Fan Midterm 1 2008

Fan Midterm 1 2008 - UGBA102B Midterm I(version 2 test#>300...

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UGBA102B - Midterm I (version 2: test # > 300) 1. Financial and managerial accounting are similar in that both: (a) are mandatory. (c) emphasize the relevance and ±exibility of data in decision making. (d) are governed by the Generally Accepted Accounting Principles. (e) emphasize the organization as whole. 2. Which of the following would most likely be included as part of manufacturing overhead in the produciton of a wooden table? (a) The wages paid to the individual who assembles the table (b) The commission paid to the individual who sold the table (c) The cost of wood used in the table (d) The maintenance cost on the machine used to cut the wood* (e) The wages paid to the individual on the shipping docks who load completed tables onto outgoing trucks. 3. Fixed costs (a) are always irrelevant in decision making. (b) are the same as sunk costs. (c) are considered variable costs over the long run.* (d) can never be avoided. (e) increase as cost driver volume increases. 4. Stott Company requires one truck driver for every 500 packages loaded daily. The wages (b) variable (c) curvilinear (d) semi-variable 1
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The following information applies to questions 5 and 6. 5. The Carlson Company has recorded the following per-unit price and cost information relat- ing to one of its products: Selling price $50.00 Direct materials costs $3.00 Direct labor costs $2.00 Variable Manufacturing Overhead $1.00 Fixed Manufacturing Overhead $5.00 $2.00 $10.00 What is the contribution margin per unit for this product? (a) $27 (b) $39 (c) $42* (d) $44 (e) None of the above Contribution margin per unit = price - variable costs per unit = $50-3-2-1-2=$42 6. What cost per unit would be recorded on the company±s ²nancial statements when a unit of the product is sold? (a) $6 (b) $8 (c) $11* (d) $23 (e) None of the above Cost per unit under GAAP = manufacturing cost per unit = $3+2+1+5=$11 7. The following data pertain to Epsom corporation±s operations: Sales 12,000 units Selling price $25 per unit Contribution margin ratio 40% Margin of safety 3600 . Net operating income at sales of 12,000 units is 2
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(a) $0 (b) $36,000* (c) $120,000 (d) $300,000 (e) none of the above Break-even units = 12,000-3,600=8,400 Fixed costs = $8,400*25*0.4=$84,000 Net operating income =$ 12,000 * 25 * 0.4-$84,000=$36,000 8. On January 1, 2008, Lake Co. increased its CEO salaries and reduced its direct labor wage
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This note was uploaded on 08/31/2009 for the course UGBA 102B taught by Professor Fan during the Spring '08 term at Berkeley.

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Fan Midterm 1 2008 - UGBA102B Midterm I(version 2 test#>300...

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