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17) In 2011, Grant Company has sales of $800,000, variable costs of $200,000, and fixed costs of $300,000. In 2012, the company expects annual property taxes to decrease by $15,000.   Required: a.Calculate operating income and the breakeven point for 2011. b.Calculate the breakeven point for 2012. 18) Furniture, Inc., sells lamps for $30..
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21) For every $25,000 of ticket packages sold, operating income will increase by: A) $6,250 B) $12,500 C) $18,750 D) an indeterminable amount Answer the following questions using the information below: Northenscold Company sells several products. Information of average revenue and costs is as follows: Selling price per unit$20.00 Variable costs per unit: Direct.
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17) Managers and accountants collect most of the cost information that goes into their systems through: A) an information databank B) computer programs C) source documents D) time surveys 18) Using job costing, the 2010 actual indirect-cost rate is: A) $4.00 per machine-hour B) $4.80 per machine-hour C) $5.00 per.
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Answer the following questions using the information below: The following information is for the Jeffries Corporation: Product A: Revenue$16.00 Variable Cost$12.00 Product B: Revenue$24.00 Variable Cost$16.00 Total fixed costs$75,000 5) What is the breakeven point, assuming the sales mix consists of three units of Product A and one unit of Product B? A) 10,000 units of A.
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Answer the following questions using the information below: Gibson Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Winfield.
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44) Berhannan's Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling commission of 10%. Fixed manufacturing costs total $1,250 per month, while fixed selling and administrative costs total $2,500. Required: a.What is the contribution margin per phone? b.What is the breakeven point in phones? c.How many phones.
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91) Springfield Manufacturing produces electronic storage devices, and uses the following three-part classification for its manufacturing costs: direct materials, direct manufacturing labor, and indirect manufacturing costs. Total indirect manufacturing costs for January were $300 million, and were allocated to each product on the basis of direct manufacturing labor costs of.
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31) To determine contribution margin use: A) only variable manufacturing costs B) only fixed manufacturing costs C) both variable and fixed manufacturing costs D) both variable manufacturing costs and variable nonmanufacturing costs 32) To perform cost-volume-profit analysis, a company must be able to separate costs into fixed and variable components..
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21) Query Company sells pillows for $25.00 each. The manufacturing cost, all variable, is $10 per pillow. The company is planning on renting an exhibition booth for both display and selling purposes at the annual crafts and art convention. The convention coordinator allows three options for each participating company. They.
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1) ________ costing is used by a business to price homogeneous products. A) Actual B) Job C) Process D) Traditional 2) Process costing: A) allocates all product costs, including materials and labor B) results in different costs for different units produced C) is commonly used by general contractors who construct custom-built.
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14) James Corporation gathered the following information: Variable costs$550,000 Income tax rate40% Contribution-margin ratio30% Required: a.Compute total fixed costs assuming a breakeven volume in dollars of $2,000,000. b.Compute sales volume in dollars to produce an after-tax net income of $150,000. 15) What effect, and why, would an increase in the tax rate have on a company's.
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Answer the following questions using the information below: The East Company manufactures several different products. Unit costs associated with Product ORD203are as follows: Direct materials$50 Direct manufacturing labor8 Variable manufacturing overhead10 Fixed manufacturing overhead23 Sales commissions (2% of sales)5 Administrative salaries9 Total$105 61) What are the inventoriable costs per unit associated with Product ORD203? A) $60 B) $66 C).
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5) Product costs used for pricing and product-mix decisions generally include: A) manufacturing costs only B) design costs plus manufacturing costs C) all costs incurred along the value chain D) distribution costs only 6) Product costs used for government contracts generally include: A) manufacturing costs only B) design costs plus.
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50) Jennifer's Stuffed Animals reported the following: Revenues$2,000 Variable manufacturing costs$ 400 Variable nonmanufacturing costs$ 460 Fixed manufacturing costs$ 300 Fixed nonmanufacturing costs$ 280 Required: a.Compute contribution margin. b.Compute gross margin. c.Compute operating income. 51) Arthur's Plumbing reported the following: Revenues$4,500 Variable manufacturing costs$ 900 Variable nonmanufacturing costs$ 810 Fixed manufacturing costs$ 630 Fixed nonmanufacturing costs$ 545 Required: a.Compute contribution margin. b.Compute contribution margin percentage. c.Compute.
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6) Sensitivity analysis is a "what-if" technique that managers use to examine how a result will change if the originally predicted data are NOT achieved or if an underlying assumption changes. 7) Margin of safety measures the difference between budgeted revenues and breakeven revenues. 8) If a company's breakeven revenue.
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Answer the following questions using the information below: Nancy's Niche sells a single product. 8,000 units were sold resulting in $80,000 of sales revenue, $20,000 of variable costs, and $10,000 of fixed costs. 31) The breakeven point in total sales dollars is: A) $40,000 B) $13,334 C) $100,000 D) None of these.
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11) Contribution margin equals: A) revenues minus period costs B) revenues minus product costs C) revenues minus variable costs D) revenues minus fixed costs Answer the following questions using the information below: Sherry's Custom Jewelry sells a single product. 700 units were sold resulting in $7,000 of sales revenue, $2,800 of.
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23) Bob's Textile Company sells shirts for men and boys. The average selling price and variable cost for each product are as follows: Men'sBoys' Selling Price$28.80Selling Price$24.00 Variable Cost$20.40Variable Cost$16.80 Fixed costs are $38,400. Required: a.What is the breakeven point in units for each type of shirt, assuming the sales mix is 2:1 in favor of.
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11) Which of the following statements about determining the breakeven point is FALSE? A) Operating income is equal to zero. B) Contribution margin - fixed costs is equal to zero. C) Revenues equal fixed costs plus variable costs. D) Breakeven revenues equal fixed costs divided by the variable cost per.
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15) In multiproduct situations when sales mix shifts toward the product with the lowest contribution margin, the breakeven quantity will decrease. 16) In multiproduct situations when sales mix shifts toward the product with the highest contribution margin, operating income will be higher. 17) To calculate the breakeven point in a.
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1) The budgeted indirect-cost rate is calculated: A) at the beginning of the year B) during the year C) at the end of each quarter D) at the end of the year 2) The difference between actual costing and normal costing is: A) normal costing uses actual quantities of direct-costs B) actual costing uses actual quantities of.
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4) An example of a denominator reason for calculating annual indirect-cost rates includes: A) higher heating bills in the winter B) semi-annual insurance payments in March and September C) higher levels of output demanded during the fall months D) All of these answers are correct. 5) When calculating indirect cost.
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93) Hammer Inc., had the following activities during 2012: Direct materials: Beginning inventory$ 20,000 Purchases61,600 Ending inventory10,400 Direct manufacturing labor16,000 Manufacturing overhead12,000 Beginning work-in-process inventory800 Ending work-in-process inventory4,000 Beginning finished goods inventory24,000 Ending finished goods inventory16,000 Required: a.What is the cost of direct materials used during 2012? b.What is cost of goods manufactured for 2012? c.What is cost of goods sold for 2012? d.What amount.
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82) All manufacturing costs are inventoriable costs. 83) All costs reported on the income statement of a service-sector company are period costs. 84) Period costs are never included as part of inventory. 85) Conversion costs include all direct manufacturing costs. 86) Inventory of a manufacturing firm includes goods partially worked.
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7) Assume there is an increase in advertising expenditures and all other CVP parameters remain constant. This change will: A) reduce operating income B) reduce contribution margin C) increase variable costs D) increase selling price 8) Bassman Company operates on a contribution margin of 30% and currently has fixed costs.
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21) Sprint Manufacturing Company produces two products, X and Y. The following information is presented for both products: XY Selling price per unit$30$20 Variable cost per unit205 Total fixed costs are $292,500. Required: a.Calculate the contribution margin for each product. b.Calculate breakeven point in units of both X and Y if the sales mix is 3 units.
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1) Cost-volume-profit analysis is used primarily by management: A) as a planning tool B) for control purposes C) to prepare external financial statements D) to attain accurate financial results 2) One of the first steps to take when using CVP analysis to help make decisions is: A) finding out where the.
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71) Merchandising companies purchase products and sell them to customers without changing their basic form. 72) Merchandising companies hold only one type of inventory: direct material. 73) Manufacturing sector firms normally hold three types of inventory: direct materials inventory, work-in-process inventory, and finished goods inventory. 74) Work-in-process inventory are goods.
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2) Budgeting often plays a major role in affecting behavior and decisions. 3) Cost accounting and cost management include calculating various costs, obtaining financial and nonfinancial information, and analyzing relevant information for decision making. 4) A costing system traces direct costs and allocates indirect costs to products. 5) Management accountants help.
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25) Atlanta Radio Supply sells only two products, Product X and Product Y. Product X Product Y Total Selling price $25 $45 Variable cost per unit $20 $35 Total fixed costs $350,000 Atlanta Radio Supply sells three units of Product X for each two units it sells of Product Y. Atlanta Radio Supply has a tax rate of 25%. Required: a.What is the.
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97) Each of the following items pertains to one of these companies:  Bedell Electronics (a manufacturing company), Gregory Food Retailers (a merchandising company), and Larson Real Estate (a service sector company).  Classify each item as either inventoriable (I) costs or period (P) costs. inventoriable (I) costs or period (P) costs a. Salary of.
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100) Bosely Manufacturing Co. wants to classify costs for the product produced at its facility. Thecompany produces only one product at the facility and operates continually.  The cost categories are: Product cost Prime cost Conversion cost Period cost The following costs are found in the accounting records: a.Quality control inspection wages b.Raw material purchases c.Sales commissions d.Factory depreciation e.Assembly wages Required:.
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95) Messinger Manufacturing Company had the following account balances for the quarter ending March 31, unless otherwise noted: Work-in-process inventory (January 1)$ 140,400 Work-in-process inventory (March 31)171,000 Finished goods inventory (January 1)540,000 Finished goods inventory (March 31)510,000 Direct materials used378,000 Indirect materials used84,000 Direct manufacturing labor480,000 Indirect manufacturing labor186,000 Property taxes on manufacturing plant building28,800 Salespersons' company vehicle costs12,000 Depreciation of.
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7) If indirect-cost rates are calculated monthly, distortions might occur because of: A) rental costs paid monthly B) property tax payments made in July and December C) routine monthly preventive-maintenance costs that benefit future months D) Both B and C are correct. 8) Stewart Company's actual manufacturing overhead is $2,800,000. .
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