1. Stoneberger
Corporation produces a single product and has the following cost structure:
The unit product cost under variable
costing is:
A. $128
B. $125
C. $202
D. $131
2. Beamish
Inc., which produces a single product, has provided the following data for its
most recent month of operations:
There were no beginning or ending
inventories. The unit product cost under absorption costing was:
A. $93
B. $97
C. $136
D. $194
3. Hopkin
Company manufactures a single product. The following data pertain to the
company’s operations last year:
At the beginning of the year there were no
units in inventory. A total of 12,000 units were produced during the year, and
10,000 units were sold.
4.
Under variable costing, the unit product cost is:
A. $8.00
B. $10.00
C. $12.00
D. $14.00
5.
Under absorption costing, the unit product cost is:
A. $8.00
B. $10.00
C. $12.00
D. $15.00
6.
The net operating income under variable costing would be:
A. $64,000
B. $60,000
C. $56,000
D. $52,000
7. The
net operating income under absorption costing would be:
A. the same as the income under variable
costing.
B. $8,000 greater than the income under
variable costing.
C. $12,000 greater than the income under
variable costing.
D. $8,000 less than the income under
variable costing.
8.
When a company shifts from a traditional cost system in which manufacturing
overhead is applied based on direct labor-hours to an activity-based costing
system in which there are batch-level and product-level costs, the unit product
costs of high volume products typically decrease whereas the unit product costs
of low volume products typically increase.
True
False
9. Leaper
Corporation uses an activity-based costing system with the following three
activity cost pools:
The activity rate for the Order Processing
activity cost pool is closest to:
A. $1,485 per order
B. $1,540 per order
C. $1,465 per order
D. $1,320 per order
10. Bennette Corporation has provided the
following data concerning its overhead costs for the coming year:
The activity rate for the Order Processing
activity cost pool is closest to:
A. $430 per order
B. $420 per order
C. $360 per order
D. $440 per order
11. Lakatos Corporation uses an
activity-based costing system with three activity cost pools. The company has
provided the following data concerning its costs:
How much cost, in total, would be allocated
in the first-stage allocation to the Fabricating activity cost pool?
A. $88,000
B. $132,000
C. $264,000
D. $120,000
12.
Forliche Florist specializes in large floral bouquets for hotels and
other commercial spaces. The company has provided the following data concerning
its annual overhead costs and its activity based costing system:
13. What would be the total overhead cost
per bouquet according to the activity based costing system? In other words,
what would be the overall activity rate for the making bouquets activity cost
pool? (Round to the nearest whole cent.)
A. $1.65
B. $1.35
C. $1.58
D. $1.80
14. Grefrath Corporation is developing
direct labor standards. A particular product requires 0.71 direct labor-hours
per unit. The allowance for breaks and personal needs is 0.04 direct
labor-hours per unit. The allowance for cleanup, machine downtime, and rejects
is 0.12 direct labor-hours per unit. The standard direct labor-hours per unit
should be:
A. 0.71
B. 0.87
C. 0.67
D. 0.55
15. Information on Rex Co.’s direct
material costs for May follows:
For the month of May, what was Rex’s direct
materials price variance?
A. $2,800 favorable
B. $2,800 unfavorable
C. $6,000 unfavorable
D. $6,000 favorable
16. Buckler Company manufactures desks with
vinyl tops. The standard material cost for the vinyl used per Model S desk is
$27.00 based on 12 square feet of vinyl at a cost of $2.25 per square foot. A
production run of 1,000 desks in March resulted in usage of 12,600 square feet
of vinyl at a cost of $2.00 per square foot, a total cost of $25,200. The
materials quantity variance resulting from the above production run was:
A. $1,200 unfavorable
B. $1,350 unfavorable
C. $1,800 favorable
D. $3,150 favorable
17. A key feature of a flexible budget is
that actual results can be compared to budgeted costs at the same level of
activity.
True
False
18.
Fixed costs should not be included in a flexible budget because they do not
change when the level of activity changes.
True
False
19. The manufacturing overhead variance
that is a measure of capacity utilization is:
A. the overhead spending variance.
B. the overhead efficiency variance.
C. the overhead budget variance.
D. the overhead volume variance.
20.
Ostler Hotel bases its budgets on guest-days. The hotel’s static budget for
April appears below:
The total overhead cost at an activity
level of 9,700 guest-days per month should be:
A. $213,150
B. $237,650
C. $223,950
D. $224,920
21. Riggs Enterprise’s flexible budget cost
formula for indirect materials, a variable cost, is $0.45 per unit of output.
If the company’s performance report for last month shows a $90 favorable
variance for indirect materials and if 8,700 units of output were produced last
month, then the actual costs incurred for indirect materials for the month must
have been:
A. $4,005
B. $3,915
C. $3,825
D. $3,735
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