Salem Company has the following costs information for June where production volume is 2,000 units: Direct materials Direct labor $8,500 $9,000 $800 Straight-line depreciation Rent expenses other fixed costs 7. The variable cost and fixed cost per unit respectively are: A) $8.75 and $1.50. B) $8.75 and $0.25. C) $4.25 and $3.00. D) $8.50 and $12.00. B) fixed cost per unit. C) total variable cost. D) total cost per unit. $1,200 $1,000 8. If production changes to 2,200 units, which cost will remain the same? A) variable cost per unit.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Salem Company has the following costs information for June where production volume is 2,000
units:
7. The variable cost and fixed cost per unit respectively are:
A) $8.75 and $1.50.
B) $8.75 and $0.25.
C) $4.25 and $3.00.
D) $8.50 and $12.00.
B) fixed cost per unit.
C) total variable cost.
D) total cost per unit.
A) 1,000
B) 1,800
Direct materials
Direct labor
8. If production changes to 2.200 units, which cost will remain the same?
A) variable cost per unit.
C) 3,200
D) 2,600
Straight-line depreciation
Rent expenses
other fixed costs
9.The production budget shows expected unit sales of 16,000. Beginning finished goods units are 1,800.
Required production units are 16,800. What are the desired ending finished goods units?
A)
B)
D)
10. The production budget shows expected unit sales are 50,000. The required production units are 52,000.
What are the beginning and desired ending finished goods units, respectively?
Ending Units
2,000
5,000
$8,500
$9,000
5800
Beginning Units
5,000
3.000
$1,200
$1,000
3,000
5,000
5,000
2,000
C) Manufacturing overhead budget
D) Budgeted balance sheet
11. Which of the following is not a financial budget?
A) Capital expenditure budget
B) Cash budget
12. A manager that is establishing objectives is performing which management function?
A) Controlling
B) Directing
C) Planning
D) Constraining
Transcribed Image Text:Salem Company has the following costs information for June where production volume is 2,000 units: 7. The variable cost and fixed cost per unit respectively are: A) $8.75 and $1.50. B) $8.75 and $0.25. C) $4.25 and $3.00. D) $8.50 and $12.00. B) fixed cost per unit. C) total variable cost. D) total cost per unit. A) 1,000 B) 1,800 Direct materials Direct labor 8. If production changes to 2.200 units, which cost will remain the same? A) variable cost per unit. C) 3,200 D) 2,600 Straight-line depreciation Rent expenses other fixed costs 9.The production budget shows expected unit sales of 16,000. Beginning finished goods units are 1,800. Required production units are 16,800. What are the desired ending finished goods units? A) B) D) 10. The production budget shows expected unit sales are 50,000. The required production units are 52,000. What are the beginning and desired ending finished goods units, respectively? Ending Units 2,000 5,000 $8,500 $9,000 5800 Beginning Units 5,000 3.000 $1,200 $1,000 3,000 5,000 5,000 2,000 C) Manufacturing overhead budget D) Budgeted balance sheet 11. Which of the following is not a financial budget? A) Capital expenditure budget B) Cash budget 12. A manager that is establishing objectives is performing which management function? A) Controlling B) Directing C) Planning D) Constraining
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Cost estimation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education