Online Access Free BUS105 Exam Questions

SJ Candles should expect the absorption costing and variable costing methods to result in the same 4th quarter operating profit when which of the following is true?

• A.They started the 4th quarter with no inventory and sold 80% of the candles that were produced in the 4th quarter
• B.They sold all remaining 3rd quarter inventory in 4th quarter and produced zero candles in 4th quarter
• C.Their 4th quarter sales included every candle produced in the 4th quarter as well as a few that remained in inventory from the 3rd quarter
• D.They started the 4th quarter with no inventory and every candle that was produced in the 4th quarter also sold

Use the following relevant data to assign costs to units transferred out and units in ending WIP inventory. Total Units Accounted For:

Cost per Equivalent Unit:

What is the total cost of production?

• A.$1,800
• B.$9,000
• C.$3,325
• D.$4,500

Using this data, what is the contribution margin?

• A.$625,000
• B.$326,000
• C.$121,000
• D.$365,000

Which of the following statements is a true statement about flexible budgets?

• A.Selling and administrative expenses are reported in the flexible budget
• B.Cost variance analysis is an integral part of preparing a flexible budget
• C.The flexible budget is prepared before the master budget to assist with planning
• D.The actual number of units sold is irrelevant to a flexible budget

Which row correctly identifies the calculation to establish standard costs for direct materials, direct labor, and factory overhead?

• A.Row 1
• B.Row 3
• C.Row 4
• D.Row 2