Question

The total applied MOH for Causeway Manufacturing Company this year is $182,000. At the end of the year, the actual MOH is $189,000. We would say the MOH is:

Group of answer choices

under-applied by $7,000

under-applied by $189,000

over-applied by $189,000

over-applied by $7,000

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Question 263 pts

Pure Wood BookCase Company sells their product for $500. The unit variable cost to make one of their bookcases is $300. The contribution margin ratio is:

Group of answer choices

20%

40%

50%

30%

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Question 273 pts

Data concerning Howell Enterprises’ single product appear below:

Selling price per unit..........................$200

Variable expense per unit....................$70

Fixed expenses per month.........$559,000

To attain a target profit of $14,000, they need to sell approximately:  

Group of answer choices

4,408 units

8,186 units

2,865 units

5,153 units

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Question 283 pts

The purpose of using a variable costing income statement instead of the traditional format financial income statement includes all of the following except:

Group of answer choices

It is the income statement format required by the SEC for the annual report

It is used internally by management and not issued outside of the company

It helps management see the costs over which they have more control for decision-making

It is easier to use to break-even analysis

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Question 293 pts

In terms of cost behavior, which of the following terms will both stay the same within the relevant range?

Group of answer choices

Total fixed cost and unit variable cost

Unit fixed cost and unit variable cost

Total fixed cost and total variable cost

Unit fixed cost and total variable cost

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Question 303 pts

Somerset Company sells a single product for $20 per unit. If variable expenses are 60% of sales and fixed expenses total $9,600, the break-even point in sales dollars will be:

Group of answer choices

$14,400

$16,000

$24,000

$9,600

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Question 313 pts

In the definition of manufacturing costs, which of the following is considered prime costs?

Group of answer choices

direct materials and direct labor costs

selling costs and production costs

direct labor and manufacturing overhead costs

the contribution margin ratio

Answer 1

1. Option A As the applied overhead (182,000) is lower than actual (189,000) Overhead is underapplied by 7,000 (182,000-189,000)

263. Option B Contribution margin per unit = Sales price per unit - Variable costs per unit = 500 - 300 = 200 Contribution margin ratio = Contribution margin/Sales = 200/500 = 40%

273. Option A Target units = (Fixed costs + Target profit)/Contribution margin per unit = (559000+14000)/(200-70) = 4408 units

283. Option A Variable costing statement is used by managers. It is not required by SEC

.

Please post the other questions separately