Answer: C
Explanation:
Selling price per unit
$
20.60
Direct materials
$
6.35
Direct labor
3.75
Variable manufacturing overhead
1.50
Sales commissions
0.50
Variable administrative expense
0.55
Variable cost per unit sold
12.65
Contribution margin per unit
$
7.95
Difficulty: 1 Easy
Topic: Cost Classifications for Predicting Cost Behavior; Using Different Cost Classifications for Different Purposes
Learning Objective: 01-04 Understand cost classifications used to predict cost behavior: variable costs, fixed costs, and mixed costs.; 01-06 Prepare income statements for a merchandising company using the traditional and contribution formats.
Bloom's: Apply
AACSB: Analytical Thinking
AICPA: BB Critical Thinking; FN Measurement
206) Fassino Corporation reported the following data for the month of November:
Direct materials
$
51,000
Direct labor cost
$
54,000
Manufacturing overhead
$
82,000
Selling expense
$
18,000
Administrative expense
$
42,000
The conversion cost for November was:
A) $187,000
B) $112,000
C) $136,000
D) $140,000
Answer: C
Explanation: Conversion cost = Direct labor + Manufacturing overhead = $54,000 + $82,000 = $136,000
Difficulty: 1 Easy
Topic: Cost Classifications for Preparing Financial Statements
Learning Objective: 01-03 Understand cost classifications used to prepare financial statements: product costs and period costs.
Bloom's: Apply
AACSB: Analytical Thinking
AICPA: BB Critical Thinking; FN Measurement
207) Fassino Corporation reported the following data for the month of November:
Direct materials
$
51,000
Direct labor cost
$
54,000
Manufacturing overhead
$
82,000
Selling expense
$
18,000
Administrative expense
$
42,000
The prime cost for November was:
A) $136,000
B) $60,000
C) $105,000
D) $112,000
Answer: C
Explanation: Prime cost = Direct materials + Direct labor = $51,000 + $54,000 = $105,000
Difficulty: 1 Easy
Topic: Cost Classifications for Preparing Financial Statements
Learning Objective: 01-03 Understand cost classifications used to prepare financial statements: product costs and period costs.
Bloom's: Apply
AACSB: Analytical Thinking
AICPA: BB Critical Thinking; FN Measurement
208) Management of Mcgibboney Corporation has asked your help as an intern in preparing some key reports for November. Direct materials cost was $42,000, direct labor cost was $25,000, and manufacturing overhead was $62,000. Selling expense was $21,000 and administrative expense was $38,000.
The conversion cost for November was:
A) $116,000
B) $79,000
C) $87,000
D) $129,000
Answer: C
Explanation: Conversion cost = Direct labor + Manufacturing overhead = $25,000 + $62,000 = $87,000
Difficulty: 1 Easy
Topic: Cost Classifications for Preparing Financial Statements
Learning Objective: 01-03 Understand cost classifications used to prepare financial statements: product costs and period costs.
Bloom's: Apply
AACSB: Analytical Thinking
AICPA: BB Critical Thinking; FN Measurement
209) Management of Mcgibboney Corporation has asked your help as an intern in preparing some key reports for November. Direct materials cost was $42,000, direct labor cost was $25,000, and manufacturing overhead was $62,000. Selling expense was $21,000 and administrative expense was $38,000.
The prime cost for November was:
A) $79,000
B) $59,000
C) $67,000
D) $87,000
Answer: C
Explanation: Prime cost = Direct materials + Direct labor = $42,000 + $25,000 = $67,000
Difficulty: 1 Easy
Topic: Cost Classifications for Preparing Financial Statements