Multiple choice

1. Weinreich Corporation produces and sells a single product, data concerning that produce appear below:

The company is currently selling 2,000 units per month. Fixed expenses are $131,000 per month. The marketing manager believes that an $18,000 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the overall effect on the company’s monthly net operating income of this charge?

2. A total of 30,000 units were sold last year. The contribution margin per unit was $2, and fixed expenses totaled $20,000for the year. This year fixed expenses are expected to increase to$26,000, but the contribution margin per unit will remain unchanged at $2.how many units must be sold this year to earn the same profit as was earned last year?

3. Balbuena Corporation produce and sells two products. Data concerning those products for the most recent month appear below:

The fixed expenses of the entire company were $15,630. if the sales mix were to shift toward product K87W with total sales dollar remaining constant, the overall break-even point for the entire company:

4. Which of the following are considered to be product costs under absorption costing?

I. Variable manufacturing overhead.

II. Fixed manufacturing overhead.

III. Selling and administrative expenses.

5. When a decision is made among a number of alternatives, the benefits that is lost by choosing one alternative over another is the:

6. Variable Cost:

7. Which of the following is the correct formula to compute the predetermined overhead rate?

8. What document is used to determined the actual amount of direct labor to record on a job cost sheet?

9. In activity-based costing, there are a number of activity cost pools, each of  which is allocated to products and other costing objects using it own unique measure of activity.

10. Which of the following activities would be classified as a batch- level activity?