Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include:

101) Which of the following is an example of indirect labor in a manufacturing plant?
A) Chief operating officer
B) Machine operators
C) Salespersons   
D) Plant managers
Answer:  D
Diff: 1
LO:  2-3
EOC:  S2-4
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits


102) Which of the following are classified as manufacturing overhead?
A) Indirect labor and indirect materials
B) Direct materials and direct labor
C) All materials
D) Factory rent and direct labor
Answer:  A
Diff: 2
LO:  2-3
EOC:  S2-5
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

103) Which of the following is an example of overhead in a factory?
A) Wages of machine operators
B) Wages of administrators in the corporate office
C) Wages of factory maintenance personnel
D) Salaries of salespersons
Answer:  C
Diff: 2
LO:  2-3
EOC:  E2-21A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

104) Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include:

Depreciation on sales office    $     9,000
Depreciation on factory equipment     16,000
Factory supervisor salary     50,500
Sales commissions     23,000
Lubricants used in factory equipment     3,000
Insurance costs for factory     21,000
Wages paid to maintenance workers     115,000
Fabric used to upholster furniture     10,000
Freight-in (on raw materials)     3,000
Costs of delivery to customers     9,000
Wages paid to assembly-line workers     155,500
Lumber used to build product     82,000
Utilities in factory     54,500
Utilities in sales office     26,500

Prime costs for Country Furniture Company totaled
A) $92,000.
B) $247,500.
C) $250,500.
D) $368,500.
Answer:  C
Explanation:  C) Calculations: $ 3,000 + 10,000 + 155,500 + 82,000 = $ 250,500
Diff: 2
LO:  2-3
EOC:  E2-21A
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

105) Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include:

Depreciation on sales office    $     9,000
Depreciation on factory equipment     16,000
Factory supervisor salary     50,500
Sales commissions     23,000
Lubricants used in factory equipment     3,000
Insurance costs for factory     21,000
Wages paid to maintenance workers     115,000
Fabric used to upholster furniture     10,000
Freight-in (on raw materials)     3,000
Costs of delivery to customers     9,000
Wages paid to assembly-line workers     155,500
Lumber used to build product     82,000
Utilities in factory     54,500
Utilities in sales office     26,500

Conversion costs for Country Furniture Company totaled
A) $415,500.
B) $250,500.
C) $504,500.
D) $352,500.
Answer:  A
Explanation:  A) Calculations: $ 16,000 + 50,500 + 3,000 + 21,000 + 115,000 + 155,500 + 54,500 = $415,500
Diff: 2
LO:  2-3
EOC:  E2-21A
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

106) Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include:

Depreciation on sales office    $     9,000
Depreciation on factory equipment     16,000
Factory supervisor salary     50,500
Sales commissions     23,000
Lubricants used in factory equipment     3,000
Insurance costs for factory     21,000
Wages paid to maintenance workers     115,000
Fabric used to upholster furniture     10,000
Freight-in (on raw materials)     3,000
Costs of delivery to customers     9,000
Wages paid to assembly-line workers     155,500
Lumber used to build product     82,000
Utilities in factory     54,500
Utilities in sales office     26,500

Direct material costs for Country Furniture Company totaled
A) $82,000.
B) $10,000.
C) $95,000.
D) $92,000.
Answer:  C
Explanation:  C) Calculations: $ 10,000 + 3,000 + 82,000 = $ 95,000
Diff: 2
LO:  2-3
EOC:  E2-21A
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

107) Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include:

Depreciation on sales office    $     9,000
Depreciation on factory equipment     16,000
Factory supervisor salary     50,500
Sales commissions     23,000
Lubricants used in factory equipment     3,000
Insurance costs for factory     21,000
Wages paid to maintenance workers     115,000
Fabric used to upholster furniture     10,000
Freight-in (on raw materials)     3,000
Costs of delivery to customers     9,000
Wages paid to assembly-line workers     155,500
Lumber used to build product     82,000
Utilities in factory     54,500
Utilities in sales office     26,500

Direct labor costs for Country Furniture Company totaled
A) $344,000.
B) $115,000.
C) $155,500.
D) $321,000.
Answer:  C
Diff: 2
LO:  2-3
EOC:  E2-21A
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

108) Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include:

Depreciation on sales office    $     9,000
Depreciation on factory equipment     16,000
Factory supervisor salary     50,500
Sales commissions     23,000
Lubricants used in factory equipment     3,000
Insurance costs for factory     21,000
Wages paid to maintenance workers     115,000
Fabric used to upholster furniture     10,000
Freight-in (on raw materials)     3,000
Costs of delivery to customers     9,000
Wages paid to assembly-line workers     155,500
Lumber used to build product     82,000
Utilities in factory     54,500
Utilities in sales office     26,500

Manufacturing overhead costs for Country Furniture Company totaled
A) $130,000.
B) $260,000.
C) $236,000.
D) $330,500.
Answer:  B
Explanation:  B) Calculations: $16,000 + $50,500 + $3,000 + $21,000 + $115,000 + $54,500 = $260,000
Diff: 2
LO:  2-3
EOC:  E2-21A
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

109) Rustic Living Furniture Company manufactures furniture at its central Kentucky factory. Some of its costs from the past year include:

Wages paid to maintenance workers     $ 60,000
Fabric used to upholster furniture     $ 8,000
Wages paid to assembly-line workers     $ 100,000
Lumber used to build product     $ 15,000
Sales commissions     $ 7,500
Insurance costs for factory     $ 21,000
Freight-in (on raw materials)     $ 3,000
Utilities in factory     $ 12,000
Factory supervisor salary     $ 60,000
Depreciation on factory equipment     $ 18,000
Utilities in sales office     $ 26,500
Costs of delivery to customers     $ 8,000
Depreciation on sales office     $ 1,000
Lubricants used in factory equipment     $ 500

Prime costs for Rustic Living Furniture Company totaled
A) $126,000.
B) $23,000.
C) $123,000.
D) $168,500.
Answer:  A
Explanation:  A) Calculations: $ 15,000 + 8,000 + 3,000 + 100,000 = 126,000
Diff: 2
LO:  2-3
EOC:  E2-21A
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

110) Rustic Living Furniture Company manufactures furniture at its central Kentucky factory. Some of its costs from the past year include:

Wages paid to maintenance workers     $ 60,000
Fabric used to upholster furniture     $ 8,000
Wages paid to assembly-line workers     $ 100,000
Lumber used to build product     $ 15,000
Sales commissions     $ 7,500
Insurance costs for factory     $ 21,000
Freight-in (on raw materials)     $ 3,000
Utilities in factory     $ 12,000
Factory supervisor salary     $ 60,000
Depreciation on factory equipment     $ 18,000
Utilities in sales office     $ 26,500
Costs of delivery to customers     $ 8,000
Depreciation on sales office     $ 1,000
Lubricants used in factory equipment     $ 500

Conversion costs for Rustic Living Furniture Company totaled
A) $126,000.
B) $175,000.
C) $294,000.
D) $271,500.
Answer:  D
Explanation:  D) Calculations: $ 18,000 + 60,000 + 500 + 21,000 + 60,000 + 12,000 + 100,000 = 271,500
Diff: 2
LO:  2-3
EOC:  E2-21A
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

111) Rustic Living Furniture Company manufactures furniture at its central Kentucky factory. Some of its costs from the past year include:

Wages paid to maintenance workers     $ 60,000
Fabric used to upholster furniture     $ 8,000
Wages paid to assembly-line workers     $ 100,000
Lumber used to build product     $ 15,000
Sales commissions     $ 7,500
Insurance costs for factory     $ 21,000
Freight-in (on raw materials)     $ 3,000
Utilities in factory     $ 12,000
Factory supervisor salary     $ 60,000
Depreciation on factory equipment     $ 18,000
Utilities in sales office     $ 26,500
Costs of delivery to customers     $ 8,000
Depreciation on sales office     $ 1,000
Lubricants used in factory equipment     $ 500

Direct material costs for Rustic Living Furniture Company totaled
A) $15,000.
B) $26,000.
C) $23,000.
D) $8,000.
Answer:  B
Explanation:  B) Calculations: $ 8,000 + 3,000 + 15,000 = $ 26,000
Diff: 2
LO:  2-3
EOC:  E2-21A
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

112) Rustic Living Furniture Company manufactures furniture at its central Kentucky factory. Some of its costs from the past year include:

Wages paid to maintenance workers     $ 60,000
Fabric used to upholster furniture     $ 8,000
Wages paid to assembly-line workers     $ 100,000
Lumber used to build product     $ 15,000
Sales commissions     $ 7,500
Insurance costs for factory     $ 21,000
Freight-in (on raw materials)     $ 3,000
Utilities in factory     $ 12,000
Factory supervisor salary     $ 60,000
Depreciation on factory equipment     $ 18,000
Utilities in sales office     $ 26,500
Costs of delivery to customers     $ 8,000
Depreciation on sales office     $ 1,000
Lubricants used in factory equipment     $ 500

Direct labor costs for Rustic Living Furniture Company totaled
A) $227,500.
B) $220,000.
C) $100,000.
D) $60,000.
Answer:  C
Diff: 2
LO:  2-3
EOC:  E2-21A
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

113) Rustic Living Furniture Company manufactures furniture at its central Kentucky factory. Some of its costs from the past year include:

Wages paid to maintenance workers     $ 60,000
Fabric used to upholster furniture     $ 8,000
Wages paid to assembly-line workers     $ 100,000
Lumber used to build product     $ 15,000
Sales commissions     $ 7,500
Insurance costs for factory     $ 21,000
Freight-in (on raw materials)     $ 3,000
Utilities in factory     $ 12,000
Factory supervisor salary     $ 60,000
Depreciation on factory equipment     $ 18,000
Utilities in sales office     $ 26,500
Costs of delivery to customers     $ 8,000
Depreciation on sales office     $ 1,000
Lubricants used in factory equipment     $ 500

Manufacturing overhead costs for Rustic Living Furniture Company totaled
A) $171,500.
B) $79,000.
C) $150,000.
D) $217,500.
Answer:  A
Explanation:  A) Calculations: $18,000 + $60,000 + $500 + $21,000 + $60,000 + $12,000 = $171,500
Diff: 2
LO:  2-3
EOC:  E2-21A
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits