Discuss Managerial Accounting Final

1. The work-in-process inventory account of a manufacturing company shows a balance of $3,000 at the end of an accounting period. The job-cost sheets of the two incomplete jobs show charges of $500 and $300 for direct materials, and charges of $400 and $600 for direct labor.  From this information, it appears that the company is using a predetermined overhead rate as a percentage of  direct labor costs. What percentage is the rate?

2. The break-even point in dollar sales for Rice Company is  $480,000 and the company’s contribution margin ratio is 40 percent. If Rice Company desires a profit of  $84,000, how much would sales have to total?

3. Williams Company’s direct labor cost is 25 percent of its conversion cost. If the manufacturing overhead for the last period was $45,000 and the direct material cost was $25,000, how much is the direct labor cost?

4. Grading Company’s cash and cash equivalents consist of  cash and marketable securities. Last year the company’s  cash account decreased by $16,000 and its marketable securities account increased by $22,000. Cash provided by operating activities was $24,000. Net cash used for financing activities was $20,000. Based on this information, was the net cash flow from investing activities on the statement of cash flows a net increase or decrease?  By how much?

5. Gladstone Footwear Corporation’s flexible budget cost  formula for supplies, a variable cost, is $2.82 per unit of output. The company’s flexible budget performance report for last month showed an $8,140 unfavorable spending  variance for supplies. During that month, 21,250 units were produced. Budgeted activity for the month had been 20,900 units. What is the actual cost per unit for indirect materials?

6. Lyons Company consists of two divisions, A and B. Lyons Company reported a contribution margin of $60,000 for Division A, and had a contribution margin ratio of 30 percent in Division B, when sales in Division B were $240,000. Net operating income for the company was $22,000 and traceable fixed expenses were $45,000. How much were Lyons Company’s common fixed expenses?