80.2K

Verified Solution

Link Copied!

Question 1

Smith Company's cost of goods sold is $10,740 variable and $2,470 fixed. The company's selling and administrative expenses are $4,760 variable and $2,930 fixed. If the company's sales are $26,810, what is its contribution margin?$__________

Question 2

Fawn Co uses the high-low method of estimating costs. Fawn had total costs of $7,960 at its lowest level of activity, when 640 units were sold. When, at its highest level of activity, sales equaled 1,160 units, total costs were $9,790.

In applying the high-low method, what is the unit variable cost?: _______ Give your answer rounded to 2 decimals.

Question 3

Bernadette Company is considering a project that has estimated annual net cash flows of $11,860for 3years and is estimated to cost $18,320. Citrus's cost of capital is 6percent.

Below are the various discount rates for 6%

Future Value of $1

Present Value of $1

Future Value of an ordinary annuity of $1

Present Value of an ordinary annuity of $1

Year 1

1.06000

0.93458

1.0000

0.94340

Year 2

1.12360

0.89000

2.0600

1.83339

Year 3

1.19102

0.83962

3.1836

2.67301

Determine the net present value of the project.:$___________________

If the present value is negative,show as -,do not use ().For example,if NPV is negative 1,000,answer as -1000.

Question 4

Penny Company has total fixed costs of $54,000 and variable costs of 40%. The total sales dollars necessary to break even are $__________________

Question 5

BW Corp. has a selling price of $38, variable costs of $18 per unit, and fixed costs of $10,940. BW net income is $9,730. How many units did BW sell? _____________

Question 6

Josie Corp. has identified the following cost pools and drivers

Activity cost pools

Materials handling

$17,540

Machine maintenance

28,260

Cost drivers

Number of material moves

400

Number of machine hours

8,880

What is the activity rate for Materials handling? _____Round to 2 decimals

Question 7

Emma Company is in the process of preparing its direct labor budget for next quarter. The company expects to produce 3,430 units and use 1.7 direct labor hours per unit. If the labor cost per hour is $19, what is the total budgeted direct labor cost for the quarter?

Question 8

Doe Company deposits $7,300 today in a mutual fund. The fund pays interest of 6% compounded annually. Below are the various discount rates for 6%

Future Value of $1

Present Value of $1

Future Value of an ordinary annuity of $1

Present Value of an ordinary annuity of $1

Year 1

1.06000

0.93458

1.0000

0.94340

Year 2

1.12360

0.89000

2.0600

1.83339

Year 3

1.19102

0.83962

3.1836

2.67301

The balance in the fund at the end of 3 years will be:$___________________

Question 9

Job 31 has a direct materials cost of $230 and a total manufacturing cost of $1,480. Overhead is applied to jobs at a rate of 200 percent of direct labor cost.

The prime cost is $__________

Question 10

Shelby Company incurs the following costs in its factory

Rent on office equipment

$9,832

Insurance on office building

$ 2,509

Utility costs for factory

$3,319

Supplies for the factory

$ 929

Depreciation on factory equipment

$10,908

Wages for assembly line workers

$ 3,862

Shelby's total manufacturing costs are:$_____

Question 11

Ted Company has the following budgeted sales:

January$ 11,410

February$ 26,640

March$ 49,490

40% of the sales are for cash and 60% are on credit. For the credit sales, 45% are collected in the month of sale, and the rest the next month. The total expected cash receipts during February are: $_____________

Question 12

A manufacturing company provided the following information from its accounting records for 2020:

Expected production80,000 labor hours

Actualproduction70,000 labor hours

Budgeted overhead$462,500

Actualoverhead$365,700

What is the overhead application rate if the company bases it on direct labor hours? $____

Round your answer 2 decimal places.

Question 13

Bebe Company's raw materials inventory transactions for the most recent month are summarized here:

Beginning raw materials

$10,170

Purchases of raw materials

$55,770

Raw materials issued

Materials requisition 1445

$10,900

For Job 101

Materials requisition 1446

$14,440

For Job 102

Materials requisition 1447

$2,200

Used on multiple jobs

In recording the transactions for the month,the credits toRaw materials account would be $_______

Question 14

Mine, Inc. produces two different products (Product A and Product R) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $19 per machine hour, and the activity rate for Inspection is $40 per batch. The activity drivers are used as follows:

Product A

Product R

Machine hours

1,930

2,100

Number of batches

180

260

What is the total cost of Machining?

Answer & Explanation Solved by verified expert

See Answer