Mgm 252 Exam Chp 2,3,4

18 Questions | Total Attempts: 141

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Managerial Accounting Quizzes & Trivia

Prep for the first exam in Managerial Accounting 252


Questions and Answers
  • 1. 
    Which of the following costs is not part of overhead costs?
    • A. 

      Sales commission

    • B. 

      Salary for supervisors

    • C. 

      Lubrication

    • D. 

      Salary for factory forklift operator

  • 2. 
    The following information was given about Flag’s costs for March:         Salaries for line workers $ 23,000   Cost of fabric $ 1,700   Power for machines $ 700   Manager’s salary $ 7,800   Supervisor’s salary $ 5,900   Sales commissions $ 4,900 How much is Direct Labor?
    • A. 

      $23,000

    • B. 

      $36,700

    • C. 

      $30,800

    • D. 

      $41,600

  • 3. 
    Which of the following costs is not a period cost?
    • A. 

      Shipping costs of finished goods

    • B. 

      Sales commissions

    • C. 

      Advertising

    • D. 

      Indirect materials

    • E. 

      Administrative salaries

  • 4. 
    All of the following are product costs for financial reporting except:
    • A. 

      Rent on factory space

    • B. 

      Indirect materials

    • C. 

      Advertising

    • D. 

      Direct labor

  • 5. 
    You are provided the following information:         Salaries for assembly workers $ 35,000   Cost of materials $ 2,900   Lubricants for machines $ 1,300   Manager’s salary $ 10,200   Supervisor’s salary $ 7,100   Sales commissions $ 6,100 Determine the amount of period costs
    • A. 

      $45,200

    • B. 

      $16,300

    • C. 

      23,400

    • D. 

      $35,00

  • 6. 
    If the activity level increases, one would expect the fixed cost per unit to:
    • A. 

      Increase

    • B. 

      Decrease

    • C. 

      Remain unchanged

    • D. 

      None of these

  • 7. 
    If the activity level drops by 15%, variable costs should:
    • A. 

      Increase per unit cost of product

    • B. 

      Drop in total by 15%

    • C. 

      Decrease per unit cost of product

    • D. 

      Remain constant in total

  • 8. 
    A company’s cost formula for maintenance is Y = $6,600 + $4.5X, where X is machine-hours. During a period in which 3,300 machine-hours are worked, the expected maintenance cost would be:
  • 9. 
    In March, Espresso Express had electrical costs of $367.20 when the total volume was 4,530 cups of coffee served. In April, electrical costs were $378.40 for 4,810 cups of coffee. Using the high-low method, what is the estimated fixed cost of electricity per month? (Round your intermediate calculations to 2 decimal places.)
  • 10. 
    Last year, Barker Company’s sales were $251,000, its fixed costs were $55,500, and its variable costs were $2 per unit. During the year, 81,100 units were sold. The contribution margin was:
  • 11. 
    Cramer’s, Inc., is a wholesale distributor of a unique business software application. The company’s traditional income statement for the month follows: Cramer’s, Inc. Traditional Format Income Statement For the Month Ended July 31   Sales   $56,000       Cost of goods sold   33,000             Gross margin   23,000       Selling and administrative expenses:            Selling $12,200          Administrative   7,900 20,100           Net operating income   $  2,900           A total of $3,600 of the selling expenses and $1,300 of the administrative expenses are variable; the remainder are fixed. What is the company’s contribution margin?
  • 12. 
    Petrarca Company incurred $20,000 to ship 2,000 pounds and $27,500 to ship 3,000 pounds. If the company ships 2,500 pounds, what is its total expected shipping expense?
  • 13. 
    The following information has been provided by the Fasan Florist, Inc. for the first quarter of the year:   Cost of goods sold $   640,000 Fixed administrative expenses 220,000 Fixed selling expenses 100,000 Sales 1,400,000 Variable administrative expenses 60,000 Variable selling expense 140,000   What was the company’s contribution margin for the first quarter?
  • 14. 
    The tables are made of wood that costs $100 per table.
    • A. 

      Direct Materials

    • B. 

      Direct Cost

    • C. 

      Sunk Cost

    • D. 

      Variable Cost

    • E. 

      Direct Labor

  • 15. 
    The tables are assembled by workers, at a wage cost of $40 per table.
    • A. 

      Variable Cost

    • B. 

      Direct Materials

    • C. 

      Direct Labor

    • D. 

      Selling and Administrative Cost

    • E. 

      Direct Labor

  • 16. 
    Workers assembling the tables are supervised by a factory supervisor who is paid $38,000 per year.
    • A. 

      Opportunity Cost

    • B. 

      Sunk Cost

    • C. 

      Manufacturing Overhead

    • D. 

      Direct Labor

    • E. 

      Fixed Cost

  • 17. 
    Electrical costs are $2 per machine-hour. Four machine-hours are required to produce a table
    • A. 

      Variable Cost

    • B. 

      Fixed Cost

    • C. 

      Selling Administrative Cost

    • D. 

      Sunk Cost

    • E. 

      Manufacturing Overhead Cost

  • 18. 
    The depreciation on the machines used to make the tables totals $10,000 per year. The machines have no resale value and do not wear out through use.
    • A. 

      Variable Cost

    • B. 

      Fixed Cost

    • C. 

      Selling and Administrative Cost

    • D. 

      Direct Materials

    • E. 

      Manufacturing Overhead Cost

    • F. 

      Sunk Cost

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