TCO 4) The three elements of the profit margin are: (Points : 4) Selling price p
ID: 2383007 • Letter: T
Question
TCO 4) The three elements of the profit margin are: (Points : 4)
Selling price per unit, variable cost per unit, and fixed cost per unit.
Total revenues, total variable costs, and total fixed cost.
Selling price per unit, variable cost per unit, and total fixed costs.
Selling price per unit, total variable costs, and fixed cost per unit.
Direct Material per unit
$20
Direct Labor per unit
12
Variable manufacturing overhead per unit
10
Fixed manufacturing overhead per year
$148,500
Department
Copies
Purchasing
250,000
Accounting
300,000
Information Tech
425,000
Describe a process costing system, including the types of companies that commonly use this system. How can process costing information be used in incremental analysis? (Points : 20)
Process costing a large quantity of identical or similar products are mass produced auto assembly plants, hot dog manufacturing, any large mechanized production facility. It is mostly used in the production of items like beverages, food, nails and screws. These items are processed through individual processes where costs are applied to each batch of produced goods. Often times manufacturers carefully use process costing in streamlining their manufacturing process to ensure that each batch has production costs applied in similar amounts.
Mailing
$27,000
Printing (done by Lester Print Shop)
9,000
Salary of Pat Fisher, part-time employee who stuffed envelopes and summarized data when surveys
were returned (130 x $16)
2,080
Share of depreciation of computer and software used to track survey responses and summarize results
1,200
Share of electricity/phone/etc. based on square feet of space occupied by Pat Fisher vs. entire company
600
Total
$39,880
2. (TCO 4) Werth Company produces tie racks. The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. Werth expects to produce and sell 60,000 units at a price of $20 per unit. How much is the break-even point in units? (Points : 4)48,000
72,000
3,600
8,471
Explanation / Answer
1. C) Managerial accounting is primarily concerned with providing information for external users while financial accounting is concerned with internal users. 2. B)does not change when the number of units produced increases. 3. A) the trip to Cancun that you will not be able to take if you buy the car 4. B)$9,280 5. D)health insurance for sales staff 6. C)direct materials 7. D)$135,000 8. A)$2.00 9. B)$20,000 underapplied 10. C)cosmetics 11. A)22,700 12. $9.79 13. C)$3,600 1. B)expected level of sales and the break-even point. 2. A)$1,105,000 3. B)$124,025 4. C)In the period when the expense is incurred 5. B)Sales, variable costs, contribution margin 6. D)$1,408,500 7. B)To discourage managers from using external suppliers 8.D)relates the cost pool to the cost objectives. 9. A) Production: $150,000 Sales: $50,000 10. C)avoidable and therefore relevant. 11. A)$13,000 advantage 12. A)$160 per unit Read more: 1. Which of the following is not a difference between financial - JustAnswer http://www.justanswer.com/finance/3ui44-1-following-not-difference-financial.html#ixzz1eC8Vhmx6
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