31) The sales-volume variance for revenue is the A) (actual sales quantity in units divided by budgeted individual product selling price per unit) times (budgeted sales quantity in units). B) (budgeted contribution margin per unit) times (actual unit sales plus static budget unit sales). C) (actual sales quantity in units plus budgeted sales quantity in units) divided by (budgeted individual product selling price per unit). D) (budgeted sales quantity in units divided by budgeted individual selling price per unit) times (actual sales quantity in units). E) (budgeted individual product selling price per unit) times (actual sales quantity in units […]

  Use the information below to answer the following question(s).   Carnival Furniture had 60,000 foam cushions in process at May 1 (70% converted) and 40,000 cushions in process at May 31 (50% converted). All direct materials are added at the beginning of the production process. During the month, 140,000 cushions were transferred to finished goods.   21) What is the equivalent units for materials costs for May using the weighted average method? A) 180,000 cushions B) 160,000 cushions C) 140,000 cushions D) 118,000 cushions E) 123,000 cushions 22) What is the equivalent units for conversion costs for May using […]

2.8   Questions 1) Company TTT has the following information available: Total fixed costs$84,000 Targeted after-tax net income$18,000 Contribution margin per unit$6.20 Tax rate40% How many units must be sold to achieve the targeted after-tax net income? A) 14,223 B) 17,853 C) 18,387 D) 21,504 2) The Forever Memories Company has the following information available: Targeted after-tax net income$67,500 Total fixed costs$370,000 Contribution margin per unit$2 Tax rate40% How many units should be sold to achieve the targeted after-tax net income? A) 160,833 B) 167,250 C) 218,750 D) 241,250 3) The SLOW Company has the following information available: Total fixed costs$350,000 […]

11) Which of the following statements about determining the breakeven point is FALSE? A) Operating income is equal to zero. B) Contribution margin – fixed costs is equal to zero. C) Revenues equal fixed costs plus variable costs. D) Breakeven revenues equal fixed costs divided by the variable cost per unit. 12) What is the breakeven point in units, assuming a product's selling price is $100, fixed costs are $8,000, unit variable costs are $20, and operating income is $3,200? A) 100 units B) 300 units C) 400 units D) 500 units 13) If unit outputs exceed the breakeven point: […]

11) Manufacturing-sector companies report: A) only merchandise inventory B) only finished goods inventory C) direct materials inventory, work-in-process inventory, and finished goods inventory accounts D) no inventory accounts 12) For a manufacturing company, direct material costs may be included in: A) direct materials inventory only B) merchandise inventory only C) both work-in-process inventory and finished goods inventory D) direct materials inventory, work-in-process inventory, and finished goods inventory accounts 13) For a manufacturing company, direct labor costs may be included in: A) direct materials inventory only B) merchandise inventory only C) both work-in-process inventory and finished goods inventory D) direct materials […]