Mgm 252 Exam Chp 2,3,4
Prep for the first exam in Managerial Accounting 252
- 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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