Reference no: EM132565414

Question 1: Assume that Current Sales are $100,000; and Break even in sales dollars is $75,000. What is the Margin of Safety ratio?

a. 25%

b. 50%

c. 75%

d. 100%

Question 2: Assume Fixed costs are $10,000; Selling price is $30 and variable costs are $10. What is the break even in units? Give answer to the nearest unit.

Group of answer choices

a. 500 units

b. 1,000 units

c. 250 units

d 334 units

Question 3: If Direct Labor is 1 hour per unit at a rate of $25 per hour, what would be the budgeted amount for Direct Labor costs for the year if we expect to use 500 hours in the first six months and 600 hours in the second six months?

a. $55,000

b. $27,500

c. $2,200

D $25,000

Question 4: If Variable MOH is $2 per direct labor hour and the fixed MOH (all cash) is $2,500 per month, what is the amount of MOH budgeted for the month if 1,000 Direct Labor hours are budgeted?

a. $2,500

b. $2,000

c. $4,500

d. $5,000

Question 5: Assume Fixed costs are $10,000; Selling price is $30 and variable costs are $10. What is the break even in sales Dollars?

a. $10,000

b. $12,000

c. $14,000

d. $15,000

Question 6: The Direct materials, Direct Labor, and MOH budgers are usually based off the:

a. Sales Budget

b. Production Budget

c. Cash Budget

d. Selling & Administrative Budget

Question 7: Where the lines cross in a Cost-Volume-Profit graph represents:

a. Cost of Goods Sold

b. Net Loss

c. Net Income

d. Break Even

Question 8: A budget that shows expected costs for a range of activity levels is called a:

a. Sales Budget

b. Static Budget

c. Selling & Administrative Budget

d. Flexible Budget

Question 9: Common Fixed Costs are:

a. Fixed costs that relate to just one segment

b. fixed costs that can be avoided if segment is dropped

c. fixed costs that are not traceable to a segment

d. all of the above