Acc/275 Final Paper

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ACCOUNTING 256 FIRST MIDTERM Review Problems Multiple Choice—Choose the best answer. Managerial accounting is concerned with: The company as a whole, rather than with the segments of a company. The data needs of stockholders and creditors. The relevance and flexibility of data rather than precision. Meeting the requirements of generally accepted accounting principles. Recording the financial history of the organization. The basic difference between managerial and financial accounting is that: Financial accounting is concerned with providing financial information to stockholders, whereas managerial accounting is concerned with providing information to managers for their use in planning, controlling and decision making. Managerial…show more content…
$24,000 increase D. $11,000 decrease 45. Hylow Corporation sells its product for $12 per unit. Next year, fixed expenses are expected to be $400,000 and variable expenses are expected to be $8 per unit. How many units must the company sell to generate net operating income of $80,000? A. 50,000 units B. 120,000 units C. 60,000 units D. 100,000 units 46. Data concerning Reynolds Corporation's single product appear below: [pic] The company is currently selling 6,000 units per month. Fixed expenses are $424,000 per month. The marketing manager believes that a $7,000 increase in the monthly advertising budget would result in a 100 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? A. Increase of $8,000 B. Increase of $1,000 C. Decrease of $7,000 D. Decrease of $1,000 47. The following monthly data are available for the Eager Company and its only product: Sales (7,000 units @ $75)………………...$525,000 Variable expenses (7,000 units @ $30)…..$210,000 Total fixed expenses……………………...$180,000 The margin of safety for the company for March was: A. $315,000 B. $225,000 C. $135,000 D.…show more content…
8.7% C. 108.8% D. 8.0% 50. Mountain Corporation produces and sells two products and provided the following operating data for the month. [pic] The break-even point in sales dollars for the entire company is: A. $73,594 B. $75,330 C. $74,306 D. $46,070 P-1: Prepare journal entries in good form in the space provided to record the following transactions for the month of September. [pic] [pic] P-2: Dunn Corporation has the following operational data for the first six months of the year. [pic] Using the high-low method, estimate the variable cost per machine hour. Using the high-low method, estimate the total fixed costs. Write the cost formula for monthly maintenance costs. Using your formula, estimate maintenance costs if 21,000 machine hours are projected for the coming month. P-3: E-Z Hiker, Inc. manufactures rain gear for hikers. The company has two departments, uses a job-order costing system, and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on direct labor hours, and the Sewing Department bases its rate on direct labor cost. At the beginning of the year, the company made the following

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