University:
Kentucky State University
Course:
ACC 300 | Managerial Accounting
Academic year:

2019
Views:

264

Pages:

17
Author:

Nossardisd7p

**Managerial Accounting** **Test Bank** **Question 1:** Presented below are the Production data for the first six months of the year for the mixed costs incurred by Amman Company: | Month | Cost | Units | |---|---|---| | January | $4,890 | 4,100 | | February | $4,700 | 2,500 | | March | $6,480 | 5,300 | | April | $7,700 | 7,500 | | May | $5,800 | 4,800 | | June | $7,336 | 6,300 | Using the high-low method, calculate the following: a) Estimate the variable cost per unit and the fixed cost per month. b) What is the estimated total cost at an operating level of 5000 units? **Question 2:** The following information is for Saleh Corporation: * Total Fixed Costs: $100,000 * Variable Costs Per Unit: $40 * Selling Price Per Unit: $100 If management has a targeted net income of $440,000, then units sold should be? **Question 3:** XYZ Company produces a single product. The following information is available: * Selling Price Per Unit: $100 * Variable Cost Per Unit: $50 * Total Fixed Costs: $150,000 a) Compute break-even volume in sales dollars. b) Compute the Margin of Safety in units assuming Planned unit sales of 7,000. **Annual orders** **7c** **a) According to ABC system, how much of the overhead cost would be assigned for product W58B?** * Activity rates: * Assembly: 17/1000 = 0.017 * Processing orders: 30 + 70 = 100 * Inspection: 70/40 = 1.75 Total overhead cost = 17900 **b) According to the ABC system, the product margin for product W58B is:** Product Margin = Sales - COGS Sales (150 * 370) = 55,500 DM (370 * 50) = 18,500 DL (370 * 10) = 3,700 MOH = 17,900 = 55,500 - 40,100 = 15,400 **Question 19:** Shown below is the sales forecast for Cooper Inc. for the first 4 months of the coming year: | Month | Cash Sales | Credit Sales | |---|---|---| | Jan | 15,000 | 100,000 | | Feb | 18,000 | 120,000 | | March | 14,000 | 90,000 | | April | 17,000 | 70,000 |

Test Bank Managerial Accounting

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