Test Review - Anthony Shelton
Your test grade is 93.33%
The professor has configured this test to allow students to:
Show Questions Answered Correctly
Show Questions Answered Incorrectly
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Show What The Correct Response Should Be
QUESTION: 1
TYPE: MULTIPLE CHOICE
[QUESTION BANK ID: 127712]
CORRECT
ShipShape Company makes 2 different types of boats, commercial fishing and sail boats both for recreation and competition. The company consists of two
different departments, design & engineering, and production. The company has decided to allocate overhead costs in each of the two cost pools. Data on
estimated overhead follows:
Activity Estimated
Sailboat Fishing
Driver Overhead
Estimate Estimate
Cost
Product # of 22 18
$180,000
Design designs designs designs
Production Labor 4,000 3,500
$945,000
hours hours hours
What overhead rate will be used in each department?
, A
Design & Engineering Production
$11,250/design $126.00/labor hour
B
Design & Engineering Production
$11,250/design $150.00/labor hour
C
Design & Engineering Production
$4,500/design $126.00/labor hour
D
Design & Engineering Production
$4,500/design $150.00/labor hour
QUESTION: 2
TYPE: MULTIPLE CHOICE
[QUESTION BANK ID: 20178]
CORRECT
Keira Knightley Company buys a piece of equipment for $36,442 that will last for 7 years. The equipment will generate cash flows of $7,000 per year and will
have no salvage value at the end of its life. Ignore taxes unless told to include them. What is the payback period?
A
5.2 years
B
5.2%
C
520%
D
5.2 times
QUESTION: 3
TYPE: MULTIPLE CHOICE
[QUESTION BANK ID: 108264]
CORRECT
A company believes it can sell 10,000,000 units of its proposed new garage door opener at a price of $100 each. If the company desires to make a profit of 40%
of selling price on the garage door opener, what is the target cost per opener?
, A
$100
B
$60
C
$140
D
$40
QUESTION: 4
TYPE: MULTIPLE CHOICE
[QUESTION BANK ID: 119795]
INCORRECT
Warner Company sells product Z for $21 per unit. Unit product costs are as follows:
Direct materials $4
Direct labor 5
Manufacturing
10
overhead
Total $19
A special order to purchase 20,000 units was recently received. There is enough capacity to fill the order and filling this order would not disrupt current
operations. Warner Company would incur an additional $3 per unit for shipping costs. Half of the manufacturing overhead costs are fixed and would be incurred
no matter how many units are produced. In negotiating a price, the minimum acceptable selling price would be
A
$17
B
$19
C
$22
D
$14
QUESTION: 5
TYPE: MULTIPLE CHOICE
[QUESTION BANK ID: 60457]
CORRECT
The Warner Company has the capacity to produce 50,000 units per year. The company sells each unit for $122. Budgeted information is as follows:
Revenues $5,612,000
Direct materials 1,932,000
Direct labor 552,000
Manufacturing overhead (fixed) 276,000
Your test grade is 93.33%
The professor has configured this test to allow students to:
Show Questions Answered Correctly
Show Questions Answered Incorrectly
Show All Responses Selected By Student
Show What The Correct Response Should Be
QUESTION: 1
TYPE: MULTIPLE CHOICE
[QUESTION BANK ID: 127712]
CORRECT
ShipShape Company makes 2 different types of boats, commercial fishing and sail boats both for recreation and competition. The company consists of two
different departments, design & engineering, and production. The company has decided to allocate overhead costs in each of the two cost pools. Data on
estimated overhead follows:
Activity Estimated
Sailboat Fishing
Driver Overhead
Estimate Estimate
Cost
Product # of 22 18
$180,000
Design designs designs designs
Production Labor 4,000 3,500
$945,000
hours hours hours
What overhead rate will be used in each department?
, A
Design & Engineering Production
$11,250/design $126.00/labor hour
B
Design & Engineering Production
$11,250/design $150.00/labor hour
C
Design & Engineering Production
$4,500/design $126.00/labor hour
D
Design & Engineering Production
$4,500/design $150.00/labor hour
QUESTION: 2
TYPE: MULTIPLE CHOICE
[QUESTION BANK ID: 20178]
CORRECT
Keira Knightley Company buys a piece of equipment for $36,442 that will last for 7 years. The equipment will generate cash flows of $7,000 per year and will
have no salvage value at the end of its life. Ignore taxes unless told to include them. What is the payback period?
A
5.2 years
B
5.2%
C
520%
D
5.2 times
QUESTION: 3
TYPE: MULTIPLE CHOICE
[QUESTION BANK ID: 108264]
CORRECT
A company believes it can sell 10,000,000 units of its proposed new garage door opener at a price of $100 each. If the company desires to make a profit of 40%
of selling price on the garage door opener, what is the target cost per opener?
, A
$100
B
$60
C
$140
D
$40
QUESTION: 4
TYPE: MULTIPLE CHOICE
[QUESTION BANK ID: 119795]
INCORRECT
Warner Company sells product Z for $21 per unit. Unit product costs are as follows:
Direct materials $4
Direct labor 5
Manufacturing
10
overhead
Total $19
A special order to purchase 20,000 units was recently received. There is enough capacity to fill the order and filling this order would not disrupt current
operations. Warner Company would incur an additional $3 per unit for shipping costs. Half of the manufacturing overhead costs are fixed and would be incurred
no matter how many units are produced. In negotiating a price, the minimum acceptable selling price would be
A
$17
B
$19
C
$22
D
$14
QUESTION: 5
TYPE: MULTIPLE CHOICE
[QUESTION BANK ID: 60457]
CORRECT
The Warner Company has the capacity to produce 50,000 units per year. The company sells each unit for $122. Budgeted information is as follows:
Revenues $5,612,000
Direct materials 1,932,000
Direct labor 552,000
Manufacturing overhead (fixed) 276,000
