1
ACCT 2521 EXAM 1 LATEST QUESTIONS WITH
ANSWERS (100% CORRECT ANSWERS)
The cost of electricity for running production equipment is classified as: Answer: conversion
cost yes, period cost no
The cost of lubricants used to grease a production machine in a manufacturing company is an
example of an Answer: indirect material cost
Which costs will change with a decrease in activity within the relevant range? Answer: unit
fixed costs and total variable costs
Which of the following approaches to preparing an income includes a calculation for the gross
margin? Answer: traditional approach yes , contribution approach no
Kneeland corp has provided the following info:
-direct materials, CPU = 6.8
-direct labor, CPU = 4.15
-variable manufacturing overhead, CPU = 1.65
-fixed manufacturing overhead, CPP = 121,500
-sales commissions, CPU = 1.00
-variable admin expense, CPU = .50
-fixed selling & admin expense, CPP = 40,500
If 10,000 units are produced the total amount of manufacturing overhead cost is closest
Answer: 138,000
Bressette corp provided following info:
© 2025 All rights reserved
, 2
-direct materials, CPU = 6.2
-direct labor, CPU = 3.7
-variable manufacturing overhead, CPU = 1.25
-fixed manufacturing overhead, CPP = 10,000
-sales commissions, CPU = 1.5
-variable admin exp, CPU = .5
-fixed selling & admin exp, CPP = 5,000
The total amount of product costs incurred to make 5,000 is closest to Answer: 65,750
Which is classified as both a prime cost & a conversion cost? Answer: direct labor
Tirri corp has provided following info:
-direct materials, CPU = 6.85
-direct labor, CPU = 3.9
-variable manufacturing overhead, CPU = 1.25
-fixed manufacturing overhead, CPP = 22,500
-sales commissions, CPU = 1.00
-variable admin exp, CPU = .55
-fixed selling & admin exp, CPP = 7,500
If selling price is 26.2 per unit, the contribution margin per unit sold is closest to Answer:
12.65
Data for most recently completed year appears below:
© 2025 All rights reserved
ACCT 2521 EXAM 1 LATEST QUESTIONS WITH
ANSWERS (100% CORRECT ANSWERS)
The cost of electricity for running production equipment is classified as: Answer: conversion
cost yes, period cost no
The cost of lubricants used to grease a production machine in a manufacturing company is an
example of an Answer: indirect material cost
Which costs will change with a decrease in activity within the relevant range? Answer: unit
fixed costs and total variable costs
Which of the following approaches to preparing an income includes a calculation for the gross
margin? Answer: traditional approach yes , contribution approach no
Kneeland corp has provided the following info:
-direct materials, CPU = 6.8
-direct labor, CPU = 4.15
-variable manufacturing overhead, CPU = 1.65
-fixed manufacturing overhead, CPP = 121,500
-sales commissions, CPU = 1.00
-variable admin expense, CPU = .50
-fixed selling & admin expense, CPP = 40,500
If 10,000 units are produced the total amount of manufacturing overhead cost is closest
Answer: 138,000
Bressette corp provided following info:
© 2025 All rights reserved
, 2
-direct materials, CPU = 6.2
-direct labor, CPU = 3.7
-variable manufacturing overhead, CPU = 1.25
-fixed manufacturing overhead, CPP = 10,000
-sales commissions, CPU = 1.5
-variable admin exp, CPU = .5
-fixed selling & admin exp, CPP = 5,000
The total amount of product costs incurred to make 5,000 is closest to Answer: 65,750
Which is classified as both a prime cost & a conversion cost? Answer: direct labor
Tirri corp has provided following info:
-direct materials, CPU = 6.85
-direct labor, CPU = 3.9
-variable manufacturing overhead, CPU = 1.25
-fixed manufacturing overhead, CPP = 22,500
-sales commissions, CPU = 1.00
-variable admin exp, CPU = .55
-fixed selling & admin exp, CPP = 7,500
If selling price is 26.2 per unit, the contribution margin per unit sold is closest to Answer:
12.65
Data for most recently completed year appears below:
© 2025 All rights reserved
