Managerial accounting

Jurper Corporation used $150,000 of direct materials during April. At the end of April, Jurper’s direct materials inventory was $25,000 more than it was at the beginning of the month. Direct materials purchases during the April amounted to:

$150,000

$175,000

$0

$125,000

16. Butteco Corporation has provided the following cost data for last year when 100,000 units were produced and sold:

 

All costs are variable except for $100,000 of manufacturing overhead and $100,000 of selling and administrative expense. There are no beginning or ending inventories. If the selling price is $10 per unit, the net operating income from producing and selling 110,000 units would be:

$385,000

$560,000

$405,000

$450,000

17.
Mark Corporation produces two models of calculators. The Business model sells for $56, and the Math model sells for $35. The variable expenses are given below:

Business
Model Math
Model
Variable production costs per unit $12    $12
Variable selling and administrative expenses per unit $10    $  6

The fixed expenses are $76,300 per month. The expected monthly sales of each model are: Business, 1,000 units; Math, 400 units.

The break-even point in unit sales for the expected sales mix is closest to: (Do not round intermediate calculations.)

1,870 Business Model and 748 Math Model

1,870 of each product

748 of each product

748 Business Model and 1,870 Math Model

 

 

18.Christiansen Corporation uses an activity-based costing system with the following three activity cost pools:

 

The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs.
The company has provided the following data concerning its costs:

 

The distribution of resource consumption across activity cost pools is given below:

 

The activity rate for the Order Processing activity cost pool is closest to:

$676 per order

$780 per order

$312 per order

$560 per order

19. Underapplied or overapplied manufacturing overhead represents the difference between actual overhead costs and applied overhead costs.

True

False
20. An activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles because:

some manufacturing costs (i.e., the costs of idle capacity and organization-sustaining costs) will not be assigned to products.

some non-manufacturing costs are assigned to products.

first-stage allocations may be based on subjective interview data.

all of the above are reasons why an activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles.

Solution:

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