# Ac505 Page 1 Final

Topics: Variable cost, Net present value, Cost Pages: 4 (723 words) Published: February 24, 2011
1. (TCO A) Wages paid to the factory supply shop foreman are considered an example of: (Points: 5) 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) Rent on a manufacturing plant is an element of: (Points: 5) 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 \$99,900 would be: (Points: 5)
5,970 units
6,000 units
6,240 units
6,500 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 12% and fixed expenses do not change, then: (Points: 5) 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:...