Practice Exam 3

# Practice Exam 3 - Practice Exam 3 Student 1 Cox Company's...

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Practice Exam 3 Student: ___________________________________________________________________________ 1. Cox Company's direct material costs for the month of January were as follows: For January there was a favorable direct materials quantity variance of: A. \$3,360 B. \$3,375 C. \$3,400 D. \$3,800 2. In October, 5,000 meters of raw material were purchased at an actual cost of \$4.50 per meter. During October, 4,850 meters of the raw material were used to produce 2,400 units of the completed product. Standards call for 2 meters of the raw material for each unit of the completed product. The standard price of the raw material is \$4.70 per meter. The materials variances for October were: A. Option A B. Option B C. Option C D. Option D

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3. Rodenberger Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: The delivery cycle time was: A. 30.8 hours B. 8.8 hours C. 31.9 hours D. 2.7 hours 4. In a certain standard costing system the following results occurred last period: labor rate variance, \$1,000 U; labor efficiency variance, \$2,800 F; and the actual labor rate was \$0.20 more per hour than the standard labor rate. The number of actual direct labor-hours used last period was: A. 9,000 B. 5,400 C. 5,000 D. 4,800 5. The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the labor efficiency variance for the month? A. \$5,955 U B. \$9,240 U C. \$9,240 F D. \$6,090 U
6. Marazzi Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: The throughput time was: A. 5.3 hours B. 20.7 hours C. 15.4 hours D. 9.5 hours 7. Reifsnyder Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: The manufacturing cycle efficiency (MCE) was closest to: A. 0.73 B. 0.06 C. 0.15 D. 0.02 8. Denner Company has two divisions, A and B, that reported the following results for October: If common fixed expenses were \$31,000, total fixed expenses must have been: A. \$31,000 B. \$62,000 C. \$93,000 D. \$52,000

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The following information is available on Company A: 9. Company A's residual income is: A. \$9,000 B. \$21,000 C. \$45,000 D. \$24,000 10. Company A's return on investment (ROI) is: A. 4% B. 15% C. 20% D. 36% The Axle Division of LaBate Company makes and sells only one product. Annual data on the Axle Division's single product follow: 11. If Axle sells 15,000 units per year, the residual income should be: A. \$30,000 B. \$100,000 C. \$50,000 D. \$10,000
The Holmes Division recorded operating data as follows for the past year: 12. For the past year, the margin was: A. 12.50% B. 13.00% C. 14.75% D. 15.00% 13. For the past year, the turnover was: A. 25 B. 10 C. 4 D. 2 14. (Ignore income taxes in this problem.) Arthur operates a part-time auto repair service. He estimates that a new diagnostic computer system will result in increased cash inflows of \$2,100 in Year 1, \$3,200 in Year 2, and

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## This note was uploaded on 01/13/2012 for the course IS 3020 taught by Professor Staff during the Spring '08 term at Kennesaw.

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Practice Exam 3 - Practice Exam 3 Student 1 Cox Company's...

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