Managerial Accounting (SAYA-0009) Exam - BUS105 Exam Practice Test

Question 1

These tables pertain to the blending department of Martinez Corporation, a paint manufacturer, for the month of August.
Units accounted for in the mixing department:

Total costs to be accounted for in the mixing department:

What is the cost per equivalent unit for direct labor, and what is the cost of direct labor to be assigned to ending work in process inventory?

A. $14 per equivalent unit; $8,400 direct labor cost assigned to ending WIP inventory

B. $101 per equivalent unit; $85,850 direct labor cost assigned to ending WIP inventory

C. $101 per equivalent unit; $60,600 direct labor cost assigned to ending WIP inventory

D. $14 per equivalent unit; $7,000 direct labor cost assigned to ending WIP inventory

Correct Answer: D

Question 2

What is the formula to calculate working capital?

A. Current assets + Current liabilities

B. Current assets - Current liabilities

C. Total assets - Total liabilities

D. Total assets - Current liabilities

Correct Answer: B

Question 3

Wycliff Corporation manufactures several different styles of bicycles. Managers appropriately record direct materials and direct labor into work-in-process accounts during production. To apply manufacturing overhead, managers consider cost pools for assembly and shipping to calculate a predetermined overhead rate for each department. Which of the following best describes the method used by Wycliff Corporation for allocating manufacturing overhead costs?

A. Departmental

B. Process

C. Activity-based

D. Plantwide

Correct Answer: A

Question 4

SJ Candles manufactures two types of candles. Soy candles require three times the number of labor hours as paraffin candles to produce. If SJ wishes to maximize the limited number of direct labor available to them, which of the following calculations will guide them in their planning?

A. Contribution margin per unit of constraint

B. Equivalent units for direct materials

C. Free cash flow

D. Inventory turnover ratio

Correct Answer: A

Question 5

Wycliff Corporation practices activity-based management at their manufacturing facility. Which of the following events would most likely be the result of a decision made using activity-based management theory?

A. Customer service representatives responded to vendor complaints

B. The packaging department was moved closer to the shipping department

C. Plant managers assisted in calculating a plant-wide overhead rate

D. Direct labor costs were assigned to work-in-process accounts

Correct Answer: B

Question 6

This is select financial statement data for the three divisions of Technology Goods, Inc. Assuming all assets are operating assets, what is the return on investment for each division?

A. 53.0%, 32.0%, 50.9%

B. 82.2%, 39.0%, 66.0%

C. 17.8%, 10.0%, 15.9%

D. 33.1%, 31.3%, 31.2%

Correct Answer: C

Saylor Managerial Accounting (SAYA-0009) - BUS105 Exam Practice Test

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