COMPREHENSIVE FINAL EXAMINATION;(Chapters 1 ? 13, Chapter 7 Omitted);Approximate;Problem Topic Points Minutes;I Multiple Choice 50 45;II Matching 16 20;III Variance Analysis 18 25;IV Miscellaneous Managerial Mini-Problems 16 20;100 110;Checking Work 10;120;EXAMINATION INSTRUCTIONS ? READ COMPLETELY AND CAREFULLY!;? This examination is a ?take home? examination.;? This examination must be completed individually, by you!;o If it is discovered that your work on this examination was copied or plagiarized, you will receive an ?F? grade (0%), as fully stated in the syllabus. No exceptions!;? This examination must be completed in typed format and spell checked!;o Your name, in the box at the top of this page, must be typed.;o Handwritten exams will not be accepted, as fully stated in the syllabus!;? Note: You must show computations for all problems except the multiple choice questions!;? This examination, in its entirety, must be turned in with your answers, starting with this page!;? If you need additional space, please attach any work after its associated problem (not attached to the back) with your name clearly present on every page!;o Note: If you have handwritten notes working out problems, attach those after the last page of this examination with your name clearly present on every page.;? You will have until the next class session to complete the examination (see due date and time below). Emailed examinations will not be accepted, as fully stated in the syllabus!;o If your completed and STAPLED examination is not brought to class on Monday, May 3, 2010 by 12:25pm, you will receive an ?F? grade. No exceptions!;? No makeup of this examination will be given, as fully stated in the syllabus.;Problem I ? Multiple Choice (50 points);On your computer, bold, highlight, underline or box the one best answer.;1. A responsibility center that incurs costs (and expenses) and generates revenues is classified as a(n);a. cost center.;b. revenue center.;c. profit center.;d. investment center.;2. The most useful measure for evaluating a manager's performance in controlling revenues and costs in a profit center is;a. contribution margin.;b. contribution net income.;c. contribution gross profit.;d. controllable margin.;3. Ramsey Corporation desires to earn target net income of $90,000. If the selling price per unit is $30, unit variable cost is $24, and total fixed costs are $360,000, the number of units that the company must sell to earn its target net income is;a. 30,000.;b. 75,000.;c. 45,000.;d. 60,000.;4. Shane 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 20,000 units (1/2 complete);Ending Work in Process 25,000 units (1/3 complete);Started into Production 150,000 units;a. 125,000;b. 141,667;c. 145,000;d. 150,000;5. Given the following information for Hett Company, compute the company's ROI;Sales $1,000,000;Controllable Margin $120,000;Average Operating Assets $500,000;a. 40%;b. 50%;c. 12%;d. 24%;6. The following data has been collected for use in analyzing the behavior of maintenance costs of Ridell Corporation;Month Maintenance Costs Machine Hours;January $121,000 20,000;February 125,000 23,000;March 128,000 24,000;April 159,000 34,000;May 168,000 36,000;June 178,000 38,000;July 181,000 40,000;Using the high-low method to separate the maintenance costs into their variable and fixed cost components, these components are;a. $5 per hour plus $20,000.;b. $5 per hour plus $30,000.;c. $4 per hour plus $41,000.;d. $3 per hour plus $61,000.;7. Given the following data for Glennon Company, compute (A) total manufacturing costs and (B) costs of goods manufactured;Direct materials used $120,000 Beginning work in process $20,000;Direct labor 50,000 Ending work in process 10,000;Manufacturing overhead 150,000 Beginning finished goods 25,000;Operating expenses 175,000 Ending finished goods 15,000;(A) (B);a. $310,000 $330,000;b. $320,000 $310,000;c. $320,000 $330,000;d. $330,000 $340,000;8. The production cost report shows both quantities and costs. Costs are reported in three sections: (1) costs accounted for, (2) unit costs, and (3) costs charged to department. The sections are listed in the following order;a. (1), (2), (3).;b. (1), (3), (2).;c. (2), (1), (3).;d. (2), (3), (1).;9. The starting point of a master budget is the preparation of the;a. cash budget.;b. sales budget.;c. production budget.;d. budgeted balance sheet.;10. The most useful measure for evaluating the performance of the manager of an investment center is;a. contribution margin.;b. controllable margin.;c. return on investment.;d. income from operations.;11. Which of the following capital budgeting techniques explicitly takes the time value of money into consideration?;a. Annual rate of return;b. Internal rate of return;c. Net present value;d. Both (b) and (c) above;Use the following information for questions 12 and 13.;Grant Company estimates its sales at 60,000 units in the first quarter and that sales will increase by 6,000 units each quarter over the year. It has, and desires, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale.;12. Cash collections for the third quarter are budgeted at;a. $1,017,000.;b. $1,476,000.;c. $1,773,000.;d. $2,052,000.;13. Production in units for the third quarter should be budgeted at;a. 73,500.;b. 69,000.;c. 91,500.;d. 72,000.;14. A flexible budget;a. is also called a static budget.;b. can be considered a series of related static budgets.;c. can be prepared for sales or production budgets, but not for an operating expense budget.;d. typically uses an activity index different from that used in developing the predetermined overhead rate.;15. Carey Company's equipment account increased $800,000 during the period, the related accumulated depreciation increased $60,000. New equipment was purchased at a cost of $1,400,000 and used equipment was sold at a loss of $40,000. Depreciation expense was $200,000. Proceeds from the sale of the used equipment were;a. $420,000.;b. $500,000.;c. $560,000.;d. $640,000.
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