1) Consider the following budget information: materials to be used totals $64,115; direct labor totals $201,287; factory overhead totals $399,124; work in process inventory January 1, 2012, was expected to be $188,108; and work in progress inventory on December 31, 2012, is expected to be $192,266. What is the budgeted cost of goods manufactured?
Select the correct answer.
$660,368
$1,044,900
$664,526
$192,266
2) The following data relate to direct labor costs for the current period:
Standard costs 6,887 hours at $11.10
Actual costs 6,079 hours at $10.00
What is the direct labor rate variance?
Select the correct answer.
$15,656 unfavorable
$6,687 favorable
$15,656 favorable
$8,969 favorable
3) Given the following cost and activity observations for Johnson Company's utilities, use the high-low method to calculate Johnson's fixed costs per month.
Cost
Machine Hours
April $61,983 1,276
May $81,808 1,889
June $109,406 2,368
Using the high-low method, determine the variable cost per unit, and the total fixed costs.
Select the correct answer.
$39.83 per unit and $102,837 respectively.
$43.43 per unit and $6,569 respectively.
$39.83 per unit and $6,569 respectively.
$43.43 per unit and $102,837 respectively.
Production and sales estimates for March for the Win Co. are as follows:
4) Estimated inventory (units), March 1 18,212
Desired inventory (unit), March 31 19,739
Expected sales volume (units):
Area M 6,693
Area L 8,610
Area O 7,066
Unit sales price $16.00
What is the number of units expected to be manufactured in March?
Select the correct answer.
4,157
23,896
43,635
22,369
5) The Collins Corporation just started business in January of 2007. They had no beginning inventories. During 2007 they manufactured 11,932 units of product, and sold 8,837 units. The selling price of each unit was $24. Variable manufacturing costs were $5 per unit, and variable selling and administrative costs were $4 per unit. Fixed manufacturing costs were $28,357 and fixed selling and administrative costs were $7,047.
What would be the Collins Corporations Net income for 2007 using direct costing?
Select the correct answer.
$176,684
$104,506
$162,947
$97,151
6) If sales are $870,145, variable costs are $448,666, and operating income is $228,579, what is the contribution margin ratio?
Select the correct answer.
78%
52%
26%
48%
7) If sales are $870,145, variable costs are $448,666, and operating income is $228,579, what is the contribution margin ratio?
Select the correct answer.
78%
52%
26%
48%
8) Below is budgeted production and sales information for Fleming Company for the month of December: Product X Product Y
Estimated beginning inventory 31,414 units 17,845 units
Desired ending inventory 35,580 units 145,754 units
Region I, anticipated sales 308,874 units 279,073 units
Region II, anticipated sales 197,761 units 147,476 units
The unit selling price for product X is $7 and for product Y is $15.
What is the budgeted production for product Y during the month?
Select the correct answer.
444,394 units
426,549 units
573,629 units
554,458 units
9) The Joyner Corporation had 8,026 actual direct labor hours at an actual rate of $12.10 per hour. Original production had been budgeted for 1,100 units, but only 997 units were actually produced. Labor standards were 8.0 hours per completed unit at a standard rate of $13.23 per hour.
Compute the direct labor time variance.
Select the correct answer.
9,069 U
9,069 F
662 U
662 F
10) Ingram Co. manufactures office furniture. During the most productive month of the year, 3,750 desks were manufactured at a total cost of $83,432. In its slowest month, the company made 1,173 desks at a cost of $39,922. Using the high-low method of cost estimation determine total fixed costs are.
Select the correct answer.
$39,922
$83,432
$20,117
$43,510
11) If fixed costs are $1,216,136, the unit selling price is $202, and the unit variable costs are $117, what is the break-even sales (units) if fixed costs are increased by $39,115?
Select the correct answer.
14,768 units
13,847 units
1,760 units
16,731 units
12) The following data is given for the Harry Company:
Budgeted production 1,022 units
Actual production 911 units
Materials:
Standard price per ounce $1.94
Standard ounces per completed unit 12
Actual ounces purchased and used in production 10,604
Actual price paid for materials $21,738
Labor:
Standard hourly labor rate $15.00 per hour
Standard hours allowed per completed unit 4.0
Actual labor hours worked 4,692
Actual total labor costs $71,553
Overhead:
Actual and budgeted fixed overhead $1,157,454
Standard variable overhead rate $27.00 per standard labor hour
Actual variable overhead costs $131,376
Overhead is applied on standard labor hours.
Determine the direct labor rate variance.
Select the correct answer.
$16,893 U
$15,720 U
$15,720 F
$1,173 U
25) Christian and Sons' static budget for 10,417 units of production includes $42,264 for direct materials, $46,964 for direct labor, utilities of $7,033, and supervisor salaries of $16,461. What would flexible budget show for 13,227 units of production?
Select the correct answer.
direct materials of $42,264, direct labor of $59,633, utilities of $7,033, and supervisor salaries of $16,461
direct materials of $53,665, direct labor of $59,633, utilities of $8,930, and supervisor salaries of $16,461
total variable costs of $112,722
the same cost structure in total
13) If fixed costs are $248,272, the unit selling price is $94, and the unit variable costs are $59, what is the break-even sales (units)?
Select the correct answer.
59 units
2,641 units
5,959 units
7,093 units
14) The Flapjack Corporation had 7,817 actual direct labor hours at an actual rate of $12.50 per hour. Original production had been budgeted for 1,100 units, but only 971 units were actually produced. Labor standards were 7.0 hours per completed unit at a standard rate of $12.81 per hour.
Compute the labor rate variance.
Select the correct answer.
2,423 U
2,423 F
13,066 U
13,066 F
15) The standard costs and actual costs for direct materials for the manufacture of 2,411 actual units of product are as follows:
Standard Costs
Direct materials (per completed unit) 1.04 pounds @$8.90
Actual Costs
Direct materials 2,411 pounds @ $8.25
Determine the amount of direct materials price variance.
Select the correct answer.
$1,567.15 favorable
$1,567.15 unfavorable
$2,408.00 favorable
$2,408.00 unfavorable
16) The Dandy Jeans Company produces two different types of jeans. One is called the "Simple Life" and the other is called the "Fancy Life" The company's Production Budget requires 350,973 units of Simple jeans and 196,226 Fancy jeans to be manufactured. It is estimated that 2.63 direct labor hours will be needed to manufacture one pair of Simple Life jeans and 3.54 hours of direct labor hours for each pair of Fancy life jeans.
What is the total number of direct labor hours needed for both lines of jeans (round to integer number)?
Select the correct answer.
4,285,929 direct labor hours
923,059 direct labor hours
694,640 direct labor hours
1,617,699 direct labor hours
17) Win Corporation sells a single product. Budgeted sales for the year are anticipated to be 621,161 units, estimated beginning inventory is 102,971 units, and desired ending inventory is 87,371 units. The quantities of direct materials expected to be used for each unit of finished product are given below.
Material A .50 lb. per unit @ $0.70 per pound
Material B 1.00 lb. per unit @ $2.12 per pound
Material C 1.20 lb. per unit @ $1.84 per pound
What is the dollar amount of direct material A used in production during the year?
Select the correct answer.
$1,283,789
$211,946
$1,337,079
$217,406
18) If fixed costs are $1,254,519, the unit selling price is $213, and the unit variable costs are $114, what is the amount of sales required to realize an operating income of $248,314?
Select the correct answer.
2,178 units
5,890 units
15,180 units
11,005 units
19) Below is budgeted production and sales information for Fleming Company for the month of December: Product X Product Y
Estimated beginning inventory 31,322 units 18,954 units
Desired ending inventory 34,511 units 147,224 units
Region I, anticipated sales 329,277 units 261,338 units
Region II, anticipated sales 198,220 units 143,586 units
The unit selling price for product X is $7 and for product Y is $13.
What is the budgeted production for product X during the month?
Select the correct answer.
530,686 units
562,008 units
524,308 units
527,497 units
20) The standard costs and actual costs for factory overhead for the manufacture of 2,505 units of actual production are as follows:
Standard Costs
Fixed overhead (based on 10,000 hours) 3 hours @ $0.80 per hour
Variable overhead 3 hours @ $2.10 per hour
Actual Costs
Total variable cost, $17,834
Total fixed cost, $7,941
Determine the amount of the factory overhead cost variance.
Select the correct answer.
$1,929 unfavorable
$3,981 unfavorable
$1,929 favorable
$3,556 unfavorable
21) For January, sales revenue is $593,854; sal
es commissions are 5% of sales; the sales manager's salary is $90,286; advertising expenses are $91,117; shipping expenses total 1% of sales; and miscellaneous selling expenses are $2,924 plus 1/2 of 1% of sales. What are the total selling expenses for the month of January?
Select the correct answer.
$222,928
$219,958
$184,327
$214,020
22) Given the following cost and activity observations for Wondrous Company's utilities, use the high-low method to calculate Wondrous' variable utilities costs per machine hour.
Select the correct answer.
Cost
Machine Hours
March $3,136 14,911
April $2,662 10,191
May $2,858 11,815
June $3,849 18,287
$0.15
$0.03
$0.23
$0.21
23)
Standard Actual
Material Cost Per Yard $1.90 $2.03
Yards per Unit 4.90 yards 4.71 yards
Number of Units Produced 9,017
Calculate the total direct materials price variance using the above information.
Select the correct answer.
$3,255 Unfavorable
$5,521 Favorable
$2,266 Favorable
$5,521 Unfavorable
24) If fixed costs are $720,008 and variable costs are 65% of sales, what is the break-even point (dollars)?
Select the correct answer.
$1,188,013
$2,057,166
$468,005
$2,777,17
25) Motorcycle Manufacturers, Inc. projected sales of 55,957 machines for 2012. The estimated January 1, 2012, inventory is 6,984 units, and the desired December 31, 2012, inventory is 7,275 units. What is the budgeted production (in units) for 2012?
Select the correct answer.
56,248
55,666
41,698
55,957
26) The following data relate to direct materials costs for November:
Actual costs 4,602 pounds at $5.30
Standard costs 4,409 pounds at $6.20
What is the direct materials quantity variance?
Select the correct answer.
$1,197 unfavorable
$1,197 favorable
$4,142 favorable
$4,142 unfavorable
27) The following data relate to direct materials costs for November:
Actual costs 4,610 pounds at $5.20
Standard costs 4,403 pounds at $6.50
What is the direct materials price variance?
Select the correct answer.
$1,346 unfavorable
$5,993 unfavorable
$1,346 favorable
$5,993 favorable
28) The following data relate to direct labor costs for the current period:
Standard costs 7,179 hours at $11.00
Actual costs 6,094 hours at $10.40
What is the direct labor time variance?
Select the correct answer.
$15,591 unfavorable
$3,656 favorable
$15,591 favorable
$11,935 favorable
Standard Actual
Material Cost Per Yard $1.93 $2.03
Yards per Unit 4.90 yards 467 yards
Number of Units Produced 9,094
Calculate the total direct materials quantity variance using the above information.
Select the correct answer.
$4,037 Favorable
$4,247 Unfavorable
$4,247 Favorable
$210 Favorable
29) Production and sales estimates for March for the Win Co. are as follows:Estimated inventory (units), March 1 18,274
Desired inventory (unit), March 31 19,217
Expected sales volume (units):
Area M 6,913
Area L 8,876
Area O 7,210
Unit sales price $13.00
What is the number of units expected to be sold in March?
Select the correct answer.
4,725
23,942
43,159
22,999
30) Win Corporation sells a single product. Budgeted sales for the year are anticipated to be 623,875 units, estimated beginning inventory is 107,063 units, and desired ending inventory is 84,012 units. The quantities of direct materials expected to be used for each unit of finished product are given below.
Material A .50 lb. per unit @ $0.61 per pound
Material B 1.00 lb. per unit @ $2.32 per pound
Material C 1.20 lb. per unit @ $1.49 per pound
What is the dollar amount of direct material B used in production during the year?
Select the correct answer.
$183,251
$1,393,912
$1,074,273
$190,282
31) At the beginning of the period, the Cutting Department budgeted direct labor of $132,516, direct material of $153,046 and fixed factory overhead of $14,467 for 7,585 hours of production. The department actually completed 11,710 hours of production. What is the appropriate total budget for the department, assuming it uses flexible budgeting?
Select the correct answer.
$307,897
$463,196
$455,328
$300,029
32) Win Corporation sells a single product. Budgeted sales for the year are anticipated to be 654,206 units, estimated beginning inventory is 106,586 units, and desired ending inventory is 87,847 units. The quantities of direct materials expected to be used for each unit of finished product are given below.
Material A .50 lb. per unit @ $0.53 per pound
Material B 1.00 lb. per unit @ $1.58 per pound
Material C 1.20 lb. per unit @ $0.92 per pound
What is the dollar amount of direct material C used in production during the year?
Select the correct answer.
$1,004,038
$168,399
$173,365
$701,556
33) Wright Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $241,404, $313,505, and $422,074, respectively, for September, October, and November. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month.
What are the cash collections in September from sales on account?
Select the correct answer.
$48,281
$135,186
$241,404
$183,467
34) For January, sales revenue is $575,588; sales commissions are 7% of sales; the sales manager's salary is $80,727; advertising expenses are $89,875; shipping expenses total 1% of sales; and miscellaneous selling expenses are $2,252 plus 1/2 of 1% of sales. What are the total selling expenses for the month of January?
Select the correct answer.
$172,854
$213,145
$221,779
$218,901
35) Motorcycle Manufacturers, Inc. projected sales of 52,149 machines for 2012. The estimated January 1, 2012, inventory is 6,238 units, and the desired December 31, 2012, inventory is 7,193 units. What is the budgeted production (in units) for 2012?
Select the correct answer.
51,194
53,104
52,149
38,718
36) The Dandy Jeans Company produces two different types of jeans. One is called the "Simple Life" and the other is called the "Fancy Life" The company's Production Budget requires 355,135 units of Simple jeans and 194,455 Fancy jeans to be manufactured. It is estimated that 2.62 direct labor hours will be needed to manufacture one pair of Simple Life jeans and 3.37 hours of direct labor hours for each pair of Fancy life jeans.
What is the total number of direct labor hours needed for both lines of jeans (round to integer number)?
Select the correct answer.
3,925,327 direct labor hours
930,454 direct labor hours
1,585,767 direct labor hours
655,313 direct labor hours
37) Kidder Company began its operations on March 31 of the current year. Projected manufacturing costs for the first three months of business are $159,683, $194,103, and $208,975, respectively, for April, May, and June. Depreciation, insu
rance, and property taxes represent $27,396 of the estimated monthly manufacturing costs. Insurance was paid on March 31, and property taxes will be paid in November. Three-fourths of the remainder of the manufacturing costs are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month.What are the cash payments for manufacturing in the month of June?
$99,215
$159,683
$158,102
$177,861
38) O'Neill Co. has $299,802 in accounts receivable on January 1. Budgeted sales for January are $816,959. O'Neill expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. What are the January cash collections from sales?
Select the correct answer.
$816,959
$762,695
$953,369
$1,253,171
39) Wright Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $239,578, $305,499, and $413,025, respectively, for September, October, and November. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month. What are the cash collections in October from sales on account?
Select the correct answer.
$134,164
$218,995
$239,578
$182,079
40) If the expected sales volume for the current period is 7,969 units, the desired ending inventory is 246 units, and the beginning inventory is 333 units, what is the number of units set forth in the production budget, representing total production for the current period?
Select the correct answer.
7,636
8,215
7,969
7,882
41) Wright Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $234,021, $300,438, and $417,193, respectively, for September, October, and November. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month.
What are the cash collections in November from sales on account?
Select the correct answer.
$131,052
$303,077
$168,245
$177,856
42) Wright Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $240,813, $300,927, and $427,872, respectively, for September, October, and November. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month.
What are the cash collections in October
Select the correct answer.
$240,813
$264,844
$216,682
$276,867
43) Consider the following budget information: materials to be used totals $64,282; direct labor totals $198,566; factory overhead totals $404,916; work in process inventory January 1, 2012, was expected to be $185,467; and work in progress inventory on December 31, 2012, is expected to be $190,068. What is the budgeted cost of goods manufactured?
Select the correct answer.
$1,043,299
$663,163
$190,068
$667,764
44) Kidder Company began its operations on March 31 of the current year. Projected manufacturing costs for the first three months of business are $156,124, $197,853, and $205,299, respectively, for April, May, and June. Depreciation, insurance, and property taxes represent $27,923 of the estimated monthly manufacturing costs. Insurance was paid on March 31, and property taxes will be paid in November. Three-fourths of the remainder of the manufacturing costs are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month.
What are the cash payments for manufacturing in the month of May
Select the correct answer.
$96,151
$39,031
$156,124
$159,498
45) Christian and Sons' static budget for 9,682 units of production includes $41,818 for direct materials, $48,567 for direct labor, utilities of $7,350, and supervisor salaries of $16,753. What would flexible budget show for 13,339 units of production?Select the correct answer.
direct materials of $41,818, direct labor of $66,911, utilities of $7,350, and supervisor salaries of $16,753
the same cost structure in total
direct materials of $57,613, direct labor of $66,911, utilities of $10,126, and supervisor salaries of $16,753
total variable costs of $114,488
1) For January, sales revenue is $575,588; sales commissions are 7% of sales; the sales manager's salary is $80,727; advertising expenses are $89,875; shipping expenses total 1% of sales; and miscellaneous selling expenses are $2,252 plus 1/2 of 1% of sales. What are the total selling expenses for the month of January?
Select the correct answer.
$172,854
$213,145
$221,779
$218,901
2) Motorcycle Manufacturers, Inc. projected sales of 52,149 machines for 2012. The estimated January 1, 2012, inventory is 6,238 units, and the desired December 31, 2012, inventory is 7,193 units. What is the budgeted production (in units) for 2012?
Select the correct answer.
51,194
53,104
52,149
38,718
3) The Dandy Jeans Company produces two different types of jeans. One is called the "Simple Life" and the other is called the "Fancy Life" The company's Production Budget requires 355,135 units of Simple jeans and 194,455 Fancy jeans to be manufactured. It is estimated that 2.62 direct labor hours will be needed to manufacture one pair of Simple Life jeans and 3.37 hours of direct labor hours for each pair of Fancy life jeans.
What is the total number of direct labor hours needed for both lines of jeans (round to integer number)?
Select the correct answer.
3,925,327 direct labor hours
930,454 direct labor hours
1,585,767 direct labor hours
655,313 direct labor hours
4) Kidder Company began its operations on March 31 of the current year. Projected manufacturing costs for the first three months of business are $159,683, $194,103, and $208,975, respectively, for April, May, and June. Depreciation, insurance, and property taxes represent $27,396 of the estimated monthly manufacturing costs. Insurance was paid on March 31, and property taxes will be paid in November. Three-fourths of the remainder of the manufacturing costs are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month.What are the cash payments for manufacturing in the month of June?
$99,215
$159,683
$158,102
$177,861
5) O'Neill Co. has $299,802 in accounts receivable on January 1. Budgeted sales for January are $816,959. O'Neill expects to sell 20% of its merchandise for
cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. What are the January cash collections from sales?
Select the correct answer.
$816,959
$762,695
$953,369
$1,253,171
6) Wright Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $239,578, $305,499, and $413,025, respectively, for September, October, and November. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month. What are the cash collections in October from sales on account?
Select the correct answer.
$134,164
$218,995
$239,578
$182,079
7) If the expected sales volume for the current period is 7,969 units, the desired ending inventory is 246 units, and the beginning inventory is 333 units, what is the number of units set forth in the production budget, representing total production for the current period?
Select the correct answer.
7,636
8,215
7,969
7,882
8) Wright Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $234,021, $300,438, and $417,193, respectively, for September, October, and November. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month.
What are the cash collections in November from sales on account?
Select the correct answer.
$131,052
$303,077
$168,245
$177,856
9) Wright Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $240,813, $300,927, and $427,872, respectively, for September, October, and November. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month.
What are the cash collections in October
Select the correct answer.
$240,813
$264,844
$216,682
$276,867
10) Consider the following budget information: materials to be used totals $64,282; direct labor totals $198,566; factory overhead totals $404,916; work in process inventory January 1, 2012, was expected to be $185,467; and work in progress inventory on December 31, 2012, is expected to be $190,068. What is the budgeted cost of goods manufactured?
Select the correct answer.
$1,043,299
$663,163
$190,068
$667,764
11) Kidder Company began its operations on March 31 of the current year. Projected manufacturing costs for the first three months of business are $156,124, $197,853, and $205,299, respectively, for April, May, and June. Depreciation, insurance, and property taxes represent $27,923 of the estimated monthly manufacturing costs. Insurance was paid on March 31, and property taxes will be paid in November. Three-fourths of the remainder of the manufacturing costs are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month.
What are the cash payments for manufacturing in the month of May
Select the correct answer.
$96,151
$39,031
$156,124
$159,498
12) Christian and Sons' static budget for 9,682 units of production includes $41,818 for direct materials, $48,567 for direct labor, utilities of $7,350, and supervisor salaries of $16,753. What would flexible budget show for 13,339 units of production?Select the correct answer.
direct materials of $41,818, direct labor of $66,911, utilities of $7,350, and supervisor salaries of $16,753
the same cost structure in total
direct materials of $57,613, direct labor of $66,911, utilities of $10,126, and supervisor salaries of $16,753
total variable costs of $114,488