TEST BANK
Introduction to Managerial Accounting
Peter C. Brewer Professor
9th Edition
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,Table of Contents
1. Prologue: Managerial Accounting: An Overview
2. Chapter 1: Managerial Accounting and Cost Concepts
3. Chapter 2: Job-Order Costing: Calculating Unit Product Costs
4. Chapter 3: Job-Order Costing: Cost Flows and External Reporting
5. Chapter 4: Activity-Based Costing
6. Chapter 5: Process Costing
7. Chapter 6: Cost-Volume-Profit Relationships
8. Chapter 7: Variable Costing and Segment Reporting: Tools for Management
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9. Chapter 8: Master Budgeting
10.Chapter 9: Flexible Budgets, Standard Costs, and Variance Analysis
11.Chapter 10: Performance Measurement in Decentralized Organizations
12.Chapter 11: Differential Analysis: The Key to Decision Making
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13.Chapter 12: Capital Budgeting Decisions
14.Chapter 13: Statement of Cash Flows
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15.Chapter 14: Financial Statement Analysis
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, CORRECT ANSWERS ARE LOCATED AT THE SECOND PART OF THIS
DOCUMENT
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
1) Dobosh Corporation has provided the following information:
Cost per Cost per
Unit Period
Direct materials $ 7.05
Direct labor $ 3.65
Variable manufacturing overhead $ 1.60
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Fixed manufacturing overhead $ 113,400
Sales commissions $ 1.50
Variable administrative expense $ 0.55
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Fixed selling and administrative expense $ 36,450
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Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make
9,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell
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9,000 units?
c. If 10,000 units are sold, what is the variable cost per unit sold?
d. If 10,000 units are sold, what is the total amount of variable costs related to the units sold?
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e. If 10,000 units are produced, what is the total amount of manufacturing overhead cost
incurred?
f. If the selling price is $21.60 per unit, what is the contribution margin per unit sold?
g. If 8,000 units are produced, what is the total amount of direct manufacturing cost incurred?
h. If 8,000 units are produced, what is the total amount of indirect manufacturing costs
incurred?
i. What incremental manufacturing cost will the company incur if it increases production from
9,000 to 9,001 units?
Introduction to Managerial Accounting
Peter C. Brewer Professor
9th Edition
PR
O
FD
O
C
, C
O
FD
O
PR
,Table of Contents
1. Prologue: Managerial Accounting: An Overview
2. Chapter 1: Managerial Accounting and Cost Concepts
3. Chapter 2: Job-Order Costing: Calculating Unit Product Costs
4. Chapter 3: Job-Order Costing: Cost Flows and External Reporting
5. Chapter 4: Activity-Based Costing
6. Chapter 5: Process Costing
7. Chapter 6: Cost-Volume-Profit Relationships
8. Chapter 7: Variable Costing and Segment Reporting: Tools for Management
PR
9. Chapter 8: Master Budgeting
10.Chapter 9: Flexible Budgets, Standard Costs, and Variance Analysis
11.Chapter 10: Performance Measurement in Decentralized Organizations
12.Chapter 11: Differential Analysis: The Key to Decision Making
O
13.Chapter 12: Capital Budgeting Decisions
14.Chapter 13: Statement of Cash Flows
FD
15.Chapter 14: Financial Statement Analysis
O
C
, CORRECT ANSWERS ARE LOCATED AT THE SECOND PART OF THIS
DOCUMENT
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
1) Dobosh Corporation has provided the following information:
Cost per Cost per
Unit Period
Direct materials $ 7.05
Direct labor $ 3.65
Variable manufacturing overhead $ 1.60
PR
Fixed manufacturing overhead $ 113,400
Sales commissions $ 1.50
Variable administrative expense $ 0.55
O
Fixed selling and administrative expense $ 36,450
FD
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make
9,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell
O
9,000 units?
c. If 10,000 units are sold, what is the variable cost per unit sold?
d. If 10,000 units are sold, what is the total amount of variable costs related to the units sold?
C
e. If 10,000 units are produced, what is the total amount of manufacturing overhead cost
incurred?
f. If the selling price is $21.60 per unit, what is the contribution margin per unit sold?
g. If 8,000 units are produced, what is the total amount of direct manufacturing cost incurred?
h. If 8,000 units are produced, what is the total amount of indirect manufacturing costs
incurred?
i. What incremental manufacturing cost will the company incur if it increases production from
9,000 to 9,001 units?
