The following costs were incurred in September:

  Direct materials $46,600
  Direct labor $29,900
  Manufacturing overhead $24,700
  Selling expenses $20,100
  Administrative expenses $40,800

Conversion costs during the month totaled:









A soft drink bottler incurred the following factory utility cost: $3,636 for 650 cases bottled and $3,724 for 900 cases bottled. Factory utility cost is a mixed cost containing both fixed and variable components. The variable factory utility cost per case bottled is closest to:










The following cost data pertain to the operations of Swestka Department Stores, Inc., for the month of July.


  Corporate headquarters building lease $85,400
  Cosmetics Department sales commissions–Northridge Store $5,000
  Corporate legal office salaries $65,000
  Store manager’s salary-Northridge Store $19,600
  Heating-Northridge Store $11,500
  Cosmetics Department cost of sales–Northridge Store $32,700
  Central warehouse lease cost $8,200
  Store security-Northridge Store $17,600
  Cosmetics Department manager’s salary–Northridge Store $4,680


The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company’s stores.


What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?









Erkkila Inc. reports that at an activity level of 6,500 machine-hours in a month, its total variable inspection cost is $426,080 and its total fixed inspection cost is $183,872.
What would be the average fixed inspection cost per unit at an activity level of 6,800 machine-hours in a month? Assume that this level of activity is within the relevant range.










Nikkel Corporation, a merchandising company, reported the following results for July:


  Sales $418,000
  Cost of goods sold (all variable) $175,500
  Total variable selling expense $23,700
  Total fixed selling expense $21,800
  Total variable administrative expense $16,200
  Total fixed administrative expense $34,300


The contribution margin for July is:









Job 593 was recently completed. The following data have been recorded on its job cost sheet:

  Direct materials $2,454  
  Direct labor-hours 71  labor-hours
  Direct labor wage rate $    15  per labor-hour
  Machine-hours 137  machine-hours


The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $16 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 593 would be:









The Assembly Department started the month with 18,500 units in its beginning work in process inventory. An additional 286,500 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 37,250 units in the ending work in process inventory of the Assembly Department.


How many units were transferred to the next processing department during the month?









Lasseter Corporation has provided its contribution format income statement for August. The company produces and sells a single product.


  Sales (4,400 units) $ 162,800
  Variable expenses   79,200
  Contribution margin   83,600
  Fixed expenses   44,800
  Net operating income $ 38,800


If the company sells 4,500 units, its total contribution margin should be closest to:









Olds Inc., which produces a single product, has provided the following data for its most recent month of operations:


  Number of units produced 6,400
  Variable costs per unit:  
  Direct materials $60
  Direct labor $54
  Variable manufacturing overhead $4
  Variable selling and administrative expense $17
  Fixed costs:  
  Fixed manufacturing overhead $236,800
  Fixed selling and administrative expense $492,800


There were no beginning or ending inventories. The absorption costing unit product cost was:

$114 per unit

$155 per unit

$118 per unit

$249 per unit





Zurasky Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below:
  Alternative A Alternative B
  Materials costs $31,000 $70,000
  Processing costs $37,000 $37,000
  Equipment rental $11,600 $28,800
  Occupancy costs $19,800 $28,200
What is the differential cost of Alternative B over Alternative A, including all of the relevant costs?









Bossie Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system:


  Wages and salaries $331,000
  Depreciation 275,000
  Utilities 227,000
  Total $833,000


  Distribution of resource consumption:
  Activity Cost Pools  
  Assembly Setting up Other Total
  Wages and salaries 50% 25% 25% 100%
  Depreciation 40% 10% 50% 100%
  Utilities 25% 55% 20% 100%


How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?









Budgets are used to plan and to control operations.







Cadavieco Detailing’s cost formula for its materials and supplies is $1,920 per month plus $11 per vehicle. For the month of November, the company planned for activity of 87 vehicles, but the actual level of activity was 52 vehicles. The actual materials and supplies for the month was $2,130.

The materials and supplies in the planning budget for November would be closest to:









Aide Industries is a division of a major corporation. Data concerning the most recent year appears below:


  Sales $17,830,000
  Net operating income $838,010
  Average operating assets $4,570,000


The division’s return on investment (ROI) is closest to: (Round your answer to 2 decimal places.)









Blue Corporation’s standards call for 4,900 direct labor-hours to produce 1,400 units of product. During May 1,300 units were produced and the company worked 1,300 direct labor-hours. The standard hours allowed for May production would be:


4,900 hours

1,300 hours

4,550 hours

3,600 hours





The following standards for variable manufacturing overhead have been established for a company that makes only one product:


  Standard hours per unit of output 6.2  hours
  Standard variable overhead rate $12.60  per hour


The following data pertain to operations for the last month:


  Actual hours 2,625  hours
  Actual total variable manufacturing overhead cost $33,715  
  Actual output 200  units


What is the variable overhead efficiency variance for the month?


$18,091 U

$17,451 U

$640 F

$15,624 F





Wyly Inc. produces and sells a single product. The selling price of the product is $205.00 per unit and its variable cost is $67.65 per unit. The fixed expense is $391,347 per month.
The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)










Part O43 is used in one of Scheetz Corporation’s products. The company’s Accounting Department reports the following costs of producing the 16,500 units of the part that are needed every year.


  Per Unit
  Direct materials $3.70
  Direct labor $4.40
  Variable overhead $7.40
  Supervisor’s salary $8.10
  Depreciation of special equipment $8.70
  Allocated general overhead $5.70


An outside supplier has offered to make the part and sell it to the company for $30.00 each. If this offer is accepted, the supervisor’s salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier’s offer were accepted, only $22,500 of these allocated general overhead costs would be avoided.


a. Prepare a report that shows the effect on the company’s total net operating income of buying part O43 from the supplier rather than continuing to make it inside the company. (Input the amount as a positive value. Omit the “$” sign in your response.)


  Net operating income would be
by $ .


b. Which alternative should the company choose?






Activity rates from Quattrone Corporation’s activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products:
  Activity Cost Pools Activity Rate
  Processing customer orders $100.73  per customer order
  Assembling products $3.42  per assembly hour
  Setting up batches $53.47  per batch
Last year, Product F76D involved 3 customer orders, 452 assembly hours, and 24 batches. How much overhead cost would be assigned to Product F76D using the activity-based costing system?









The Gasson Company uses the weighted-average method in its process costing system. The company’s ending work in process inventory consists of 16,000 units, The ending work in process inventory is 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the costs per equivalent unit for the period $4.50 for the materials and $1.70 for labor and overhead, whatis the balance of the ending work in process inventory account would be: (Do not round Cost per equivalent unit)





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