Question : 91. The Footwear Department of Lee’s Department Store had sales : 1256724

 

 

91. The Footwear Department of Lee’s Department Store had sales of $188,000, cost of goods sold of $132,500, indirect expenses of $13,250, and direct expenses of $27,500 for the current period. The Footwear Department’s contribution to overhead as a percent of sales is:A.  7.8%B.  14.9%C.  29.5%D.  66.7%E.  85.4%

 

 

Reference: 22_06

Mach Co. operates three manufacturing departments as profit centers. The following information is available for its most recent year: 

 

 

 

 

Cost of

 

Direct

 

Indirect

 

Dept.

 

Sales

 

Goods Sold

 

Expenses

 

Expenses

 

1

 

$1,000,000

 

$700,000

 

$100,000

 

$ 80,000

 

2

 

400,000

 

150,000

 

40,000

 

100,000

 

3

 

700,000

 

300,000

 

150,000

 

20,000

 

 

 

 

 

 

 

 

 

 

 

92. Department 1’s contribution to overhead as a percent of sales is:A.  8%B.  40%C.  20%D.  30%E.  12%

 

 

 

93. Which department has the greatest departmental contribution to overhead and what is the amount contributed?A.  Dept. 3; $   400,000B.  Dept. 1; $1,000,000C.  Dept. 2; $   100,000D.  Dept. 3; $   250,000E.  Dept. 2; $   150,000

 

 

Reference: 22_07

Assume Rock Bottom Golf is divided into four departments that operate as profit centers and that the data below is from the most recent fiscal year. 

 

Golf Clubs

Golf Bags

Golf Balls

Golf Apparel

Sales

$200,000

$400,000

$800,000

$1,600,000

Cost of goods Sold

90,000

220,000

400,000

960,000

Direct expenses

 

 

 

 

Salaries

18,000

54,000

90,000

226,000

Insurance

2,000

3,000

6,000

120,000

Utilities

1,000

2,000

3,000

10,000

 

 

94. Given the information above, list Rock Bottom Golf’s departments in order of highest departmental contribution to overhead to lowest departmental contribution to overhead.A.  Golf Balls, Golf Apparel, Golf Bags, Golf Clubs.B.  Golf Apparel, Golf Balls, Golf Bags, Golf Clubs.C.  Golf Clubs, Golf Bags, Golf Balls, Golf Apparel.D.  Golf Clubs, Golf Bags, Golf Apparel, Golf Balls.E.  Golf Balls, Golf Apparel, Golf Clubs, Golf Bags.

 

 

95. Given the information above, which of Rock Bottom Golf’s departments has the highest contribution margin as a percent of sales?A.  Golf Clubs.B.  Golf Bags.C.  Golf Balls.D.  Golf Apparel.E.  None, this is not a calculation performed at the department level.

 

Reference: 22_08

Quarry Co.

Smith

Barney

Revenue

$412,000

$450,000

Costs

380,000

411,000

Average assets

400,000

600,000

 

 

 

 

 

96. Fred Smith and Joe Barney are managers of two product lines for Quarry Company. One of them is a candidate for promotion based on performance. Using the data above, which of the following is a true statement?

A.  Smith is outperforming Barney as measured by return on investment center assets.

B.  Barney is outperforming Smith as measured by return on investment center assets.

C.  The return in investment center assets is the same for both

D.  If target performance is a 7% return on assets, both investment centers are performing above the target level.

E.  If target performance is a 7% return on assets, the residual income for both centers is positive.

 

 

97. Based on the Quarry Company information, what is residual income for Smith and Barney?

A.  Smith: $4,000; Barney: $(3,000)

B.  Smith: $(3,000); Barney: $4,000

C.  Smith: $28,000; Barney: $42,000

D.  Smith: $8% ; Barney: 6.5%

E.  Smith: $0; Barney: $0

 

 

98. Process time is the time:

A.  Spent producing the product.

B.  Spent inspecting raw materials received, goods in process while in production, and finished goods prior to shipment.

C.  Spent moving raw materials from storage to production and goods in process from one factory location to another factory location.

D.  That an order or job sits with no production applied to it.

E.  That is considered non-value-added time.

 

99. Wait time is the time:

A.  Spent producing the product.

B.  Spent inspecting raw materials received, goods in process while in production, and finished goods prior to shipment.

C.  Spent moving raw materials from storage to production and goods in process from one factory location to another factory location

D.  That an order or job sits with no production applied to it.

E.  That is considered value-added time.

 

100. Midwest Rocks receives and produces an order. What is the company’s cycle time assuming the following times were measured during production of this order?    Process time:  .7 days     Inspection time: .25 days   Move time: 1.05 days   Wait time: .5 days 

A.  1.8 days

B.  .7 days

C.  .95 days

D.  2 days

E.  2.5 days

 

 

 

101. Midwest Rocks receives and produces an order. What is the company’s cycle efficiency assuming the following times were measured during production of this order?    Process time:  .7 days     Inspection time: .25 days   Move time: 1.05 days   Wait time: .5 days 

A.  10%

B.  28%

C.  42%

D.  20%

E.  50%

 

102. Midwest Rocks receives and produces an order. What is the company’s value-added time assuming the following times were measured during production of this order? Process time:  .7 days    Inspection time: .25 days     Move time: 1.05 days   Wait time: .5 days 

A.  1.8 days

B.  .7 days

C.  .95 days

D.  2 days

E.  2.5 days

 

 

 

 

 

103. A company’s international division had sales of $20 billion, net income of $1.5 billion, and average invested assets of $2 billion. What is this division’s profit margin?A.  75%

B.  10%

C.  7.5%

D.  133%

E.  $18 billion

 

104. A company’s Pacific division had sales of $15 billion, net income of $3 billion, and average invested assets of $4 billion. What is this division’s investment turnover?A.  1.33

B.  0.20

C.  5.00

D.  3.75

E.  0.27

 

105. A company’s electronics division had sales of $25 billion, net income of $4 billion, and average invested assets of $5 billion. What is this division’s return on investment?A.  16%

B.  5

C.  80%

D.  20%

E.  1.25