(2023) MGMT 640 Final Exam Answers Part 1 and Part 2

MGMT 640 Final Exam Answers Part 1 and Part 2 MGMT 640 Final Exam Answers Part 1 and Part 2 Question Attempt 1 Written: May 10, 2018 10:18 AM – May 10, 2018 11:12 AM Submission View Released: Aug 11, 2018 12:01 AM Available until: May 17, 2018 9:51 AM Feedback after End of Due Date Question 1 1 / 1 point A typical use of managerial accounting is to: help investors and creditors assess the financial position of the company. help management get a clean audit report help the marketing manager decide which product promotion to implement help the SEC decide whether management is in compliance of its policies. Question 2 1 / 1 point Three costs incurred by Pitt Company are summarized below: 1,000 units 2,000 units Cost A $10,000 $15,000 Cost B $21,000 $21,000 Cost C $16,000 $32,000 Which of these costs are variable? Hide Feedback 3 A, B, and C A and B A only C only Bubba’s Steakhouse has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: Materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,800; depreciation, $720; and other fixed costs, $450. Each steak dinner sells for $12.00 each. How much would Shula’s profit increase if 10 more dinners were sold? Question 4 0 / 1 point Bellfont Company produces door stoppers. August production costs are below: Door Stoppers produced 78,000 Direct material (variable) $20,000 Direct labor (variable) 40,000 Supplies (variable) 20,000 Supervision (fixed) 26,500 Depreciation (fixed) 22,500 Other (fixed) 6,000 In September, Bellfont expects to produce 100,000 door stoppers. Assuming no structural changes, what is Bellfont’s production cost per door stopper for September? Question 5 1 / 1 point Aaron’s chairs is in the process of preparing a production cost budget for August. Actual costs in July for 120 chairs were: Materials cost $4,630 Labor cost 2,880 Rent 1,500 Depreciation 2,500 Other fixed costs 3,200 Materials and labor are the only variable costs. If production and sales are budgeted to change to 100 chairs in August, how much is the expected total variable cost on the August budget? Question 6 1 / 1 point Carry-ALL plans to sell 1,300 carriers next year and has budgeted sales of $46,000 and profits of $22,000. Variable costs are projected to be $20 per unit. Michael Co. offers to pay $20,400 to buy 660 units from Carry-ALL. Total fixed costs are $7,000 per year. This offer does not affect Carry-ALL’s other planned operations. The incremental revenues for this situation are Question 7 1 / 1 point Stellar Company has the following sales, variable cost, and fixed cost. If sales increase by $10,000 then their profit increases/decreases by how much? Sales $50,000 Variable Costs $9,700 Fixed Costs $26,000 Question 8 1 / 1 point Susan is trying to decide whether or not to attend college during the next 12-week session. She has the following options: 1. Attend college full-time at a cost of $1,200. 2. Attend college part-time at a cost of $500 and work part-time earning $2,000. 3. Work full-time earning $4,800. What is Susan’s incremental profit if she chooses option 3 over option 2?