3. QuestionAn unfavorable sale price variance reflects
a. Fewer units sold than budgeted.
b. A lower actual selling price than budgeted.
c. An increase in the cost of products causing a
decrease in income for the period.
d. A decrease in the amount of cash received from
customers.
5. QuestionFacebook, Inc. gathered the following direct labor cost information for the month of
July:
Actual direct labor hours
68,500
Standard direct labor hours allowed for actual production
67,200
Actual direct labor rate per hour
$12.10
Standard direct labor rate per hour
$11.75
The direct labor price variance is:
a. $15,730U
b. $23,975U
c. $15,275F
d. $23,520F
7. QuestionDeer Park Inc. gathered the following direct materials cost information for the
month of July:
Standard Quantity Allowed for production
34,700 gallons
Quantity used in production
33,900 gallons
Actual price per gallon purchased
$8.50
Standard price per gallon
$8.85
The direct materials usage variance is:
a. $ 4,250U
b. $ 4,425F
c. $6,800U
d. $7,080F
16. QuestionThe bookkeeper who records cash receipts also
deposits daily cash receipts at the bank on his way
home from work. This is a violation of which of the
following characteristics of good internal control:
a. requiring proper authorization
b. separating incompatible duties
c. physically controlling assets and documents
d. maintaining adequate documents and records
18. QuestionThe producer of Hit Records receives a bonus rate of
8%. The bonus base is income before bonus or
taxes. The tax rate is 30%. Hit Records just had an
income before bonus or taxes of $1,250,000. How
much is the producer’s bonus?
a. $30,000
b. $1,250,000
c. $70,000
d. $100,000
20. QuestionThe Marriot plans to pay its managers a bonus to
encourage performance. The bonus rate is 15% and
the bonus base is net income after bonus but before
taxes. The Marriot’s expected income before bonus
or taxes is $1,500,000. Determine the amount of the
expected bonus.
a. $195,652.17
b. $225,000.00
c. $135,640.36
d. $99,304.85
22. QuestionFalcon Industries’ president receives a bonus equal
to 10% of income before bonus and taxes. Assuming
the company’s income before bonus and taxes was
$5,625,000 and tax rate is 25% determine the
amount of the president’s net income
a. $3,800,000
b. $3,796,875
c. $511,363.64
d. I forgot how to do this
25. QuestionIn its annual report Home Depot reported the value
of its ending inventory, rather than the number of
units on hand. This best describes an application of
the:
a. Periodicity concept
b. Business entity concept
c. Going concern concept
d. Monetary unit concept
27. QuestionRubbermaid is using its equipment to create durable
plastic bins to sell. This is an example of:
a. Investing activity
b. Operating activity
c. Financing activity
d. Both b and c
29. QuestionYou’re reviewing the financial statements for UPS
Delivery Company. Which of the following would
you expect to find on the income statement?
a. The cost incurred to clean the uniforms of the
delivery personnel
b. The amount of money owed to the bank
c. The amount of cash in the bank
d. The amount paid to purchase a new delivery truck
30. Answer
a. The cost incurred to clean the uniforms of the
delivery personnel
31. QuestionMorgan Stanley paid its shareholders $1,000,000
dividends for quarter 3. This is an example of:
a. Investing activity
b. Operating activity
c. Financing activity
d. Planning activity
36. Question
Goods shipped from a seller’s warehouse on March
10, 2011, arrived at the buyer’s warehouse on
March 16, 2011. The invoice for goods arrived at the
buyer’s accounting department on March 13, 2011
and was paid on March 20, 2011. If the goods were
sold FOB shipping point, the buyer took legal title
on:
a. March 20, 2011
b. March 13, 2011
c. March 10, 2011
d. March 16, 2011
40. QuestionThe Manhattan Company sells its one and only product for $89.00 per unit. Variable
costs per unit amount to $63.50 and total fixed costs are $3,697,500. If Manhattan
increases its selling price to $95, how will this affect the breakeven point in units?
a. The breakeven point will increase 27,619 units.
b. The breakeven point will decrease 106,078 units.
c. The breakeven point will increase 41,300 units.
d. The breakeven point will decrease 27,619 units.
42. QuestionOn September 1, 2009, IBM paid $2,400 in advance
for a one year insurance policy that covers the
period September 1, 2009 through August 31, 2010.
What amount of insurance expense should Olpe
report for the year ended December 31, 2009?
a. $800
b. $1,200
c. $2,400
d. $0
44. Question The Nancy Manufacturing Company has kept track of the number of units they have
produced each month and the cost to produce those units for the past six months.
Using the high/low method, what is the estimated total cost if 14,000 units are
produced in January?
a. $62,000
b. $70,000
c. $75,000
d. $80,000
Month Number of Units Cost of Units
Produced
July 10,000 $60,000
August 11,000 $66,000
September 20,000 $110,000
October 16,000 $90,000
November 12,000 $70,000
December 18,000 $102,000
49. QuestionApple estimates it will sell 25,000 units in April 2014.
They expect unit sales to increase 10% each month
for the remainder of the year. The expected sales
price for 2014 is $20. What is the sales revenue for
June 2014?
a. $605,000
b. $700,000
c. $500,000
d. $650,000
51. QuestionMicrosoft estimates that:
30% of customers will pay in the month of the sale to take advantage of a 3%
discount
30% of their customers will pay in the month following the sale
40% of their customers will pay 2 months following the sale
The 2013 sales budget includes estimated sales revenue of:
November: $66,500
December: $68,400
January: $50,000
February: $60,000
March: $45,000
Cash Receipts for March are:
a. 51,000
b. 51,095
c. 51,500
d. No idea
53. QuestionWalmart wants to maintain an ending finished goods
inventory of 10% of the next months expected sales.
Estimated sales in units for the first 4 months of 2014:
January: 6,000
February: 5,000
March: 3,500
April: 5,000
What is the production required for February?
a. 5,150
b. 5,000
c. 4,850
d. 4,800
55. QuestionBergstorms industries sold 460,000 trash barrels at
$12 each during the first quarter of 2008. Unit sales
are projected to increase 5% each quarter while the
selling price will be reduced by $.50 each quarter.
The estimated sales revenue for the fourth quarter
of 2008 is:
a. $5,520,000
b. $5,554,500
c. $5,591,329
d. $5,000,000
