Kaplan Gb519 quiz 5 (Perfect Answer)

1.Throughput margin is defined as sales less: (Points : 2)

Question 2. 2.Henry Ford was an early pioneer in the use of: (Points : 2)

Question 3. 3. During the sales life cycle, which is an example of what happens during the introduction phase? (Points : 2)

Question 4. 4.When a firm determines the desired cost for a product or service, given a competitive market price, in order to earn a desired profit, the firm is exercising: (Points : 2)

Question 5. 5. For a direct material, which one of the following is the difference between the actual and standard unit price of the direct material multiplied by the actual quantity of the material purchased? (Points : 2)

Question 6. 6.A "standard cost" is a predetermined amount (e.g., cost) that: (Points : 2)

Question 7. 7. Which one of the following is the difference between the actual hourly wage rate and the standard hourly wage rate, multiplied by the actual direct labor hours worked during a period? (Points : 2)

Question 8. 8. A flexible-budget variance measures the impact on short-term operating profit of: (Points : 2)

Question 9. 9.In deciding whether to further investigate a variance, an organization needs to weigh the costs of investigation against the: (Points : 2)

Question 10. 10. Which of the following factors is not usually important when deciding whether to investigate a variance? (Points : 2)

Question 11. 11.The difference between the total actual overhead cost incurred during a period and budgeted total factory overhead for the actual quantity of the cost driver used to apply overhead is equal to the: (Points : 2)

Question 12. 12.Which one of the following journal entries in a standard cost system would be used to apply factory overhead costs to production? (Points : 2)

Question 13. 13.The following budget data pertain to the Machining Department of Yolkenverst Co.:
Maximum Capacity = 60,000 Units
Machine Hours/Unit = 2.5 Hours
Variable Factory O/H = $ 3.60 Per Machine Hour
Fixed Factory O/H = $433,500

The company prepared the budget at 85% of the maximum capacity level. The department uses machine hours as the basis for applying standard factory overhead costs to production.

The standard fixed overhead application rate for the Machining Department is: (Points : 2)

Question 14. 14.Electronic Component Company (ECC) is a producer of high-end video and music equipment. ECC currently sells its top of the line "ECC" DVD player for a price of $250. It costs ECC $210 to make the player. ECC's main competitor is coming to market with a new DVD player that will sell for a price of $220. ECC feels that it must reduce its price to $220 in order to compete. The sales and marketing department of ECC believes the reduced price will cause sales to increase by 15%. ECC currently sells 200,000 DVD players per year.
Irrespective of the competitor's price, what is EEC's required selling price if the target profit is 25% of sales and current costs cannot be reduced? (Points : 2)

Question 15. 15.Bonehead Co. has the following factory overhead costs:
Standard Overhead Applied to this Period’s Production = $72,500
Flexible Budget for Overhead Based on Output (Units Produced) = 65,000
Total Budgeted Overhead in the Master (Static) Budget = 86,000
Actual Total Overhead Cost Incurred During the Period = 76,000
The total underapplied or overapplied factory overhead for Bonehead Co. for the period is: (Points : 2)