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Spring06_Midterm1-3_soln

# Spring06_Midterm1-3_soln - Section I Do on SCANTRON sheet...

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Section I: Do on SCANTRON sheet. ONLY SCANTRON circles graded (15 x 1=15 points). ===================================================================== 1. Baxter Company, which pays a 10% commission to its salespeople, reported sales revenues of \$210,000 for the period just ended. If the commission is the only variable sales expense, and if fixed and variable sales expenses totaled \$56,000, what would they total at sales of \$168,000? A) \$16,800. B) \$35,000. C) \$44,800. D) \$51,800. E) some other amount. 2. The variable costs per unit are \$4 when a company produces 10,000 units of product. What are the variable costs per unit when 8,000 units are produced? 3. Electricity costs that were incurred by a company's factory machines should be debited to which of the following? [Hint: Be careful. Think about this carefully.] Version 3 Page 1

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4. Dreyfus Manufacturing sells a number of goods whose selling price is heavily influenced by cost. A recent study of product no. 519 revealed a traditionally-derived total cost of \$1,019, a selling price of \$1,850 based on that figure, and a newly computed activity-based total cost of \$1,215. Which of the following statements is true? 5. The accounting records of Bronco Company revealed the following information: Raw materials used \$ 60,000 Direct labor 125,000 Manufacturing overhead 360,000 Work-in-process inventory, 1/1 50,000 Finished-goods inventory, 1/1 189,000 Work-in-process inventory, 12/31 76,000 Finished-goods inventory, 12/31 140,000 Bronco's cost of goods manufactured is: A) \$519,000. B) \$522,000. C) \$568,000. D) \$571,000. E) some other amount. 6. When underapplied or overapplied manufacturing overhead is pro-rated, amounts can be assigned to which of the following accounts? Version 3 Page 2