Moe S Machines Has the Following Costs in a Period When Production Is 2,000 Units: Direct

Tangerine Company plans to sell 20,000 units next year and has budgeted sales of $500,000 and profits of $60,000. Variable costs are projected to be $15 per unit. Apricot Company offers to pay $50,000 to buy 3,000 units from Tangerine. This offer does not affect Tangerine’s other planned operations. The incremental profit for this situation is aA $5,000 increase. B $5,000 decrease. C $10,000 increase.D $10,000 decrease.

Moe’s Machines has the following costs in a period when production is 2,000 units: Direct materials, $8,500; direct labor (variable), $9,000; straight-line depreciation, $800; rent (same every month), $1,200; and other fixed costs, $1,000. If production changes to 1,800 units, the total variable costs and total fixed costs will be A $17,500 and $3,000. B $15,750 and $3,000.C $17,500 and $2,700.D $15,750 and $2,700.

Sam, a college student, has a number of options for his 10-week summer. He needs to choose from the following options with regard to work and school. He can either: (1) Work full time (40 hours per week) at the local country club making $10 per hour. (2) Take a summer class which will cost $700 and last all summer. During this time he will work 15 hours per week making $10 per hour. (3) Take a class at a cost of $700 and not work at all during the summer. Sam’s incremental cost if he chooses option 2 over option 1 would be: A $3,300. B $4,000.C $1,500.D $700

Jerome Company applies overhead using a predetermined rate based on direct material cost. For 2007, estimated material cost $20,000,000 and estimated overhead was $8,000,000. At the end of 2007, the actual material cost was $19,000,000 and the actual overhead cost was $7,900,000. What is the amount of under or over applied overhead for 2002? A $100,000 underapplied B $100,000 overapplied C $300,000 underapplied D $400,000 underapplied

The Springfield Company uses a process costing system. During January the processing department transferred out 49,000 units. The January 31st work-in-process inventory in the processing department consisted of 41,000 equivalent units of material and 18,000 equivalent units of labor and overhead. The cost per equivalent unit was $3.75 for materials and $4.95 for labor and overhead. The “Total Cost to Account for” section of the production report for September will show which of the following amounts? A $242,850 B $513,300 C $426,300 D $669,150

Ortiz Company estimates that the total overhead costs for 2007 will be $150,000 and that the production employees will work 30,000 direct labor hours and earn $600,000 during the year. If the company allocates overhead based on direct labor hours, what is the predetermined overhead rate? A $5.00 per direct labor hour B $4.00 per direct labor hour C $20.00 per direct labor hour D $0.20 per direct labor hour

The Assembly department began the period with 92,000 units in its beginning work-in-process inventory. An additional 685,000 units were transferred into this department during the period to be assembled (the final step in the manufacturing process). At the end of the period 72,000 units remained in the assembly department. Given that this company utilizes a process costing system, how many units were transferred to finished goods inventory during the period? A 849,000 B 665,000 C 705,000 D 777,000

Whiskers Inc. produces a line of cat food. In August they produced 54,000 bags of food Total fixed costs were $27,000. In September they produced 48,000 bags of food therefore, in September: A total fixedcosts will be $27,000. B total fixed costs will be $24,000. C fixed cost per unit will be $.50. D fixed costs per unit will be $1.78.