____              1.Which of the following is a responsibility center that incurs expenses, generates revenues, and is responsible for generating a return on assets? a.              Cost center b.              Revenue center c.              Profit center d.              Investment center   ____              2.Which one of the following is the most useful measure for evaluating a manager's performance in controlling revenues and costs in a profit center? a.              Contribution margin b.              Contribution net income c.              Contribution gross profit d.              Controllable margin   ____              3.Hanover Corporation desires to earn target net income of $42,000. The selling price per unit is $18, unit variable cost is $5.60, and total fixed costs are $123,912. How many units must the company sell to earn its target net income? a.              13,380 b.              9,993 c.              3,387 d.              9,217   ____              4.Remark Enterprises uses a process cost accounting system. Beginning Work in Process3,000 units (50% complete) Ending Work in Process2,000 units (30% complete) Started into Production56,000 units How many units were completed and transferred out during the current period? a.              56,000 b.              58,000 c.              59,000 d.              57,000 ____              5.Ralston Gifts applies overhead on the basis of machine hours. The following data were provided by Ralston: Estimated annual overhead cost$516,600 Actual annual overhead cost$537,500 Estimated machine hours126,000 Actual machine hours125,000 How much overhead was applied? a.              $512,500 b.              $520,380 c.              $516,600 d.              $541,800

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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____              1.Which of the following is a responsibility center that incurs expenses, generates revenues, and is responsible for generating a return on assets?

a.              Cost center

b.              Revenue center

c.              Profit center

d.              Investment center

 

____              2.Which one of the following is the most useful measure for evaluating a manager's performance in controlling revenues and costs in a profit center?

a.              Contribution margin

b.              Contribution net income

c.              Contribution gross profit

d.              Controllable margin

 

____              3.Hanover Corporation desires to earn target net income of $42,000. The selling price per unit is $18, unit variable cost is $5.60, and total fixed costs are $123,912. How many units must the company sell to earn its target net income?

a.              13,380

b.              9,993

c.              3,387

d.              9,217

 

____              4.Remark Enterprises uses a process cost accounting system.

Beginning Work in Process3,000 units (50% complete)

Ending Work in Process2,000 units (30% complete)

Started into Production56,000 units

How many units were completed and transferred out during the current period?

a.              56,000

b.              58,000

c.              59,000

d.              57,000

____              5.Ralston Gifts applies overhead on the basis of machine hours. The following data were provided by Ralston:

Estimated annual overhead cost$516,600

Actual annual overhead cost$537,500

Estimated machine hours126,000

Actual machine hours125,000

How much overhead was applied?

a.              $512,500

b.              $520,380

c.              $516,600

d.              $541,800

 

 

 

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