Question;Managerial Accounting;EXAMINATION;NUMBER;06168501;Note:You should complete alllesson exams before you;take the final exam.;Complete the following exam by;answering the questionsand compiling your answers intoa word-processing;document. Whenyou're ready to submit your answers, refer to the;instructions atthe end of your exam booklet. Be certain to indicate the;properquestion number before each of your answers. Remember to show;your work if an answer requires a mathematical solution.;Answer each of the following 20;questions. Each answer isworth 5 points.;1.;The;work-in-process inventory account of a manufacturing company shows a balance of;$3,000 at the end of an accounting period. The job-cost sheets of the two incom?plete;jobs show charges of $500 and $300 for direct materials, and charges of $400;and $600 for direct labor. From this information, it appears that the company;is using a predetermined overhead rate as a percentage of direct labor costs.;What percentage is the rate?;2.;The;break-even point in dollar sales for Rice Company is $480,000 and the company's;contribution margin ratio is 40 percent. If Rice Company desires a profit of;$84,000, how much would sales have to total?;3.;Williams;Company's direct labor cost is 25 percent of its conversion cost. If the;manufacturing overhead for the last period was $45,000 and the direct material;cost was $25,000, how much is the direct labor cost?;4.;Grading;Company's cash and cash equivalents consist of cash and marketable securities.;Last year the company's cash account decreased by $16,000 and its marketable;securities account increased by $22,000. Cash provided bv operating activities;was $24,000. Net cash used for financing activities was $20,000. Based on this;informa?tion, was the net cash flow from investing activities on the statement;of cash flows a net increase or decrease? By how much?;5.;Gladstone;Footwear Corporation's flexible budget cost formula for supplies, a variable;cost, is $2.82 per unit of output. The company's flexible budget performance;report for last month showed an $8,140 unfavorable spending variance for;supplies. During that month, 21,250 units were produced. Budgeted activity for;the month had been 20,900 units. What is the actual cost per unit for indirect;materials?;6.;Lyons;Company consists of two divisions, A and B. Lyons Company reported a;contribution margin of $60,000 for Division A, and had a contribution margin;ratio of 30 percent in Division B, when sales in Division B were $240,000. Net;operating income for the company was $22,000 and traceable fixed expenses were;$45,000. How much were Lyons Company's common fixed expenses?;7.;Atlantic;Company produces a single product. For the most recent year, the company's net;operating income computed by the absorption costing method was $7,800, and its;net operating income computed by the variable costing method was $10,500. The;company's unit product cost was $15 under variable costing and $24 under absorption;costing. If the ending inventory consisted of 1,460 units, how many units must;have been in the beginning inventory?;8.;Black;Company uses the weighted-average method in its process costing system. The;company's ending work-in-process inventory consists of 6.000 units, 75 percent;complete with respect to materials and 50 percent com?plete with respect to;labor and overhead. If the total dollar value of the inventory is $80,000 and;the cost per equivalent unit for labor and overhead is $6.00, what is the cost;per equivalent unit for materials?;9.;At;Overland Company, maintenance cost is exclusively a variable cost that varies;directly with machine-hours. The performance report for July showed that actual;mainte?nance costs totaled $11,315 and that the associated rate variance was;$146 unfavorable. If 7,300 machine-hours were actually worked during July, what;is the budgeted maintenance cost per machine-hour?;10.;The;cost of goods sold in a retail store totaled $650,000. Fixed selling and;administrative expenses totaled $115,000 and variable selling and;administrative expenses were $420,000. If the store's contribution margin;totaled $590,000, how much were the sales?;11.;Denny;Corporation is considering replacing a technologi?cally obsolete machine with a;new state-of-the-art numerically controlled machine. The new machine would cost;$600,000 and would have a 10-year useful life. Unfortunately, the new machine;would have no salvage value. The new machine would cost $20,000 per year to;operate and maintain, but would save $125,000 per year in labor and other;costs. The old machine can be sold now for scrap for $50,000. What percentage;is the simple rate of return on the new machine rounded to the nearest tenth of;a percent? (Ignore income taxes in this problem.);12.;Lounsberry;Inc. regularly uses material O55P and currently has in stock 375 liters of the;material, for which it paid $2,700 several weeks ago. If this were to be sold;as is on the open market as surplus material, it would fetch $6.35 per liter.;New stocks of the material can be purchased on the open market for S7.20 per;liter, but it must be purchased in lots of 1,000 liters. You've been asked to;determine the relevant cost of 900 liters of the material to be used in a job;for a customer. What is the relevant cost of the 900 liters of material O55P?;13.;Harwichport;Company has a current ratio of 3.0 and an acid-test ratio of 2.8. Current;assets equal $210,000, of which $5,000 consists of prepaid expenses. The;remainder of current assets consists of cash, accounts receivable, marketable;securities, and inventory. What is the amount of Harwichport Company's;inventory?;14.;Tolla;Company is estimating the following sales for the first six months of next;year;January;$350,000;February;$300,000;March;$320,000;April;$410,000;May;$450,000;June;$470,000;Sales at Tolla are normally collected as;70 percent in the month of sale, 25 percent in the month following the sale;and the remaining 5 percent being uncollectible. Also, cus?tomers paying in the;month of sale are given a 2 percent discount. Based on this information, how;much cash should Tolla expect to collect during the month of April?;15.;Trauscht;Corporation has provided the following data from its activity-based costing;system;Activity Cost Pool;Total Cost;Total Activity;Assembly;$704,880;44,000 machine-hours;Processing orders;$91,428;1,900 orders;Inspection;$117,546;1,950 inspection-hours;The company makes 360 units of product;P23F a year, requiring a total of 725 machine-hours, 85 orders, and 45 inspection-hours;per year. The product's direct materials cost is $42.30 per unit and its direct;labor cost is $14.55 per unit. The product sells for $132.10 per unit.;According to the activity-based costing system, what is the product;margin for product P23F?;16. Williams Company's direct labor cost is 30;percent of its conversion cost. If the manufacturing overhead for the last;period was $59,500 and the direct materials cost was $37,000, what is the;direct labor cost?;17.;In a;recent period, 13,000 units were produced, and there was a favorable labor;efficiency variance of $23,000. If 40,000 labor-hours were worked and the;standard wage rate was $13 per labor-hour, what would be the standard hours;allowed per unit of output?;18.;The;balance in White Company's work-in-process inven?tory account was $15,000 on;August 1 and $18,000 on August 31. The company incurred $30,000 in direct labor;cost during August and requisitioned $25,000 in raw materials (all direct;material). If the sum of the debits to the manufacturing overhead account total;$28,000 for the month, and if the sum of the credits totaled $30,000, then was;Finished Goods debited or credited? By how much?;19.;A;company has provided the following data;Sales 4,000 units;Sales price $80 per unit;Variable cost $50 per unit;Fixed cost $30,000;If the dollar contribution margin per unit is;increased by 10 percent, total fixed cost is decreased by 15 percent, and all;other factors remain the same, will net operating income increase or decrease?;By how much?;20.;For the current year, Paxman Company incurred;$175,000 in actual manufacturing overhead cost. The manufacturing overhead;account showed that overhead was overapplied in the amount of $9,000 for the;year. If the predetermined overhead rate was $8.00 per direct labor-hour, how;many hours were worked during the year?
Paper#37331 | Written in 18-Jul-2015Price : $41