Instructions on how to complete the quiz
- Click on “Start Quiz” to start.
- “Check” to submit your answer and reveal the solution.
- “Skip Question” to skip the question for now.
- “Review” to mark question for review later.
- “Feedback” to inquire about the question or provide us your feedback.
- Please make sure to reference the number of the question in your inquiry such as # 4
- “Quiz Summary” to finish/submit the whole quiz
Quiz Summary
0 of 44 Questions completed
Questions:
Information
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading…
You must sign in or sign up to start the quiz.
You must first complete the following:
Results
Results
0 of 44 Questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 point(s), (0)
Earned Point(s): 0 of 0, (0)
0 Essay(s) Pending (Possible Point(s): 0)
| Average score |
|
| Your score |
|
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
- 21
- 22
- 23
- 24
- 25
- 26
- 27
- 28
- 29
- 30
- 31
- 32
- 33
- 34
- 35
- 36
- 37
- 38
- 39
- 40
- 41
- 42
- 43
- 44
- Current
- Review / Skip
- Answered
- Correct
- Incorrect
-
Question 1 of 44
1. Question
The contribution margin is the amount remaining from sales revenues after deducting:
CorrectIncorrect -
Question 2 of 44
2. Question
L&T’s relevant range of activity is 6,000 to 14,000 units per day. Below is its average cost per unit, if it manufactures and sells 10,000 units per day.
Average Cost per Unit Direct Raw-materials $10.40 Direct labor $7.50 Variable manufacturing overhead $3.30 Fixed manufacturing overhead $5.20 Fixed selling exp. $1.00 Fixed administrative exp. $0.80 Commission on sales $3.00 Variable administrative exp. $1.00 If it produces 12,000 units per day, the total direct manufacturing cost incurred will be:
CorrectIncorrect -
Question 3 of 44
3. Question
Based on the information below for Zultec Corporation, what will be the direct manufacturing cost if it manufactures 8000 units per day?
Cost per Unit Cost per Period Direct material Cost $ 10.00 Direct labor Cost $ 5.80 Variable manufacturing overhead $ 2.50 Fixed manufacturing overhead $42,000 Commission on Sales $ 2.00 Variable administrative exp. $ 1.10 Fixed selling & administrative exp. $ 15,000 CorrectIncorrect -
Question 4 of 44
4. Question
Weatherford’s relevant range of activity is 1,500 units to 4,000 units. When it manufactures and sells 3,000 units, the average costs per unit are as follows:
Average Cost per Unit Total Direct materials $4.25 Total Direct labor $3.00 Variable manufacturing overhead $1.50 Fixed manufacturing overhead $2.75 Fixed selling exp. $0.90 Fixed administrative exp. $0.60 Commission on Sale $0.50 Variable administrative exp. $0.40 If it produces 5,000 units, the Indirect Manufacturing Cost incurred will be close to:
CorrectIncorrect -
Question 5 of 44
5. Question
The following costs have been incurred during the month of July 2020 in J&J Corporation:
Total Direct material $92,000 Total Direct labor $21,000 Total Manufacturing overhead $65,000 Selling exp. $25,000 Administrative exp. $18,000 The Conversion cost during the month is:
CorrectIncorrect -
Question 6 of 44
6. Question
The manufacturing overhead of Sigma Company is 65% of its total conversion costs. If the direct labor is $60,000 and direct material is $35,000 respectively, then the manufacturing overhead will be:
CorrectIncorrect -
Question 7 of 44
7. Question
Energy Corporation recorded a direct labor cost of $20,000 in June 2020. Direct labor cost represents 40% of the prime cost. If the total manufacturing costs for June 2020 were $106,000, what was the manufacturing overhead for the month?
CorrectIncorrect -
Question 8 of 44
8. Question
The following information was recorded by Kinley Corporation in the month of April 2017.
Cost per Unit Cost per Period Total Direct materials $9.80 Total Direct labor $6.15 Variable manufacturing overhead $2.65 Fixed manufacturing overhead $151,500 Commission on Sales $1.50 Variable administrative exp. $1.00 Fixed selling & administrative exp. $ 50,500 If 20,000 units were manufactured, the total amount of manufacturing overhead cost would be:
CorrectIncorrect -
Question 9 of 44
9. Question
Delta Corporation paid in advance for its four years of insurance coverage. The total premium was $3,500 for four years and was paid at the beginning of the first year. 65% of the premium applies to manufacturing operations and 35% applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage?
Product Period A) $ 306.25 $ 568.75 B) $568.75 $306.25 C) $ 2275 $ 1225 D) $ 1225 $ 2275 CorrectIncorrect -
Question 10 of 44
10. Question
Paul Corporation’s relevant range of activity is 4,000 units to 9,000 units. When it produces and sells 7,000 units, its average costs per unit are as follows:
Average Cost per Unit Total Direct materials $ 6.85 Total Direct labor $ 6.00 Variable manufacturing overhead $ 2.75 Fixed manufacturing overhead $ 4.90 Fixed selling expenses $ 1.90 Fixed administrative expenses $ 1.60 Commission on Sale $ 1.50 Variable administrative expenses $ 1.45 What will be the total amount of period costs incurred to sell 7,000 units?
CorrectIncorrect -
Question 11 of 44
11. Question
Nestle Corporation has recorded the following information:
Cost per Unit Cost per Period Direct materials $ 7.20 Direct labor $ 4.70 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 15,000 Sales commissions $ 1.75 Variable administrative expense $ 0.75 Fixed selling and administrative expense $ 9,000 How much is the total amount of product costs incurred to produce 6,000 units?
CorrectIncorrect -
Question 12 of 44
12. Question
Bonanza Corporation reports that its total variable cost is $820,116 and its total fixed cost is $190,974 at an activity level of 8,900 units. What would be the total cost, both fixed and variable, at an activity level of 11,100 units? Assume that this level of activity is within the relevant range. (Round intermediate calculations to 2 decimal places.)
CorrectIncorrect -
Question 13 of 44
13. Question
Geely Corporation has recorded the following information:
Cost per Unit Cost per Period Total Direct materials $ 8.50 Total Direct labor $ 5.75 Variable manufacturing overhead $ 2.25 Fixed manufacturing overhead $ 117,500 Commission on Sale $ 1.50 Variable administrative expenses $ 1.10 Fixed selling and administrative expenses $ 50,900 If they sell 12,000 units, the variable cost per unit sold will be:
CorrectIncorrect -
Question 14 of 44
14. Question
The cost per unit for DHL Corporation is as follows:
Cost per Unit Cost per Period Direct materials $ 8.15 Direct labor $ 5.10 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 135,000 Sales commissions $ 1.75 Variable administrative expense $ 0.90 Fixed selling and administrative expense $ 55,500 If it increases production from 9,000 to 9,001 units, what will be the incremental manufacturing cost? (Assume that the increase is within the relevant range):
CorrectIncorrect -
Question 15 of 44
15. Question
Indus Corporation’s relevant range of activity is 4,500 units to 9,000 units. Its average costs per unit are as follows when it manufactures and sells 6000 units:
Average Cost per Unit Direct materials $ 7.50 Direct labor $ 3.75 Variable manufacturing overhead $ 2.20 Fixed manufacturing overhead $ 3.50 Fixed selling expense $ 1.50 Fixed administrative expense $ 1.00 Sales commissions $ 1.50 Variable administrative expense $ 0.90 If it increases production from 6,000 to 6,001 units, what will be the incremental manufacturing cost?
CorrectIncorrect -
Question 16 of 44
16. Question
Kinetic Incorporated is a merchandising company. The company’s cost of goods sold was $85,500 last month. The company’s opening inventory was $15,530 and its closing inventory was $30,650. What was the total amount of the company’s merchandise purchases for the month?CorrectIncorrect -
Question 17 of 44
17. Question
Hershey is a merchandising company, below is its last month data:
- Cost of goods sold $94,000
- Beginning merchandise inventory $30,000
- Ending merchandise inventory $28,000
Calculate the total amount of the company’s merchandise purchases for the month.
CorrectIncorrect -
Question 18 of 44
18. Question
Pantaloon is a merchandising company, below is its last month data:
- Merchandise purchases (total) $83,000
- Beginning merchandise inventory $33,000
- Ending merchandise inventory $35,000
What was the company’s cost of goods sold for the month?
CorrectIncorrect -
Question 19 of 44
19. Question
Shopperstop Department Store has provided its cost data pertaining to the operations for the month of June as follows:
Corporate headquarters building lease $ 80,000 Cosmetics Department sales commissions-Partner Store $ 6,000 Corporate legal office salaries $ 59,000 Store manager’s salary-Partner Store $ 11,000 Heating- Partner Store $ 10,000 Cosmetics Department cost of sales-partner Store $ 40,000 Central warehouse lease cost $ 16,000 Store security-Partner Store $ 12,000 Cosmetics Department manager’s salary-Partner Store $ 6,000 The Partner Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Partner Store. The central warehouse serves all of the company’s stores.
What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?
CorrectIncorrect -
Question 20 of 44
20. Question
Hershey Corporation’s relevant range of activity is 4,000 units to 8,000 units. its average costs per unit to produce and sell 6,000 units are as follows:
Average Cost per Unit Direct materials $ 7.55 Direct labor $ 4.50 Variable manufacturing overhead $ 2.40 Fixed manufacturing overhead $ 1.60 Fixed selling expense $ 0.70 Fixed administrative expense $ 0.40 Sales commissions $ 2.50 Variable administrative expense $ 0.45 For financial reporting purposes, the total amount of period costs incurred to sell 6,000 units is closest to:
CorrectIncorrect -
Question 21 of 44
21. Question
Freshly Corporation’s relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:
Average Cost per Unit Direct materials $ 8.55 Direct labor $ 5.50 Variable manufacturing overhead $ 3.40 Fixed manufacturing overhead $ 5.60 Fixed selling expense $ 1.70 Fixed administrative expense $ 1.40 Sales commissions $ 2.50 Variable administrative expense $ 0.45 If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
CorrectIncorrect -
Question 22 of 44
22. Question
Pantaloon Corporation has provided the following information:
Cost per Unit Cost per Period Direct materials $ 7.00 Direct labor $ 3.35 Variable manufacturing overhead $ 1.75 Fixed manufacturing overhead $ 8,800 Sales commissions $ 2.00 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 6,000 For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is closest to:
CorrectIncorrect -
Question 23 of 44
23. Question
Caster Corporation has provided the following information:
Per unit cost Per Period Cost Direct materials $ 8.05 Direct labor $ 4.50 Variable manufacturing overhead $ 2.65 Fixed manufacturing overhead $ 15,000 Sales commissions $ 1.00 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 6,500 For financial reporting purposes, the total amount of product costs incurred to make 5,000 units is closest to:
CorrectIncorrect -
Question 24 of 44
24. Question
Blackberry Inc. has provided the following information:
Cost per Unit Cost per Period Direct materials $ 9.05 Direct labor $ 5.50 Variable manufacturing overhead $ 3.65 Fixed manufacturing overhead $ 11,000 Sales commissions $ 3.00 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 5,500 If 5,000 units are sold, the total variable cost is closest to:
CorrectIncorrect -
Question 25 of 44
25. Question
Blackberry Inc. has provided the following information:
Cost per Unit Cost per Period Direct materials $ 8.05 Direct labor $ 4.50 Variable manufacturing overhead $ 1.65 Fixed manufacturing overhead $ 11,000 Sales commissions $ 1.00 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 5,500 If 7,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:
CorrectIncorrect -
Question 26 of 44
26. Question
Lipton Corporation has provided the following information:
Cost per Unit Cost per Period Direct materials $ 6.90 Direct labor $ 3.70 Variable manufacturing overhead $ 2.30 Fixed manufacturing overhead $ 11,000 Sales commissions $ 1.60 Variable administrative expense $ 0.60 Fixed selling and administrative expense $ 3,600 If 5,500 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
CorrectIncorrect -
Question 27 of 44
27. Question
Kcream inc. has provided the following information:
Cost per Unit Cost per Period Direct materials $ 8.65 Direct labor $ 6.00 Variable manufacturing overhead $ 2.60 Fixed manufacturing overhead $ 20,900 Sales commissions $ 2.00 Variable administrative expense $ 0.70 Fixed selling and administrative expense $ 5,700 What will be the incremental manufacturing cost that the company will incur if it increases production from 4,200 to 4,201 units:
CorrectIncorrect -
Question 28 of 44
28. Question
A partial listing of costs incurred at Sipchem Corporation during June appears below:
Direct materials $ 123,000 Utilities, factory $ 6,000 Administrative salaries $ 81,000 Indirect labor $ 35,000 Sales commissions $ 48,000 Depreciation of production equipment $ 20,000 Depreciation of administrative equipment $ 30,000 Direct labor $ 120,000 Advertising $ 135,000 The total of the product costs listed above for June is:
CorrectIncorrect -
Question 29 of 44
29. Question
Bently corporation has reported the partial listing of costs for the month of June as shown below:
Factory supplies $ 10,000 Administrative wages and salaries $ 95,000 Direct materials $ 136,000 Sales staff salaries $ 40,000 Factory depreciation $ 43,000 Corporate headquarters building rent $ 33,000 Indirect labor $ 36,000 Marketing $ 75,000 Direct labor $ 109,000 What are the total period costs for June?
CorrectIncorrect -
Question 30 of 44
30. Question
Home Corporation’s relevant range of activity is 4,000 units to 8,000 units. Its average costs per unit to produce and sell 6,000 units are as follows:
Average Cost per Unit Direct materials $ 7.40 Direct labor $ 2.55 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 5.00 Fixed selling expense $ 0.60 Fixed administrative expense $ 1.40 Sales commissions $ 2.00 Variable administrative expense $ 0.40 If 7,000 units are produced, the average fixed manufacturing cost per unit produced is closest to:
CorrectIncorrect -
Question 31 of 44
31. Question
Fusion Beats Corporation, a merchandising company, has reported the following results for March:
Direct materials $ 73,000 Direct labor cost $ 78,000 Manufacturing overhead $ 62,000 Selling expense $ 38,000 Administrative expense $ 57,000 The prime cost for March was:
CorrectIncorrect -
Question 32 of 44
32. Question
Chic Corporation, a merchandising company, has a relevant range of activity from 4,000 units to 8,000 units. Its average costs per unit to produce and sell 6,000 units are shown below:
Average
Cost per UnitDirect materials $ 7.90 Direct labor $ 5.35 Variable manufacturing overhead $ 3.65 Fixed manufacturing overhead $ 5.00 Fixed selling expense $ 2.55 Fixed administrative expense $ 2.45 Sales commissions $ 3.55 Variable administrative expense $ 2.55 The total amount of product costs incurred to make 6,000 units is closest to:
CorrectIncorrect -
Question 33 of 44
33. Question
The following data has been reported by Xavier company:
Cost per Unit Cost per Period Direct materials $ 6.95 Direct labor $ 5.40 Variable manufacturing overhead $ 3.40 Fixed manufacturing overhead $ 10,000 Sales commissions $ 3.65 Variable administrative expense $ 2.50 Fixed selling and administrative expense $ 7,500 If 6,000 units are sold, the variable cost per unit sold is closest to:
CorrectIncorrect -
Question 34 of 44
34. Question
The following data has been provided by the Nikkel Corporation.
Cost per Unit Cost per Period Direct materials $ 8.40 Direct labor $ 5.65 Variable manufacturing overhead $ 3.20 Fixed manufacturing overhead $ 91,000 Sales commissions $ 0.70 Variable administrative expense $ 0.70 Fixed selling and administrative expense $ 66,330 For financial reporting purposes, the total amount of product costs incurred to make 8,000 units is closest to:
CorrectIncorrect -
Question 35 of 44
35. Question
At a sales volume of 58,000 units, Disney Corporation’s property taxes (a cost that is fixed with respect to sales volume) total $934,500. What should be the total property tax per unit at a sales volume of 57,200 units, assuming that this sales volume is within the relevant range?
CorrectIncorrect -
Question 36 of 44
36. Question
At a sales volume of 58,000 units, Disney Corporation’s property taxes (a cost that is fixed with respect to sales volume) total $934,500. What should be the average property tax per unit at a sales volume of 57,300 units, assuming that this sales volume is within the relevant range?
CorrectIncorrect -
Question 37 of 44
37. Question
At a sales volume of 20,000 units, Sunshine Company’s sales commissions (variable cost with respect to sales volume) total $280,200. Assume that sales volume is within the relevant range. What should be the average sales commission per unit at a sales volume of 22,000 units?
CorrectIncorrect -
Question 38 of 44
38. Question
Falcon Company has an activity level of 11,000 machine-hours in the month of April, its total variable maintenance cost is $590,200 and total fixed maintenance cost is $258,290. What would be the total variable maintenance cost at an activity level of 11,500 machine-hours in a month? Assume that this level of activity is within the relevant range.
CorrectIncorrect -
Question 39 of 44
39. Question
Ronald Inc. recorded sales volume of 50,000 units. Its total fixed costs are $50,000 and total variable costs are $70,000. The relevant range is 40,000 to 60,000 units. What would be the total expected cost per unit, if Ronald were to sell 60,000 units?
CorrectIncorrect -
Question 40 of 44
40. Question
Cable Inc. reports an activity level of 3,200 machine-hours in the month of June, a total variable inspection cost and total fixed inspection cost of $79,946 and $10,072 respectively. Assuming that the level of activity is within the relevant range, calculate the total variable inspection cost at an activity level of 3,600 machine-hours in the month of July.
CorrectIncorrect -
Question 41 of 44
41. Question
The National Store sells books for university students. An income statement for the first quarter of the year 2021 is listed below-
National Store, Incorporated Income Statement For the Quarter Ended March 31’2021 Sales $ 1,600,000 Cost of goods sold 1,120,000 Gross margin 480,000 Selling and administrative expenses Selling $ 200,000 Administrative 220,000 420,000 Net operating income $ 60,000 - On average, a book sells for $80.00, variable selling expenses are $6.00 per book; the remaining selling expenses are fixed.
- The variable administrative expenses are 10% of sales; the remaining administrative expenses are fixed.
Use the above details to compute the net operating income using the contribution approach.
CorrectIncorrect -
Question 42 of 44
42. Question
A merchandising company reported sales of $ 2,048,200 and cost of goods sold of $1,097,250 for the month of April. The company’s total variable selling expenses were $119,350; its total fixed selling expenses were $72,350; its total variable administrative expenses were $130,900; and its total fixed administrative expenses were $141,450. The gross margin for the month of April is:
CorrectIncorrect -
Question 43 of 44
43. Question
Classic Inc. is a merchandising company. The below is the company’s last month’s data.
Beginning Merchandise inventory- $ 66,000 Ending Merchandise inventory- $ 72,000 Sales $ 280,000 Purchases of merchandise inventory $ 148,000 Selling expenses $ 33,000 Administrative expenses $ 60,000 What was the company’s cost of goods sold for the month?
CorrectIncorrect -
Question 44 of 44
44. Question
Classic Inc. is a merchandising company. The information below is the company’s data from last month.
Beginning Merchandise inventory- $ 66,000 Ending Merchandise inventory- $ 72,000 Sales $ 280,000 Purchases of merchandise inventory $ 148,000 Selling expenses $ 33,000 Administrative expenses $ 60,000 What was the company’s net operating income for the month?
CorrectIncorrect
Responses
You must be logged in to post a comment.
Why isn’t overhead included?
Hello William,
Can you please mention which question are you referring to ?
Farhat Lectures support team
Hi, this question I have the same question, why not include MOH “Based on the information below for Zultec Corporation, what will be the direct manufacturing cost if it manufactures 8000 units per day?”
Direct material is supposed to be 6.90 not 6.95 as the solution states. Maybe this is a mistake
Hello William,
Can you please mention which question are you referring to ?
Farhat Lectures support team
Professor Farhat,
Is direct manufacturing cost different from total manufacturing cost? Shown here Direct manufacturing cost excludes manufacturing overhead (variable and fixed). I understood Total manufacturing cost to include DM, DL, and overhead.
Hello Alisha,
Yes, you are correct. Direct manufacturing cost and total manufacturing cost are distinct concepts in the realm of accounting and cost analysis.
Direct Manufacturing Cost (DMC):
Direct manufacturing cost includes expenses directly tied to the production of goods. This typically encompasses direct materials and direct labor. Direct materials are the raw materials directly used in the manufacturing process, while direct labor refers to the wages of workers directly involved in the production.
Total Manufacturing Cost (TMC):
Total manufacturing cost, on the other hand, is a broader measure. It includes not only direct manufacturing costs (direct materials and direct labor) but also manufacturing overhead. Manufacturing overhead includes both variable and fixed costs that are indirectly associated with the production process, such as utilities, maintenance, depreciation on factory equipment, and indirect labor.
So, the relationship is as follows:
Total Manufacturing Cost (TMC)= Direct Manufacturing Cost (DMC)+ Manufacturing Overhead (MO)
In context with question 2 , the given is asking for Total Direct Manufacturing Costs and not the total Manufacturing costs.
Hope this makes sense
Hi Alex,
Alex this does make sense. I appreciate your explanation. I was not seeing the different between Total Manufacturing Cost (TMC) and Direct Manufacturing Cost.
Thank you,
Professor Farhat my question about overhead was in reference to question 2 of Quiz 3 in chapter 5.
Thank you.
Hello Alisha,
Yes, you are correct. Direct manufacturing cost and total manufacturing cost are distinct concepts in the realm of accounting and cost analysis.
Direct Manufacturing Cost (DMC):
Direct manufacturing cost includes expenses directly tied to the production of goods. This typically encompasses direct materials and direct labor. Direct materials are the raw materials directly used in the manufacturing process, while direct labor refers to the wages of workers directly involved in the production.
Total Manufacturing Cost (TMC):
Total manufacturing cost, on the other hand, is a broader measure. It includes not only direct manufacturing costs (direct materials and direct labor) but also manufacturing overhead. Manufacturing overhead includes both variable and fixed costs that are indirectly associated with the production process, such as utilities, maintenance, depreciation on factory equipment, and indirect labor.
So, the relationship is as follows:
Total Manufacturing Cost (TMC)= Direct Manufacturing Cost (DMC)+ Manufacturing Overhead (MO)
In context with question 2 , the given is asking for Total Direct Manufacturing Costs and not the total Manufacturing costs.
Hope this makes sense
Professor Farhat,
For Chapter 5, Quiz 3, problem 16, the solution uses $15,330 instead of the problem’s $15,530. Please consider adjusting so that $100,620 instead of $100,820 can be selected as an answer choice.
Thank you.