Introduction to Managerial Accounting-An activity based costing system should include all of the activities..
Question;Introduction to Managerial Accounting college course.Assignment will cover the following areas:Cost-Volume-Profit RelationshipsJob-Order CostingVariable Costing and Segment ReportingActivity Based CostingAssignment is multiple choice and fill in problems1. An activity-based costing system;should include all of the activities carried out in an organization because any;simplification will inevitably result in inaccuracy.;True;False;2. Ladanza Corporation is a wholesaler that sells a single;product. Management has provided the following cost data for two levels of;monthly sales volume. The company sells the product for $135.00 per unit.;Sales;volume (units);11,000;12,120;Cost of sales;$935,000;$1,030,200;Selling;and administrative costs;$627,000;$644,920;The best estimate of the total contribution margin when 11,410 units are sold;is;$244,250;$501,970;$167,570;$387,940;3.The following costs;were incurred in September;Direct;materials;$42,700;Direct;labor;$29,400;Manufacturing;overhead;$27,300;Selling;expenses;$23,600;Administrative;expenses;$33,700;Conversion costs during the month totaled;$156,700;$72,100;$70,000;$56,700;4. The wages of factory;maintenance personnel would usually be considered to be;Option B;Option D;Option C;Option A;5.;South Company sells a;single product for $30 per unit. If variable expenses are 60% of sales and;fixed expenses total $13,600, the break-even point in sales dollars will;be:(Do not round;intermediate calculations.);$13,600;$22,667;$34,000;$20,400;6.Variable cost;increases on a per;unit basis as the number of units produced increases.;remains constant on a;per unit basis as the number of units produced increases.;decreases on a per;unit basis as the number of units produced increases.;remains the same in;total as production increases.;7.;The contribution margin ratio is 20% for Grain Company and the;break-even point in sales is $254,500. To obtain a target net operating;income of $69,000, sales would have to be:(Do not round intermediate calculations.);$323,500;$287,300;$333,000;$599,500;8.At the break-even point;Sales? Variable expenses = Fixed expenses.;True;False;9.Within the relevant;range, variable cost per unit will;increase as the level;of activity increases.;remain constant.;decrease as the level;of activity increases.;none of these.;10.;The contribution margin ratio of Thronson Corporation's only;product is 69%. The company's monthly fixed expense is $455,400 and the;company's monthly target profit is $41,400.;Required;Determine the dollar sales to attain the company's target;profit.(Omit;the "$" sign in your response.);Target;profit;$;11.Washtenaw Corporation uses a job-order costing system. The;following data are for last year;Washtenaw applies overhead using a predetermined rate based on direct;labor-hours. What predetermined overhead rate was used last year?;$3.36 per direct;labor-hour;$3.25 per direct;labor-hour;$3.55 per direct;labor-hour;$3.08 per direct;labor-hour;12.Wert Corporation uses a;predetermined overhead rate based on direct labor cost to apply manufacturing overhead;to jobs. Last year, the company's estimated manufacturing overhead was;$1,200,000 and its estimated level of activity was 50,000 direct labor-hours.;The company's direct labor wage rate is $12 per hour. Actual manufacturing;overhead amounted to $1,240,000, with actual direct labor cost of $650,000. For;the year, manufacturing overhead was;overapplied by $60,000;overapplied by $40,000;underapplied by;$60,000;underapplied by;$44,000;13.A company has provided;the following data;If the sales volume decreases by 25%, the variable cost per unit increases by;15%, and all other factors remain the same, net operating income will;decrease by $3,125.;decrease by $15,000.;increase by $20,625.;decrease by $31,875.;14.Slonaker Inc. has provided the following data concerning its;maintenance costs;Machine-Hours;Maintenance;Cost;April;5,820;$30,400;May;5,803;$30,310;June;5,785;$30,258;July;5,782;$30,254;August;5,738;$30,099;September;5,816;$30,381;October;5,851;$30,430;November;5,822;$30,399;December;5,806;$30,339;Management believes;that maintenance cost is a mixed cost that depends on machine-hours.;Required;Estimate the variable;cost per machine-hour and the fixed cost per month using the high-low method.(Round your "Variable cost" to 2;decimal places. Omit the "$" sign in your response.);Variable;cost per machine-hour;$;Fixed cost;per month;$;15.Jurper Corporation used $150,000 of;direct materials during April. At the end of April, Jurper's direct materials;inventory was $25,000 more than it was at the beginning of the month. Direct;materials purchases during the April amounted to;$150,000;$175,000;$0;$125,000;16.Butteco Corporation has;provided the following cost data for last year when 100,000 units were produced;and sold;All costs are variable except for $100,000 of manufacturing overhead and;$100,000 of selling and administrative expense. There are no beginning or;ending inventories. If the selling price is $10 per unit, the net operating;income from producing and selling 110,000 units would be;$385,000;$560,000;$405,000;$450,000;17.;Mark;Corporation produces two models of calculators. The Business model sells for;$56, and the Math model sells for $35. The variable expenses are given below;Business;Model;Math;Model;Variable production;costs per unit;$12;$12;Variable selling and;administrative expenses per unit;$10;$;6;The;fixed expenses are $76,300 per month. The expected monthly sales of each;model are: Business, 1,000 units, Math, 400 units.;The break-even point in unit sales;for the expected sales mix is closest to: (Do;not round intermediate calculations.);1,870 Business Model;and 748 Math Model;1,870 of each product;748 of each product;748 Business Model and;1,870 Math Model;18.Christiansen Corporation uses an;activity-based costing system with the following three activity cost pools;The Other;activity cost pool is used to accumulate costs of idle capacity and;organization-sustaining costs.;The company;has provided the following data concerning its costs;The;distribution of resource consumption across activity cost pools is given below;The activity;rate for the Order Processing activity cost pool is closest to;$676 per order;$780 per order;$312 per order;$560 per order;19.Underapplied or overapplied;manufacturing overhead represents the difference between actual overhead costs;and applied overhead costs.;True;False;20.An activity-based;costing system that is designed for internal decision-making will not conform;to generally accepted accounting principles because;some manufacturing;costs (i.e., the costs of idle capacity and organization-sustaining costs);will not be assigned to products.;some non-manufacturing;costs are assigned to products.;first-stage;allocations may be based on subjective interview data.;all of the above are;reasons why an activity-based costing system that is designed for internal;decision-making will not conform to generally accepted accounting principles.;23.In a contribution format income;statement, sales minus cost of goods sold equals the gross margin.;True;False;24.In activity-based;costing, some manufacturing costs may be excluded from product costs.;True;False;25.Activity-based costing is a costing;method that is designed to provide managers with product cost information for;external financial reports.;True;False;26.;Umanzor Corporation uses activity-based costing to assign;overhead costs to products. Overhead costs have already been allocated to the;company's three activity cost pools as follows: Processing, $51,500;Supervising, $35,800, and Other, $26,600. Processing costs are assigned to;products using machine-hours (MHs) and Supervising costs are assigned to;products using the number of batches. The costs in the Other activity cost;pool are not assigned to products. Activity data appear below;MHs (Processing);Batches (supervising);Product S5;15,300;1,060;Product F5;1,180;820;Total;16,480;1,880;The activity rate for;the Processing activity cost pool under activity-based costing is closest to;$2.81 per MH;$3.13 per MH;$7.56 per MH;$3.43 per MH;27.;McCaskey Corporation uses an;activity-based costing system with the following three activity cost pools;Activity;Cost Pool;Total Activity;Fabrication;10,000;machine-hours;Order processing;125;orders;Other;N/A;The Other activity cost pool is;used to accumulate costs of idle capacity and organization-sustaining costs.;The company has provided the;following data concerning its costs;Wages and salaries;$435,000;Depreciation;134,000;Occupancy;182,000;Total;$751,000;The distribution of resource;consumption across activity cost pools is given below;Activity Cost Pools;Fabrication;Order;Processing;Other;Total;Wages and salaries;10%;80%;10%;100%;Depreciation;25%;25%;50%;100%;Occupancy;5%;75%;20%;100%;The activity rate for the;Fabrication activity cost pool is closest to;$2.56 per machine-hour;$0.96 per machine-hour;$18.78 per;machine-hour;$8.61 per machine-hour;28. Desrevisseau Inc., a;manufacturing company, has provided the following data for the month of August.;The balance in the Work in Process inventory account was $10,000 at the;beginning of the month and $22,000 at the end of the month. During the month;the company incurred direct materials cost of $63,000 and direct labor cost of;$39,000. The actual manufacturing overhead cost incurred was $40,000. The;manufacturing overhead cost applied to Work in Process was $43,000. The cost of;goods manufactured for August was;$142,000;$130,000;$133,000;$145,000;29.In a job-order costing;system, direct labor cost is ordinarily debited to;Finished Goods.;Manufacturing;Overhead.;Work in Process.;Cost of Goods Sold.;30.The break-even point in;unit sales is found by dividing total fixed expenses by;the sales price per;unit.;the contribution;margin per unit.;the variable expenses;per unit.;the contribution;margin ratio.;31.Supply costs at Lattea;Corporation's chain of gyms are listed below;Client-Visits;Supply Cost;March;11,653;$28,567;April;11,449;$28,401;May;11,981;$28,825;June;12,600;$28,904;July;11,713;$28,628;August;11,199;$28,227;September;11,993;$28,826;October;11,684;$28,584;November;11,832;$28,709;Management believes;that supply cost is a mixed cost that depends on client-visits. Using the;high-low method to estimate the variable and fixed components of this cost;those estimates would be closest to:(Round your Variable cost per unit to 2 decimal;places.);$1.06 per;client-visit, $15,798 per month;$0.52 per;client-visit, $22,351 per month;$0.48 per;client-visit, $22,856 per month;$2.17 per;client-visit, $28,629 per month;32.In May, Hervey Inc.;incurred $60,000 of direct labor costs and $3,000 of indirect labor costs. The;journal entry to record the accrual of these wages would include a;debit to Work in;Process of $63,000;credit to;Manufacturing Overhead of $3,000;credit to Work in;Process of $63,000;debit to Manufacturing;Overhead of $3,000;33.;At the beginning of the year, manufacturing overhead for the;year was estimated to be $266,400. At the end of the year, actual direct;labor-hours for the year were 22,500 hours, the actual manufacturing overhead;for the year was $264,300, and manufacturing overhead for the year was;overapplied by $5,700. If the predetermined overhead rate is based on direct;labor-hours, then the estimated direct labor-hours at the beginning of the;year used in the predetermined overhead rate must have been:(Round your intermediate calculations to 2;decimal places.);21,800 direct;labor-hours;22,200 direct;labor-hours;20,700 direct;labor-hours;22,500 direct;labor-hours;34.;Nikkel Corporation, a;merchandising company, reported the following results for July;Sales;$464,000;Cost of;goods sold (all variable);$173,500;Total;variable selling expense;$ 24,600;Total;fixed selling expense;$ 23,000;Total variable;administrative expense;$ 8,900;Total;fixed administrative expense;$ 38,200;The contribution;margin for July is;$257,000;$195,800;$402,800;$290,500;35.;[The following information applies;to the questions displayed below.];Bakker Corporation applies;manufacturing overhead on the basis of direct labor-hours. At the beginning;of the most recent year, the company based its predetermined overhead rate on;total estimated overhead of $77,250 and 2,500 estimated direct labor-hours.;Actual manufacturing overhead for the year amounted to $79,000 and actual;direct labor-hours were 2,400.;The predetermined overhead rate for the year;was;$29.66;$30.90;$32.92;$31.60
Paper#37693 | Written in 18-Jul-2015Price : $35