Cost and Managerial Accounting - D101 WGU | OA | Updated Exam
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Questions (Actual Exam 2026-2027) Correct Detailed & Verified
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The company has received a special order for 500 computers at a price of $175
per unit.
By how much will overall company net income change if this order is accepted?
It will increase by $8,500.
It will decrease by $8,500.
It will increase by $22,500.
It will decrease by $22,500. -ANSWER-It will increase by $8,500.
Plairtrack Company manufactures lamps. Sparkit, a large retail merchandiser,
wants to buy 250,000 lamps from Plairtrack Company for $11 each.
Plairtrack Company normally sells 420,000 lamps a year at $16 each; its
production capacity is a total of 600,000 units a year. Below is the production cost
information for the lamps:
Variable production costs per unit $6
Fixed manufacturing overhead per unit $7
Total production cost per unit $13
Total fixed manufacturing overhead costs will not change regardless of whether
the special order is accepted. Sparkit has indicated that the company is not
interested in signing a contract for fewer than 250,000 lamps.
By how much will Plairtrack Company's net income change if this special order is
accepted?
,It will increase by $550,000.
It will decrease by $550,000.
It will increase by $1,250,000.
It will decrease by $1,250,000. -ANSWER-It will increase by $550,000.
Actual Manufacturing Overhead -ANSWER-Manufacturing costs other than direct
materials and direct labor
Applied Manufacturing Overhead -ANSWER-The amount of the manufacturing
overhead that is assigned to the goods produced; this is usually done by using a
predetermined annual overhead rate
Batch-level Activities -ANSWER-Activities that take place to support a batch or
production run, regardless of the size of the batch
Budgeted Production in Units -ANSWER-The budgeted number of units to be
produced in a period, taking into consideration the sales volume, the number of
units in beginning inventory, and the number of units required to be in ending
inventory
Common Costs -ANSWER-Overhead costs like executive salaries or property taxes
that cannot be attributed to and are not the responsibility of specific products,
departments, or business segments
Contribution Margin -ANSWER-The difference between total sales and variable
costs; the portion of sales revenue available to cover fixed costs and provide a
profit
, Contribution Margin Ratio -ANSWER-The percentage of net sales revenue left
after variable costs are deducted; the contribution margin divided by net sales
revenue
Conversion Costs -ANSWER-The costs of converting raw materials to finished
products; these include direct labor and manufacturing overhead costs
Cost Behavior -ANSWER-The way a cost is affected by changes in activity levels
Cost Driver -ANSWER-Numerical measure used to reflect the amount of a specific
cost associated with a particular activity
Cost Objects -ANSWER-A product or division for which costs are accumulated and
tracked
Cost Pool -ANSWER-Total cost being generated by a specific overhead cost activity
Cost of Goods Manufactured -ANSWER-Total of all manufacturing costs
Cost of Goods Manufactured Schedule -ANSWER-A schedule supporting the
income statement that summarizes the total cost of goods manufactured and
transferred out of the work-inprocess inventory account during a period; these
costs include direct materials, direct labor, and applied manufacturing overhead
Cost of Goods Sold -ANSWER-Cost of products sold in a company, including costs
of materials used to create product and labor costs
2026 WITH Recent Newest Verified And Well Analyzed Exam
Questions (Actual Exam 2026-2027) Correct Detailed & Verified
ANSWERS (100% Accurate Solutions) ALREADY GRADED A+||NEWEST
VERSION Of The Exam Guarantee Pass!!
The company has received a special order for 500 computers at a price of $175
per unit.
By how much will overall company net income change if this order is accepted?
It will increase by $8,500.
It will decrease by $8,500.
It will increase by $22,500.
It will decrease by $22,500. -ANSWER-It will increase by $8,500.
Plairtrack Company manufactures lamps. Sparkit, a large retail merchandiser,
wants to buy 250,000 lamps from Plairtrack Company for $11 each.
Plairtrack Company normally sells 420,000 lamps a year at $16 each; its
production capacity is a total of 600,000 units a year. Below is the production cost
information for the lamps:
Variable production costs per unit $6
Fixed manufacturing overhead per unit $7
Total production cost per unit $13
Total fixed manufacturing overhead costs will not change regardless of whether
the special order is accepted. Sparkit has indicated that the company is not
interested in signing a contract for fewer than 250,000 lamps.
By how much will Plairtrack Company's net income change if this special order is
accepted?
,It will increase by $550,000.
It will decrease by $550,000.
It will increase by $1,250,000.
It will decrease by $1,250,000. -ANSWER-It will increase by $550,000.
Actual Manufacturing Overhead -ANSWER-Manufacturing costs other than direct
materials and direct labor
Applied Manufacturing Overhead -ANSWER-The amount of the manufacturing
overhead that is assigned to the goods produced; this is usually done by using a
predetermined annual overhead rate
Batch-level Activities -ANSWER-Activities that take place to support a batch or
production run, regardless of the size of the batch
Budgeted Production in Units -ANSWER-The budgeted number of units to be
produced in a period, taking into consideration the sales volume, the number of
units in beginning inventory, and the number of units required to be in ending
inventory
Common Costs -ANSWER-Overhead costs like executive salaries or property taxes
that cannot be attributed to and are not the responsibility of specific products,
departments, or business segments
Contribution Margin -ANSWER-The difference between total sales and variable
costs; the portion of sales revenue available to cover fixed costs and provide a
profit
, Contribution Margin Ratio -ANSWER-The percentage of net sales revenue left
after variable costs are deducted; the contribution margin divided by net sales
revenue
Conversion Costs -ANSWER-The costs of converting raw materials to finished
products; these include direct labor and manufacturing overhead costs
Cost Behavior -ANSWER-The way a cost is affected by changes in activity levels
Cost Driver -ANSWER-Numerical measure used to reflect the amount of a specific
cost associated with a particular activity
Cost Objects -ANSWER-A product or division for which costs are accumulated and
tracked
Cost Pool -ANSWER-Total cost being generated by a specific overhead cost activity
Cost of Goods Manufactured -ANSWER-Total of all manufacturing costs
Cost of Goods Manufactured Schedule -ANSWER-A schedule supporting the
income statement that summarizes the total cost of goods manufactured and
transferred out of the work-inprocess inventory account during a period; these
costs include direct materials, direct labor, and applied manufacturing overhead
Cost of Goods Sold -ANSWER-Cost of products sold in a company, including costs
of materials used to create product and labor costs
