SP07E3V1 - Managerial Accounting Name Acct 2301 Spring 2007 Exam 3 Version 1 ‘ There are 26 questions on this exam Make sure you fill in an

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Managerial Accounting Acct 2301 Spring 2007 Exam 3 Version 1 Name: There are 26 questions on this exam. Make sure you fill in an answer for each question on your scantron. Good luck. NOTE: Rounding error within $5 is acceptable on all time-value-of-money problems. 1. Coley Company estimated that its production workers would work 125,000 direct labor hours and that the company would incur $750,000 of overhead cost during 2006. At the end of 2006, it was determined that 130,000 direct labor hours had been worked and that actual overhead amounted to $800,000. What is the amount of over or underapplied overhead? a. Underapplied by $20,000 b. Overapplied by $20,000 c. Underapplied by $50,000 d. Overapplied by $50,000 e. None of the above 2. Frizzel Company had no beginning inventory. Its total manufacturing costs for the year were $854,000. If the amount in ending work in process inventory is $190,000 and cost of goods sold was $500,000, the cost of goods manufactured would have been a. $164,000 b. $354,000 c. $544,000 d. $664,000 e. None of the above 3. Which of the following items is not reported on the balance sheet? a. Raw materials b. Work in process inventory c. Finished goods d. Cost of goods sold e. All of the items are reported on the balance sheet 4. Bilbo Company has a current margin of 6% with operating income of $6,000. What is the company’s turnover, if the company has $50,000 in operating assets? a. 0.5 b. 1.0 c. 2.0 d. 3.0 e. None of the above 1
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5. Nilselid Company is considering purchasing a new piece of equipment that delivers $50,000 annual net cash flow before tax. The equipment will result in annual depreciation expense of $10,000 over the equipment’s four-year useful life. The equipment is depreciated using straight-line and has no salvage value. The company has a tax rate of 20%. Assuming a desired rate of return of 8% after tax, the total present value of the future returns is (round to the nearest dollar) a. $105,988 b. $139,109 c. $132,485 d. $149,250 e. None of the above 6. Baggins Corporation would like to have a return of 12% on all of its investments. The Gold Division has current assets of $1,500,000. The division has residual income of $20,000. What is the division’s margin if it has sales of $800,000? a. 25% b. 2.5% c. 53.3% d. 6.7% e. None of the above 7. Northport Company had 800 units of product in its work in process inventory at the beginning of January that were 60% complete. During the month, the company started and completed 2,200 units. At the end of the month, there were 600 units remaining in work in process that were 60% complete. Total production cost for the month was $14,400. What is the balance in work in process at the end of the month? (Round to the nearest dollar.) a. $3,000 b. $1,705 c. $1,800 d. $11,000 e. None of the above 8. Cannon Company is looking to make a capital investment. The company has a minimum rate of return of 12% on all investments. The company has been presented with the opportunity to invest in new equipment that will generate an
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This homework help was uploaded on 04/22/2008 for the course ACCT 2302 taught by Professor All during the Spring '08 term at Texas Tech.

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SP07E3V1 - Managerial Accounting Name Acct 2301 Spring 2007 Exam 3 Version 1 ‘ There are 26 questions on this exam Make sure you fill in an

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