Managerial Accounting Sample Exam
ACCOUNTING 569 MIDTERM 1 FALL 1995 NAME ______________________ ID # I. 15 Points
1. Otis Corp. has the following data:
Selling price $50/unit Variable manufacturing costs $20/unit Fixed costs: Manufacturing $100,000 Selling and admin. $ 50,000
a.(3 points) The breakeven point is:
b.(3 points) Given a volume of 15,000 units, operating leverage is:
c.(4 points) Given a tax rate of 60%, how many units must Otis sell to earn after tax net income of 20% of sales?
____ 2.(5 points) When production levels are expected to increase within a relevant range, what effects would be anticipated with respect to each of the following? Total variable cost Fixed cost per unit (a) increase increase (b) decrease no change (c) no change no change (d) increase decrease (e) no change decrease II. 25 Points (5 points each) Clark Co. uses normal absorption job order costing. Factory overhead is applied to production at a budgeted rate of 300% of prime costs. Clark Co.'s policy is to not prorate any over or under applied overhead amounts. All inventory amounts listed below are AFTER disposition of any over or under applied overhead. Direct labor = $100,000. Beginning balance of stores (direct materials) = $20,000. Ending balance of stores = $20,000. Purchased $50,000 of direct materials during period. Beginning balance of work in process = $300,000. Ending balance of work in process = $300,000. Cost of goods sold = $350,000. Finished goods beg. inventory = $100,000. Finished goods ending inventory = $200,000.
____1. Direct materials used are: (a) $20,000 (b) $30,000 (c) $40,000 (d) $50,000
_____2. Factory overhead
1. Otis Corp. has the following data:
Selling price $50/unit Variable manufacturing costs $20/unit Fixed costs: Manufacturing $100,000 Selling and admin. $ 50,000
a.(3 points) The breakeven point is:
b.(3 points) Given a volume of 15,000 units, operating leverage is:
c.(4 points) Given a tax rate of 60%, how many units must Otis sell to earn after tax net income of 20% of sales?
____ 2.(5 points) When production levels are expected to increase within a relevant range, what effects would be anticipated with respect to each of the following? Total variable cost Fixed cost per unit (a) increase increase (b) decrease no change (c) no change no change (d) increase decrease (e) no change decrease II. 25 Points (5 points each) Clark Co. uses normal absorption job order costing. Factory overhead is applied to production at a budgeted rate of 300% of prime costs. Clark Co.'s policy is to not prorate any over or under applied overhead amounts. All inventory amounts listed below are AFTER disposition of any over or under applied overhead. Direct labor = $100,000. Beginning balance of stores (direct materials) = $20,000. Ending balance of stores = $20,000. Purchased $50,000 of direct materials during period. Beginning balance of work in process = $300,000. Ending balance of work in process = $300,000. Cost of goods sold = $350,000. Finished goods beg. inventory = $100,000. Finished goods ending inventory = $200,000.
____1. Direct materials used are: (a) $20,000 (b) $30,000 (c) $40,000 (d) $50,000
_____2. Factory overhead