Exam (elaborations)
Test Bank for Managerial Accounting 17th Edition
- Module
- Institution
- Book
Test Bank for Managerial Accounting 17th Edition
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
Seller
Follow
a_plus_work
Reviews received
Content preview
DOWNLOAD THE Test Bank for Managerial Accounting 17th Edition GarrisonManagerial Accounting 17th Edition by Garrison CH01
ANSWERS ARE LOCATED IN THE SECOND PART OF THIS DOCUMENT
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
1) Dobosh Corporation has provided the following information:
Cost per Cost per
Unit Period
Direct materials $ 7.05
Direct labor $ 3.65
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 113,400
Sales commissions $ 1.50
Variable administrative expense $ 0.55
Fixed selling and administrative expense $ 36,450
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make
9,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell
9,000 units?
c. If 10,000 units are sold, what is the variable cost per unit sold?
d. If 10,000 units are sold, what is the total amount of variable costs related to the units sold?
e. If 10,000 units are produced, what is the total amount of manufacturing overhead cost
incurred?
f. If the selling price is $21.60 per unit, what is the contribution margin per unit sold?
g. If 8,000 units are produced, what is the total amount of direct manufacturing cost incurred?
h. If 8,000 units are produced, what is the total amount of indirect manufacturing costs
incurred?
i. What incremental manufacturing cost will the company incur if it increases production from
9,000 to 9,001 units?
Version 1 1
mynursytest.store
,DOWNLOAD THE Test Bank for Managerial Accounting 17th Edition Garrison
Managerial Accounting 17th Edition by Garrison CH01
Question Details
AACSB : Analytical Thinking
AICPA : BB Critical Thinking
AICPA : FN Measurement
Bloom's : Apply
Type : Static
Difficulty : 1 Easy
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-01 Understand cost classifications used for assigning costs to cost objects:
Learning Objective : 01-03 Understand cost classifications used to prepare financial statements: prod
Learning Objective : 01-02 Identify and give examples of each of the three basic manufacturing cost c
Learning Objective : 01-04 Understand cost classifications used to predict cost behavior: variable co
Learning Objective : 01-05 Understand cost classifications used in making decisions: relevant costs a
Learning Objective : 01-06 Prepare income statements for a merchandising company using the traditiona
Topic : Cost Classifications for Assigning Costs to Cost Objects
Topic : Cost Classifications for Decision Making
Topic : Cost Classifications for Manufacturing Companies
Topic : Cost Classifications for Predicting Cost Behavior
Topic : Cost Classifications for Preparing Financial Statements
Topic : Using Different Cost Classifications for Different Purposes
2) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it
produces and sells 4,200 units, its average costs per unit are as follows:
Average Cost per
Unit
Direct materials $ 6.60
Direct labor $ 3.40
Variable manufacturing overhead $ 1.40
Fixed manufacturing overhead $ 4.50
Fixed selling expense $ 0.65
Fixed administrative expense $ 0.50
Sales commissions $ 0.40
Variable administrative expense $ 0.40
Version 1 2
mynursytest.store
,DOWNLOAD THE Test Bank for Managerial Accounting 17th Edition Garrison
Managerial Accounting 17th Edition by Garrison CH01
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make
4,200 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell
4,200 units?
c. If 5,200 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to
2 decimal places.)
d. If 5,200 units are sold, what is the total amount of variable costs related to the units sold?
e. If 5,200 units are produced, what is the average fixed manufacturing cost per unit produced?
(Round "Per unit" answer to 2 decimal places.)
f. If 5,200 units are produced, what is the total amount of fixed manufacturing cost incurred?
g. If 5,200 units are produced, what is the total amount of manufacturing overhead cost
incurred? What is this total amount expressed on a per unit basis? (Round "Per unit" answer to
2 decimal places.)
h. If the selling price is $24.10 per unit, what is the contribution margin per unit sold? (Round
"Per unit" answer to 2 decimal places.)
i. If 3,200 units are produced, what is the total amount of direct manufacturing cost incurred?
j. If 3,200 units are produced, what is the total amount of indirect manufacturing cost incurred?
k. What incremental manufacturing cost will the company incur if it increases production from
4,200 to 4,201 units? (Round "Per unit" answer to 2 decimal places.)
Version 1 3
mynursytest.store
, DOWNLOAD THE Test Bank for Managerial Accounting 17th Edition Garrison
Managerial Accounting 17th Edition by Garrison CH01
Question Details
AACSB : Analytical Thinking
AICPA : BB Critical Thinking
AICPA : FN Measurement
Bloom's : Apply
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Difficulty : 2 Medium
Learning Objective : 01-01 Understand cost classifications used for assigning costs to cost objects:
Learning Objective : 01-03 Understand cost classifications used to prepare financial statements: prod
Learning Objective : 01-02 Identify and give examples of each of the three basic manufacturing cost c
Learning Objective : 01-04 Understand cost classifications used to predict cost behavior: variable co
Learning Objective : 01-05 Understand cost classifications used in making decisions: relevant costs a
Learning Objective : 01-06 Prepare income statements for a merchandising company using the traditiona
Type : Algorithmic
Topic : Cost Classifications for Assigning Costs to Cost Objects
Topic : Cost Classifications for Decision Making
Topic : Cost Classifications for Manufacturing Companies
Topic : Cost Classifications for Predicting Cost Behavior
Topic : Cost Classifications for Preparing Financial Statements
Topic : Using Different Cost Classifications for Different Purposes
3) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it
produces and sells 5,000 units, its average costs per unit are as follows:
Average Cost per
Unit
Direct materials $ 5.30
Direct labor $ 3.65
Variable manufacturing overhead $ 1.50
Fixed manufacturing overhead $ 3.90
Fixed selling expense $ 0.75
Fixed administrative expense $ 0.60
Sales commissions $ 0.50
Variable administrative expense $ 0.50
Version 1 4
mynursytest.store
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller a_plus_work. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £9.38. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now