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# Quiz2 - A 5,000 units B 6,500 units C 3,334 units D 4,334...

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Quiz 2. Name______________________________________________ (each question is worth 3 points, for a total of 15 points) 1. Alpha Company sells its product at a price of \$20 per unit. The variable costs are \$16 per unit and the fixed costs are \$400. What is the break-even volume? A. 20 units B. 25 units C. 100 units D. it depends on whether the fixed costs are direct or indirect 2. Beta Company sells its product at a price of \$125 per unit. Unit variable cost is \$85 per unit and unit fixed cost is \$20 per unit. Operating income will increase by what amount if one more unit is sold? A. \$20 B. \$105 C. \$40 D. \$125 3. The following information is for Gamma Company: Selling price \$150 per unit Variable costs \$90 per unit Total fixed costs \$300,000 The number of units that Gamma Company must sell to reach targeted operating income of \$90,000 (before taxes) is:
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Unformatted text preview: A. 5,000 units B. 6,500 units C. 3,334 units D. 4,334 units 4. Delta Company manufactures digital video equipment. It uses \$1,475 of direct materials per unit and 50 direct labor hours per unit at \$30 per hour. Manufacturing overhead is applied at \$35 per direct manufacturing labor hour. Calculate the manufacturing cost per unit (direct+indirect). A. \$2,975 B. \$4,025 C. \$4,725 D. \$3,150 5. What is the appropriate journal entry if direct materials of \$50,000 and indirect materials of \$3,000 are sent to the manufacturing plant floor? A. Work-in-Process Control 50,000 Materials Control 50,000 B. Work-in-Process Control 53,000 Materials Control 53,000 C. Manufacturing Overhead Control 3,000 Materials Control 50,000 Work-in-Process Control 53,000 D. Work-in-Process Control 50,000 Manufacturing Overhead Control 3,000 Materials Control 53,000...
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