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Acct116 Final

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CHAPTERS 6-12

Use the following to answer question 1:

Wright Corporation's contribution format income statement for last month appears below.

Sales $45,000
Less variable expenses 27,000
Contribution margin 18,000
Less fixed expenses 12,000
Net income $6,000

There were no beginning or ending inventories. The company produced and sold 3,000 units during the month. Ch. 9 1. If sales decrease by 500 units by next month, by how much would fixed expenses have to be reduced to maintain the current net income?
A) $2,000
B) $3,000
C) $6,000
D) $7,500

Ch 6
2. The break‑even point in sales for Rice Company is $360,000 and the company's contribution margin ratio is 30%. If Rice Company desires an income of $84,000, sales would have to …show more content…

C) $820 F.
D) $820 U.

11. The variable overhead efficiency variance is:
A) $740 F.
B) $950 U.
C) $430 U.
D) $1,120 F.

Ch 10
12. For the month of April, Thorp Co.'s records disclosed the following data relating to direct labor:

Actual cost $10,000
Rate variance $ 1,000 favorable
Efficiency variance $ 1,500 unfavorable

For the month of April, actual direct labor hours amounted to 2,000. In April, Thorp's standard direct labor rate per hour was:
A) $4.50.
B) $4.75.
C) $5.50.
D) $5.00.

Use the following to answer questions 13‑15:

The Murray Company makes and sells a single product. The company recorded the following activity and cost data for May:

Number of units completed 45,000 units
Standard direct labor‑hours allowed per unit of product 1.5 DLHS
Budgeted direct labor‑hours (denominator activity) 72,000 DLHS
Actual fixed overhead costs incurred $66,000
Volume variance $4,275 U

The fixed portion of the predetermined overhead rate is $0.95 per direct labor‑hour.

Ch 11
13. The amount of fixed overhead contained in the company's overhead flexible budget for May was:
A) $64,125.
B) $70,275.
C) $67,500.
D) $68,400.

14. The amount of fixed manufacturing overhead cost applied to work in process during May was:
A) $42,750.
B) $64,125.
C) $61,725.
D) $62,700.

15. The fixed overhead budget variance for May was:
A) $2,400 F.
B) $6,000 F.
C) $6,000 U.
D) $2,400 U.

16. Web Company uses a standard cost system in which manufacturing overhead is

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