business questions
1. Given: Department A 8,000 sq. ft., Department B 5,000 sq., and Department C 6,000 sq. ft. The percent of overhead expenses applied to Department C to the nearest whole will be:
a) 68%
b) 32%
c) 26%
d) 42%
e) None of these
2. With Department A sales of $200,000, Department B sales of $600,000, and overhead expense to be allocated of $25,000, the distribution of overhead to Department A based on sales is:
a) $18,750
b) $25,000
c) $2,600
d) $6,250
e) None of these
3. Belle Co. has beginning inventory of 12 sets of paints at a cost of $1.50 each. During the year, the store purchased 7 at $3.00, 8 at $3.25, and 12 at $3.50. By the end of the year 31 sets were sold. Using the LIFO method, the cost of ending inventory is:
a) $28.00
b) $12.00
c) $21.00
d) $3.50
e) None of these
4. Moss Co. uses the FIFO method to calculate ending inventory. Assuming 300 units are not sold, the cost of goods sold is:
a) $7,600
b) $7,280
c) $3,120
d) $3,400
e) None of these
5. Melissa’s Dress Shop’s inventory at cost on January 1 was $19,400. Its retail value was $36,000. During the year, additional net purchases at a cost of $42,600 were brought in. Its retail value was $64,000. The net sales for the year were $70,000. Melissa’s inventory at cost by the retail method is:
a) $30,000
b) $18,600
c) 18,000
d) $12,400
e) None of these
6. Which one of the following builds up no cash value?
a) Universal Life
b) Straight-Life
c) Term
d) 20-payment life
e) None of these
7. Abby Kaminsky, age 32, has decided to take out a limited payment life policy. She chose this since she expects her income to decline in future years. Abby has decided to take out a 20-year pay life policy with a coverage amount of $200,000. Using the tables in her handbook, her annual premium will be:
a) $1,158
b) $2,316
c) $2,136
d) $1,518
e) None of these
8. Mia's office building with a $300,000 value has a rating of 2 with a building classification of A. The contents in the building are valued at $120,000. Using the tables in the handbook, the total annual is:
a) $1,046.40
b) $990.00
c) $1,064.40
d) $1,064.04
e) None of these
9. Bill Blum insured his hardware store with a fire insurance policy for$88,000 at a cost of $.84 per $100. Ten months later his insurance company canceled his policy as a result of failure to correct a fire hazard. The cost of the policy to Bill was:
a) $739.20
b) $793.20
c) $591.36
d) $616.00
e) None of these
10. Calculate the optional bodily injury cost for the following: Class 10; optional bodily injury:100/300/50
a) $94
b) $144
c) $108
d) $187
e) None of These