Variances 10 20 30 40 50 Chapter 5 10 20 30 40 50 Chapter 1/2 10 20 30 40 50 Misc. 10 20 30 40 50 Budgets 10 20 30 40 50
Variances
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Chapter 5
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Chapter 1/2
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Misc.
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Budgets
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Variances
Ques
tion
An unfavorable sale price variance reflects a. Fewer units sold than budgeted. b. A lower actual selling price than budgeted. c. An increase in the cost of products causing a decrease in income for the period. d. A decrease in the amount of cash received from customers.
10Variances
Answ
er
b. A lower actual selling price than budgeted
10Variances
Ques
tion
Facebook, Inc. gathered the following direct labor cost information for the month of July: Actual direct labor hours68,500Standard direct labor hours allowed for actual production67,200Actual direct labor rate per hour$12.10Standard direct labor rate per hour$11.75
The direct labor price variance is:
a. $15,730U b. $23,975U c. $15,275F d. $23,520F
20Variances
Answ
er
b. $23,975U
20Variances
Ques
tion
Deer Park Inc. gathered the following direct materials cost information for the month of July:Standard Quantity Allowed for production34,700 gallonsQuantity used in production33,900 gallonsActual price per gallon purchased$8.50Standard price per gallon$8.85
The direct materials usage variance is:
a. $ 4,250U b. $ 4,425F c. $6,800U d. $7,080F
30Variances
Answ
er
d. 7,080F
30Variances
Ques
tion
What is the direct labor usage variance?a. |AP-SP|xAHb. |AH-SH|xSPc. |AQ-SQ|xSPd. |AP-SP|xAQ purchased
40Variances
Answ
er
b. |AH-SH|xSP
40Variances
Ques
tion
What is the sales price variance?a. |ASP-SSP|xAQb. |AQ-SQ|xSSPc. I don’t know
50Variances
Answ
er
a. |ASP-SSP|xAQ
50Variances
Chapter 5
Ques
tion
If a product has a selling price of $21 and a markup of 75%, what is product’s cost? a. $12b. $15.75c. $28d. Not enough information
10Chapter 5
Answ
er
a. $12
10Chapter 5
Ques
tion
The bookkeeper who records cash receipts also deposits daily cash receipts at the bank on his way home from work. This is a violation of which of the following characteristics of good internal control: a. requiring proper authorization b. separating incompatible duties c. physically controlling assets and documents d. maintaining adequate documents and records
20Chapter 2
Answ
er
b. separating incompatible duties
20Chapter 2
Ques
tion
The producer of Hit Records receives a bonus rate of 8%. The bonus base is income before bonus or taxes. The tax rate is 30%. Hit Records just had an income before bonus or taxes of $1,250,000. How much is the producer’s bonus? a. $30,000b. $1,250,000c. $70,000d. $100,000
30Chapter 5
Answ
er
d. $100,000
30Category 2
Ques
tion
The Marriot plans to pay its managers a bonus to encourage performance. The bonus rate is 15% and the bonus base is net income after bonus but before taxes. The Marriot’s expected income before bonus or taxes is $1,500,000. Determine the amount of the expected bonus. a. $195,652.17b. $225,000.00c. $135,640.36d. $99,304.85
40Chapter 5
Answ
er
a. $195,652.17
40Chapter 5
Ques
tion
Falcon Industries’ president receives a bonus equal to 10% of income before bonus and taxes. Assuming the company’s income before bonus and taxes was $5,625,000 and tax rate is 25% determine the amount of the president’s net incomea. $3,800,000b. $3,796,875c. $511,363.64d. I forgot how to do this
50Chapter 5
Answ
er
b. $3,796,875
50Chapter 5
Chapter 1/2
Ques
tion
In its annual report Home Depot reported the value of its ending inventory, rather than the number of units on hand. This best describes an application of the: a. Periodicity conceptb. Business entity conceptc. Going concern conceptd. Monetary unit concept
10Chapter 1/2
Answ
er
d. Monetary Unit Concept
10Chapter 1/2
Ques
tion
Rubbermaid is using its equipment to create durable plastic bins to sell. This is an example of: a. Investing activityb. Operating activityc. Financing activityd. Both b and c
20Chapter 1/2
Answ
er
b. Operating Activity
20Chapter 1/2
Ques
tion
You’re reviewing the financial statements for UPS Delivery Company. Which of the following would you expect to find on the income statement? a. The cost incurred to clean the uniforms of the delivery personnelb. The amount of money owed to the bankc. The amount of cash in the bankd. The amount paid to purchase a new delivery truck
30Chapter 1/2
Answ
er
a. The cost incurred to clean the uniforms of the delivery personnel
30Chapter 1/2
Ques
tion
Morgan Stanley paid its shareholders $1,000,000 dividends for quarter 3. This is an example of: a. Investing activityb. Operating activityc. Financing activityd. Planning activity
40Chapter 1/2
Answ
er
d. Financing
40Chapter 1/2
Ques
tion
Prepaid insurance is an example of a(n): a. Liability c. Owners’ Equityb. Asset d. Revenue
50Chapter 1/2
Answ
er
b. Asset
50Chapter 1/2
Misc.
Ques
tion
Goods shipped from a seller’s warehouse on March 10, 2011, arrived at the buyer’s warehouse on March 16, 2011. The invoice for goods arrived at the buyer’s accounting department on March 13, 2011 and was paid on March 20, 2011. If the goods were sold FOB shipping point, the buyer took legal title on: a. March 20, 2011b. March 13, 2011c. March 10, 2011d. March 16, 2011
10Misc.
Answ
er
c. March 10, 2011
10Misc.
Ques
tion
A cost that does not change in total as the activity changes is a:
a. Fixed cost b. Variable costc. Mixed cost d. None of the above
20Misc.
Answ
er
a. Fixed Cost
20Misc.
Ques
tion
The Manhattan Company sells its one and only product for $89.00 per unit. Variable costs per unit amount to $63.50 and total fixed costs are $3,697,500. If Manhattan increases its selling price to $95, how will this affect the breakeven point in units?
a. The breakeven point will increase 27,619 units. b. The breakeven point will decrease 106,078 units. c. The breakeven point will increase 41,300 units. d. The breakeven point will decrease 27,619 units.
30Misc.
Answ
er
d. The breakeven point will decrease 27,619 units.
30Misc.
Ques
tion
On September 1, 2009, IBM paid $2,400 in advance for a one year insurance policy that covers the period September 1, 2009 through August 31, 2010. What amount of insurance expense should Olpe report for the year ended December 31, 2009?
a. $800 b. $1,200 c. $2,400 d. $0
40Misc.
Answ
er
a. $800
40Misc.
Ques
tion
The Nancy Manufacturing Company has kept track of the number of units they have produced each month and the cost to produce those units for the past six months.
Using the high/low method, what is the estimated total cost if 14,000 units are produced in January?
a. $62,000 b. $70,000 c. $75,000 d. $80,000
50Misc.
Month Number of Units Cost of Units Produced
July 10,000 $60,000August 11,000 $66,000September 20,000 $110,000October 16,000 $90,000November 12,000 $70,000December 18,000 $102,000
Answ
er
d. $80,000
50Misc.
Budgets
Ques
tion
All of the following are benefits of budgeting except: a. Resource allocationb. Evaluation and controlc. Performingd. Planning
10Category 5
Answ
er
Performing
10Category 5
Ques
tion
Apple estimates it will sell 25,000 units in April 2014. They expect unit sales to increase 10% each month for the remainder of the year. The expected sales price for 2014 is $20. What is the sales revenue for June 2014?a. $605,000b. $700,000c. $500,000d. $650,000
20Category 5
Answ
er
a. $605,000
20Category 5
Ques
tion
Microsoft estimates that: 30% of customers will pay in the month of the sale to take advantage of a 3% discount30% of their customers will pay in the month following the sale40% of their customers will pay 2 months following the saleThe 2013 sales budget includes estimated sales revenue of:November: $66,500December: $68,400January: $50,000February: $60,000March: $45,000
Cash Receipts for March are:a. 51,000b. 51,095c. 51,500d. No idea
30Category 5
Answ
er
51,095
30Category 5
Ques
tion
Walmart wants to maintain an ending finished goods inventory of 10% of the next months expected sales. Estimated sales in units for the first 4 months of 2014:January: 6,000February: 5,000March: 3,500April: 5,000What is the production required for February?a. 5,150b. 5,000c. 4,850d. 4,800
40Category 5
Answ
er
4,850
40Category 5
Ques
tion
Bergstorms industries sold 460,000 trash barrels at $12 each during the first quarter of 2008. Unit sales are projected to increase 5% each quarter while the selling price will be reduced by $.50 each quarter. The estimated sales revenue for the fourth quarter of 2008 is:a. $5,520,000b. $5,554,500c. $5,591,329d. $5,000,000
50Category 5
Answ
er
$5,591,329
50Category 5