At a volume level of 500000 units Sullivan reported the following information

At a volume level of 500000 units sullivan reported

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8. At a volume level of 500,000 units, Sullivan reported the following information: The company's contribution-margin ratio is: A. 0.33.B. 0.40.C. 0.60.D. 0.67.E. an amount other than those above. 9. ABC Corporation observed that when 50,000 units were sold, a particular cost amounted to \$150,000, or \$3.000 per unit. When volume increased by 20%, the cost totaled \$180,000 (i.e., \$3.00 per unit). The cost that ABC is studying can best be described as a:Page 4of 13Page 235 - 236Page 279CM Ratio = Unit cont margin/unit sales priceCM Ratio = (\$60 -20)/\$60CM Ratio = .67Page 235 & 236
ACC 312 Fundamentals of Managerial AccountingMidterm Exam I1 Fall 2009 November 10, 2009Test Form AUSE THE FOLLOWING INFORMATION FOR THE NEXT TWO QUESTIONSWestern Village Inc. uses a standard cost system in the manufacture of its single product. The 35,000 pounds of raw material purchases and used cost \$105,000, and two pounds of raw material are required to produce one unit of final product. In November, the company produced 12,000 units of product. The flexible budget for the production of 12,000 units for materials was\$60,000.10. Western Village Inc.’s standard price for one pound of material is:11. Western Village Inc.’s direct material quantity variance was:12. Martin Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 9,000Actual variable overhead incurred: \$54,400Actual machine hours worked: 16,000Standard variable overhead cost per machine hour: \$3.50If Martin estimates two hours to manufacture a completed unit, the company's variable-overhead efficiency variance is: A. \$1,600 favorable.B. \$1,600 unfavorable.C. \$7,000 favorable.D. \$7,000 unfavorable.E. some other amount not listed abovePage 5of 13Page 472Flex Budget 12,000 units = \$60,0001 unit = 2 lbs 12,000 units x 2 lbs/unit = 24,000 lbs\$ 60,000/24,000 lbs = \$2.50 per lb standard costPage 410 Ex 10-2SP (AQ-SQ)\$2.50 (35,000 – (12,000 x 2)\$2.50 (35,000 -24,000)\$27,500 U (Act quantity higher than standardPage 466 & 467 Ex 11-6SVR (AH – SH)\$3.50 (16,000 – (9,000 x 2)\$3.50 (16,000-18,000)\$7,000 F (Actual hrs less than standard)
ACC 312 Fundamentals of Managerial AccountingMidterm Exam I1 Fall 2009 November 10, 2009Test Form A13. The major objective of any budget system are to:

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