Reference no: EM132587643

Question 1: Hobart Corporation manufactured 20 000 heaters during November. The overhead cost-allocation base is $15.75 per machine-hour. The following variable overhead data pertain to November: Actual Budgeted Production 20 000 units 22 000 units Machine-hours 7875 hours 9000 hours Variable overhead cost per machine-hour: $15.50 $15.75 What is the flexible-budget amount? ( rounded to two decimal)

a. $124 031.30

b. $128 863.64

c. $139 500.00

d. $124 000.00

e. No correct answe

Question 2: Healesville Animal Products manufactured 32 000 horse grooming kits during 2018. The fixed-overhead cost-allocation rate is $20.00 per machine-hour. The following fixed overhead data pertain to 2018: Actual Static Budget Production 32 000 units 30 000 units Machine-hours 6100 hours 6000 hours Fixed overhead costs for 2018 $123 000 $120 000 What is the fixed overhead spending variance?

a. $1000 unfavourable

b. $5000 favourable

c. $3000 unfavourable

d. $2000 favourable

e. No correct answe

Question 3: oxford Manufacturing produces a single product that sells for $200. Variable costs per unit equal $50. The company expects total fixed costs to be $140 000 for the next month at the projected sales level of 2000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. One of the first steps to take when using CVP analysis to help make decisions is:

a. calculation of the degree of operating leverage for the company.

b. finding out where the total cost line intersects with the total revenues line on a graph.

c. estimating how many products will have to be sold to make a decent profit.

d. identifying which costs are variable and which costs are fixed.

e. No correct answer

Question 4: Merlo, Inc. maintains a debt-equity ratio of 0 .40 and follows a residual dividend policy. The company has after-tax earnings of $1,400 for the year and needs $1,400 for new investments. What is the total amount Merlo will pay out in dividends this year?

A. $0

B. $400

C. $600

D. $640

Question 5: PlasticsRus Pty Ltd manufactured 100 000 buckets during February. The overhead cost-allocation base is $5.00 per machine-hour. The following variable overhead data pertain to February: Actual Budgeted Production 100 000 units 100 000 units Machine-hours 9800 hours 10 000 hours Variable overhead cost per machine-hour $5.25 $5.00 What is the variable overhead efficiency variance?

a. $1000 favourable

b. $1450 unfavourable

c. $2450 unfavourable

d. $2450 favourable

e. No correct

Question 6: Wagga Wagga Textiles is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Tumut Brass Band band jacket job. Company Tumut Brass Band Job Direct materials $40 000 $1000 Direct labour $10 000 $ 200 Manufacturing overhead costs $30 000 Machine-hours 100 000 mh 900 mh What amount of manufacturing overhead costs will be allocated to Band job? Note: round up the overhead allocation rate to two decimal

a. $270

b. $720

c. $30 000

d. $450

e. No correct ans

Question 7: Because the Goulburn Company used a budgeted indirect-cost rate for its manufacturing operations, the amount allocated ($200 000) was different from the actual amount incurred ($225 000). Ending balances in the relevant accounts are: Work in process $10 000 Finished goods 20 000 Cost of goods sold 170 000 What is the journal entry used to write off the difference between allocated and actual overhead using the proration approach?

a. Manufacturing Overhead Control 225 000 Work-in-Process Control 1250 Finished Goods Control 2500 Cost of Goods Sold 21 250 Manufacturing Overhead Allocated 200 000

b. Manufacturing Overhead Allocated 200 000 Work-in-Process Control 10 000 Finished Goods Control 20 000 Manufacturing Overhead Control 230 000

c. Manufacturing Overhead Allocated 225 000 Work-in-Process Control 1250 Finished Goods Control 2500 Cost of Goods Sold 21 250 Manufacturing Overhead Control 200 000

d. Manufacturing Overhead Allocated 200 000 Work-in-Process Control 1250 Finished Goods Control 2500 Cost of Goods Sold 21 250 Manufacturing Overhead Control 225 000

Question 8: Gosford Manufacturing produces a single product that sells for $200. Variable costs per unit equal $50. The company expects total fixed costs to be $140 000 for the next month at the projected sales level of 2000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. One of the first steps to take when using CVP analysis to help make decisions is:

a. calculation of the degree of operating leverage for the company.

b. finding out where the total costs line intersects with the total revenues line on a graph.

c. estimating how many products will have to be sold to make a decent profit.

d. identifying which costs are variable and which costs are fixed.

e. No correct answer

Question 9: What are indirect labour costs frequently divided into? Jobs. Sub-classifications. Systems. Processes.