This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Unit 10: Help 1. Reno Corporation uses a predetermined overhead application rate of $.30 per direct labor hour. During the year it incurred $345,000 dollars of actual overhead, but it planned to incur $360,000 of overhead. The company applied $363,000 of overhead during the year. How many direct labor hours did the company plan to incur? 1,150,000 1,190,000 1,200,000 1,210,000 2. For its most recent fiscal year, a firm reported that its contribution margin was equal to 40 percent of sales and that its net income amounted to 10 percent of sales. If its fixed costs for the year were $60,000, how much were sales? $150,000 $200,000 $600,000 can't be determined from the information given 3. At its present level of operations, a small manufacturing firm has total variable costs equal to 75 percent of sales and total fixed costs equal to 15 percent of sales. Based on variable costing, if sales change by $1.00, income will change by _______. $0.25 $0.10 $0.75 can't be determined from the information given 4. At the end of the last fiscal year, Roberts Company had the following account balances: Overapplied overhead $ 6,000 Cost of Goods Sold $980,000 Work in Process Inventory $ 38,000 Finished Goods Inventory $ 82,000 If the most common treatment of assigning overapplied overhead were used, the final balance in Cost of Goods Sold is _______. $974,000 $974,660 $985,340 $986,000 5. Strong Products has no Work in Process or Finished Goods inventories at the close of business on December 31, 20X4. The balances of Strong Products’ accounts as of December 31, 20X4, are as follows: Cost of goods sold--unadjusted $2,040,000 Selling & administrative expenses 900,000 Sales 3,600,000 Manufacturing overhead control 700,000 Manufacturing overhead applied 648,000 Pretax income for 20X4 is ______. $608,000 $660,000 $712,000 undeterminable from the information given 6. Long Company transferred 5,500 units to Finished Goods Inventory during September. On September 1, the company had 300 units on hand (40 percent complete as to both material and conversion costs). On June 30, the company had 800 units (10 percent complete as to material and 20 percent complete as to conversion costs). The number of units started and completed during September was _______. 5,200 5,380...
View Full Document
- Spring '10
- Fiscal Year, Finished Goods, Strong Products