Managerial 111 Quiz

Activity-based-costing (ABC) systems allocate ________.

• direct labor costs based on activities.

• overhead costs based on activities.

• costs based on machine hours only.

• direct materials costs based on activities.

Calculate the Contribution Margin Ratio with the following information:Selling Price per unit = SAR 30Variable Cost per unit = SAR 14Fixed Cost per unit = SAR 12

• 0.65

• 0.37

• 0.53

• 0.27

A paint manufacturer had 2,000 gallons of paint in work-in-process inventory, 50% complete, at the beginning of the month. During the month, 82,000 gallons were started, and there were 8,000 gallons in ending inventory in work in process. How many gallons were completed and transferred out during the month?

• 72,000 gallons

• 90,000 gallons

• 76,000 gallons

• 84,000 gallons

Support departments are sometimes called ________.

• service departments

• activity-based departments

• cost drivers

• investment centers

Morris, Inc. produces only horse saddles. The selling price is SAR 200 per unit and the variable cost is SAR 80 per unit. Total fixed costs are SAR 180,000. what is the break-even in SAR?

• SAR 240000

• SAR 300000

• SAR 360000

• SAR 130000

Which one of the following budgets is prepared for different activity levels?

• Cash budget

• Sales budget

• Flexible budget

• Static budget

Which one of the following graphs illustrates the behavior of total cost?

• 
• Graph 1

• Graph 2

• Graph 3

Which one of the following describes the behavior of variable cost per unit?

• Decreases as production increases.

• Increases then decrease as production increases.

• Increases as production increases.

• Remains the same as production increases

KK Corporation uses a predetermined overhead allocation rate based on the number of machine hours. At the beginning of the year, she estimated total manufacturing overhead costs to be SAR 800,640, and the total number of machine hours to be 16,000 hours. What was the predetermined overhead allocation rate based on this information?

• SAR 45.50 per machine hour

• SAR 42.60 per direct labor hour

• SAR 50.04 per machine hour

• SAR 24.80 per machine hour

Which one of the following examples illustrates variable costs?

• I only

• III only

• I and II only

• II only