Site MapHelpFeedbackPractice Exam
Practice Exam
(See related pages)

1
An analysis of past janitorial costs indicates that janitorial cost is an average of $0.40 per machine-hour at an activity level of 20,000 machine-hours and $0.50 per machine-hour at an activity level of 16,000 machine-hours. Assuming that this activity is within the relevant range, what is the total expected janitorial cost if the activity level is 18,500 machine-hours?
A)$1,600
B)$6,960
C)$8,000
D)$9,000
2
Shipping expense is $34,000 for 16,000 pounds shipped and $40,000 for 19,000 pounds shipped. Assuming that this activity is within the relevant range, if the company ships 18,000 pounds, its expected shipping expense is closest to:
A)$37,000.
B)$37,895.
C)$38,000.
D)$38,250.
3
The following information has been provided by the Douglas Grocery Store for the first quarter of the year:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073048836/346044/05_q03.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (9.0K)</a>

The contribution margin of Douglas Grocery Store for the first quarter is:
A)$280,000.
B)$380,000.
C)$420,000.
D)$600,000.
4
Lewis Company has provided the following data for the second quarter of the most recent year:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073048836/346044/05_q04.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (14.0K)</a>

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)2007 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 Managerial AccountingOnline Learning Center

Home > Chapter 5 > Practice Exam