Managerial Accounting Test Essay

4037 Words Jun 21st, 2006 17 Pages
TEST QUESTIONS:

Questions 1-3 refer to the following:

The following selected data for March were taken from Rubenstein
Company's financial statements: Cost of goods available for sale Manufacturing overhead
Cost of goods manufactured
Finished goods inventory ‑ ending
Direct materials used
Sales
Selling and administrative expenses
Direct labor
Work in process inventory ‑ beginning
$ 65,000
20,000
51,000
10,000
15,000
105,000
30,000
20,000
0

1. The gross margin was:

1. $55,000. 2. $54,000. 3. $50,000. 4. $40,000.

2. The beginning finished goods inventory was:

1. $24,000. 2. $ 9,000. 3. $10,000. 4. $14,000.

3. The ending work in process inventory was:

1. $ 4,000.
…show more content…
$24,570.00. 2. $24,715.00. 3. $24,524.50. 4. $38,182.25.

10. Shipping cost at Junk Food Imports is a mixed cost with variable and fixed components. Past records indicate total shipping cost was $18,000 for 16,000 pounds shipped and $22,500 for 22,000 pounds shipped. If the company plans to ship 18,000 pounds next month, the expected shipping cost is:

1. $18,500. 2. $20,400. 3. $19,500. 4. $24,000.

11. Erg Manufacturing Company has developed the following overhead cost formulas:

Cost Formula Depreciation $500 Set up $400 plus $0.20 per machine‑hour Lubrication $ 50 plus $0.25 per machine‑hour Utilities $0.40 per machine‑hour

Based on these cost formulas, the total overhead cost expected if 200 machine hours are worked is:

1. $ 620. 2. $ 900. 3. $ 170. 4. $1,120.

12. Alpha Company reported the following data for its most recent year: sales, $500,000; variable expenses, $300,000; and fixed expenses, $150,000. The company's degree of operating leverage is:

1. 10 2. 2 3. 4 4. 2.5

13. As total sales increase in a company beyond the breakeven point, the

Operating Breakeven Margin of Leverage

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