Question : 106.Ultimo Co. operates three production departments as profit centers. The : 1258699

106.Ultimo Co. operates three production departments as profit centers. The following information is available for its most recent year. Department 1’s contribution to overhead as a percent of sales is: 

Dept.SalesCost ofGoods SoldDirectExpensesIndirectExpenses

1$1,000,000$700,000$100,000$80,000

2400,000150,00040,000100,000

3700,000300,000150,00020,000

A. $210,000.

B. $350,000.

C. $10,000.

D. $260,000.

E. $150,000.

107.Ultimo Co. operates three production departments as profit centers. The following information is available for its most recent year. Department 2’s contribution to overhead in dollars is: 

Dept.SalesCost ofGoods SoldDirectExpensesIndirectExpenses

1$1,000,000$700,000$100,000$80,000

2400,000150,00040,000100,000

3700,000300,000150,00020,000

A. $210,000.

B. $350,000.

C. $10,000.

D. $260,000.

E. $150,000.

108.Ultimo Co. operates three production departments as profit centers. The following information is available for its most recent year. Which department has the greatest departmental contribution to overhead and what is the amount contributed? 

Dept.SalesCost ofGoods SoldDirectExpensesIndirectExpenses

1$1,000,000$700,000$100,000$80,000

2400,000150,00040,000100,000

3700,000300,000150,00020,000

A. Dept. 3; $400,000.

B. Dept. 1; $1,000,000.

C. Dept. 2; $100,000.

D. Dept. 3; $250,000.

E. Dept. 2; $150,000.

109.A system of performance measures, including nonfinancial measures, used to assess company and division manager performance is:    

A. Hurdle rate.

B. Return on investment.

C. Balanced scorecard.

D. Residual income.

E. Investment turnover.

110.Which of the following is not one of the perspectives used to analyze performance using the balanced scorecard?    

A. Customer

B. Financial/owners

C. Internal process

D. Number of employees

E. Innovation and learning

111.Return on investment can be split into which of the following two measures?   

A. Investment center income and profit margin.

B. Profit margin and net income.

C. Investment center average assets and investment turnover.

D. Residual income and operating income.

E. Profit margin and investment turnover.

112.Profit margin for an investment center measures:    

A. Investment center income earned per dollar of sales.

B. How efficiently an investment center generates sales from its invested assets.

C. Investment center income compared to target investment center income.

D. Departmental contribution to overhead.

E. Investment center income generated from its invested assets.

113.Carter Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,100,000; sales of $4,525,000; cost of goods sold of $2,550,000; and operating expenses of $1,372,000. Compute the division’s return on investment:    

A. 30.3%.

B. 23.6%.

C. 13.3%.

D. 10.4%.

E. 14.7%.

114.Carter Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,100,000; sales of $4,525,000; cost of goods sold of $2,550,000; and operating expenses of $1,372,000. Assume a target income of 10% of average invested assets. Compute residual income for the division:    

A. $203,000.

B. $193,000.

C. $150,500.

D. $60,300.

E. $197,500.

115.Dartford Company reported the following financial data for one of its divisions for the year; average investment center total assets of $3,500,000; investment center income $610,000; a target income of 12% of average invested assets. The residual income for the division is:   

A. $536,800.

B. $1,030,000.

C. $190,000.

D. $683,200.

E. $493,200.