Question 1under ricky cos job order costing system

Assignment Help Financial Accounting

Reference no: EM13350045

Question: 1.

Under Ricky Co.'s job order costing system, manufacturing overhead is applied to work in process using a predetermined annual overhead rate. During January, Ricky's transactions included the subsequent:

Direct materials issued to production $ 90,000

Indirect materials issued to production $ 8,000

Manufacturing overhead incurred $125,000

Manufacturing overhead applied $113,000

Direct labor costs $107,000

Ricky had neither starting nor ending work-in-process inventory. What was the cost of jobs completed in January?

a. $302,000

b. $310,000

c. $322,000

d. $330,000

Question: 2.

Quack Co. was analyzing variances for one of its operations. The initial budget forecast production of 20,000 units through the year with a variable manufacturing overhead rate of $10 per unit. Quack produced 19,000 units during the year. Actual variable manufacturing costs were $210,000. What amount would be Quack's flexible budget variance for the year?

a. $10,000 favorable

b. $20,000 favorable

c. $10,000 unfavorable

d. $20,000 unfavorable

Question: 3.

During June, Dinky Co. experienced scrap, abnormal spoilage and normal spoilage in its manufacturing process. The cost of units produced includes

a. Scrap, but not spoilage

b. Normal spoilage, but neither scrap nor abnormal spoilage

c. Normal spoilage and Scrap, but not abnormal spoilage

d. Scrap, abnormal spoilage and normal spoilage

Question: 4.

Veggie Corp. uses a standard cost system. In May, Veggie brought and used 17,500 pounds of materials at a cost of $70,000. The materials usage variance was $2,500 unfavorable and the standard materials allowed for May production was 17,000 pounds. Evaluate the materials price variance for May?

a. $17,500 favorable

b. $17,500 unfavorable

c. $15,000 favorable

d. $15,000 unfavorable

Question: 5.

Kaffy Caterers quotes a price of $60 per person for a dinner party. This price adds the 6% sales tax and the 15% service charge. Sales tax is evaluated on the food plus the service charge. The service charge is evaluated on the food only. At what amount does Kaffy price the food?

a. $56.40

b. $51.00

c. $49.22

d. $47.40

Question: 6. Product Cott has sales of $200,000, a contribution margin of 20 percent, and a margin of safety of $80,000. Evaluate Cott's fixed cost?

a. $16,000

b. $24,000

c. $80,000

d. $96,000

Question: 7.

Nonfinancial measures give information about

A. the economic effect of operations and decisions

B. aspects of operations that can't be measured in dollars

C. the dollar value of a particular cost containment strategy

D. the operating margin

Question: 8.

Why is the computation of subunits and subunit managers important?

A. It helps evaluate whether or not to expand or contract operations.

B. It encourages manager motivation to take actions that maximize the value of the firm.

C. Both a and b.

D. They should not be evaluated individually.

Question: 9.

Which of the subsequent is a problem with the ROI calculation?

A. Increased profits cause ROI to decrease.

B. Investment in assets is measured using existing value costs.

C. An undue emphasis on ROI may lead managers to delay the buy of modern equipment needed to stay competitive.

D. It does not hold managers responsible for assets.

Question: 10.

Beam Company presently has 100,000 shares of common stock outstanding and a price-earnings ratio of seven. Total income for the currently ended year is $375,000. Beam's board of directors declared a 15-for-2 stock split. Sunshine owned 100 shares of Beam before the split. What is the estimated value of Sunshine's investment in Beam instantly after the split?

a. $ 26

b. $ 350

c. $2,625

d. $5,250

Reference no: EM13350045

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