MCQ Accounting Done
MCQ Accounting Done
MCQ Accounting Done
For July, White Corporation has budgeted production of 6,000 units. Each unit requires 0.10 direct
labor-hours at a cost of $8.50 per direct labor-hour. How much will White Corporation budget for labor
in July?
A. $51,000
B. $5,160
C. $600
D. $5,100
13. Triste Corporation manufactures and sells women's skirts. Each skirt (unit) requires 2.6 yards of
cloth. Selected data from Triste's master budget for next quarter are shown below:
Each unit requires 1.6 hours of direct labor, and the average hourly cost of Triste's direct labor is $15.
What is the cost of Triste Corporation's direct labor in September?
A. $336,000
B. $240,000
C. $150,000
D. $210,000
Explanation: Cost of direct labor in September = (Number of hours) * (cost of labor per hour)
= (Total number of units* time for each unit) * (cost of labor per hour)
=(14000*1.6)*15 = $336000
15. May Corporation, a merchandising firm, has budgeted sales as follows for the third quarter of the
year:
July $80,000
August $90,000
September $70,000
Cost of goods sold is equal to 65% of sales. The company wants to maintain a monthly ending inventory
equal to 130% of the Cost of Goods Sold for the following month. The inventory on June 30 is less than
this ideal since it is only $65,000. The company is now preparing a Merchandise Purchases Budget.
A. $52,000
B. $63,050
C. $47,450
D. $91,050
19. The Covey Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of
the year. The budgeted variable manufacturing overhead rate is $4.00 per direct labor-hour; the
budgeted fixed manufacturing overhead is $64,000 per month, of which $18,000 is factory depreciation.
If the budgeted direct labor time for October is 8,000 hours, then the total budgeted manufacturing
overhead for October is:
A. $96,000
B. $78,000
C. $64,000
D. $76,000
cash = $78,000
20. The Adams Corporation, a merchandising firm, has budgeted its activity for November according to
the following information:
• Selling and administrative expenses are budgeted at $60,000 for November and are paid for in cash.
A. $315,000
B. $450,000
C. $135,000
D. $475,000
31. Jason Corporation has invested in a machine that cost $80,000, that has a useful life of eight years,
and that has no salvage value at the end of its useful life. The machine is being depreciated by the
straight-line method, based on its useful life. It will have a payback period of five years. Given these
data, the simple rate of return on the machine is closest to:
A. 6.8%
B. 7.5%
C. 9%
D. 12%
32.
Bullinger Corporation has provided the following data concerning an investment project that it is
considering:
A. $93,000
B. $406,326
C. ($63,674)
D. ($79,658)
34.
Schoultz Corporation has provided the following data concerning an investment project that it is
considering:
The life of the project is 4 years. The company's discount rate is 12%. The net present value of the
project is closest to:
A. $700,000
B. $364,000
C. $108,108
D. $808,108
35.
Valotta Corporation has provided the following data concerning an investment project that it is
considering:
The working capital would be released for use elsewhere at the end of the project. The net present
value of the project is closest to:
A. $178,118
B. $201,988
C. $463,000
D. $131,988
42. For the past year, Allargando Company recorded sales of $500,000 and average operating assets of
$250,000. What is the margin that Allargando Company needed to earn in order to achieve an ROI of
12%?
A. 6.00%
B. 12.00%
C. 2.00%
D. 8.33%
43. Garde Corporation keeps careful track of the time required to fill orders. Data concerning a
particular order appear below:
Hours
A. 36.2 hours
B. 8.1 hours
C. 3.3 hours
D. 32.9 hours
47. The Jenkins Division recorded operating data as follows for the past year:
Sales $600,000
A. 5%
B. 18%
C. 30%
D. 25%
50. Ebsen Corporation keeps careful track of the time required to fill orders. Data concerning a
particular order appear below:
Hours
B. 0.04
C. 0.17
D. 0.09