: Andersen Company required production for June is 66,000 units

11

Question: Andersen Company required production for June is 66,000 units. To make one unit of finished product, three pounds of direct material Z are required. Actual beginning and desired ending inventories of direct material Z are 150,000 and 165,000 pounds, respectively. How many pounds of direct material Z must be purchased?

A

189,000

B

198,000

C

204,000

D

213,000

12

Question: A profit center is

A

A responsibility center that always reports a profit

B

A responsibility center that incurs costs and generates revenues

C

Evaluated by the rate of return earned on the investment allocated to the center

D

Referred to as a loss center when operations do not meet the company’s objectives

13

Question: The following exhibit is for Kmart® bonds.

Bonds

Close

Yield

Volume

Net Change

Kmart® 8 3/8 17

100¼

8.4

35

+7/8

The contractual interest rate of the Kmart® bonds is

A

Greater than the market interest rate

B

Less than the market interest rate

C

Equal to the market interest rate

D

Not determinable

14

Question: When 10,000 units are produced, fixed costs are $14 per unit. Therefore, when 20,000 units are produced fixed costs will

A

remain at $14 per unit

B

increase to $28 per unit

C

total $280,000

D

decrease to $7 per unit

15

Question:

A

$7,000

B

$4,000

C

$9,000

D

$12,000