More’s 2016 net income using accrual accounting? $5,750 $5,250 $9,750 $9,250 Kimble Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period: Estimated annual overhead cost $1,600,000 Actual annual overhead cost $1,575,000 Estimated machine hours 400,000 Actual machine hours 390,000 $1,560,000 applied and $15,000 overapplied $1,600,000 applied and $15,000 overapplied $1,560,000 applied and $15,000 underapplied $1,575,000 applied and neither under- nor overapplied The Mac Company has four plants nationwide that cost $350 million. The current fair value of the plants is $300 million. The plants will be reported as assets at: $300 million. $350 million. $700 million. $600 million. Which statement is correct? The cash basis of accounting is objective because no one can be certain of the amount of revenue until the cash is received. The use of the cash basis of accounting violates both the revenue recognition and expense recognition principles. As long as a company consistently uses the cash basis of accounting, generally accepted accounting principles allow its use. As long as management is ethical, there are no problems with using the cash basis of accounting An activity-based overhead rate is computed as follows: estimated overhead divided by actual use of cost drivers. actual overhead divided by actual use of cost drivers. estimated overhead divided by estimated use of cost drivers. actual overhead divided by estimated use of cost drivers. If there are no units in process at the beginning of the period, then: the company must be using a job order cost system. only one computation of equivalent units of production will be necessary. the units started into production will equal the number of units transferred out. the units to be accounted for will equal the units transferred out and the units in process at the end of the period. Based on the following data, what is the amount of working capital? Accounts payable………………………………………………………..$64,000 Accounts receivable……………………………………………………..114,000 Cash………………………………………………………………………. 70,000 Intangible assets…………………………………………………………100,000 Inventory…………………………………………………………………. 138,000 Long-term investments…………………………………………………..160,000 Long-term liabilities……………………………… ………………………200,000 Short-term investments……………………………………………………80,000 Notes payable (short-term)………………………………………………..56,000 Property, plant, and equipment………………………………………..1,340,000 Prepaid insurance…………………………………………………………….2,000 $326,000 $332,000 $370,000 $284,000 If a plant is operating at full capacity and receives a one-time opportunity to accept an order at a special price below its usual price, then: fixed costs are not relevant. the order will likely be accepted. only variable costs are relevant. the order will likely be rejected. Financial and managerial accounting are similar in that both: deal with the economic events of an enterprise. produce general-purpose reports. have reports that are prepared quarterly and annually. have the same primary users. What is the primary difference between a static budget and a flexible budget? The static budget is prepared only for units produced, while a flexible budget reflects the number of units sold. The static budget contains only fixed costs, while the flexible budget contains only variable costs. The static budget is prepared for a single level of activity, while a flexible budget is adjusted for different activity levels. The static budget is constructed using input from only upper level management, while a flexible budget obtains input from all levels of management. Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $13 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio? 25% 35% 65% 75% Scorpion Production Company planned to use 1 yard of plastic per unit budgeted at $81 a yard. However, the plastic actually cost $80 per yard. The company actually made 3,900 units, although it had planned to make only 3,300 units. Total yards used for production were 3,960. How much is the total materials variance? $3,960 F $48,600 U $4,860 U $900 U Are
Recent Comments