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ACCT 6202 –Sample Exam 2 Section I For the following questions, select the best possible alternative by circling your choice. In the absence of any additional information indicating otherwise, treat each question independent of other questions. 1) What will cause the variable-overhead efficiency variance? A. Efficient or inefficient use of a specific component of variable overhead (e.g., electricity). B. Full or partial utilization of major equipment resources. C. Production of units in excess of the number of units sold. D. Efficient or inefficient use of the cost driver (e.g., machine hours) for variable overhead. E. Changes in the salary cost of production supervisors.
2) The difference between budgeted lump-sum fixed manufacturing overhead and the fixed manufacturing overhead allocated to actual output units is called
3) Easy to Use software operates stores within five regions. The manager of each region is held accountable for all marketing, advertising, and sales decisions, and all costs incurred within their region. In addition, regional managers decide whether new stores will open within the region, where those stores will open, and whether those stores will lease or purchase their facilities. The manager of each store is held accountable for all marketing, advertising, and sales decisions, and all costs incurred within their store. What type of responsibility center is each region and store?
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Use the following information for problems 4 through 7 The following information pertains to Bingo Concrete, an investment center of Tempo Corporation for the year 1999. Sales revenue $1,500,000 Income $90,000 Average investment $450,000 The cost of capital for Tempo is 8% and it uses the same as the charge for capital investment to compute residual income. 4) What is the capital turnover in 1999 for Bingo Concrete?
5) What is the sales margin for Bingo Concrete for the year 1999? a) 40% b) 33.33% c) 6% d) 20%
6) What is the Return on investment for Bingo Concrete in 1999?

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