____ 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
____ 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
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
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 1 images
