Test Bank for Introduction to Managerial Accounting, 9th Edition 9e by Peter Brewer, Ray Garrison and Eric Noreen. ISBN-13: 4439
Full Chapters test bank are included
CHAPTER ONE Managerial Accounting and Cost Concepts
CHAPTER TWO Job-Order Costing: Calculating UnitProduct Costs
CHAPTER ...
Chapter 01 9e
1) A number of costs are listed below.
Cost Description Cost Object
1. Wages of carpenters on a home building site A particular home
2. Cost of wiring used in making a personal computer A particular
personal computer
3. Manager's salary at a hotel run by a chain of A particular hotel
hotels guest
4. Manager's salary at a hotel run by a chain of The particular hotel
hotels
5. Cost of aluminum mast installed in a yacht at a A particular yacht
yacht manufacturer
6. Monthly lease cost of X-ray equipment at a The Radiology (X-
hospital Ray) Department
7. Cost of screws used to secure wood trim in a A particular yacht
yacht at a yacht manufacturer
8. Cost of electronic navigation system installed in A particular yacht
a yacht at a yacht manufacturer
9. Cost of a replacement battery installed in a car The auto repair shop
at the auto repair shop of an automobile dealer
10. Cost of a measles vaccine administered at an A particular patient
outpatient clinic at a hospital
Required:
For each item above, indicate whether the cost is direct or indirect with respect to the cost object
listed next to it.
2) A partial listing of costs incurred at Boylen Corporation during March appears below:
Direct materials $ 181,000
Utilities, factory $ 10,000
1
,Sales commissions $ 69,000
Administrative salaries $ 99,000
Indirect labor $ 32,000
Advertising $ 75,000
Depreciation of production equipment $ 28,000
Direct labor $ 120,000
Depreciation of administrative equipment $ 49,000
Required:
a. What is the total amount of product cost listed above?
b. What is the total amount of period cost listed above?
3) Marquess Corporation has provided the following partial listing of costs incurred during
May:
Marketing salaries $ 39,000
Property taxes, factory $ 8,000
Administrative travel $ 102,000
Sales commissions $ 73,000
Indirect labor $ 31,000
Direct materials $ 197,000
Advertising $ 145,000
Depreciation of production equipment $ 39,000
Direct labor $ 78,000
Required:
a. What is the total amount of product cost listed above?
b. What is the total amount of period cost listed above?
2
,4) A number of costs and measures of activity are listed below.
Cost Description Possible Measure of
Activity
1. Salary of production manager at a surfboard Surfboards produced
manufacturer
2. Cost of solder used in making computers Computers produced
3. Cost of dough used at a pizza shop Pizzas cooked
4. Janitorial wages at a surfboard manufacturer Surfboards produced
5. Salary of the controller at a hospital Number of patients
6. Cost of sales at an electronics store Dollar sales
7. Cost of testing materials used in a medical Tests run
lab
8. Cost of heating an electronics store Dollar sales
9. Cost of electricity for production equipment Surfboards produced
at a surfboard manufacturer
10. Depreciation on shelving at a book store Dollar sales
Required:
For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the
possible measure of activity listed next to it.
3
, 5) At an activity level of 6,800 units, Henkes Corporation's total variable cost is $125,188
and its total fixed cost is $164,152.
Required:
For the activity level of 7,100 units, compute: (a) the total variable cost; (b) the total fixed cost;
(c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f)
the average total cost per unit. Assume that this activity level is within the relevant range.
6) Hinrichs Corporation reports that at an activity level of 2,400 units, its total variable cost
is $174,504 and its total fixed cost is $55,080.
Required:
For the activity level of 2,700 units, compute: (a) the total variable cost; (b) the total fixed cost;
(c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f)
the average total cost per unit. Assume that this activity level is within the relevant range.
7) A number of costs and measures of activity are listed below.
Cost Description Possible Measure of
Activity
1. Cost of vaccine used at a clinic Vaccines administered
2. Building rent at a taco shop Dollar sales
3. Salary of production manager at a snowboard Snowboards produced
manufacturer
4. Cost of electricity for production Snowboards produced
equipment at a snowboard manufacturer
5. Ferry captain's salary on a regularly Number of passengers
4
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