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1. Which of the following variances cannot occur together during the same accounting period? Unfavorable labor rate variance and favorable labor efficiency variance. Unfavorable labor efficiency variance and favorable material quantity variance. Favorable labor rate variance and unfavorable total labor variance Favorable labor efficiency variance and favorable material quantity variance, None of these, because ail of these vatiance combinations are possible. epose Which of the following inventory costing methods results in the least amount of costs being inventoried? a, absorption cos b. variable costing €. throughput costing d. direct costing fe. none of the above 3. Which of the following statements about joint-cost allocation is false? a. Joint-cost allocation is useful in deciding whether to further process a product after splitoff, b. Joint-cost allocation is usefull in making a profit determination about individual joint products. ©. Joint-cost allocation is helpful in inventory valuation. d. Joint-cost allocation can be based on the number of units produced, e. Joint-cost allocation can be accomplished by using several different methods that focus on sales value and product "worth." 4, Indiana Company incurred the following costs during the past year when planned production and actual production each totaled 20,000 units: Direct materials used ‘ Direct labor 120,000 Variable manufacturing overhead 160.000 Fixed manufacturing overhead 100,000 Variable selling and administrative costs 60,000 istrative costs 90,000 Fixed selling and admit Indiana's per-unit inventoriable cost (cost of goods sold per unit) under absorption costing $40.50 $33.00 $28.00 $25.00 $9.50 a b. eas 5. McArthur, which began business at the start of the current year, had the following data Planned and actual produetion: 40,000 units Sales: 38,000 units at $15 per unit Production costs: Variable: $5 per unit Fixed: $260,000 ° Selling and administrative costs: Variable: $1 per unit Fixed: $32,000 The contribution margin that the company would disclose on a variable-costing income statement is: a $0. b, $133,000. c. $166,500, d. $342,000. e. some other amount. ‘The following informat Jn applies to que Beginning inventory in units 0 Units produced 4,800, Units sold 4,000 Sales $400,000 Material cost (unit level or variable) $96,000 Variable conversion cost used (Committed) $ 48,000 Facility-level or fixed manufacturing cost § 72,000 Indirect operating costs (fixed) $80,000 6. The net profit using variable costing is : a. $128,000 b. $120,000 c. $140,000 d, $112,000 e. $45 per unit x 4,000 units sold 7. If 400 units are produced and 600 units are sold, results in the greatest amount of net profit a, period costing b. throughput costing ¢. absorption costing 4. variable costing c. full costing 9. 10. Which of the following statements is FALSE? a. A centralized structure does not empower employees to handle customer complaints directly, b. A decentralized structure forces top management to lose some control over the organization. Centralization encourages suboptimal decision making Centralization slows responsiveness to local needs for decision making. The extent to which decisions are pushed downward, and the types of decisions that are pushed down, provide a measure of the level of centralization / decentralization in an organization. pape Process costing would be used in all of the following industries except: petroleum refining, chemicals truck tire manufacturing wood pulp production automobile repair. oe Quattro-4 Ltd. began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collected in the first month after sale; and 10% are collected in the second month after sale, If sales for April, May, and June were $60,000, $80,000, and $70,000, respectively, what were the firm's budgeted collections for the month of May? a, $21,000 b, $60,000 c. $69,000 $75,000 e, Some other amount