Page 1 of 36
COST AND MANAGERIAL ACCOUNTING - D101
WGU | OA | OBJECTIVE ASSESSMENT |
{LATEST 2026/ 2027 UPDATE} COMPLETE
ACTUAL AND AUTHENTIC EXAM | BRAND NEW!
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.
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It will increase by $1,250,000.
It will decrease by $1,250,000.
It will increase by $550,000.
A manufacturing company used cash to purchase raw materials
costing $3,000.
What should be included in the journal entry necessary to record this
purchase of raw materials?
Credit to work-in-process inventory for $3,000.
Credit to raw materials inventory for $3,000.
Credit to accounts payable for $3,000.
Credit to cash for $3,000.
Credit to cash for $3,000.
An entrepreneur identifies a business opportunity to produce and
market custom-printed T-shirts to local organizations. The
entrepreneur plans to use activity-based costing.
Which type of costs should be associated to the production of each
custom-printed T-shirt in the future using cost drivers?
Direct labor costs only
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Direct materials costs only
All the manufacturing costs including direct materials and direct labor
All the manufacturing costs except for direct materials and direct labor
All the manufacturing costs except for direct materials and direct labor
Implementation of an activity-based costing (ABC) system requires an
analysis of the percentage of time employees spend on each overhead
cost activity.
Through which activity can these data be gathered?
General ledger posting
Employee wage ranking
Employee interviews
Equivalent unit analysis
Employee interviews
Which output measures are most important to a manager when
maximizing operational performance?
Sales volume and labor hours worked
, Page 4 of 36
Production volume and labor hours worked
Sales and production volume
Production volume and machine hours worked
Sales and production volume
A juice company reports these data:
Selling price per unit: $7
Variable cost per unit: $3
Number of units sold: 70,000 units
Net income: $60,000
What is the juice company's calculated break-even point in number of
units?
25,000 units
30,000 units
40,000 units
55,000 units
55,000 units
COST AND MANAGERIAL ACCOUNTING - D101
WGU | OA | OBJECTIVE ASSESSMENT |
{LATEST 2026/ 2027 UPDATE} COMPLETE
ACTUAL AND AUTHENTIC EXAM | BRAND NEW!
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.
,Page 2 of 36
It will increase by $1,250,000.
It will decrease by $1,250,000.
It will increase by $550,000.
A manufacturing company used cash to purchase raw materials
costing $3,000.
What should be included in the journal entry necessary to record this
purchase of raw materials?
Credit to work-in-process inventory for $3,000.
Credit to raw materials inventory for $3,000.
Credit to accounts payable for $3,000.
Credit to cash for $3,000.
Credit to cash for $3,000.
An entrepreneur identifies a business opportunity to produce and
market custom-printed T-shirts to local organizations. The
entrepreneur plans to use activity-based costing.
Which type of costs should be associated to the production of each
custom-printed T-shirt in the future using cost drivers?
Direct labor costs only
,Page 3 of 36
Direct materials costs only
All the manufacturing costs including direct materials and direct labor
All the manufacturing costs except for direct materials and direct labor
All the manufacturing costs except for direct materials and direct labor
Implementation of an activity-based costing (ABC) system requires an
analysis of the percentage of time employees spend on each overhead
cost activity.
Through which activity can these data be gathered?
General ledger posting
Employee wage ranking
Employee interviews
Equivalent unit analysis
Employee interviews
Which output measures are most important to a manager when
maximizing operational performance?
Sales volume and labor hours worked
, Page 4 of 36
Production volume and labor hours worked
Sales and production volume
Production volume and machine hours worked
Sales and production volume
A juice company reports these data:
Selling price per unit: $7
Variable cost per unit: $3
Number of units sold: 70,000 units
Net income: $60,000
What is the juice company's calculated break-even point in number of
units?
25,000 units
30,000 units
40,000 units
55,000 units
55,000 units
