2024 – Part 1 of 1 Question 1 of 20 5 0 Points Which of the following is an approach to sensitivity

2024 – Part 1 of 1 Question 1 of 20 5 0 Points Which of the following is an approach to sensitivity.

Part 1 of 1 –

Question 1 of 20
    5.0 Points
Which of the following is an approach to sensitivity analysis?
A. contribution
   
B. distribution
   
C. margin
   
D. profit

>question 2

Question 2 of 20

ABC Restaurant’s revenue budget reflects the following information for February:
 
Food sales
$260,000

Beverage and liquor sales
$140,000

Total sales
$300,000
 
ABC expects revenue to increase by 5% during both March and April. What is the budgeted amount of beverage and liquor sales revenue for March?

A. $145,000
   
B. $154,350
   
C. $147,000
   
D. $150,000

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Question 3 of 20

The entry for indirect materials (such as glue, etc.. requisitioned for use in production is __________.
A. 
Raw Materials Inventory
Work-in-Process Inventory
   
B. 
Work-in-Process Inventory
Accounts Payable
   
C. 
Work-in-Process Inventory
Raw Materials Inventory
   
D. None of the above

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Question 4 of 20

If direct labor for the month is $80,000 and overhead is applied based on 75% of direct labor dollars, what is the entry to apply overhead?
A. debit Work-in-Process Inventory $80,000; credit Payroll $80,000
   
B. debit Overhead-Applied $60,000; credit Work-in-Process Inventory $60,000
   
C. debit Work-in-Process Inventory $60,000; credit Overhead-Applied $60,000
   
D. debit Work-in-Process Inventory $80,000; credit Overhead-Applied $80,000

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>question 5

Question 5 of 20

An element of sensitivity analysis includes __________.
A. unidimensional changes
   
B. a sole focus on profit
   
C. simultaneous changes
   
D. a financial accounting approach

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Question 6 of 20

Factory Supplies Expense, Depreciation Expense-Factory, and Heat, Light, and Power-Factory appear on which section of the worksheet?
A. statement of cost of goods manufactured
   
B. balance sheet
   
C. income statement
   
D. statement of cost of goods sold

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Question 7 of 20

If direct labor for the month is $40,000, overhead is applied based on direct labor, annual overhead is $600,000, and annual direct labor is $1,000,000, what is the entry to charge direct labor to production?
A. debit Work-in-Process Inventory $40,000; credit Payroll $40,000
   
B. debit Overhead-Applied $40,000; credit Work-in-Process Inventory $40,000
   
C. debit Work-in-Process Inventory $24,000; credit Overhead-Applied $24,000
   
D. debit Work-in-Process Inventory $66,000; credit Overhead-Applied $66,000

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Question 8 of 20

What is the journal entry to record the direct labor summarized on the labor distribution report?
A. debit Finished Goods; credit Payroll
   
B. debit Work-in-Process; credit Payroll
   
C. debit Payroll; credit Direct Labor
   
D. debit Payroll; credit Cash

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>question 9

Question 9 of 20

Raw material inventory appears on the __________.
A. balance sheet
   
B. income statement
   
C. cost of goods manufactured statement
   
D. both A and C

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Question 10 of 20

During the week ending on November 30, total factory payroll incurred was $6,000. Of this total, 80% was for direct labor. The entry to record the payroll distribution would include __________.
A. debit Work-in-Process Inventory $4,800 and Overhead-Control $1,200
   
B. debit Work-in-Process Inventory $6,000
   
C. debit Work-in-Process Inventory $4,800 and Overhead-Applied $1,200
   
D. debit Work-in-Process Inventory $4,800 and Indirect Labor Expense $1,200

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Question 11 of 20

Manufacturing overhead includes all manufacturing costs __________.
A. including raw materials
   
B. including overhead
   
C. excluding raw materials and direct labor
   
D. none of the above

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Question 12 of 20

Candyland completed the manufacturing process. The entry to transfer the product to finished goods is __________.
A. 
Raw Materials Inventory
Finished Goods Inventory
   
B. 
Finished Goods Inventory
Cost of Goods Sold
   
C. 
Finished Goods Inventory
Work-in-Process Inventory
   
D. 
Finished Goods Inventory
Raw Materials Inventory

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Question 13 of 20

Which of the following is part of a firm’s master budget?
A. pro forma budget
   
B. inventory purchases budget
   
C. operating budget
   
D. schedule of cash receipts budge

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>question 14

Question 14 of 20

The entry to record rent expense $9,000, supervision expense $19,000, and depreciation expense $7,000 to overhead is __________.
A. debit Overhead-Applied $35,000; credit Rent Expense $9,000; credit Supervision $19,000; credit Depreciation Expense $7,000
   
B. debit Overhead-Control $35,000; credit Rent Expense $9,000; credit Supervision $19,000; credit Depreciation Expense $7,000
   
C. debit Overhead-Applied $35,000; credit Overhead-Control $35,000
   
D. none of the above

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Question 15 of 20

ABC Restaurant’s revenue budget reflects the following information for February:
 
Food sales:
$260,000

Beverage and liquor sales:
$140,000

Total sales
$300,000
 
ABC expects revenue to increase by 8% during both March and April. What is the budgeted amount of total sales revenue for April?
A. $350,000
   
B. $345,580
   
C. $353,620
   
D. $349,920

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Question 16 of 20

The budget that is developed first when preparing the master budget is the __________ budget.
A. cash receipts
   
B. inventory purchases
   
C. sales
   
D. administrative expense

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Question 17 of 20

Direct labor includes the wages of __________.
A. an hourly worker producing the product
   
B. the shop foreman
   
C. maintenance workers
   
D. administrators

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Question 18 of 20

The formula for cost of goods manufactured is __________.
A. raw materials plus direct labor minus overhead plus beginning work-in-process inventory plus ending work-in-process inventory
   
B. raw materials minus direct labor plus overhead plus beginning work-in-process inventory plus ending work-in-process inventory
   
C. beginning work-in-process plus total manufacturing cost minus ending work-in-process
   
D. raw materials plus direct labor less overhead plus beginning work-in-process inventory less ending work-in-process inventory

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Question 19 of 20
   
The statement of cost of goods manufactured does not include __________.
A. direct labor costs
   
B. raw material costs
   
C. manufacturing overhead
   
D. all of the above

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Question 20 of 20

Journal entries crediting Payroll and debiting Work-in-Process Inventory are made for __________.
A. administrative salaries
   
B. hourly manufacturing labor
   
C. foremen’s salaries
   
D. raw materials