Chapter 2 problems 41 NUMERIC QUESTIONS Ej 86 through 188

Chapter 2 problems 41 NUMERIC QUESTIONS Ej 86 through 188 -...

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CHAPTER 2 AN INTRODUCTION TO COST TERMS AND PURPOSES 86. When 10,000 units are produced, fixed costs are $14 per unit. Therefore, when 20,000 units are produced fixed costs will: a. increase to $28 per unit b. remain at $14 per unit c. decrease to $7 per unit d. total $280,000 87. When 10,000 units are produced, variable costs are $6 per unit. Therefore, when 20,000 units are produced: a. variable costs will total $120,000 b. variable costs will total $60,000 c. variable unit costs will increase to $12 per unit d. variable unit costs will decrease to $3 per unit 88. Christi Manufacturing provided the following information for last month: Sales $10,000 Variable costs 3,000 Fixed costs 5,000 Operating income $2,000 If sales double next month, what is the projected operating income? a. $4,000 b. $7,000 c. $9,000 d. $12,000 89. Kym Manufacturing provided the following information for last month: Sales $12,000 Variable costs 4,000 Fixed costs 1,000 Operating income $7,000 If sales double next month, what is the projected operating income? a. $14,000 b. $15,000 c. $18,000 d. $19,000 90. Wheel and Tire Manufacturing currently produces 1,000 tires per month. The following per unit data apply for sales to regular customers: 2-1
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Direct materials $20 Direct manufacturing labor 3 Variable manufacturing overhead 6 Fixed manufacturing overhead 10 Total manufacturing costs $39 The plant has capacity for 3,000 tires and is considering expanding production to 2,000 tires. What is the total cost of producing 2,000 tires? a. $39,000 b. $78,000 c. $ 68,000 d. $62,000 92. Tire and Spoke Manufacturing currently produces 1,000 bicycles per month. The following per unit data apply for sales to regular customers: Direct materials $50 Direct manufacturing labor 5 Variable manufacturing overhead 14 Fixed manufacturing overhead 10 Total manufacturing costs $79 The plant has capacity for 3,000 bicycles and is considering expanding production to 2,000 bicycles. What is the per unit cost of producing 2,000 bicycles? a. $79 per unit b. $158 per unit c. $74 per unit d. $134 per unit Answer : c Difficulty : 3 Objective : 4 [($50 + $5 + $14) x 2,000 units] + ($10 x 1,000 units) = $148,000 / 2,000 units = $74 Terms to Learn : unit cost THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 95 THROUGH 97: Pederson Company reported the following: Manufacturing costs $2,000,000 Units manufactured 50,000 Units sold 47,000 units sold for $75 per unit Beginning inventory 0 units 95. What is the average manufacturing cost per unit? a. $40.00 b. $42.55 c. $0.025 d. $75.00 2-2
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96. What is the amount of ending finished goods inventory? a. $1,880,000 b. $120,000 c. $225,000 d. $105,000 97. What is the amount of gross margin? a.
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This note was uploaded on 11/28/2011 for the course ING INDUST 01 taught by Professor Elbatamaris during the Spring '11 term at Universidad Iberoamericana.

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Chapter 2 problems 41 NUMERIC QUESTIONS Ej 86 through 188 -...

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