Question 1

Wessner Corporation has provided the following information:
  
-If 5,000 units are produced,the total amount of manufacturing overhead cost is closest to:

Accepted Answer

A)  $18,000 
B)  $19,250 
C)  $18,625 
D)  $20,500 
A)  $18,000 
B)  $19,250 
C)  $18,625 
D)  $20,500

Question 2

The following costs were incurred in May:
  Prime costs during the month totaled:

Accepted Answer

A)  $36,000 
B)  $119,000 
C)  $69,000 
D)  $46,000 
A)  $36,000 
B)  $119,000 
C)  $69,000 
D)  $46,000

Question 3

Rhome Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:
  
-If 5,000 units are produced,the average fixed manufacturing cost per unit produced is closest to:

Accepted Answer

A)  $3.75 
B)  $2.40 
C)  $2.70 
D)  $3.00 
A)  $3.75 
B)  $2.40 
C)  $2.70 
D)  $3.00

Question 4

Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year:
  
-What is the total of the product costs above?

Accepted Answer

A)  $0 
B)  $69,000 
C)  $155,000 
D)  $159,000 
A)  $0 
B)  $69,000 
C)  $155,000 
D)  $159,000

Question 5

To the nearest whole dollar,what should be the total sales commissions at a sales volume of 18,400 units? (Assume that this sales volume is within the relevant range.)

Accepted Answer

A)  $126,720 
B)  $132,000 
C)  $121,440 
D)  $143,478 
A)  $126,720 
B)  $132,000 
C)  $121,440 
D)  $143,478

Question 6

Most companies use the contribution approach in preparing financial statements for external reporting purposes.

Accepted Answer

A) True 
 B)False

Question 7

Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:
  
-If 3,000 units are produced,the total amount of indirect manufacturing cost incurred is closest to:

Accepted Answer

A)  $4,200 
B)  $10,400 
C)  $14,600 
D)  $12,000 
A)  $4,200 
B)  $10,400 
C)  $14,600 
D)  $12,000

Question 8

A merchandising company typically will have a high proportion of which type of cost in its cost structure?

Accepted Answer

A)  Variable. 
B)  Fixed. 
C)  Mixed. 
D)  Step-variable. 
A)  Variable. 
B)  Fixed. 
C)  Mixed. 
D)  Step-variable.

Question 9

Mccaskell Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:
  
-If 8,000 units are produced,the total amount of indirect manufacturing cost incurred is closest to:

Accepted Answer

A)  $14,000 
B)  $93,200 
C)  $89,100 
D)  $103,100 
A)  $14,000 
B)  $93,200 
C)  $89,100 
D)  $103,100

Question 10

Contribution format income statements are prepared primarily for external reporting purposes

Accepted Answer

A) True 
 B)False

Question 11

The relevant range concept is applicable to mixed costs.

Accepted Answer

A) True 
 B)False

Question 12

A variable cost remains constant if expressed on a unit basis.

Accepted Answer

A) True 
 B)False

Question 13

Arman Corporation's relevant range of activity is 3,000 units to 7,000 units.When it produces and sells 5,000 units,its average costs per unit are as follows:
   Required:
a.If 6,000 units are produced,what is the total amount of fixed manufacturing cost incurred?
b.If 6,000 units are produced,what is the total amount of manufacturing overhead cost incurred? What is this total amount expressed on a per unit basis?
c.If 4,000 units are produced,what is the total amount of direct manufacturing cost incurred?
d.If 4,000 units are produced,what is the total amount of indirect manufacturing cost incurred?

Accepted Answer

a.
 @#IMG-DLM& b.
 @#IMG-DLM& *The average fixed manufacturi

Question 14

Wippert Corporation,a merchandising company,reported the following results for December:
   Required:
a.Prepare a traditional format income statement for December.
b.Prepare a contribution format income statement for December.

Accepted Answer

a.Traditional Format

Question 15

Meginnis Corporation's relevant range of activity is 3,000 units to 7,000 units.When it produces and sells 5,000 units,its average costs per unit are as follows:
  If 6,000 units are produced,the total amount of direct manufacturing cost incurred is closest to:

Accepted Answer

A)  $79,200 
B)  $63,600 
C)  $62,700 
D)  $53,700 
A)  $79,200 
B)  $63,600 
C)  $62,700 
D)  $53,700

Question 16

Opportunity costs at a manufacturing company are not part of manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 17

Fassino Corporation reported the following data for the month of November:
  
-The prime cost for November was:

Accepted Answer

A)  $79,000 
B)  $59,000 
C)  $67,000 
D)  $87,000 
A)  $79,000 
B)  $59,000 
C)  $67,000 
D)  $87,000

Question 18

Delongis Corporation, a merchandising company, reported the following results for June:
   Cost of goods sold is a variable cost in this company.
-The gross margin for June is:

Accepted Answer

A)  $242,600 
B)  $148,800 
C)  $124,800 
D)  $102,200 
A)  $242,600 
B)  $148,800 
C)  $124,800 
D)  $102,200

Question 19

Schwiesow Corporation has provided the following information:
  
-For financial reporting purposes,the total amount of product costs incurred to make 5,000 units is closest to:

Accepted Answer

A)  $72,000 
B)  $77,000 
C)  $11,000 
D)  $61,000 
A)  $72,000 
B)  $77,000 
C)  $11,000 
D)  $61,000

Question 20

In a traditional format income statement for a merchandising company,cost of goods sold is a variable cost that is included in the "Variable expenses" portion of the income statement.

Accepted Answer

A) True 
 B)False

Exam 1: Managerial Accounting and Cost Concepts

Wessner Corporation has provided the following information: -If 5,000 units are produced,the total amount of manufacturing overhead cost is closest to:

The following costs were incurred in May: Prime costs during the month totaled:

Rhome Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: -If 5,000 units are produced,the average fixed manufacturing cost per unit produced is closest to:

Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year: -What is the total of the product costs above?

To the nearest whole dollar,what should be the total sales commissions at a sales volume of 18,400 units? (Assume that this sales volume is within the relevant range.)

Most companies use the contribution approach in preparing financial statements for external reporting purposes.

Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: -If 3,000 units are produced,the total amount of indirect manufacturing cost incurred is closest to:

A merchandising company typically will have a high proportion of which type of cost in its cost structure?

Mccaskell Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: -If 8,000 units are produced,the total amount of indirect manufacturing cost incurred is closest to:

Contribution format income statements are prepared primarily for external reporting purposes

The relevant range concept is applicable to mixed costs.

A variable cost remains constant if expressed on a unit basis.

Wippert Corporation,a merchandising company,reported the following results for December: Required: a.Prepare a traditional format income statement for December. b.Prepare a contribution format income statement for December.

Meginnis Corporation's relevant range of activity is 3,000 units to 7,000 units.When it produces and sells 5,000 units,its average costs per unit are as follows: If 6,000 units are produced,the total amount of direct manufacturing cost incurred is closest to:

Opportunity costs at a manufacturing company are not part of manufacturing overhead.

Fassino Corporation reported the following data for the month of November: -The prime cost for November was:

Delongis Corporation, a merchandising company, reported the following results for June: Cost of goods sold is a variable cost in this company. -The gross margin for June is:

Schwiesow Corporation has provided the following information: -For financial reporting purposes,the total amount of product costs incurred to make 5,000 units is closest to:

In a traditional format income statement for a merchandising company,cost of goods sold is a variable cost that is included in the "Variable expenses" portion of the income statement.

Job-Order Costing: Calculating Unit Production Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Super-Variable Costing

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Cost of Quality

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Job-Order Costing: a Microsoft Excel-Based Approach

Fifo Method

Service Department Allocations

Analyzing Mixed Costs

Time-Driven Activity-Based Costing: a Microsoft Excel-Based Approach

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Standard Cost Systems: a Financial Reporting Perspective Using Microsoft Excel

Transfer Pricing

Service Department Charges

Pricing Decisions

The Concept of Present Value

Income Taxes and the Present Value Method

the Direct Method of Determining the Net Cash Provided by Operating Activities

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