Site MapHelpFeedbackPractice Exam
Practice Exam
(See related pages)



1

An analysis of past janitorial costs indicates that janitorial cost is an average of $0.80 per machine-hour at an activity level of 40,000 machine-hours and $1.00 per machine-hour at an activity level of 32,000 machine-hours. Assuming that this activity is within the relevant range, what is the total expected janitorial cost if the activity level is 37,000 machine-hours?

A)$6,400
B)$27,840
C)$32,000
D)$36,000
2

Shipping expense is $10,000 for 1,000 pounds shipped and $13,750 for 1,500 pounds shipped. Assuming that this activity is within the relevant range, if the company ships 1,250 pounds, its expected shipping expense is closest to:

A)$10,000.
B)$11,458.
C)$11,875.
D)$12,500.
3

The following information has been provided by the Batavia Office Supply Store for the first quarter of the year:

Sales$1,400,000
Variable selling expense140,000
Fixed selling expenses100,000
Cost of goods sold640,000
Fixed administrative expenses220,000
Variable administrative expenses60,000

What is the contribution margin of Batavia Office Supply Store for the first quarter?

A)$560,000.
B)$760,000.
C)$840,000.
D)$1,200,000.
4

Lewis Company has provided the following data for the second quarter of the most recent year:

Sales $1,200,000
Fixed manufacturing overhead 22,000
Direct labor 290,000
Fixed selling expense 185,000
Variable manufacturing overhead 164,000
Variable administrative expense 192,000
Direct materials 206,000
Fixed administrative expense 178,000
Variable selling expense 199,000

Assume that direct labor is a variable cost and that there were no beginning or ending inventories. The total contribution margin of Lewis Company for the second quarter was:

A)$149,000.
B)$348,000.
C)$704,000.
D)$844,000.





To learn more about the book this website supports, please visit its Information Center.
(c)2005 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


Intro to Managerial AccountingOnline Learning Center with Powerweb

Home > Chapter 5 > Practice Exam