FINANCE

Question 11 (2.5 points)

Question 11 Unsaved

The following data relate to direct labor costs for February:

 

Actual costs 7,700 hours at $13
Standard costs 7,000 hours at $9

 

What is the direct labor time variance?

Question 11 options:

$9100 Favorable
$9100 Unfavorable
$6300 Unfavorable
$6300 favorable

Question 12 (2.5 points)

Question 12 Unsaved

The following data relate to direct labor costs for February:

 

Actual costs 7,700 hours at $13
Standard costs 7,000 hours at $9

Question 12 options:

$28000 Favorable
$28000 Unfavorable
$30800 Favorable
$30800 Unfavorable

Question 13 (2.5 points)

Question 13 Unsaved

Balance sheet and income statement data indicate the following:

Bonds payable, 10% (issued 1988 due 2012) $1,000,000
Preferred 5% stock, $100 par (no change during year) 300,000
Common stock, $50 par (no change during year) 2,000,000
Income before income tax for year 350,000
Income tax for year 80,000
Common dividends paid 50,000
Preferred dividends paid 15,000

 

Based on the data presented above, what is the number of times bond interest charges were earned ?

Question 13 options:

3.7
4.4
4.5
3.5

Question 14 (2.5 points)

Question 14 Unsaved

Kim Corporation has two major divisions: Agricultural Products and Industrial Products. It provides the following information for the year 2014

 

  Agriculture Division Industrial Division
Sales revenue $140,000 $1,040,000
Operating income $46,400 $220,000
Average total assets $300,000 $5,540,000
Target rate of return 14.0% 14.0%

 

Calculate the residual income for the Agriculture division.

Question 14 options:

$5500
$4400
$2500
$1800

Question 15 (2.5 points)

Question 15 Unsaved

New York Inc. Inc. has a division that manufactures a component that sells for $150 and has a variable cost of $45. Another division of the company wants to purchase the component. Fixed cost per unit of component is $25. What is the minimum transfer price if the division is operating at capacity?

Question 15 options:

$150
$45
$55
$140

Question 16 (2.5 points)

Question 16 Unsaved

)  Chesapeake Company provided the following manufacturing costs for the month of June.

 

Direct labor cost $136,000
Direct materials cost 80,000
Equipment depreciation (straight-line) 24,000
Factory insurance 19,000
Factory manager’s salary 12,800
Janitor’s salary 5,000
Packaging costs 18,800
Property taxes 16,000

 

From the above information, calculate Chesapeake’s total variable costs.

Question 16 options:

$311600
$62300
$234800
$38400

Question 17 (2.5 points)

Question 17 Unsaved

Da Silva Company has variable costs of $0.60 per unit of product. In August, the volume of production was 24,000 units and units sold were 20,000. The total production costs incurred were $31,900. What are the fixed costs per month?

Question 17 options:

$17500
$19900
$9600
$14450

Question 18 (2.5 points)

Question 18 Unsaved

Based on the following data, what is the quick ratio, rounded to one decimal point?

 

Accounts payable $ 30,000
Accounts receivable 65,000
Accrued liabilities 7,000
Cash 20,000
Intangible assets 40,000
Inventory 72,000
Long-term investments 100,000
Long-term liabilities 75,000
Marketable securities 36,000
Notes payable (short-term) 20,000
Property, plant, and equipment 625,000
Prepaid expenses 2,000

Question 18 options:

2.4
3.4
2.1
1.5

Question 19 (2.5 points)

Question 19 Unsaved

The Rand Corporation began the current year with a retained earnings balance of $25,000.  During the year, the company corrected an error made in the prior year, which was a failure to record depreciation expense of $3,000 on equipment.  Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $5,000.  Compute the year end retained earnings balance.

Question 19 options:

$29000
$35000
$39000
$45000

Question 20 (2.5 points)

Question 20 Unsaved

A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8.  Subsequently, the company declared a 2% stock dividend on a date when the market price was $11 a share.  What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

Question 20 options:

$3200
$6400
$4800
$8800

Question 21 (2.5 points)

Question 21 Unsaved

Phan  Company owns 28% of the common stock of San Company and accounts for the investment using the equity method.  Assuming that Phan Company purchased the stock several years ago, the balance in the investment account would be equal to the cost of the

Question 21 options:

investment
investment plus Phan’s share of San’s net income earned since the investment was purchased
investment plus the total amount of dividends Phan  has received from San since the investment was purchased
investment plus Phan’s share of San’s net income earned since the investment was purchased minus the total amount of dividends Phan has received from San since the investment was purchased

Question 22 (2.5 points)

Question 22 Unsaved

A  loss on disposal of a segment would be reported in the income statement as a(n)

Question 22 options:

administrative expense
other expense
deduction from income from continuing operations
selling expense

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