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ACCT 434 MIDTERM EXAM

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Question;ACCT;434 MIDTERM EXAM;1. (TCO 1) Which of the following is a sign;that an ABC system may be useful?;2. (TCO 1) Merriamn Company provides the following ABC costing;information:????How much of the account billing cost will be assigned to;Department B?;3. (TCO 2) Budgeting provides all of the following EXCEPT;4. (TCO 2) White planned to use $82 of material per unit but;actually used $80 of material per unit, and planned to make 1,200 units but;actually made 1,000 units. The flexible-budget variance is;5. (TCO 3) The conference method estimates cost functions;6. (TCO 4) In evaluating different alternatives, it is useful;to concentrate on;7. (TCO 5) Producing more nonbottleneck output;8. (TCO 5) Schmidt Corporation produces a part that is used in;the manufacture of one of its products. The costs associated with the;production of 10,000 units of this part are as follows. Phil Company has;offered to sell 10,000 units of the same part to Schmidt Corporation for $18;per unit. Assuming there is no other use for the facilities, Schmidt should;9. (TCO 3) The cost components of an air conditioner include;$35 for the compressor, $11.50 for the sheet-molded compound frame, and $80 per;unit for assembly. The factory machines and tools cost is $55,000. The company expects;to produce 1,500 air conditioners in the coming year. What cost function best;represents these costs?;1.(TCO 1) For each of the following activities, identify an;appropriate activity-cost driver. a. machine maintenance b. machine setup c.;quality control d. material ordering e. production scheduling f. warehouse;expense g. engineering design;2. (TCO 2) Lubriderm Corporation has the following budgeted;sales for the next six-month period.There were 30,000 units of finished goods in inventory at;the beginning of June. Plans are to have an inventory of finished;products that equal 20% of the unit sales for the next month.;Five pounds of materials are;required for each unit produced. Each pound of material costs $8.;Inventory levels for materials are equal to 30% of the needs for the next;month. Materials inventory on June 1 was 15,000 pounds.;Prepare;a purchases budget in pounds for July, August, and September, and give total;purchases in both pounds and dollars for each month.;3. (TCO 3) As part of his job as cost analyst, Max Thompson;collected the following information concerning the operations of the Machining;Department. Use the high-low method to determine the estimating cost function;with machine-hours as the cost driver.;4. (TCO 5) Collier Bicycles has been manufacturing its own;wheels for its bikes. The company is operating at 100% capacity, and variable;manufacturing overhead is charged to production at the rate of 30% of direct;labor cost. The direct materials and direct labor cost per unit to make the;wheels are $1.50 and $1.80, respectively. Normal production is 200,000 wheels;per year......? Justify your answer.;5. (TCO 1) For each of the following activities, identify an;appropriate activity-cost driver. a. machine maintenance b. machine setup c.;quality control d. material ordering e. production scheduling f. warehouse;expense g. engineering design;6. (TCO 2) Lubriderm Corporation has the following budgeted;sales for the next six-month period ??Prepare a purchases budget in pounds for;July, August, and September, and give total purchases in both pounds and;dollars for each month.;7. (TCO 3) As part of his job as cost analyst, Max Thompson;collected the following information concerning the operations of the Machining;Department: Observation Machine-hours Total Operating Costs January 4,000;$45,000 February 4,600 49,500 March 3,800 45,750 April 4,400 48,000 May 4,500;49,800 Use the high-low method to determine the estimating cost function with;machine-hours as the cost driver.;8. (TCO 5) Collier Bicycles has been manufacturing its own;wheels for its bikes. The company is operating at 100% capacity, and variable;manufacturing overhead is charged to production at the rate of 30% of direct;labor cost. The direct materials and direct labor cost per unit to make the;wheels are $1.50 and $1.80, respectively. Normal production is 200,000 wheels;per year. A supplier offers to make the wheels at a price of $4 each. If the;bicycle company accepts this offer......;9. (TCO 4) Sunk costs Answer, Are past costs.

 

Paper#37994 | Written in 18-Jul-2015

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