Ac505 Final

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1. (TCO A) Wages paid to the factory maintenance supervisor are considered an example of: (Points : 7)        Direct Labor - yes,    Period Cost - yes
       Direct Labor - yes,    Period Cost - No
       Direct Labor - no ,    Period Cost - yes
       Direct Labor - no ,    Period Cost - no|
2. (TCO A) Machinery Depreciation on a manufacturing plant is an element of: (Points : 7)        Conversion cost - yes, period cost - no
       Conversion cost - yes, period cost - yes
       Conversion cost - no, period cost - yes
       Conversion cost - no, period cost - no|
3. (TCO B)  Evergreen Corp. has provided the following data:  Sales per period                                                      1,000 units Selling price                                                           $40 per unit Variable manufacturing cost                                   $12 per unit Selling expenses                         $5,100 plus 5% of selling price Administrative expenses           $3,000 plus 20% of selling price  

The number of units needed to achieve a target net operating income of $49,500 would be:(Points : 7)        1,238 Units
       2,750 Units
       3,200 Units
       2,057 Units|
4. (TCO B)   Garth Company sells a single product. If the selling price per unit and the variable expense per unit both increase by 10% and fixed expenses do not change, then: (Points : 7)        Contribution Margin Per Unit - Increases, Contribution Margin Ratio - Increases, Break-Even in Units - Decreases        Contribution Margin Per Unit - No Change, Contribution Margin Ratio - No Change, Break-Even in Units - No Change        Contribution Margin Per Unit - No Change, Contribution Margin Ratio - Increases, Break-Even in Units - No Change        Contribution Margin Per Unit - Increases, Contribution Margin Ratio - No Change,  Break-Even in Units - Decreases| 5. (TCO E) Rebel Company manufactures a single product and has the following cost structure: Variable costs per unit: Production................................................. $5 Selling and administrative........................... $3

Fixed costs in total:
Production................................................. $32,000 Selling and administrative........................... $16,000  
Last year there were no beginning inventories, 8,000 units were produced, and 7,800 units were sold. Under variable costing, the unit product cost would be: (Points : 7)        $5
       $8
       $9
       $11|
6.  (TCO F) Tragon Corporation has provided data concerning the company's Manufacturing Overhead account for the month of September. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $76,000 and the total of the credits to the account was $75,000. Which of the following statements is true? (Points : 7)        Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $76,000        Actual manufacturing overhead incurred during the month was $66,000        Manufacturing overhead applied to Work in Process for the month was $76,000        Manufacturing overhead for the month was underapplied by $1,000| 7. (TCO G)  An investment project for which the net present value is $300 would result in which of the following conclusions? (Points : 7)        the net present value is too small; the project should be rejected        the investment project promises slightly more than the required rate of return        the net present value method is not suitable for evaluating this project; the internal rate of return method should be used        the investment project should only be accepted if net present value is zero; a positive net present value indicates an error(s) in the estimates associated with the analysis of this investment.| 8. (TCO G) Bowen Company is considering several investment proposals, as shown...
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