BUSS1030 Revision Mock Exam April 2017(15 questions)

Question 11Haverhill Products just completed job number 440. In addition to direct labour and direct materials cost, Haverhill allocated $450 of manufacturing overhead to the job. Please provide the journal entry for the allocation of overhead.Question 12Chambers Company sells glass vases at a wholesale price of $2.50 per unit. Variable cost is $1.75 per unit. Chambers' fixed costs are $6 500 per month. Chambers is currently selling 15 000 units per month. If Chambers wants to increase net profit by 20%, how many more units, over and above the current volume, must they sell? (Please round to nearest whole number.) a) 1 166b) 1 333c) 1 267d) 5 666e) None of the aboveQuestion 13Juan Martinez sells guitars for $600 with fixed monthly operating costs as follows:Rent and electricity and gas $960Wages and benefits $1 500Other $900Juan got confused when his accountant told him about contribution margin ratios, but he understood clearly that for every dollar of sales, $0.70 went to cover his fixed costs, and that anything past that point was pure profit.Juan knows his breakeven point is now 8 units per month, but he is considering raising his price to $660. If he does so, how will that affect the breakeven point?a) It will stay the same.b) It will go up from 8 to 10 unitsc) It will go up from 8 to 12 unitsd) It will go down from 8 to 7 unitse) None of the above
Question 14Which of the following statements is CORRECT if total fixed costs decrease while the sales price per unit and variable costs per unit remain constant?a) The contribution margin increasesb) The breakeven point increasesc) The contribution margin decreasesd) The breakeven point decreasese) None of the aboveQuestion 15Halcyon Company just completed job number 10-B. See details below. Direct labour cost: $2 040 Direct materials cost: $90 Direct labour hours: 75Predetermined manufacturing overhead allocation rate: $34.00 per direct labour hourNumber of units of finished product: 200 unitsWhat was cost per unit of finished product? (Please round to nearest cent.)a) $26.40b) $46.80c) $25.50d) $23.40e) None of the above