47) The following data for the Panoid Garden Supplies Company pertains to the production of 2,000 garden spades during March. The spade consists of a wooden handle and a metal forged tool that comes in contact with the ground.   Direct Materials (all materials purchased were used):   Standard cost: $1.00 per handle and $3.00 per metal tool. Total actual cost: $9,000. Materials flexible-budget […]

  56)  What is the efficiency variance for direct materials? 56)  ______ A)  $39,000 favourable B)  $39,000 unfavourable C)  $23,750 unfavourable D)  $37,500 unfavourable E)  $47,350 favourable  57)  What are the efficiency variances for direct manufacturing labour and direct marketing labour, respectively? 57)  ______ A)  $25,898 unfavourable; $15,133 unfavourable B)  $23,750 favourable; $12,650 unfavourable C)  $38,375 unfavourable; $7,350 favourable D)  $23,750 unfavourable; $12,650 favourable E)  […]

  Multiple Choice Questions  28.Financial accounting information is:    A. Designed to assist investors and creditors.   B. Not used by managers and in income tax returns.   C. Called “special-purpose” accounting information.   D. Not applicable to individuals.         29.Which of the following does not describe accounting?    A. It is commonly referred to as the language of business.   B. It is an end rather than a means […]

  11) How can Lisa Braun encourage her salespeople to promote the more profitable model? A) Put all sales persons on salary. B) Provide higher sales commissions for higher priced items. C) Provide higher sales commissions for items with the greatest contribution margin per constrained resource. D) Both B and C are correct. Answer the following questions using the information below:   Helmer’s Rockers manufactures […]

  Objective 17.4   1) The weighted-average process-costing method calculates the equivalent units by ________. A) considering only the work done during the current period B) the units started during the current period minus the units in ending inventory C) the units started during the current period plus the units in ending inventory D) the equivalent units completed during the current period plus the equivalent […]

    51. U.S. GAAP view investments of less than 20 percent of the voting stock of another company as  A. minority, passive investments B. minority, active investments C. majority, passive investments D. majority, active investments E. a controlled entity   52. In Year 2, ABC Corp. acquired a 15% interest in XYZ, Inc., for $50,000. During the year, XYZ paid dividends of $10,000 and had net income of $30,000. ABC sold […]

  71. Fairway’s April sales forecast projects that 6,000 units will sell at a price of $10.50 per unit. The desired ending inventory is 30% higher than the beginning inventory, which was 1,000 units. Budgeted purchases of units in April would be:  A. 6,000 units. B. 7,000 units. C. 6,300 units. D. 7,300 units. E. Some other amount. 72. The sales budget for Carmel shows that 20,000 units of Product A and […]

  122.Refer to the data above. How much overhead cost will be assigned to the dessert bar product line using activity-based costing (ABC)?     A. $340,750 B. $247,818 C. $16,000 D. $297,500 E. $313,500 123.A company identified the following partial list of activities, costs, and activity drivers expected for the next year:  ActivityExpected CostsCost Driver Extrusion costs$83,600Number batches made Handling costs$8,800Number of orders filled Packaging costs$40,500Number of units made   […]

  11) What is the total sales value at the splitoff point of the pencil casings? A) $21,600 B) $27,000 C) $26,775 D) $20,880 12) What are the paper’s and the pencil’s approximate weighted cost proportions using the sales value at splitoff method, respectively? A) 50.00% and 50.00% B) 33.33% and 66.67% C) 31.82% and 68.18% D) 44.44% and 55.56%   13) If the sales […]

    11) What is the effect on the accounting equation of writing off an uncollectible account of $75? A) increase assets $75 and decrease liabilities $75 B) decrease assets $75 and decrease liabilities $75 C) decrease assets $75 and increase expense $75 D) no net effect on total assets   12) In 2011, Seven Seas sold $20,000 worth of merchandise on account. Its accountant […]