Mba515 Midterm
MBA515 Midterm Exam
Grading Summary These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below. | Date Taken: | 11/26/2012 | Time Spent: | 1 h , 53 min , 23 secs | Points Received: | 187.50 / 270 (69.4%) | | Question Type: | # Of Questions: | # Correct: | Essay | 6 | N/A | | |
Grade Details - All Questions |
1. | Question : | Schlag Inc. expects its sales in January to be $111,000. The company's contribution margin ratio is 65% and its fixed monthly expenses are $64,000.
Required:
Estimate the company's net operating income for January, assuming that the fixed monthly expenses do not change. Show your work! | | | Student Answer: | | Construct the Variable Costing Income Statement Year 1 Sales $111,000 Variable expenses: Variable cost of goods sold Variable selling and administrative expenses - 0 Contribution margin (.65*111000) - 72150 Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses - $64,000 Net operating income = $8,150 | | | | Points Received: | 45 of 45 | | Comments: | | | | 2. | Question : | Babb Company is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year:
Beginning inventory Ending inventory Raw materials $11,000 $15,000 Work in process $32,000 $14,000 Finished goods $108,000 $123,000
The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 17,000 machine-hours and incur $272,000 in manufacturing overhead cost. The following transactions were recorded for the year:
·Raw materials were purchased, $416,000.
·Raw materials were requisitioned for
Grading Summary These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below. | Date Taken: | 11/26/2012 | Time Spent: | 1 h , 53 min , 23 secs | Points Received: | 187.50 / 270 (69.4%) | | Question Type: | # Of Questions: | # Correct: | Essay | 6 | N/A | | |
Grade Details - All Questions |
1. | Question : | Schlag Inc. expects its sales in January to be $111,000. The company's contribution margin ratio is 65% and its fixed monthly expenses are $64,000.
Required:
Estimate the company's net operating income for January, assuming that the fixed monthly expenses do not change. Show your work! | | | Student Answer: | | Construct the Variable Costing Income Statement Year 1 Sales $111,000 Variable expenses: Variable cost of goods sold Variable selling and administrative expenses - 0 Contribution margin (.65*111000) - 72150 Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses - $64,000 Net operating income = $8,150 | | | | Points Received: | 45 of 45 | | Comments: | | | | 2. | Question : | Babb Company is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year:
Beginning inventory Ending inventory Raw materials $11,000 $15,000 Work in process $32,000 $14,000 Finished goods $108,000 $123,000
The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 17,000 machine-hours and incur $272,000 in manufacturing overhead cost. The following transactions were recorded for the year:
·Raw materials were purchased, $416,000.
·Raw materials were requisitioned for