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Unformatted text preview: ACC2302 Review for Test #3 Fall 2017 1. More Company has two divisions, Chrome and Plate. During July, the contribution margin in Division Chrome was $60,000. The contribution margin ratio in Division Plate was 40% and its sales were $250,000. Division Plate's segment margin was $60,000. The common fixed expenses were $50,000 and the company net operating income was $20,000. The segment margin for Division Chrome was: a) $ -0b) $10,000 c) $50,000 d) $60,000 2. Johnson Company operates two plants, Plant Able and Plant Base. Last year, Johnson Company reported a contribution margin of $40,000 for Plant Able. Plant Base had sales of $200,000 and a contribution margin ratio of 40%. Net operating income for the company was $27,000 and traceable fixed expenses for the two stores totaled $50,000. Johnson Company's common fixed expenses were: a) $43,000 b) $50,000 c) $93,000 d) $120,000 3. The Rial Company's income statement for June is given below: If sales for Division F increase $40,000 with a $10,000 decrease in the Division's traceable fixed costs, the overall company net operating income should: a) b) c) d) Increase by $26,000 Increase by $6,000 Increase by $2,889 Decrease by $4,000 4. The Rial Company's income statement for June is given below: During June, the sales clerks in Division F received salaries totaling $35,000. Assume that during July the salaries of these sales clerks are discontinued and instead they are paid a commission of 15% of sales. If sales in Division F increase by $65,000 as a result of this change, the July segment margin for Division F should be: a) $42,700 b) $19,400 c) $51,250 d) $94,000 5. Gummer Hospital bases its budgets on patient-visits. The hospital’s static budget for February appears below: Budgeted number of patient-visits................ 9,900 Budgeted variable overhead costs:................ Supplies (@$6.60 per patient-visit)............ $ 65,340 Laundry (@$6.50 per patient-visit)............ 64,350 Total variable overhead cost.......................... 129,690 Budgeted fixed overhead costs:..................... Wages and salaries...................................... 85,140 Occupancy costs......................................... 76,230 Total fixed overhead cost.............................. 161,370 Total budgeted overhead cost........................ $291,060 The total overhead cost at an activity level of 10,800 patient-visits per month should be: A) $317,520 B) $303,810 C) $291,060 D) $302,850 6. The following materials standards have been established for a particular product: Standard quantity per unit of output........ 7.3 Pounds Standard price.......................................... $14.45 per pound The following data pertain to operations concerning the product for the last month: Actual materials purchased.................... 6,600 Pounds Actual cost of materials purchased......... $91,740 Actual materials used in production....... 5,900 Pounds Actual output.......................................... 1,000 Units What is the materials quantity variance for the month? A) $19,460 F B) $9,730 U C) $10,115 U D) $20,230 F 7. The following materials standards have been established for a particular product: Standard quantity per unit of output........ 4.6 feet Standard price.......................................... $19.25 per feet The following data pertain to operations concerning the product for the last month: Actual materials purchased.................... Actual cost of materials purchased......... Actual materials used in production....... Actual output.......................................... 3,200 feet $63,200 2,900 feet 800 units What is the materials price variance for the month? A) $15,405 F B) $5,775 U C) $5,925 U D) $1,600 U 8. The following labor standards have been established for a particular product: Standard labor-hours per unit of output........ 4.0 hours Standard labor rate........................................ $12.30 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked......... 7,100 hours Actual total labor cost....... $89,105 Actual output..................... 1,500 units What is the labor efficiency variance for the month? A) $13,805 U B) $13,530 U C) $15,305 U D) $15,305 F 9. The following labor standards have been established for a particular product: Standard labor-hours per unit of output........ 1.5 hours Standard labor rate........................................ $17.55 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked......... 5,300 hours Actual total labor cost....... $94,340 Actual output..................... 3,600 units What is the labor rate variance for the month? A) $1,325 U B) $1,780 F C) $430 F D) $430 U 10. Shown below is the sales forecast for Cooper Inc. for the first four months of the coming year. On average, 50% of credit sales are paid for in the month of the sale, 30% in the month following sale, and the remainder are paid two months after the month of the sale. Assuming there are no bad debts, the expected cash inflow in March is: a) $138,000 b) $122,000 c) $119,000 d) $108,000 11. Budgeted sales in Allen Company over the next four months are given below: Twenty-five percent of the company's sales are for cash and 75% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 15% are collected in the second month following sale. The remainder are uncollectible. Given these data, cash collections for December should be: a) $138,000 b) $133,500 c) $120,000 d) $103,500 12. Young Enterprises has budgeted sales in units for the next five months as follows: Past experience has shown that the ending inventory for each month should be equal to 10% of the next month's sales in units. The inventory on May 31 fell short of this goal since it contained only 400 units. The company needs to prepare a Production Budget for the next five months. (Hint: You have to assume they made the correction for the shortfall of beginning inventory for June in June’s production number and are on track again for the beginning July inventory. i.e. Ending Inventory for June (which is also Beg Inv for July) should be 10% of July’s budgeted sales in units) The total number of units to be produced in July is: a) 7,740 b) 7,200 c) 7,020 d) 7,280 13. Dengel Inc. is working on its cash budget for November. The budgeted beginning cash balance is $24,000. Budgeted cash receipts total $177,000 and budgeted cash disbursements total $167,000. The desired ending cash balance is $50,000. The excess (or deficiency) of cash available over disbursements for November will be: a) $ 34,000 b) $201,000 c) $ 10,000 d) $ 14,000 14. Dengel Inc. is working on its cash budget for November. The budgeted beginning cash balance is $24,000. Budgeted cash receipts total $177,000 and budgeted cash disbursements total $167,000. The desired ending cash balance is $50,000. To attain its desired ending cash balance for November, the company needs to borrow: a) b) c) d) $ -0$16,000 $50,000 $84,000 15. Deshaies Corporation is preparing its cash budget for November. The budgeted beginning cash balance is $10,000. Budgeted cash receipts total $100,000 and budgeted cash disbursements total $104,000. The desired ending cash balance is $30,000. To attain its desired ending cash balance for November, the company should borrow: a) $ 36,000 b) $ 30,000 c) $ 24,000 d) $ -0- ...
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  • Fall '14
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