MA EXAM3 Question 1 (2 points) If variable costs increase, fixed costs increase, and sales remain the same, what is expected to happen to the Contribution Margin (CM) and to the Break-even Point (BE) respectively? Question 1 options: CM: Decrease BE: Increase CM: Increase BE: Decrease CM: Decrease BE: Decrease CM: Decrease BE: Can't be determined Save Question 2 (3 points) The break-even point is the point at which Question 2 options: fixed costs equal variable costs fixed costs equal sales  total contribution margin equals fixed costs  sales equals variable costs Save Question 3 (3 points) Singer Co. reported sales of $416,000, a contribution margin of $5 per unit, fixed costs of $80,000, and a net income of $24,000. Determine the selling price per unit? Question 3 options: $26 $20 $86.70 $5 Save Question 4 (3 points) Use the following information to answer questions 4 & 5  Projected cost information for a new product is as follows: Variable manufacturing costs: $8 per unit Variable selling costs: $2 per unit Fixed manufacturing costs: $25,000 Fixed selling costs: $45,000 The product is to be sold at $18 per unit. Determine the break-even point for this product (in $) Question 4 options: $45,000 $126,000 $157,500 $8,750 Save Question 5 (3 points) Use the following information to answer questions 4 & 5  Projected cost information for a new product is as follows: Variable manufacturing costs: $8 per unit Variable selling costs: $2 per unit Fixed manufacturing costs: $25,000 Fixed selling costs: $45,000 The product is to be sold at $18 per unit. What price would the company have to sell this product for if they wish to sell 10,000 units and realize a profit of $50,000? Question 5 options: $18 $22 $12 $5 Save Question 6 (3 points) Gastone Inc. has estimated the following forecasted sales for a 3-month period: Month  Estimated sales $ August  33,000 September 29,000 October  30,000 On average, 60% of sales are collected in the month of sale, 39% in the following month, and the remaining 1% is never collected. Determine the budgeted cash receipts for September. Question 6 options: $29,000 $30, 270 $31,110 $29,100 Save Question 7 (3 points) Garth Inc. has gathered the following monthly budget numbers based on a budgeted production level of 2,000 units: Direct Materials $30,000 Factory property taxes $10,000 Factory utilities $3,000 The actual production level during February was 3,000 units. Based on the information provided, determine the estimated direct material & factory property taxes, respectively, for February. Question 7 options: $30,000 and $15,000 $30,000 and $10,000 $45,000 and and $15,000 $45,000 and $10,000 Save Question 8 (3 points) Use the following information to answer questions 8 & 9.  Projected sales, beginning & ending inventory for Sommers Inc. for March 2013 is as follows: Sales 50,000 units FG Beg. Inv. 4,000 units FG End. Inv. 8,000 units The selling price is $40 per unit. E ...

1. MA EXAM3
Question 1 (2 points)
If variable costs increase, fixed costs increase, and sales remain
the same, what is expected to happen to the Contribution
Margin (CM) and to the Break-even Point (BE) respectively?
Question 1 options:
CM: Decrease
BE: Increase
CM: Increase
BE: Decrease
CM: Decrease
BE: Decrease
CM: Decrease
BE: Can't be determined
Save
Question 2 (3 points)
The break-even point is the point at which
Question 2 options:
fixed costs equal variable costs
fixed costs equal sales
total contribution margin equals fixed costs
sales equals variable costs

2. Save
Question 3 (3 points)
Singer Co. reported sales of $416,000, a contribution margin of
$5 per unit, fixed costs of $80,000, and a net income of
$24,000. Determine the selling price per unit?
Question 3 options:
$26
$20
$86.70
$5
Save
Question 4 (3 points)
Use the following information to answer questions 4 & 5
Projected cost information for a new product is as follows:
Variable manufacturing costs:
$8 per unit
Variable selling costs:
$2 per unit
Fixed manufacturing costs:
$25,000
Fixed selling costs:
$45,000
The product is to be sold at $18 per unit.
Determine the break-even point for this product (in $)
Question 4 options:
$45,000

3. $126,000
$157,500
$8,750
Save
Question 5 (3 points)
Use the following information to answer questions 4 & 5
Projected cost information for a new product is as follows:
Variable manufacturing costs:
$8 per unit
Variable selling costs:
$2 per unit
Fixed manufacturing costs:
$25,000
Fixed selling costs:
$45,000
The product is to be sold at $18 per unit.
What price would the company have to sell this product for if
they wish to sell 10,000 units and realize a profit of $50,000?
Question 5 options:
$18
$22
$12
$5
Save
Question 6 (3 points)
Gastone Inc. has estimated the following forecasted sales for a

4. 3-month period:
Month
Estimated sales $
August
33,000
September
29,000
October
30,000
On average, 60% of sales are collected in the month of sale,
39% in the following month, and the remaining 1% is never
collected. Determine the budgeted cash receipts for September.
Question 6 options:
$29,000
$30, 270
$31,110
$29,100
Save
Question 7 (3 points)
Garth Inc. has gathered the following monthly budget numbers
based on a budgeted production level of 2,000 units:
Direct Materials
$30,000
Factory property taxes
$10,000
Factory utilities
$3,000
The actual production level during February was 3,000 units.
Based on the information provided, determine the estimated
direct material & factory property taxes, respectively, for

5. February.
Question 7 options:
$30,000 and $15,000
$30,000 and $10,000
$45,000 and and $15,000
$45,000 and $10,000
Save
Question 8 (3 points)
Use the following information to answer questions 8 & 9.
Projected sales, beginning & ending inventory for Sommers Inc.
for March 2013 is as follows:
Sales
50,000 units
FG Beg. Inv.
4,000 units
FG End. Inv.
8,000 units
The selling price is $40 per unit. Each unit requires 4 pounds of
material which costs $6 per pound. The beginning inventory of
raw materials is 12,000 pounds. The company wants to have
3,000 pounds of material in inventory at the end of March 2013.
Determine Sommers' budgeted production for March 2013.
Question 8 options:
54,000 units
46,000 units
62,000 units

6. 38,000 units
Save
Question 9 (3 points)
Use the following information to answer questions 8 & 9.
Projected sales, beginning & ending inventory for Sommers Inc.
for March 2013 is as follows:
Sales
50,000 units
FG Beg. Inv.
4,000 units
FG End. Inv.
8,000 units
The selling price is $40 per unit. Each unit requires 4 pounds of
material which costs $6 per pound. The beginning inventory of
raw materials is 12,000 pounds. The company wants to have
3,000 pounds of material in inventory at the end of March 2013.
Determine the budgeted material purchases for March 2013.
Question 9 options:
$1,350,000
$1,242,000
$1,206,000
$1,296,000
Save
Question 10 (3 points)
Polar Fans has prepared all the necessary budgets and is
attempting to prepare their forecasted income statement. Given
that the budgeted total manufacturing cost is $600,000, the
budgeted beginning and ending WIP balances are $120,000 and

7. $170,000 respectively, the budgeted costs of goods
manufactured is $550,000, and the budgeted beginning and
ending FG inventories are $60,000 and $78,000, determine the
budgeted cost of goods sold for Polar Fans.
Question 10 options:
$500,000
$532,000
$482,000
$568,000
Save
Question 11 (3 points)
The following information was reported for Lake Co.
Beginning cash balance
$24,000
Cash payments
$42,000
Cash receipts
$29,000
Minimum cash balance desired
$22,000
How much cash will Lake Co. have to borrow to meet its
minimum cash requirements?
Question 11 options:
$0
$9,000
$11,000

8. $13,550
Save
Question 12 (3 points)
Use the following information to answer questions 12 - 15
The budgeted and actual costs at Goodyear Company is as
follows:
Budgeted costs
Actual costs
Materials (per tire): 12 lbs @ $1.80/lb
Total materials purchased: 840,000lbs
Labor (per tire): 4 hrs. @ $14/hr
Total cost of purchase: $1,554,000
Factory O/H (per tire): 3 hrs. @ $8/hr
Total material used: 849,600 lbs
Labor (per tire): 4.1 hrs @ $13/hr
Factory O/H (per tire): 2.8 hrs @ $8.50/hr
During October, Goodyear produced 72,000 tires.
The budgeted cost and actual cost, respectively, of producing
one tire is (to the nearest $)
Question 12 options:
$102 and $98
$102 and $99
$102 and $95
$78 and $98
Save
Question 13 (3 points)

9. Use the following information to answer questions 12 - 15
The budgeted and actual costs at Goodyear Company is as
follows:
Budgeted costs
Actual costs
Materials (per tire): 12 lbs @ $1.80/lb
Total materials purchased: 840,000lbs
Labor (per tire): 4 hrs. @ $14/hr
Total cost of purchase: $1,554,000
Factory O/H (per tire): 3 hrs. @ $8/hr
Total material used: 849,600 lbs
Labor (per tire): 4.1 hrs @ $13/hr
Factory O/H (per tire): 2.8 hrs @ $8.50/hr
During October, Goodyear produced 72,000 tires.
The direct materials price variance is:
Question 13 options:
$42,480 (U)
$42,480 (F)
$42,000 (U)
$42,000 (F)
Save
Question 14 (3 points)
Use the following information to answer questions 12 - 15

10. The budgeted and actual costs at Goodyear Company is as
follows:
Budgeted costs
Actual costs
Materials (per tire): 12 lbs @ $1.80/lb
Total materials purchased: 840,000lbs
Labor (per tire): 4 hrs. @ $14/hr
Total cost of purchase: $1,554,000
Factory O/H (per tire): 3 hrs. @ $8/hr
Total material used: 849,600 lbs
Labor (per tire): 4.1 hrs @ $13/hr
Factory O/H (per tire): 2.8 hrs @ $8.50/hr
During October, Goodyear produced 72,000 tires.
The direct materials quantity variance is:
Question 14 options:
$44,400 (F)
$44,400 (U)
$25,920 (F)
$25,920 (U)
Save
Question 15 (3 points)
Use the following information to answer questions 12 - 15
The budgeted and actual costs at Goodyear Company is as
follows:
Budgeted costs

11. Actual costs
Materials (per tire): 12 lbs @ $1.80/lb
Total materials purchased: 840,000lbs
Labor (per tire): 4 hrs. @ $14/hr
Total cost of purchase: $1,554,000
Factory O/H (per tire): 3 hrs. @ $8/hr
Total material used: 849,600 lbs
Labor (per tire): 4.1 hrs @ $13/hr
Factory O/H (per tire): 2.8 hrs @ $8.50/hr
During October, Goodyear produced 72,000 tires.
The direct labor efficiency variance is:
Question 15 options:
$72,000 (F)
$72,000 (U)
$100,800 (F)
$100,800 (U)
Save
Question 16 (3 points)
Excel Co. has collected the following data for April 2001:
Budgeted direct labor: 3 hours per unit at $6 per hour
Direct labor efficiency variance: $1,200 (U)
Actual direct labor cost: $28,900
Units produced: 1,600
The number of direct labor hours actually worked during April
is:
Question 16 options:
4,500

12. 4,800
5,000
4,600
Save
Question 17 (3 points)
What type of direct material variances for quantity and price
will arise if the actual number of pounds of material used
exceeds budgeted pounds but actual cost per pound was less
than budgeted cost per pound?
Question 17 options:
Qty: Unfavorable
Price: Favorable
Qty: Favorable
Price: Favorable
Qty: Favorable
Price: Unfavorable
Qty: Unfavorable
Price: Unfavorable
Save
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