ACC – Misc. Problems

$13.00

Description

(a) For Kozy Company, actual sales are $1,173,000 and break-even sales are $797,640.

Compute the margin of safety in dollars and the margin of safety ratio.

(b) Montana Company produces basketballs. It incurred the following costs during the year.

Direct materials $14,567
Direct labor $25,862
Fixed manufacturing overhead $9,712
Variable manufacturing overhead $31,984
Selling costs $20,828

What are the total product costs for the company under variable costing?

(c) For the quarter ended March 31, 2012, Maris Company accumulates the following sales data for its product, Garden-Tools: $326,100 budget; $337,600 actual.

Prepare a static budget report for the quarter.
MARIS COMPANY
Sales Budget Report
For the Quarter Ended March 31, 2012
Product Line Budget Actual Difference
Garden-Tools $
$
$

(d) Gundy Company expects to produce 1,222,920 units of Product XX in 2012. Monthly production is expected to range from 78,580 to 119,060 units. Budgeted variable manufacturing costs per unit are: direct materials $3, direct labor $8, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision are $3.

Prepare a flexible manufacturing budget for the relevant range value using 20,240 unit increments. (List variable costs before fixed costs.)

Reviews

There are no reviews yet.

Be the first to review “ACC – Misc. Problems”

Your email address will not be published. Required fields are marked *

ACC – Misc. Problems

$13.00

Description

16) Kip owns the following portfolio of securities. What is the beta for the portfolio?
16) ______
A) 1.98 B) 1.00 C) 1.50 D) 1.74
17) George is considering an investment in Vandelay Inc. and has gathered the information in the following table. What is the expected standard deviation for a share of the firm’s stock?
17) ______
A) 31.62% B) 22.48 C) 17.46% D) 27.54%
18) Alice purchased Hampton Industries Inc. stock for $14.65 and sold it 6 months later for $17.38 after receiving a $0.25 dividend.
?
Company
Beta
?
Percent of Portfolio
Apple
.82
50%
Ford
2.53
30%
Federal Express
1.67
20%
?
State of the Economy
Probability of the State
Conditional Expected Return Vandelay Inc.
?
Recession
.25
-20%
?
Steady
.60
10%
Boom
.15
?
35%
What was Alice’s holding period return (HPR), Annual Percentage Rate (APR), and Effective Annual Rate (EAR)? 18) ______
A) 20.34%, 40.68%, 44.82% B) 18.63%, 37.27%, 40.74% C) 17.15%, 34.29%, 37.23% D) 20.34%, 40.68%, 9.70%
19) Acme, Inc. is considering a four-year project that has an initial outlay or cost of $100,000. The respective future cash inflows from its project for years 1, 2, 3 and 4 are: $50,000, $40,000, $30,000 and $20,000. Will it accept the project if its payback period is 31 months? 19) ______
A) No, because it pays back in over 31 months. B) Yes, because it pays back in 25 months.
C) No, because it pays back in over 35 months. D) Yes, because it pays back in 28 months.
20) Morgan, Inc. is considering an eight-year project that has an initial after-tax outlay or after-tax cost of $180,000. The future after-tax cash inflows from its project for years 1 through 8 are the same at $35,000. Morgan uses the net present value method and has a discount rate of 12%. Will Morgan accept the project? 20) ______
A) Morgan rejects the project because the NPV is below -$7,000. B) Morgan rejects the project because the NPV is about -$6,133. C) Morgan accepts the project because the NPV is about $6,141. D) Morgan accepts the project because the NPV is over $10,000.
21) Consider the following four-year project. The initial outlay or cost is $180,000. The respective cash inflows for years 1, 2, 3 and 4 are: $100,000, $80,000, $80,000 and $20,000. What is the discounted payback period if the discount rate is 11%? 21) ______
A) About 1.667 years B) About 2.427 years C) About 2.000 years D) About 2.135 years
22) Lennon, Inc. is considering a five-year project that has an initial outlay or cost of $80,000. The respective future cash inflows from its project for years 1, 2, 3, 4 and 5 are: $15,000, $25,000, $35,000, $45,000, and $55,000. Lennon uses the internal rate of return method to evaluate projects. What is Lennon’s IRR? 22) ______
A) The IRR is less than 22.50%. B) The IRR is about 26.16%. C) The IRR is about 24.16%. D) The IRR is over 26.50%.
23) Mulligan, Inc. is currently considering an eight-year project that has an initial outlay or cost of $140,000. The cash inflows from its project for years 1 through 8 are the same at $35,000. Mulligan has a discount rate of 12%. Because there is a shortage of funds to finance all good projects, Mulligan wants to compute the profitability index (PI) for each project. That way Mulligan can get an idea as to which project might be a better choice. What is the PI for Mulligan’s current project? 23) ______
A) About 1.21 B) About 1.09 C) About 1.24 D) About 1.19
24) Dweller, Inc. is considering a four-year project that has an initial after-tax outlay or after-tax cost of $80,000. The future cash inflows from its project are $40,000, $40,000, $30,000 and $30,000 for years 1, 2, 3 and 4, respectively. Dweller uses the net present value method and has a discount rate of 12%. Will Dweller accept the project? 24) ______
A) Dweller rejects the project because the NPV is -$3,021.
B) Dweller accepts the project because the NPV is greater than $28,000. C) Dweller accepts the project because the NPV is greater than $30,000. D) Dweller rejects the project because the NPV is less than -$4,000.
25) Bacon Signs Inc., purchases a machine for $70,000. This machine qualifies as a five-year recovery asset under MACRS with the fixed depreciation percentages as follows: year 1 = 20.00%; year 2 = 32.00%; year 3 = 19.20%; year 4 = 11.52%, etc. The firm has a tax rate of 40%. If the machine is sold at the end of two years for $50,000, what is the cash flow from disposal?
25) ______
A) $39,875 B) $33,600 C) $43,440 D) $50,000

Reviews

There are no reviews yet.

Be the first to review “ACC – Misc. Problems”

Your email address will not be published. Required fields are marked *