Problem 1: Shaulter Corporation uses a process cost accounting system. Given the following data, compute the number of units transferred out during the current period.
Beginning Work in Process 12,000 units (1/2 complete)
Ending Work in Process 15,000 units (1/3 complete)
Started into Production 80,000 units
a. 65,000
b. 75,000
c. 77,000
d. 80,000
Problem 2: Guerry Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period:
Estimated annual overhead cost $600,000
Actual annual overhead cost $575,000
Estimated machine hours 150,000
Actual machine hours 140,000
a. $560,000 applied and $15,000 underapplied
b. $600,000 applied and $15,000 overapplied
c. $560,000 applied and $15,000 overapplied
d. $575,000 applied and neither under- nor overapplied
Problem 3: The following data has been collected for use in analyzing the behavior of maintenance costs of Ryder Corporation:
Month Maintenance Costs Machine Hours
January $242,000 20,000
February 250,000 23,000
March 256,000 24,000
April 318,000 34,000
May 336,000 36,000
June 356,000 38,000
July 362,000 40,000
Using the high-low method to separate the maintenance costs into their variable and fixed cost components, these components are
a. $10 per hour plus $40,000.
b. $10 per hour plus $60,000.
c. $8 per hour plus $82,000.
d. $6 per hour plus $122,000.
Problem 4: Given the following information for Satoko Company, compute the company's ROI: Sales — $1,000,000; Controllable Margin — $150,000; Average Operating Assets — $500,000.
a. 60%
b. 50%
c. 15%
d. 30%