingfactory $100,000AllocatedRPScorporateoverhead $
\n50,000<\/p>\n
IfRPSweretodiscontinueproductionofthecomponent,fixedmanufacturingcostswouldbereducedby80%.Corporate
\noverheadisallocated
\nbasedonfactory
\nsquarefootageandwouldnotdecrease.<\/p>\n
RPSshouldbuythe100,000componentsiftheper-unit
\ncostofthepurchasedcomponentislessthanwhat
\namount?<\/p>\n
A.<\/p>\n
$3.20<\/p>\n
B.<\/p>\n
$3.50<\/p>\n
C.<\/p>\n
$3.80<\/p>\n
D.<\/p>\n
$4.30<\/p>\n
E.<\/p>\n
$4.50<\/p>\n
6.
\nMedTech is studyingtheprofitabilityofachange
\nin operation and hasgathered
\nthefollowinginformation:<\/p>\n
CurrentOperation<\/p>\n
AnticipatedOperation<\/p>\n
Fixed
\n costs<\/p>\n
$38,000<\/p>\n
$48,000<\/p>\n
Sellingprice<\/p>\n
$16<\/p>\n
$22<\/p>\n
Variablecost<\/p>\n
$10<\/p>\n
$12<\/p>\n
Sales
\n (units)<\/p>\n
9,000<\/p>\n
6,000<\/p>\n
Should MedTech makethe
\nchange?
\nA. Yes, becausethecompanywill be
\nbetter offby$6,000.
\nB. Yes, becausethecompanywill be
\nbetter offby$4,000.
\nC. No, becausethecompanywill be
\nworse offby$22,000.
\nD. Yes, becausethecompanywill be
\nbetter offby$12,000.
\nE. Noneoftheabovecorrectlylists the changein
\nprofit.<\/p>\n
7.
\nWestern ShirtsInc.
\nmakes t-shirts for teenagers.In2011, the
\ncompanyhadafter-tax
\nprofits of$6,027,462and sold t-shirts for
\n$26.50 each. Acorporate
\ntaxrateof25%was
\nlevied on Western ShirtsInc. duringtheyear.Ifthe variable costper t-shirt is $16 and 1,320,768 t-shirts weresold,what
\nis the total amount offixed costs for
\nthecompanyduring
\n2011? Roundto the
\nnearest dollar.<\/p>\n
A.<\/p>\n
$5,831,448<\/p>\n
B.<\/p>\n
$5,247,870<\/p>\n
C.<\/p>\n
$4,680,535<\/p>\n
D.<\/p>\n
$4,904,560<\/p>\n
E.<\/p>\n
$4,510,680<\/p>\n
8.
\nAs production increases,what happens to VariableCosts per unit?
\nA. Decreases
\nB. Increases
\nC. Stays the same
\nD. Either increases ordecreases, dependingon the
\nfixed costs
\nE. Noneoftheabove<\/p>\n
9. An examination of Aquafloat Corporation’s
\ninventoryaccounts revealed thefollowinginformation:Raw
\nmaterials, June1: 46,000
\nunits
\nRaw materials,
\nJune30: 51,000 units
\nPurchases ofrawmaterials
\nduringJune: 185,000 unitsThereis no beginningorending
\nwork-in-process inventory.
\nAquafloat Corporation\u00e2\u0080\u0099s finished product requires
\nfourunits of rawmaterials and it sells for$10. On
\nthebasis ofthis information, howmanyfinished products were manufacturedduring
\nJune?<\/p>\n
A.<\/p>\n
45,000.<\/p>\n
B.<\/p>\n
47,500.<\/p>\n
C.<\/p>\n
57,750.<\/p>\n
D.<\/p>\n
70,500.<\/p>\n
E.<\/p>\n
180,000.<\/p>\n
10.
\nChelsea
\nCorporation, which uses
\nleast-squares regression analysis, has derived the following regressionequation for
\nestimates ofmanufacturingoverhead: Y=495,000 + 5.65X.Which ofthe
\nfollowingstatements is trueiftheprimary
\ncost driveris machine hours?<\/p>\n
A. Total manufacturingoverhead is represented
\nby
\nthe variable\u00e2\u0080\u009cX\u00e2\u0080\u009d.
\nB.
\nThe
\ncompanyanticipates$495,000 offixed manufacturingoverhead.
\nC.
\n\u00e2\u0080\u009cX\u00e2\u0080\u009d
\nis commonlyknownas
\nthe dependent variable.
\nD.
\n\u00e2\u0080\u009cX\u00e2\u0080\u009d
\nrepresents the
\nnumberofmachine hours.
\nE.
\nBoth \u00e2\u0080\u009cB\u00e2\u0080\u009d and\u00e2\u0080\u009cD\u00e2\u0080\u009daretrue
\n11. WhitfieldInc. has
\nthefollowinginformation regarding
\nactivityforthis
\nyear:Finishedgoods
\ninventorydecreased by$100,000
\nWork-in-process inventoryincreased
\nby
\n$350,000Total manufacturing
\ncosts were$525,000
\nWhat are cost ofgoodsmanufactured
\nand
\ncost ofgoods
\nsold, respectively?A.
\n$175,000 &$275,000
\nB.
\n$100,000&$350,000C. $525,000
\n&$350,000 D. $875,000 &$775,000
\nE. We need
\nmore information about actual
\ninventorybalances to determine answer<\/p>\n
12. CarpoolInc. hasfixed costs
\nperunit of$10 when thecompany
\nproduces 50,000 units. At the
\nsame level ofproduction, total variablecosts
\nare$400,000. What is the total cost
\nwhenCarpool produces 100,000 units?(Assume that 100,000 units is in the relevant range.)<\/p>\n
A.<\/p>\n
$1,800,000<\/p>\n
B.<\/p>\n
$800,000<\/p>\n
C.<\/p>\n
$900,000<\/p>\n
D.<\/p>\n
$1,300,000<\/p>\n
E.<\/p>\n
$1,000,000<\/p>\n
13.
\nAcompanyproducesandsellstwoproductsatunitcontributionmarginsof$4forJand$6forK.Fixedcostsare$140,000.
\nIftheplannedsalesmixistwounitsofJforeachunitofK,thebreakeven
\npointwouldbe(selectthebestanswers):
\nA. 17,500unitsofJand8,750unitsofK
\nB. 7,500unitsofJ and15,000unitsofK
\nC. 10,000unitsofJand20,000unitsofK
\nD. 20,000unitsofJand10,000unitsofK<\/p>\n
14.
\nRenaissanceInc. uses the
\nhigh-low method to analyze cost behavior.Thecompany\u00e2\u0080\u0099s
\nrelevant rangeofactivityvaries
\nfrom 500 to 1,200 machine-hourswith the
\nfollowinginformation forthe first six-months oftheyear:
\nMonth Machine-hours Utilities costs<\/p>\n
January<\/p>\n
720<\/p>\n
$8,000<\/p>\n
February<\/p>\n
900<\/p>\n
8,810<\/p>\n
March<\/p>\n
790<\/p>\n
8,315<\/p>\n
April<\/p>\n
680<\/p>\n
7,820<\/p>\n
May<\/p>\n
970<\/p>\n
9,125<\/p>\n
June<\/p>\n
830<\/p>\n
8,495<\/p>\n
Thefixed utilities cost permonth is estimated to be:<\/p>\n
A.<\/p>\n
$4,760<\/p>\n
B.<\/p>\n
$4,400<\/p>\n
C.<\/p>\n
$5,300<\/p>\n
D.<\/p>\n
$3,520<\/p>\n
E.<\/p>\n
An
\n amount other than those listed
\n above<\/p>\n
15.
\nAssume
\nthe following
\nforthe MNS Company:<\/p>\n
Sales
\n (20,000 units)<\/p>\n
$800,000<\/p>\n
Fixed
\n Expenses<\/p>\n
$210,000<\/p>\n
Break-even
\n point (revenue)<\/p>\n
$700,000<\/p>\n
Ifthe sales
\nprice weretoincreaseby10% and variable expenses increased$2.00 per
\nunit, which ofthefollowing
\nwould be true?<\/p>\n
A. The new break-even point is $700,000
\nB. Theold break-even pointis 7,500 units
\nC. The new variableexpenses are$44 perunit
\nD. The new break-even point is 15,000 units
\nE. The newsellingprice
\nis $30 perunit<\/p>\n
16. Companycan sell all
\ntheunits it can produceofeither
\nlatteorcappuccino but not both.Latte
\nhasaunitcontribution margin of$45 and takes
\nthreemachine hours to make andcappuccino
\nhas aunit contributionmargin of$32 and
\ntakes two machine hours to make. Thereare
\n1,200 machine hours availabletomanufactureaproduct. What should the company
\ndo?
\nSkip- this topic (sample nursing essay examples by the best nursing assignment writing service)not coveredinSpr2014.
\nA. Make latte whichcreates$13 more
\nprofit perunit than cappuccino does
\nB. Make latte becausecappuccino is overrated asabeverage
\nC. Make cappuccino whichcreates
\n$1 moreprofit per machinehourthan lattedoes
\nD. Make cappuccino because moreunits can be madeand sold than
\nlatte
\nE. The same total
\nprofits exists regardless ofwhich product is made<\/p>\n
(Usethefollowinginformation forthe
\nnext two questions)A partial listingofcosts incurred
\nduringDecemberat Gagnier
\nCorporation appears below<\/p>\n
Factorysupplies(Indirect Materials)\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6..<\/p>\n
$8,000<\/p>\n
Administrative wages and salaries\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6.<\/p>\n
$105,000<\/p>\n
Direct
\n materials\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6…<\/p>\n
$153,000<\/p>\n
Sales
\n staffsalaries\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6…<\/p>\n
$68,000<\/p>\n
Factorydepreciation\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6…<\/p>\n
$49,000<\/p>\n
Corporate headquarters buildingrent\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6…………………<\/p>\n
$34,000<\/p>\n
Indirect
\n labor\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6…<\/p>\n
$32,000<\/p>\n
Marketing\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6….<\/p>\n
$103,000<\/p>\n
Direct
\n labor\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6…..<\/p>\n
$83,000<\/p>\n
17.
\nThe
\ntotal ofthe manufacturingoverhead costs listed above
\nforDecemberis:<\/p>\n
A.<\/p>\n
$325,000<\/p>\n
B.<\/p>\n
$635,000<\/p>\n
C.<\/p>\n
$89,000<\/p>\n
D.<\/p>\n
$40,000<\/p>\n
E.<\/p>\n
Noneofthe
\n above<\/p>\n
18.
\nThe
\ntotal ofthe periodcosts
\nlisted above for Decemberis:<\/p>\n
A.<\/p>\n
$89,000<\/p>\n
B.<\/p>\n
$310,000<\/p>\n
C.<\/p>\n
$325,000<\/p>\n
D.<\/p>\n
$399,000<\/p>\n
E.<\/p>\n
Noneofthe
\n above<\/p>\n
19.
\nIadanza
\nCorporation is a
\nwholesaler that sells a singleproduct. Management has provided
\nthefollowingcost data for two levels ofmonthlysales
\nvolume.Thecompanysells
\ntheproduct for$195.70 perunit.<\/p>\n
Sales volume
\n (units)\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6<\/p>\n
6,000<\/p>\n
7,000<\/p>\n
Cost
\n of sales\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6<\/p>\n
$457,800<\/p>\n
$534,100<\/p>\n
Sellingand
\n administrative costs\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6..<\/p>\n
$621,000<\/p>\n
$639,100<\/p>\n
The best estimateofthetotal contribution marginwhen 6,300 units aresold is:<\/p>\n
A.<\/p>\n
$752,220<\/p>\n
B.<\/p>\n
$638,190<\/p>\n
C.<\/p>\n
$100,170<\/p>\n
D.<\/p>\n
$177,030<\/p>\n
E.<\/p>\n
Noneofthe
\n above<\/p>\n
20.
\nBuckeyeCompanyhas
\nprovided thefollowingdata
\nfor maintenancecost:<\/p>\n
Prior
\n Year<\/p>\n
Current
\n Year<\/p>\n
Machinehours.\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6…<\/p>\n
12,500<\/p>\n
15,000<\/p>\n
Maintenancecosts\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6..<\/p>\n
$27,000<\/p>\n
$31,000<\/p>\n
What is our best estimateof total costs?<\/p>\n
A. $21,625 peryearplus $0.625 per machinehour
\nB. $7,000 peryearplus $0.625 per machinehour
\nC. $7,000 peryearplus $1.60 per machinehour
\nD. $27,000 peryearplus $1.60 per machinehour
\nE. Noneoftheabove<\/p>\n
21. The followingmonthlydataare available fortheEagerCompanyand
\nits onlyproduct:<\/p>\n
Unit
\n sales price\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6.<\/p>\n
$75<\/p>\n
Unit
\n variableexpenses\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6..\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6<\/p>\n
$30<\/p>\n
Total
\n fixed expenses\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6.\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6<\/p>\n
$180,000<\/p>\n
Budgeted
\n sales forthemonth of March\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6..\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6..<\/p>\n
7,000 units<\/p>\n
Thesafetymargin
\nforthecompanyfor March was:<\/p>\n
A.<\/p>\n
$315,000<\/p>\n
B.<\/p>\n
$225,000<\/p>\n
C.<\/p>\n
$135,000<\/p>\n
D.<\/p>\n
$495,000<\/p>\n
E.<\/p>\n
Noneofthe
\n above<\/p>\n
22.<\/p>\n
North<\/p>\n
South<\/p>\n
Sales\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6…<\/p>\n
$900,000<\/p>\n
$800,000<\/p>\n
Variableexpenses\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6..<\/p>\n
450,000<\/p>\n
300,000<\/p>\n
Traceablefixed expenses\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6…<\/p>\n
260,000<\/p>\n
210,000<\/p>\n
Allocated common corporate expenses\u00e2\u0080\u00a6\u00e2\u0080\u00a6.<\/p>\n
240,000<\/p>\n
190,000<\/p>\n
Operatingincome(loss)\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6..<\/p>\n
$(50,000)<\/p>\n
$100,000<\/p>\n
The Kelsh
\nCompanyhastwo divisions–North
\nand
\nSouth. Thedivisions havethe
\nfollowing revenuesandexpenses:<\/p>\n
Management at Kelsh is ponderingthe
\nelimination of North Division.
\nIfNorth Division were eliminated,its traceablefixed expenses
\ncould be avoided.Thetotal common
\ncorporateexpenses would be
\nunaffected.Given these
\ndata, theelimination of North Division
\nwould result in an overall companyoperatingincome
\nof:<\/p>\n
A.<\/p>\n
$100,000<\/p>\n
B.<\/p>\n
$150,000<\/p>\n
C.<\/p>\n
$(140,000)<\/p>\n
D.<\/p>\n
$50,000<\/p>\n
E.<\/p>\n
Noneofthe
\n above<\/p>\n
23.
\nWright Corporation’s
\ncontribution format income statement for last month appears
\nbelow.<\/p>\n
Sales\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6<\/p>\n
$45,000<\/p>\n
Variableexpenses\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6……………….<\/p>\n
$27,000<\/p>\n
Contribution
\n margin\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6…<\/p>\n
18,000<\/p>\n
Fixed
\n expenses\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6…<\/p>\n
12,000<\/p>\n
Operatingincome\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6.<\/p>\n
$6,000<\/p>\n
There wereno
\nbeginning orendinginventories.
\nThecompanyproduced and sold
\n3,000 units duringthemonth.Ifsales decrease by500
\nunits next month,calculatethereduction in fixed expenses that
\nwould berequired to maintain thecurrent operatingincome.<\/p>\n
A.<\/p>\n
$7,500<\/p>\n
B.<\/p>\n
$6,000<\/p>\n
C.<\/p>\n
$2,000<\/p>\n
D.
\nE.<\/p>\n
$3,000
\nNoneofthe
\n above<\/p>\n
24.
\nEllis Television makes and
\nsells portable televisions. Each
\ntelevision regularlysells for$210. Thefollowing
\ncost data pertelevision is based on a full
\ncapacityof10,000 televisions produced
\neach period.<\/p>\n
Direct materials\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6..<\/p>\n
$80<\/p>\n
Direct
\n labor\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6…………………………………………………………………………………<\/p>\n
$60<\/p>\n
Manufacturingoverhead(70%
\n variable and 30%unavoidablefixed)\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6<\/p>\n
$40<\/p>\n
A special order has been
\nreceived byEllis for
\nasaleof2,000 televisions to an overseas customer. Theonlyselling
\ncosts that would be
\nincurred on this orderwould
\nbe$6 pertelevision for shipping.
\nEllis is nowselling6,000 televisions
\nthroughregular channels each period. What should betheminimum
\nsellingpriceper
\ntelevision in negotiatingapriceforthis
\nspecialorder?<\/p>\n
A.<\/p>\n
$174<\/p>\n
B.<\/p>\n
$168<\/p>\n
C.<\/p>\n
$210<\/p>\n
D.<\/p>\n
$180<\/p>\n
E.<\/p>\n
Noneofthe
\n above<\/p>\n
25.
\nWright Companyproduces products
\nI, J, and Kfrom a
\nsingleraw materialinput. Budgeted
\ndataforthenext
\nmonth follows:<\/p>\n
ProductI<\/p>\n
Product
\n J<\/p>\n
Product
\n K<\/p>\n
Units
\n produced\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6.<\/p>\n
1,500<\/p>\n
2,000<\/p>\n
3,000<\/p>\n
Perunit
\n sales value at split-off\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6.<\/p>\n
$10<\/p>\n
$12<\/p>\n
$15<\/p>\n
Added
\n processing costs perunit\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6..<\/p>\n
$2<\/p>\n
$4<\/p>\n
$4<\/p>\n
Perunit
\n sales valueif processes further\u00e2\u0080\u00a6\u00e2\u0080\u00a6\u00e2\u0080\u00a6..<\/p>\n
$15<\/p>\n
$15<\/p>\n
$20<\/p>\n
Ifthejoint cost
\noftheraw material input
\nis $78,000, which oftheproducts
\nshould be processed beyond thesplit-off
\npoint?<\/p>\n
ProductI<\/p>\n
Product J<\/p>\n
Product K<\/p>\n
A)<\/p>\n
Yes<\/p>\n
Yes<\/p>\n
No<\/p>\n
B)<\/p>\n
Yes<\/p>\n
No<\/p>\n
Yes<\/p>\n
C)<\/p>\n
No<\/p>\n
Yes<\/p>\n
No<\/p>\n
D)<\/p>\n
No<\/p>\n
Yes<\/p>\n
Yes<\/p>\n
Skip- this topic (sample nursing essay examples by the best nursing assignment writing service)not coveredinSpr2014.<\/p>\n
SECTIONII(50points)
\nYouMUST
\nshowyourworkto
\nreceiveanypartialcredit\/Pleasetrytobeasneatandorganizedaspossible.
\nUnlessstatedroundtotwodecimal
\nplaces.
\n.gif”><\/p>\n
QUESTIONONE(8 points)
\n.gif”>Determine
\nthe missing amounts
\nfor eachofthe following companiesbyfilling
\nin theopenblanksbelow.<\/p>\n
Sales
\n Revenue<\/p>\n
XYZ
\nCompany<\/p>\n
ABC
\nCompany
\n$245,000<\/p>\n
Beginning
\n inventory,raw material<\/p>\n
$8,500<\/p>\n
Ending
\n inventory,raw material<\/p>\n
$180,000<\/p>\n
$20,000<\/p>\n
Purchasesofraw material<\/p>\n
$190,000<\/p>\n
Direct
\n raw materialused<\/p>\n
$140,000<\/p>\n
Directlabor<\/p>\n
$62,500<\/p>\n
Manufacturing
\n overhead<\/p>\n
$490,000<\/p>\n
$80,000<\/p>\n
Total
\n manufacturingcosts<\/p>\n
$1,040,000<\/p>\n
$170,000<\/p>\n
Beginning inventory,work-in-process<\/p>\n
$60,000<\/p>\n
Ending
\n inventory, work-in-process<\/p>\n
$2,500<\/p>\n
Costof goods
\n manufactured<\/p>\n
$1,050,000<\/p>\n
$175,000<\/p>\n
Beginning inventory,finishedgoods<\/p>\n
$100,000<\/p>\n
Costof goods
\n available forsale<\/p>\n
$185,000<\/p>\n
Ending
\n inventory, finished goods<\/p>\n
$12,500<\/p>\n
Costof goods
\n sold<\/p>\n
$1,090,000<\/p>\n
Gross
\n Margin<\/p>\n
$510,000<\/p>\n
Selling
\n and administration expenses<\/p>\n
Income
\n before
\n taxes<\/p>\n
$298,000<\/p>\n
$50,000<\/p>\n
Income
\n tax expense<\/p>\n
$76,000<\/p>\n
Net
\n income<\/p>\n
$32,500<\/p>\n
QUESTIONTWO(6 points)
\n.jpg”>Managers in theStampingDepartment havebeenstudying
\noverhead cost and the relationship with machine
\nhours. Datafrom themost recent 12
\nmonths follow.<\/p>\n
The managerofthedepartment
\nhas requested a regression
\nanalysis of thesetwo variables
\n(labeled no. 1 below).
\nHowever, the staffperson performingtheanalysis decided to run
\nanother regression that excluded
\nFebruary(labeled no. 2). She observed that thevolumeofactivitywas very
\nlowforthat
\nmonth becauseoftwo factors:
\nasevereflu
\noutbreakand an electrical fire that disrupted operations
\nfor
\nabout10 workingdays.<\/p>\n
.jpg”><\/p>\n
Required:
\nA. ExcludingFebruaryas an
\noutlier and usingthehigh-low method determinethe
\nfollowing (ignoretheregression results).<\/p>\n
Total Fixed Costs $ <\/p>\n
VariableCost perUnit
\n$ <\/p>\n
B. Prepare anestimateofoverhead
\ncost foravolume
\nof3,000 machinehours byusingthe
\nregression No. 1output. IgnoreA
\nandregression output No.
\n2.<\/p>\n
QUESTIONTHREE(8 points)<\/p>\n
MackenzieInc manufactures and sells threeracquets: Squash, Tennis, and
\nRacquetball.Annual fixed costs are
\n$3,440,000
\nand dataabout the threeproducts
\nfollow.The corporate taxrateis
\n20%.Round to two decimal
\npoints even forunits.<\/p>\n
Squash<\/p>\n
Racquetball<\/p>\n
Tennis<\/p>\n
Sales
\n mix in units<\/p>\n
50%<\/p>\n
20%<\/p>\n
30%<\/p>\n
Sellingprice<\/p>\n
$300<\/p>\n
$700<\/p>\n
$500<\/p>\n
Variablecost<\/p>\n
150<\/p>\n
420<\/p>\n
220<\/p>\n
Required
\nA. Determinethe weighted-averageunit contribution margin.<\/p>\n
B. Determinethebreak-even volumein units for each product.<\/p>\n
C. Determinethe total numberof weighted units that must besold to obtain an
\nafter-taxprofit forthe
\ncompanyof$860,000.<\/p>\n
D. Assume that
\nthe sales mixfor Squash, Racquetball, and Tennis is changed to
\n40%, 30%, and 30%,respectively. Will the
\nnumberof weighted units required to break-even increaseor
\ndecrease? Circle
\nthecorrect response:<\/p>\n
Increase Decrease<\/p>\n
QUESTIONFOUR(10 points)
\nMasse Corporation usespart G18
\nin oneofits products. The company’s
\nAccountingDepartment reports thefollowing
\ncosts ofproducingthe16,000 units ofthe
\npart that are needed every year.<\/p>\n
.jpg”><\/p>\n
An outside supplier has offered to makethepart and sell it to thecompanyfor$28.00
\neach.Ifthis offer
\nisaccepted, the supervisor’s
\nsalaryandall of
\nthe variable costs, including
\ndirect labor, can be avoided.
\nThespecial equipment used to makethe
\npart was purchased many years agoand has
\nno salvagevalueorotheruse. The
\nallocatedgeneral overheadrepresents
\nfixed costs oftheentire company.
\nIftheoutside supplier’sofferwere
\naccepted, only$22,000 of these allocated general
\noverheadcosts would be
\navoided.Inaddition,the
\nspaceused to produce part G18 could be usedto make moreofoneofthe
\ncompany’s otherproducts,generatinganadditional
\nmargin of$22,000 peryear for that product.<\/p>\n
Required:<\/p>\n
a. Preparea detailed report that shows the
\nrelevant costs of making and
\nbuyingthe G18 part. Include
\natotal cost for each option in addition to cost detail.
\nAlso computethe effecton the
\ncompany’s totaloperatingincome
\nofbuyingthepart
\nG18 from the supplier ratherthan continuingto make
\nit insidethecompany.<\/p>\n
b. Which alternativeshould
\nthecompanychoose?<\/p>\n
QUESTIONFIVE(9 points)<\/p>\n
Skipall of Question Five-
\n this topic (sample nursing essay examples by the best nursing assignment writing service) not
\n coveredinSpr2014.<\/p>\n
Glunn
\nCompanymakes threeproducts
\nin a singlefacility. Theseproducts havethefollowingunit productcosts:<\/p>\n
.jpg”><\/p>\n
Additional dataconcerningtheseproducts
\nare listed below.<\/p>\n
.jpg”><\/p>\n
Themixingmachines
\narepotentiallythe
\nconstraint in the production facility. A total of24,200 minutes areavailable
\npermonth on these machines. Direct laboris a variable
\ncost in this company.<\/p>\n
Required:<\/p>\n
a. Howmanyminutes
\nofmixingmachinetimewould be
\nrequired to satisfydemand forall
\nthree products?<\/p>\n
b. How much of each product should be produced
\nto maximize operatingincome?
\n(Round up to thenearestwhole
\nunit)<\/p>\n
PRODUCTA <\/p>\n
PRODUCTB <\/p>\n
PRODUCTC <\/p>\n
c. Up to how much should thecompanybewilling to payforoneadditional
\nhourofmixingmachine
\ntimeifthecompanyhas
\nmadethe best useoftheexistingmixing
\nmachinecapacity?(Round
\noffto the nearestwhole cent.)<\/p>\n
QUESTIONSIX(9points)
\nMarshall Corporation hasreceived a request fora
\nspecial orderof9,000 units of productZ74 for
\n$46.50 each.The
\nnormal sellingpriceofthis product
\nis $51.60 each, but theunits wouldneed
\nto be modified slightlyforthecustomer.
\nThenormal unit product cost
\nof productZ74 is computed
\nas follows:<\/p>\n
.jpg”><\/p>\n
Direct laboris avariablecost. The
\nspecial orderwould haveno effect
\non the company’s total fixedmanufacturingoverhead
\ncosts. The customerwould likesome
\nmodifications madeto productZ74 that wouldincrease
\nthe variablecosts by$6.20
\nperunit and that would requireaone-time investment of$46,000 in specialmolds that
\nwould haveno salvage value.This
\nspecial orderwould have
\nnoeffect on the company’s
\nother sales.Thecompanyhasamplesparecapacityforproducingthe
\nspecial order.<\/p>\n
Required:<\/p>\n
Determinetheeffect
\non the company’s total operatingincomeofaccepting
\nthe special order. Includeamountand
\nindicateifit increases or decreases operatingincome. Show
\nyourwork!<\/p>\n
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