Question 1: All of the following would be classified as manufacturing overhead except the:

A). Wages of the supervisor of the machining shop.

B). Depreciation of the equipment in the machining shop.

C). Property taxes relating to the building that houses the machining shop.

D). All of the above would be classified as manufacturing overhead.

Answer; D). All of the above would be classified as manufacturing overhead.

 Question 2: An analysis of a particular cost incurred in a factory revealed that the cost is averages $0.40 per machine-hour at an activity level of 20,000 machine hours and increases to an average of $0.50 per machine hour at an activity level of 16,000 machine hours. Assuming that this activity is within the relevant range, what is the total expected cost if the activity level is 17,000 machine hours?

A. $1,600

B. $6,960

C. $8,000

D. $9,000

Answer; C. $8,000                      

Question 3: All of the following would be classified as product costs except:

A. The cost of air-conditioning the factory foreman’s office

B. Depreciation on the machinery in the factory

C. The cost of shipping units of product to one of the company’s customers

D. All of the above would be classified as product costs

Answer; C. The cost of shipping units of product to one of the company’s customers

Question 4: Within the relevant range:

A. Both total variable costs and total costs will remain constant

B. Both variable costs and total fixed costs fluctuate

C. Fixed costs per unit will remain constant and variable costs per unit will fluctuate

D. Variable costs per unit will remain constant and fixed costs per unit will fluctuate

Answer; D. Variable costs per unit will remain constant and fixed costs per unit will fluctuate

Question 5: Given the cost formula Y=$30,000 + $5X, total cost at an activity level of 16,000 units would be:

A. $30,000
B. $46,000
C. $80,000
D. $110,000

Answer; D. $110,000

Person’s job attitude questions with answers.

Question 6: The Sante Company incurred $40,000 to ship 19,000 pounds and $34,000 to ship 16,000 pounds. If the company ships 18,000 pounds, its expected shipping expense is closest to:

A. $37,000
B. $37,895
C. $38,000
D. $38,250

Answer; C. $38,000

Explore on how to calculate economic profit.

Question 7: The following information was summarized from the records of the Muentes Company for the first quarter of the year:

Sales $700,000
Fixed administrative expenses 110,000
Fixed of cost of goods sold 100,000
Fixed selling expenses 50,000
Variable administrative expenses 30,000
Variable cost of goods sold 220,000
Variable selling expense 170,000
The company’s gross margin for the quarter was:
A. $280,000
B. $380,000
C. $420,000
D. $440,000

Answer; B. $380,000

The company’s contribution margin for the quarter was:
A. $280,000
B. $380,000
C. $420,000
D. $600,000

Answer; A. $280,000

Question 8: Which one of the following costs would not be considered an indirect cost of serving a particular customer at a delicatessen?

A) The salary of the manager.
B) The cost of the tables and chairs used to furnish the restaurant.
C) The cost of the bread used to make the sub sandwich that is ordered.
D) The cost of lighting and heating the restaurant.  

Answer; C) The cost of the bread used to make the sub sandwich that is ordered.

Question 9: An opportunity cost is:

A) the difference between the total cost of one alternative and the total cost of another alternative.
B) the benefit forgone when one alternative is selected rather than another.
C) a cost that is saved by not adopting a given alternative.
D) a cost that continues to be incurred even when there is no activity.

Answer; B) the benefit forgone when one alternative is selected rather than another.

Are you lacking time and competency to handle your accounting assignments, Gudwriter has expert accounting tutors. We offer the best online accounting homework help to all students, who are not able to submit their accounting assignments on time and fail to get good grades.

                      

Special offer! Get 20% discount on your first order. Promo code: SAVE20