acct exam 3 questions Flashcards
- Brady Manufacturing has the following production and cost data for two products, Q and P:
Product Q Product P Contribution margin per unit $40 $36 Machine minutes needed per unit 8 minutes 6 minute
A total of 24,000 machine minutes are available each period and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period?
Select one:
a. $120,000
b. $144,000
c. $456,000
d. $132,000
b. $144,000
Paying interest to lenders is classified as an operating activity on the statement of cash flows.
True
Which of the following costs at a manufacturing company would be treated as a product cost under variable costing?
Direct Material Cost
Ginger Corporation produces a single product and has provided the following data for its most recent month of operations:
Number of Units Produced: 4,000
Variable Costs per unit:
DM: 13
DL: $17
VOH: $3
V S&A: $2
Fixed Costs:
FOH: $280,000
F S&A: $120,000
There were no beginning or ending inventories.
The unit product cost under variable costing was:
Select one:
a. $35 per unit
b. $32 per unit
c. $103 per unit
d. $33 per unit
d. $33 per unit
Comet corporation has two divisions: The JSOM Division and the ENG division. The corporation’s net operation income is $15,000. The JSOM Division’s divisional segment margin is $75000 and the ENG Division’s divisional segment margin is $35,000. What is The total amount of common fixed expenses not traceable to the individual divisions?
a. $15,000
b. $35,000
c. $95,000
d. $110,000
c. $95,000
75,000 + 35,000 - 15,000
If Larry’s Lawns has a favorable variance in total labor-what could be the cause?
A. Better utilization of time (no 7-11 nearby)
All other things being the same, which of the following would increase residual income?
A. Decrease in sales
B. Decrease in average operating assets.
C. Decrease in net operating income,
D. Increase in minimum required return
B. Decrease in average operating assets.
