Test 3 Practice - Accounting 2102 Farmer Test 3 Multiple...

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Accounting 2102 Farmer Test 3 Multiple Choice Practice (excludes Chapter 14) 1. The following information was taken from the segmented income statement of Just for Laughs, Inc.: Larry Division Curly Division Moe Division Total Revenues $200,000 $235,000 $325,000 $750,000 Variable Operating Expenses 110,000 120,000 180,000 410,000 Controllable Fixed Expenses 65,000 75,000 70,000 210,000 Noncontrollable Fixed Expenses 15,000 20,000 25,000 60,000 Laughs CEO’s salary was $18,000 and allocated to each division on the basis of Revenue. The profit margin controllable by the Curly Division manager is: a. $40,000. b. $20,000. c. $115,000. d. $34,360. e. $14,360. 2. Wrecks to Riches reported a return on investment of 10%, a capital turnover of 8, and income of $180,000. On the basis of this information, the company's invested capital was: a. $14,400,000. b. $1,800,000. c. $1,440,000. d. $225,000. e. $405,000. 3. The production team for Take Eight, Inc., a manufacturer of pillow top mattresses, recently prepared a manufacturing cost budget for an output of 50,000 mattresses, as follows: Direct Materials $100,000 Direct Labor 50,000 Variable Overhead 75,000 Fixed Overhead 100,000 Actual costs incurred during the production of 60,000 mattresses were; direct materials, $110,000; direct labor, $60,000; variable overhead, $100,000; and fixed overhead, $97,000. If Take Eight evaluated performance by the use of a flexible
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This note was uploaded on 05/08/2008 for the course ACCT 2102 taught by Professor Farmer during the Spring '08 term at University of Georgia Athens.

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Test 3 Practice - Accounting 2102 Farmer Test 3 Multiple...

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