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(TCO 8) Which is a value-added activity? (Points : 5)  Moving

Question 6. 6.  (TCO 1) Total contribution margin is calculated by subtracting (Points : 5)
 cost of goods sold from total revenues.
 fixed costs from total revenues.
 total manufacturing costs from total revenues.
 total variable costs from total revenues.

Question 7. 7.  (TCO 1) Malone Printing Company projected the following information for next year.
Selling price per unit  $75.00
Contribution margin per unit  $30.00
Total fixed costs  $120,000
Tax rate  40%
How many units must be sold to obtain an after-tax profit of $67,500? (Points : 5)
 3,750 units
 7,750 units
 5,625 units
 5,167 units

Question 8. 8. (TCO 7) Which cost category would most likely use purchase orders as its activity driver? (Points : 5)

Question 9. 9. (TCO 7) Yo Department Store incurred $4,000 of indirect advertising costs for its operations. The following data have been collected for 2013 for its three departments.
Shoes  Cosmetics  Crafts
Sales $160,000 $120,000 $120,000
Direct advertising costs  $7,000 $10,000  $3,000
Newspaper ad space 62% 20%  18%

How much of the indirect advertising costs will be allocated to the Crafts Department if newspaper ad space is the activity driver? (Points : 5)

Question 10. 10. (TCO 5) Activity-based budgeting is most useful when (Points : 5)
 output is homogeneous.
 production processes are simple.
 diverse products are produced.
 volume levels are stable.

Question 11. 11. (TCO 5) Bug Company manufactures buggies. Manufacturing a buggy takes 40 units of wood and 3 units of steel. Scheduled production of buggies for the next 2 months is 1,000 and 1,200 units, respectively. Beginning inventory is 8,000 units of wood and 60 units of steel. The ending inventory of wood is planned to decrease 1,000 units in each of the next 2 months, and the steel inventory is expected to increase 5 units in each of the next 2 months.
How many units of wood are expected to be used in production during the second month? (Points : 5)
 38,500 units
 40,000 units
 46,000 units
 48,000 units

Question 12. 12. (TCO 4) Which statement is true? (Points : 5)
 Absorption costing net income exceeds variable costing net income when units produced and sold are equal.
 Variable costing net income exceeds absorption costing net income when units produced exceed units sold.
 Absorption costing net income exceeds variable costing net income when units produced are less than units sold.
 Absorption costing net income exceeds variable costing net income when units produced are greater than units sold.

Question 13. 13. (TCO6) Which factor would cause a FAVORABLE material quantity variance? (Points : 5)
 Using poorly maintained machinery
 Using higher quality materials
 Using more highly skilled workers
 Receiving discounts for purchasing larger-than-normal quantities

Question 14. 14. (TCO 6) Which equation measures a price variance? (Points : 5)
 AQ x (AP - SP).
 SP x (AQ - SQ).
 SQ x (AP - SP).
 (AQ - SQ) x (AP – SP).

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(Top Tutor) Daniel C.
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