Reference no: EM132744893
Questions -
Q1. If the variable cost per unit is $1 and total fixed costs is $10,000, what is the total cost to produce 1,000 units?
A. $10,000
B. $11,000
C. $10,001
D. $11,001
Q2. Equivalent units of production are ____________
A. complete units that could have been produced given the total amount of manufacturing effort expended for the period under consideration
B. the average number of units produced in a given period
C. continuously measured in a total quality environment
D. computed in both job-order and process cost systems
Q3. Beginning work-in-process for the month contained 2,000 units. During the month, 60,000 units were started new. Ending work-in-process contained 3,000 units. How many units were worked on in the month?
A. 55,000
B. 60,000
C. 62,000
D. 65,000
Q4. Which of the following would be the most appropriate base for apportioning overhead costs of the product assembly department?
A. machine hours
B. direct labor hours
C. number of employees
D. square meters
Q5. A future cost that is the same under different alternatives is considered to be __________
A. relevant for all alternatives
B. irrelevant for all alternatives
C. relevant only for the most likely alternative
D. relevant only for the least likely alternative
Q6. BIG Toys Company (BTC) manufactures remote control drones for the export market. BTC manufactures all the components in-house in their only manufacturing facility. BTC is considering purchasing one of components from an outside supplier. Currently BTY produces 40,000 of this particular component per year. The following are unit production costs data for this particular component: Direct materials Per unit $ 1.25 Direct labor $ 2.00 Variable manufacturing overhead $ 0.75 Apportioned fixed overhead $ 1.00 If BTC Industries purchases the component from an outside supplier for $4.25 per unit, the effect on BTC's overall income would be a ____________
A. $30,000 decrease
B. $30,000 increase
C. $10,000 decrease
D. $10,000 increase