MULTIPLE CHOICE.ose the one alternative that best completes the statement or ans

Question

MULTIPLE CHOICE.ose the one alternative that best completes the statement or answers the question. 17) Delos, Inc. reports the following information for April: 17) SigmaGamma units 750 units $700 500 Units sold Sales price per unit Variable manufacturingcstper unit 5350 Sales commission per unit: ma:8% of sales 28 Gamma:8% of sales price 56 What is the contribution margin of Sigma? A) $350,000 B) $119,000 C) $294,000 D) S644,000 18) Which of the following is true of the traditional format of the income statement? 18) A) It shows contribution margin as a line item. B) It is prepared under the variable costing method C) It is not allowed under GAAP, D) It is prepared under the absorption costing method 19) The direct materials budget is prepared using information from the -budget. A) cash C) master B) capital expenditure D) production 20) In the cost of goods sold budget, projected manufacturing cost per unit of product sold does NOT include .cost per unit. A) direct labor C) direct materials B) variable manufacturing overhead D) sales commission 21) In variable costing, fixed manufacturing overhead is considered a period cost because A) these are not incurred in the period in which the units are produced B) these costs are incurred whether or not the company manufactures any goods Q) these costs are direct costs incurred for production D) these costs are indirectly related to production ite your answer in the space provided or on a separate sheet of paper. a merchandising company, what is the formula used to determine the amount of merch purchased?

Explanation / Answer

17) Contribution margin of sigma = (350-175-28)*2000 = 294000

so answer is c) $294000

18) Tradition format income statement is always prepared under absorption costing and contribution format income statement is always prepared under variable costing.

so answer is d) It is prepared the under absorption costing.

19) in budgeting process production budget is prepared on basis of sales budget and direct material budget is always prepared on basis of production budget..

so answer is d) Production

20) Manufacturing cost per unit includes direct mateiral, dirct labour and variable manufacturing ovehread but sales commission is not include under manufacturing cost

so answer is d) sales commission

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