Reference no: EM133119786
Question 1 - Kobe, Inc. had the following information relating to 2020.
|
Budgeted factory overhead
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74,800
|
|
Actual factory overhead
|
78,300
|
|
Applied factory overhead
|
76,500
|
|
Estimated labor hours
|
44,000
|
If Kobe decides to use the actual results from 2020 to determine the 2021 overhead rate, what will the 2021 overhead rate be?
A. 1.650
B. 1.779
C. 1.738
D. 1.740
Question 2 - Nowitzki Corporation sells sets of encyclopedias. Nowitzki sold 4,000 sets last year at 25,000 a set. The variable cost per set was 17,500 and the fixed costs for Nowitzki were 10,000,000.
If the Nowitzki's sales increase by 20%, its net operating income should increase by about
A. 13.33%
B. 30.00%
C. 60.00%
D. 6.67%
Question 3 - The monthly income statement for Jordan Stores is given below:
|
|
First Branch
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Second Branch
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Total
|
|
Sales
|
1,200,000
|
800,000
|
2,000,000
|
|
Less: Variable Expenses
|
840,000
|
360,000
|
1,200,000
|
|
Contribution Margin
|
360,000
|
440,000
|
800,000
|
|
Less: Traceable Fixed Expenses
|
210,000
|
180,000
|
390,000
|
|
Segment Margin
|
150,000
|
260,000
|
410,000
|
|
Less: Common Fixed Expenses
|
180,000
|
120,000
|
300,000
|
|
Profit (Loss)
|
(30,000)
|
140,000
|
110,000
|
What will be the new company profit (loss) if First Branch is eliminated?
A. (250,000)
B. 140,000
C. (40,000)
D. 40,000
Question 4 - The following information pertains to Splash Brothers' Corporation:
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Sales margin
|
25%
|
|
Capital Turnover
|
2
|
|
Income
|
80,000
|
|
Required Rate of Return
|
10%
|
What is the average investment or operating assets?
A. 180,000
B. 160,000
C. 320,000
D. 800,000
Question 5 - Shaq's Cannery, Inc. estimated its factory overhead at 510,000 for the year, based on the normal capacity of 100,000 direct labor hours. Standard direct labor hours for the year totaled 105,000, while the factory overhead control account at the end of the year showed a balance of 540,000. How much was the over/underapplied factory overhead for the year?
A. 30,000 underapplied
B. 4,500 overapplied
C. 4,500 underapplied
D. 30,000 overapplied
Question 6 - Steph Company's direct labor costs:
|
Standard direct labor hours
|
30,000
|
|
Actual direct labor hours
|
29,000
|
|
Direct labor efficiency variance - favorable
|
4,000
|
|
Direct labor rate variance - favorable
|
5,800
|
|
Total payroll
|
110,200
|
What is the actual direct labor rate?
A. 3.80
B. 4.00
C. 3.54
D. 3.60
Question 7 - Jordan Company has two divisions, which reported the following results for the most recent year.
|
|
Division I
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Division II
|
|
Income
|
2,700,000
|
600,000
|
|
Average invested capital
|
18,000,000
|
3,000,000
|
|
ROI
|
15%
|
20%
|
Imputed interest rate = 10%
Under residual income, which division is considered to have a better performance?
A. Neither Division I nor II
B. Cannot be determined
C. Division II
D. Division I
Question 8 - The following information pertains to Splash Brothers' Corporation:
|
Sales margin
|
25%
|
|
Capital Turnover
|
2
|
|
Income
|
80,000
|
|
Required Rate of Return
|
10%
|
What is the ROI?
A. 50%
B. 25%
C. 20%
D. 40%