1. Price
Manufacturing assigns overhead based on machine hours. The Milling Department

logs 1,800
machine hours and Cutting Department shows 3,000 machine hours for the

period. If the
overhead rate is $5 per machine hour, the entry to assign overhead will

show a

A) debit to
Work in Process for $15,000.

B) credit to
Manufacturing Overhead for $24,000.

C) credit to
Work in Process—Cutting Department for $15,000.

D) debit to
Manufacturing Overhead for $24,000.

2. Barnes and
Miller Manufacturing is trying to determine the equivalent units for

conversion
costs with 10,000 units of ending work in process at 80% completion and

28,000
physical units. There are no beginning units in the department. Conversion
costs

occur evenly
throughout the entire production period. What are the equivalent units for

conversion
costs for the current period?

A) 8,000.

B) 38,000.

C) 26,000.

D) 36,000.

3. Conversion
cost per unit equals $7.00. Total materials costs are $60,000. Equivalent

units are
20,000. How much is the total manufacturing cost per unit?

A) $7.00.

B) $4.00.

C) $3.00.

D) $10.00.

4. If 120,000
units are started into production and 40,000 units are in process at the end of

the period,
how many units were completed and transferred out?

A) 40,000.

B) 160,000.

C) 120,000.

D) 80,000.

5. Equivalent
units are calculated by

A) dividing
equivalent units by the percentage of work done.

B) multiplying
the percentage of work done by the equivalent units of output.

C) dividing
physical units by the percentage of work done.

D) multiplying
the percentage of work done by the physical units.

6. In CVP
analysis, the term “cost”

A) includes
manufacturing costs plus selling and administrative expenses.

B) excludes
all fixed manufacturing costs.

C) means cost
of goods sold.

D) includes
only manufacturing costs.

7. Fessler,
Inc. has a product with a selling price per unit of $200, the unit variable
cost is

$90, and the
total monthly fixed costs are $300,000. How much is Fessler’s contribution

margin ratio?

A) 45%

B) 150%

C) 222%

D) 55%

8. The
break-even point is where

A) total sales
equal total fixed costs.

B) total sales
equal total variable costs.

C)
contribution margin equals total fixed costs.

D) total
variable costs equal total fixed costs.

9. Norman
Company sells MP3 players for $60 each. Variable costs are $40 per unit, and

fixed costs
total $90,000. How many MP3 players must Norman sell to earn net income

of $210,000?

A) 3,750.

B) 4,500.

C) 5,250.

D) 15,000.

10. Casey
Company has fixed costs of $2,500,000 and variable costs are 40% of sales. What

are the
required sales if Casey Company desires net income of $250,000?

A) $4,166,667

B) $6,875,000

C) $6,250,000

D) $4,583,333