Question : 126. If variable selling and administrative expenses totaled $120,000 for the : 1226955

 

 

126. If variable selling and administrative expenses totaled $120,000 for the year (80,000 units at $1.50 each) and the planned variable selling and administrative expenses totaled $120,900 (78,000 units at $1.55 each), the effect of the unit cost factor on the change in variable selling and administrative expenses is: 
A. $900 decrease
B. $3,100 decrease
C. $4,000 decrease
D. $3,100 increase

 

127. If sales totaled $800,000 for the year (80,000 units at $10.00 each) and the planned sales totaled $819,000 (78,000 units at $10.50 each), the effect of the unit price factor on the change in sales is: 
A. $19,000 decrease
B. $21,000 increase
C. $40,000 decrease
D. $21,000 decrease

 

128. If sales totaled $800,000 for the year (80,000 units at $10.00 each) and the planned sales totaled $819,000 (78,000 units at $10.50 each), the effect of the quantity factor on the change in sales is: 
A. $21,000 increase
B. $19,000 decrease
C. $21,000 decrease
D. $40,000 decrease

 

129. If variable cost of goods sold totaled $90,000 for the year (18,000 units at $5.00 each) and the planned variable cost of goods sold totaled $88,000 (16,000 units at $5.50 each), the effect of the quantity factor on the change in variable cost of goods sold is: 
A. $11,000 decrease
B. $11,000 increase
C. $9.000 increase
D. $9,000 decrease

 

130. If variable cost of goods sold totaled $90,000 for the year (18,000 units at $5.00 each) and the planned variable cost of goods sold totaled $88,000 (16,000 units at $5.50 each), the effect of the unit cost factor on the change in variable cost of goods sold is: 
A. $2,000 decrease
B. $2,000 increase
C. $11,000 increase
D. $9,000 decrease

 

131. The difference between the planned and actual contribution margin can be caused by: 
A. an increase or decrease in the amount of sales
B. an increase in the amount of variable costs and expenses
C. a decrease in the amount of variable costs and expenses
D. all of the above

 

132. The systematic examination of the differences between planned and actual contribution margin is termed: 
A. gross profit analysis
B. contribution margin analysis
C. sales mix analysis
D. volume variance analysis

 

133. Edna’s Chocolates had planned to sell chocolate-covered strawberries for $3.00 each. Due to various factors, the actual price was $2.75. Edna’s was able to sell 1,000 more strawberries than the anticipated 3,000. What is (1) the quantity factor and (2) the price factor for sales? 
A. (1) $3,000, (2) $(1,000)
B. (1) $3,000, (2) $2,000
C. (1) $1,000, (2) $2,000
D. (1) $(3,000) (2) $(2,000)

 

134. Contribution margin analysis focuses on the effects of: 
A. the quantity factor
B. the unit cost factor
C. the unit sales price factor
D. all of the above

 

135. In which of the following types of firms would it be appropriate to prepare contribution margin reporting and analysis? 
A. boat manufacturing
B. a chain of beauty salons.
C. home building
D. all of the above

 

136. Which of the following would not be an appropriate activity base for cost analysis in a service firm? 
A. lawns mowed
B. inventory produced
C. customers served
D. haircuts given

 

 

 

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