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1)It would be acceptable to have the selling price of a product just above the variable costs and expenses of making and selling it in: A) monopoly situations B) both the short run and long run C) the long run D) the short run 2.The Warbler Jeans Company produces two different types of jeans. One is called the "Simple Life" and the other is called the "Fancy Life" The company's Production Budget requires 353,500 units of Simple jeans and 196,000 Fancy jeans to be manufactured. It is estimated that 2.5 direct labor hours will be needed to manufacture one pair of Simple Life jeans and 3.75 hours of direct labor hours for each pair of Fancy Life jeans. What is the total number of direct labor hours needed for both lines of jeans? A) 1,618,750 direct labor hours B) 883,750 direct labor hours C) 735,000 direct labor hours D) 353,500 direct labor hours 3.Rusty Co. sells two products, X and Y. Last year Rusty sold 5,000 units of X's and 35,000 units of Y's. Related data are: Unit Selling Price Unit Variable Unit contribution Product Price Cost Margin X $110.00 $70.00 $40.00 Y 70.00 50.00 $20.00 What was Rusty Co.'s weighted average unit variable cost? A) $52.50 B) $70.00 C) $120.00 D) $50.00 4.If fixed costs are $240,000, the unit selling price is $36, and the unit variable costs are $20, what is the break-even sales (units)? A) 12,000 units B) 27,000 units C) 6,667 units D) 15,000 units 5.Under variable costing, which of the following costs would be included in finished goods inventory? A) only variable factory overhead cost B) both variable and fixed factory overhead cost C) only fixed factory overhead cost D) neither variable nor fixed factory overhead cost
The next topical report will deal with the tax area of accounting.
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