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Cost Accounting_Proctored Final Examination_15 Questions




Question;Cost Accounting;Proctored Final Examination;Part A: Solve the following problems on the answer paper provided. Each;problem is worth 20 points.;1. Factory overhead for the Praeger Company has been estimated as;follows;Non;variable overhead $122,000;Variable overhead $90,500;Budgeted direct labor hours 50,000;Production;for the month was 75 percent of the budget, and actual factory overhead totaled;$140,000.;a. Calculate the predetermined;factory overhead rate.;b. Calculate the under- or over applied;factory overhead.;2. Blaine Corporation uses a standard cost system and has established;the following standards for one unit of product.;Standard;Quantity Standard Price Standard Cost;Direct materials 10 pounds $2.50;per pound $25.00;Direct;labor.25 hour $10.00 per hour 2.50;$27.50;======;During October, the company purchased 240,000 pounds of material at a;total cost of $588,000. The total factory wages for October were $50,350.;During October, 21,000 units of product were manufactured using 212,000 pounds;of material and 5,300 direct labor hours.;a. Compute the material;quantity and labor efficiency variances.;b. Compute the material price;and labor rate variances.;c. Indicate whether each of the;above variances is favorable or unfavorable.;3. Information for the month of May concerning Department A, the first;stage of the production cycle, is as follows;Materials;Conversion;Costs;$ 7,200;$ 6,000;27,800;16,050;$35,000;$22,050;10,000;9,800;9,000 units;1,000;Beginning work in process.................;Current costs............................;Material costs............................;Equivalent units based on average cost method;Goods completed.........................;Ending work in process....................;Material costs are added at the beginning of the process. The ending;work in process is 80 percent complete as to conversion costs. How would the;total costs accounted for be distributed using the average cost method?;Part B: Answer each of the following questions in two to four sentences.;Each answer is worth 4 points.;1. What is the primary difference between the term unit cost,as;commonly used in a process cost system, and the term job cost,as;commonly used in a job order cost system?;2. An employee who manufactures goods for her employer earns $14 an hour;for regular wages. She's paid time and a half for all hours worked in excess of;40 hours per week. In a recent week, she worked 48 hours.;a.;How much of her gross pay that week was direct labor?;b.;How much was indirect labor?;3. A company has $50,000 in fixed costs and sells one product with a;selling price;of $15 per unit. If variable costs are $5 per unit;what is this company's break-even sales in units?;4. For a manufacturing firm, what is the difference between cost of;goods manufacturedand cost of goods sold?;5. What are factory overhead costs, and what distinguishes them from other;manufacturing costs?;6. What are the advantages and disadvantages of a stable production policy;for a company that has greatly fluctuating sales during the year?;7. When is it necessary to use separate equivalent production figures in;computing the unit costs of materials, labor, and overhead?;8. How does a just-in-time inventory system differ from more traditional;approaches to costing?;9. What factors should a service firm consider in deciding whether to use;direct labor dollars or direct labor hours in charging overhead to jobs?;10. Is a favorable variance necessarily good? Explain.


Paper#37454 | Written in 18-Jul-2015

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