80.2K

Verified Solution

Link Copied!

13) oFthe following statements is true regarding absorption costing? tt requires only variable costs to be treated as product costs. H) It is not permited to be used for financial reporting C) It is not the traditional costing approach D) It assigns all manufacturing costs to products. E) It is not permitted to be used for tax reporting 590,000. lts contribution margin ratio is 30% and the sales? 14) point in dollar sales? product sells for $75 per unit. What is the company's break-even A) $210,000. B) $300,000. C) $128,571 D) $60,000 E) $180,000. Company manufactures and sells a singie product that sells for $450 per unit; E) 19.3%. f the product's selling price 15) 15) Flannigan Company manufactures and sells a singie product that sells les volume is variable costs are $270. Annual fixed costs are $800,000. Current sa $4,200,000. Compute the contribution margin ratio. A)40.086. B) 50.0%. C)20.7%. D) 66.7%. 16) The contribution margin per unit expressed as a percentage o 16) is the: A) Margin of safety B) Contribution margin ratio. Q)Break-even point. D) Rate of return on sales. E) Volume variance. 17) K Company estimates that overhead costs for the next year will be $2,900,000 for 7 indirect labor and $800,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 80,000 direct labor hours are planned for this next year how much overhead would be assigned to a product requiring 4 direct labor hours? A) $145.00 B) $185.00 C) $46.25 D) $36.25 E) None of the choices 18) Zhang Industries is preparing a cash budget for June. The company has $25,000 cash at the beginning of June and anticipates $95,000 in cash receipts and $111,290 in cash disbursements during June. The company has no loans outstanding on June 1. Compute the amount the company must borrow, if any, to maintain a $20,000 cash balance. A) S6.290. B) $28,710. $16.290. D$12,290. E)$11,290. 18)

Answer & Explanation Solved by verified expert

See Answer