# Actual manufacturing overhead cost incurred 38000

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Actual manufacturing overhead cost incurred ......................... \$38,000 Actual direct labor hours worked ............................................. 18,500 The under- or overapplied overhead for the year was:  A) \$1,000 underapplied C) \$3,000 underapplied B) \$1,000 overapplied D) \$3,000 overapplied  Answer: A   Level: Easy   LO: 5,8
5. Within the relevant range,  variable costs  can be expected to:
6.The contribution approach income statement:
7.Contribution margin is:
8.Iaci Corporation is a wholesaler that sells a single product. Management has provided the  following cost data for two levels of monthly sales volume. The company sells the  product for \$133.60 per unit. 3
MANAGERIAL ACCOUNTING - IIE 211 CLASS 8 Sales volume (units) ...................................................... 4,000 5,000 Cost of sales ................................................................... \$383,600 \$479,500 Selling, general, and administrative costs ..................... \$124,400 \$136,000 The best estimate of the total contribution margin when 4,300 units are sold is:  A) \$112,230  B) \$162,110  C) \$28,380  D) \$45,150  Answer: A   Level: Medium   LO: 1,3,4
9.Given the cost formula Y = \$13,000 + \$7.00X, the total cost for an activity level of 3,000 units  would be:
10. The University Store, Inc. is the major bookseller for four nearby colleges An income  statement for the first quarter of the year is presented below: University Store, Inc. Income Statement For the Quarter Ended March 31 Sales ...................................................... \$800,000 Cost of goods sold ................................. 560,000 Gross margin ......................................... 240,000 Less operating expenses ...................... : Selling .................................................... \$100,000 Administrative ....................................... 110,000 210,000 Net operating income ............................ \$ 30,000 4
MANAGERIAL ACCOUNTING - IIE 211 CLASS 8