4. Which one of the following statements is true about activity-based costing and traditional costing
system? A) In the activity-based costing, as in traditional costing systems, non-manufacturing costs are
not assigned to products. B) When there are batc
13. Lindsay Company reported the following results from sales of 5,000 units for the month of June:
Sales Variable Expenses Fixed Expenses $200,000 $120,000 $ 60,000 Assume that Lindsay increases the
selling price of the product by 10% on July 1. How many
E6-20 -Determine ending inventory at cost using retail method
Gepetto Shoe Store uses the retail inventory method for its two departments, Women's Shoes and Men's Shoes.
The following information for each department is obtained.
TOHaas Company prepares monthly cash budgets. Relevant data from operating
budgets for 2011 are:
Sales $350,000 $400,000
Direct materials purchases 110,000 130,000
Direct labor 90,000 100,000
Manufacturing overhead 70,000 75,000
E17-7 Prepare a production report
The Sanding Department of Quik Furniture Company has the following production and manufacturing cost
data for March 2017, the first month of operation.
Production: 7,000 units finished and transferred out; 3,000 units sta
E24-3 Prepare flexible manufacturing overhead budget
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours.
Variable manufacturing overhead costs per direct labor hour are as follows.
12. Wilson Company's activity for the first six months of the current year is as follows: January February
March April May June Machine Hours 2,000 3,000 2,400 1,900 1,800 2,100 Electrical Cost $1,560 $2,200
$1,750 $1,430 $1,480 $1,600 Using the high-low
11. What is a duration driver? A) A simple count of the number of times an activity occurs. B) An activity
measure that is used for the life of the company. C) A measure of the amount of time required to
perform an activity. D) An activity measure that is
10. Worrell Corporation has a job-order costing system. The following debits (credits) appeared in the
Work in Process account for the month of March: Worrell applies overhead at a predetermined rate of
90% of direct labour cost. Job No. 232, the only job
1. Identifying alternatives and selecting the best among them is part of which of the following activities
which managers carry on in organizations? A) Controlling. B) Directing. C) Planning. D) Motivating.
7. What is the costing method that can be used most easily with break-even analysis and other costvolume-profit techniques? A) Variable costing. B) Absorption costing. C) Process costing. D) Job-order
14. What does manufacturing overhead cost consist of? A) All manufacturing costs. B) All manufacturing
costs, EXCEPT direct materials and direct labour. C) Indirect materials but NOT indirect labour. D) Indirect
labour but NOT indirect materials. *
15. Last year, Black Company reported sales of $640,000, a contribution margin of $160,000, and an
operating loss of $40,000. Based on this information, what was the break-even point? A) $640,000. B)
$480,000. C) $800,000. D) $960,000. *
3. Which one of the following statements is true about job-order costing? A) Job-order costing is used in
manufacturing companies and process costing is used in service firms. B) In a job-order costing system,
costs are traced to departments and then allo
5. Expense A is a fixed cost; expense B is a variable cost. During the current year, the activity level has
increased but is still within the relevant range. In terms of cost per unit of activity, you would expect
which of the following statements to be t
6. Once the break-even point is reached, which of the following statements is true? A) The total
contribution margin changes from negative to positive. B) Operating income will increase by the unit
contribution margin for each additional item sold. C) Var
8. Which of the following best describes the function of managerial accounting within an organization?
A) It has its primary emphasis on the future. B) It is required by regulatory bodies such as the Ontario
Securities Commission. C) It focuses on the org
9. Which one of the following statements about opportunity costs is true? A) Opportunity costs are costs
that have already been incurred and cannot be changed now or in the future. B) Opportunity costs do
not appear on the accounting records of an organiz
AE7-6 (a) Selleck has recently started the manufacture of RecRobo, a three-wheeled robot that can scan a home fo
this information to a mobile phone. The cost structure to manufacture 20,080 RecRobo's is as follows.
Direct labor ($31 per robot