Accounting: Service Dept Charges, Residual Income, Budget performances, profit center responsibility reporting, product cost markup percentage, bottleneck profit

a. $-8,950 (unfavorable) b. $7,950 (unfavorable) c. $-7,950 (favorable) d. $8,950 (favorable)

2: For problem PE 23-1A, what is the amount of (b) quantity variance?

a. $14,700 (unfavorable) b. $15,700 (unfavorable) c. $-14,700 (unfavorable) d. $-15,700(unfavorable)

3: For problem PE 23-1A, what is the amount of (c) Cost variances?

a. $6,750 (favorable) b. $7,500 (unfavorable) c. $-6,750 (favorable) d. $6,750 (unfavorable)

4: For problem PE 23-2A, what is the amount of (a) rate variance?

a. $12,850 (unfavorable) b. $11,850 (unfavorable) c. $10,850 (favorable) d. $-11,850 (favorable)

5: For problem PE 23-2A, what is the amount of (b) time variance?

a. $8,000 (unfavorable) b. $10,800 (unfavorable) c. $-8,000 (favorable) d. $-10,000 (favorable)

6: For problem PE 23-2A, what is the amount of (c) cost variance?

a. $-8,000 (unfavorable) b. $8,000 (unfavorable) c. $19,850 (unfavorable) d. $-19,850 (favorable)

7: For problem PE 23-3A, what is the amount of the Variable Factory Overhead Controllable Variable?

a. $400 (favorable) b. $-300 (favorable) c. $300 (unfavorable) d. $-400 (favorable)

8: For problem PE 23-4A, what is the amount of the fixed factory overhead volume variance?

a. $-650 (favorable) b. $650 (unfavorable) c. $550 (unfavorable) d. $-550 (favorable)

9: For problem PE 23-5A, the correct journal entry to record the standard direct materials used in production is:

a. (Debit) Work in Process $245,000; (Debit) Direct Materials Quantity Variance $125; (Credit) Materials 259,700 b. (Debit) Work in Process $245,000; (Debit) Direct Materials Quantity Variance $14,700; (Credit) Materials $259,700 c. (Debit) Work in Process $245,000; (Credit) Direct Materials Quantity Variance $14,700; (Credit) Materials $259,700 d. (Debit) Work in Process $3,750; (Credit) Materials $125; (Credit) Direct Materials Quantity Variance $3,625

10: For problem PE 24-4A, what is the amount of (a) profit margin?

a. 7.5% b. 20% c. 9.5% d. 22%

11: For problem PE 24-4A, what is the (b) the investment turnover?

a. 2.7 b. 2.9 c. 3.2 d. 6.3

12: For problem PE 24-4A, what is the amount of (c) the rate of return on investment?

a. 22% b. 20% c. 10% d. 24%

13: For problem PE 24-5A, what is the amount of residual income?

a. $20,000 b. $22,000 c. $24,000 d. $26,000

14: For problem PR24-1A, what is the total amount over budget?

a. $160,575 b. $163,575 c. $164,575 d. $166,575

15: For problem PR24-1A, what is the total amount under budget?

a. $30,250 b. $31,250 c. $33,250 d. $37,250

16: For problem PR24-2A, what is the total income from operations for the East division?

a. $130,000 b. $129,600 c. $133,000 d. $133,600

17: For problem PR24-2A, what is the total income from operations for the West division?

a. $172,000 b. $177,300 c. $175,000 d. $177,200

18: For problem PR24-2A, what is the total income from operations for the Central division?

a. $394,000 b. $285,000 c. $390,000 d. $274,000

19: For problem PE 25-7A, what is the amount of the markup percentage on product cost?

a. 150% b. 100% c. 85% d. 125%

20: For problem PE25-8A, product A is most profitable.

a. True b. False

21: For problem PE25-8A, the unit contribution margin per production bottleneck hour for product A is:

a. $10 b. $9 c. $8 d. $7

22: For problem PE25-8A, the unit contribution margin per production bottleneck hour for product B is:

a. $10 b. $9 c. $11 d. $5

23: The process of measuring and reporting operating data by areas of responsibility is termed responsibility accounting.

a. True b. False

24: A decentralized business organization is one in which all major planning and operating decisions are made by top management.

a. True b. False

25: A centralized business organization is one in which all major planning and operating decisions are made by top management.

a. True b. False