91. The Footwear Department of Lee's Department Store had sales of $188,000, cost of goods sold of $132,500, indirect expenses of $13,250, and direct expenses of $27,500 for the current period. The Footwear Department's contribution to overhead as a percent of sales is:
A. 7.8%
B. 14.9%
C. 29.5%
D. 66.7%
E. 85.4%
Reference: 22_06
Mach Co. operates three manufacturing departments as profit centers. The following information is available for its most recent year:
|
|
|
|
Cost of
|
|
Direct
|
|
Indirect
|
|
Dept.
|
|
Sales
|
|
Goods Sold
|
|
Expenses
|
|
Expenses
|
|
1
|
|
$1,000,000
|
|
$700,000
|
|
$100,000
|
|
$ 80,000
|
|
2
|
|
400,000
|
|
150,000
|
|
40,000
|
|
100,000
|
|
3
|
|
700,000
|
|
300,000
|
|
150,000
|
|
20,000
|
|
|
|
|
|
|
|
|
|
|
|
92. Department 1's contribution to overhead as a percent of sales is:
A. 8%
B. 40%
C. 20%
D. 30%
E. 12%
93. Which department has the greatest departmental contribution to overhead and what is the amount contributed?
A. Dept. 3; $ 400,000
B. Dept. 1; $1,000,000
C. Dept. 2; $ 100,000
D. Dept. 3; $ 250,000
E. Dept. 2; $ 150,000
Reference: 22_07
Assume Rock Bottom Golf is divided into four departments that operate as profit centers and that the data below is from the most recent fiscal year.
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Golf Clubs
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Golf Bags
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Golf Balls
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Golf Apparel
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Sales
|
$200,000
|
$400,000
|
$800,000
|
$1,600,000
|
Cost of goods Sold
|
90,000
|
220,000
|
400,000
|
960,000
|
Direct expenses
|
|
|
|
|
Salaries
|
18,000
|
54,000
|
90,000
|
226,000
|
Insurance
|
2,000
|
3,000
|
6,000
|
120,000
|
Utilities
|
1,000
|
2,000
|
3,000
|
10,000
|
94. Given the information above, list Rock Bottom Golf’s departments in order of highest departmental contribution to overhead to lowest departmental contribution to overhead.
A. Golf Balls, Golf Apparel, Golf Bags, Golf Clubs.
B. Golf Apparel, Golf Balls, Golf Bags, Golf Clubs.
C. Golf Clubs, Golf Bags, Golf Balls, Golf Apparel.
D. Golf Clubs, Golf Bags, Golf Apparel, Golf Balls.
E. Golf Balls, Golf Apparel, Golf Clubs, Golf Bags.
95. Given the information above, which of Rock Bottom Golf’s departments has the highest contribution margin as a percent of sales?
A. Golf Clubs.
B. Golf Bags.
C. Golf Balls.
D. Golf Apparel.
E. None, this is not a calculation performed at the department level.
Reference: 22_08
Quarry Co.
|
Smith
|
Barney
|
Revenue
|
$412,000
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$450,000
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Costs
|
380,000
|
411,000
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Average assets
|
400,000
|
600,000
|
|
|
|
96. Fred Smith and Joe Barney are managers of two product lines for Quarry Company. One of them is a candidate for promotion based on performance. Using the data above, which of the following is a true statement?
A. Smith is outperforming Barney as measured by return on investment center assets.
B. Barney is outperforming Smith as measured by return on investment center assets.
C. The return in investment center assets is the same for both
D. If target performance is a 7% return on assets, both investment centers are performing above the target level.
E. If target performance is a 7% return on assets, the residual income for both centers is positive.
97. Based on the Quarry Company information, what is residual income for Smith and Barney?
A. Smith: $4,000; Barney: $(3,000)
B. Smith: $(3,000); Barney: $4,000
C. Smith: $28,000; Barney: $42,000
D. Smith: $8% ; Barney: 6.5%
E. Smith: $0; Barney: $0
98. Process time is the time:
A. Spent producing the product.
B. Spent inspecting raw materials received, goods in process while in production, and finished goods prior to shipment.
C. Spent moving raw materials from storage to production and goods in process from one factory location to another factory location.
D. That an order or job sits with no production applied to it.
E. That is considered non-value-added time.
99. Wait time is the time:
A. Spent producing the product.
B. Spent inspecting raw materials received, goods in process while in production, and finished goods prior to shipment.
C. Spent moving raw materials from storage to production and goods in process from one factory location to another factory location
D. That an order or job sits with no production applied to it.
E. That is considered value-added time.
100. Midwest Rocks receives and produces an order. What is the company’s cycle time assuming the following times were measured during production of this order?
Process time: .7 days Inspection time: .25 days Move time: 1.05 days Wait time: .5 days
A. 1.8 days
B. .7 days
C. .95 days
D. 2 days
E. 2.5 days
101. Midwest Rocks receives and produces an order. What is the company’s cycle efficiency assuming the following times were measured during production of this order?
Process time: .7 days Inspection time: .25 days Move time: 1.05 days Wait time: .5 days
A. 10%
B. 28%
C. 42%
D. 20%
E. 50%
102. Midwest Rocks receives and produces an order. What is the company’s value-added time assuming the following times were measured during production of this order?
Process time: .7 days Inspection time: .25 days Move time: 1.05 days Wait time: .5 days
A. 1.8 days
B. .7 days
C. .95 days
D. 2 days
E. 2.5 days
103. A company’s international division had sales of $20 billion, net income of $1.5 billion, and average invested assets of $2 billion. What is this division’s profit margin?
A. 75%
B. 10%
C. 7.5%
D. 133%
E. $18 billion
104. A company’s Pacific division had sales of $15 billion, net income of $3 billion, and average invested assets of $4 billion. What is this division’s investment turnover?
A. 1.33
B. 0.20
C. 5.00
D. 3.75
E. 0.27
105. A company’s electronics division had sales of $25 billion, net income of $4 billion, and average invested assets of $5 billion. What is this division’s return on investment?
A. 16%
B. 5
C. 80%
D. 20%
E. 1.25