In: Accounting
10. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price ........................................................... $100
Units in beginning inventory .......................... 0
Unit produced ...................................................... 5,500
Unit sold ................................................................. 5,400
Unit in ending inventory ................................... 100
Variable costs per unit:
Direct materials .............................................. $23
Direct labor ...................................................... $25
Variable manufacturing overhead ........... $ 2
Variable selling and administrative ......... $ 9
Fixed costs:
Fixed manufacturing overhead .................. $137,500
Fixed selling and administrative ................ $ 70,200
The total contribution margin for the month under variable costing is:
Select one:
a. $270,000
b. $135,000
c. $83,900
d. $221,400
11.
The Institute of Management Accountants' Statement of Ethical Professional Practice states that when faced with significant ethical issues, management accountants should first:
Select one:
a. submit an informative memorandum describing the ethical issue to an appropriate representative of the organization and resign if no action is taken as a result of the memorandum.
b. follow the established policies of the organization bearing on the resolution of such conflict.
c. clarify relevant concepts by confidential discussion with an objective advisor to obtain an understanding of possible courses of action.
d. discuss such problems with the immediate superior except when it appears that the superior is involved.
12.
The Sarbanes-Oxley Act of 2002 contains all of the following provisions EXCEPT:
Select one:
a. A CFO must be a CPA or CMA.
b. Both the CEO and CFO must certify in writing that their company's financial statements and accompanying disclosures fairly represent the results of operations.
c. Severe penalties are established for altering or destroying documents that may eventually be used in an official proceeding.
d. The audit committee of the board of directors of a company must hire, compensate, and terminate the public accounting firm that audits the company's financial reports.
13.
A company has provided the following data:
Sales ................................... 3,000 units
Sales ................................... $70 per unit
Variable cost .................... $50 per unit
Fixed cost .......................... $25,000
If the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, net operating income will:
Select one:
a. increase by $61,000.
b. increase by $11,000.
c. increase by $3,500.
d. increase by $20,000.