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Saylor Managerial Accounting (SAYA-0009) Sample Questions:

1. Using the high-low method, what are the expected production costs for 600 units in December?

A) $3,250
B) $3,498
C) $3,300
D) $3,391

2. Ladron Candies is analyzing sales and production data for the holiday boxes they produced last year. The company expected to use 0.10 direct labor hours to produce one box of specialty candy, and the variable overhead rate was $2.00 per hour. According to payroll records, the company paid for a total of 104,000 hours of direct labor wages. The actual variable overhead costs totaled $200,000. They sold 800,000 boxes of candy to retailers. What is the variable overhead efficiency variance?

A) $8,000 favorable variable overhead efficiency variance
B) $8,000 unfavorable variable overhead efficiency variance
C) $48,000 favorable variable overhead efficiency variance
D) $48,000 unfavorable variable overhead efficiency variance

3. Thompson Dental is deciding between two lease options for a new copier. They anticipate making 22,500 copies spread evenly over the course of the year. Which of the following options should they choose if they want to save the most money on an annual basis, and how much money will they save?
Option 1: Monthly lease: $225, Included copies: 1,500/month, Additional copies: $0.15 per copy Option 2: Monthly lease: $250, Included copies: 1,800/month, Additional copies: $0.02 per copy

A) Option 1; $16 annual savings
B) Option 2; $189 annual savings
C) Option 2; $357 annual savings
D) Option 1; $300 annual savings

4. Cash collections and payments for purchases would be included in which of the following budgets as part of the overall master budget?

A) Cash budget
B) Direct materials purchases budget
C) Manufacturing overhead budget
D) Budgeted income statement

5. Which row correctly identifies the calculation to establish standard costs for direct materials, direct labor, and factory overhead?

A) Row 4
B) Row 1
C) Row 3
D) Row 2

Solutions: