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# Exam142.09 - Answer the following Questions Question One(14...

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نمحرلا هللا مسب   ميحرلا ملاس .د .أ:سردملا سلح هللادبع ةمدقتم ةيرادإ ةبساحم تاعاس ثلث :نمزلا ةراجتلا ةيلك :خيراتلا 25/02/2009 يئاهنلا ناحتملا ةرادإ يف ريتسجاملا جمانرب لامعلا ةبساحملا يف ريتسجاملا جمانرب ليومتلاو : يعماجلا مقرلا مقر ةبعش : : بلاطلا مسا Answer the following Questions: Question One: (14 Mark) Each Multiple – choice question has four suggested answers, letter (A), (B), (C), or (D). You should read each question and then decide which choice is best. 1) Beginning raw material inventory was \$32,000. During the month, \$276,000 of raw material was purchased. Account at the end of the month revealed that \$28,000 of raw material was still present. What is the cost of direct material used? A. 5 \$276,000 B. 5 \$272,000 C. 5 \$280,000 D. 5 \$ 2,000 2) Questions (2-6). Refer to the following: The average selling price of a cup of coffee is \$1.49 and the average variable expense per cup is \$0.36. The average fixed expense per month is \$1,300. 2,100 cups are sold each month on average. What are the break-even sales in units? 3) How many cups of coffee would have to be sold to attain target profits of \$2,500 per month?

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4) What is the margin of safety? 5) What is the operating leverage? A. 5 2.21 B. 5 0.45 C. 5 0.34 D. 5 2.92 6) If sales increase by 20%, by how much should net operating income increase? 7) Questions (7-10). Refer to the following: Palestine Enterprises' actual production for the period required 2,100 standard direct labor hours. Actual variable overhead for the period was \$10,950. Actual direct labor hours worked were 2,050. The predetermined variable overhead rate is \$5 per direct labor hour. What was the spending variance?
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