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devry acct344 final exam




Question;(TCO 2) Which cost is NOT a period cost? (Points: 5);Lumber for;furniture;Executive;administrative assistant salary;Depreciation;on sales staff's cars;Sales;commission;Question 2.2. (TCO 2) Which product would use job-order;costing? (Points: 5);Ink pens;Custom boot;maker;Soda pop;Horse saddles;Question 3.3. (TCO 3) As production occurs, materials;direct labor, and applied manufacturing overhead are recorded in (Points: 5);cost of goods;sold.;work-in-process.;materials.;finished;goods.;Question 4.4. (TCO 8) A company keeps 60 days of materials;inventory on hand to avoid shutdowns due to materials shortages. Carrying costs;average $5,000 per day. A competitor keeps 30 days of inventory on hand, and;the competitor's carrying costs average $2,000 per day. The value-added costs;are (Points: 5);$300,000.;$150,000.;$60,000.;$0.;Question 5.5. (TCO 8) Which is a value-added activity?;(Points: 5);Moving;Inspection;Processing;Waiting;Question 6.6. (TCO 1) The break-even point is (Points: 5);the volume of;activity where all fixed costs are recovered.;where fixed;costs equal total variable costs.;where total;revenues equal total costs.;where total;costs equal total contribution margin.;Question 7.7. (TCO 1) The Kringel Company provides the;following information.;Sales (200,000 units);$500,000;Manufacturing costs;Variable;$170,000;Fixed $30,000;Selling and administrative costs;Variable;$80,000;Fixed;$20,000;Which is the break-even point in units for Kringel? (Points;5);33,334 units;100,000 units;40,000 units;200,000 units;Question 8.8. (TCO 7) Which would be the most appropriate;base for allocating the costs of the maintenance department? (Points: 5);Machine hours;Direct labor;hours;Number of;employees;Square feet;Question 9.9. (TCO 7) Yo Department Store incurred $8,000 of;indirect advertising costs for its operations. The following data have been;collected for 2013 for its three departments.;Shoes Cosmetics Crafts;Sales $120,000 $100,000 $100,000;Direct advertising costs;$9,000 $7,000 $4,000;Newspaper ad space 60% 20%;20%;How much of the indirect advertising costs will be allocated;to the Cosmetics Department if newspaper ad space is the activity;driver?(Points: 5);$8,000;$1,600;$1,400;$6,400;Question 10.10. (TCO 5) Which best describes zero-base;budgeting? (Points: 5);A budget that;is developed for a single level of activity;A budget that;analyzes existing activities (and continuation of that activity must be;justified and resources needed must be justified by each manager);A budget that;is based solely on prior period information, adjusted for inflation;A budget that;is continuous or rolling;Question 11.11. (TCO 5) Bug Company manufactures buggies.;Manufacturing a buggy takes 20 units of wood and 1 unit of steel. Scheduled;production of buggies for the next 2 months is 500 and 600 units, respectively.;Beginning inventory is 4,000 units of wood and 30 units of steel. The ending;inventory of wood is planned to decrease 500 units in each of the next 2;months, and the steel inventory is expected to increase 5 units in each of the;next 2 months.;How many units of wood are expected to be used in production;during the second month? (Points: 5);12,500 units;10,000 units;15,000 units;12,000 units;Question 12.12. (TCO 4) Which statement is true? (Points;5);Absorption;costing net income exceeds variable costing net income when units produced and;sold are equal.;Variable;costing net income exceeds absorption costing net income when units produced;exceed units sold.;Absorption;costing net income exceeds variable costing net income when units produced are;less than units sold.;Absorption;costing net income exceeds variable costing net income when units produced are;greater than units sold.;Question 13.13. (TCO 6) Using more highly skilled direct;laborers might affect which variance? (Points: 5);Direct;materials usage variance;Direct labor;efficiency variance;Variable;manufacturing overhead efficiency variance;All of the;above;Question 14.14. (TCO 6) Which equation measures the total;budget variance? (Points: 5);AQ x (AP -;SP).;SP x (AQ -;SQ).;SQ x (AP -;SP).;(AQ x AP) -;(SQ x SP).;(TCO 1) George Corporation has an estimated monthly sales of;12,000 units for $80 per unit. Variable costs include manufacturing costs of;$50 and distribution costs of $20. Fixed costs are $60,000 per month.;Required;Determine each of the following values.;a. Unit contribution margin;b. Monthly break-even unit sales volume;Create a contribution margin-based income statement. (Points;30);Question 2.2. (TCO 7) Darling Manufacturing Inc.;manufactures two products, A and B, from a joint process. A single production;costs $5,000 and results in 200 units of A and 800 units of B. To be ready for;sale, both products must be processed further, incurring seperable costs of $3;per unit for A and $4 per unit for B. The market price for Product A is $15 and;for Product B is $10.;Required: Allocate joint production costs to each product;using the net realizable value method. (Points: 30);Question 3.3. (TCO 6) Santa Inc. manufactures toys based on;the following information.;Standard costs;Materials;(4 ounces at $4) $16;Direct;labor (1 hour per unit) $7;Variable;overhead (based on direct labor hours);$3.50;Fixed overhead budget $16,000;Actual results and costs;Materials;purchased;Units 10,000;Cost $38,500;Materials;used in production;Finished;product units 2,200;Raw;material (ounces) 9,500;Direct;labor hours 2,200;Direct;labor cost $18,000;Variable;overhead costs $8,400;Fixed;overhead costs $16,200;Required;Compute the following variances (show calculations).;a. Materials usage variance;b. Labor rate variance;-c. Fixed overhead budget;variance;(Points: 30);Question 4.4. (TCO 4) Toshi Company incurred the following;costs in manufacturing desk calculators.;Direct materials $14;Indirect materials (variable) 4;Direct labor 8;Indirect labor (variable) 6;Other variable factory overhead 10;Fixed factory overhead 28;Variable selling expenses 20;Fixed selling expenses 14;During the period, the company produced and sold 1,000;units.;a. What is the inventory cost per unit using absorption;costing?;b. What is the inventory cost per unit using variable;costing? (Points: 30);Question 5.5. (TCO 8) Musical Instruments Company;manufactures two products (trumpets and trombones). Overhead costs ($175,000);have been divided into three cost pools that use the following activity;drivers.;Product Number of setups Machine;hours Packing orders;Trumpets 50 1,500 150;Trombones 50 4,500 250;Cost per pool $60,000 $90,000;$25,000;Required (show all calculations);a. What is the allocation rate for trumpets per setup using;activity-based costing?;b. What is the allocation rate for trumpets per machine;hours using activity-based costing?;c. What is the allocation rate for trumpets per packing;order using activity-based costing?;(Points: 30);Question 6.6. (TCO 5) The Baxter Corporation has the following;budgeted and actual results.;Budgeted data Actual;results;Unit sales 35,000;Unit sales 36,000;Unit production 35,000;Unit production 37,000;Fixed overhead Fixed;overhead;Supervision $25,000 Supervision $23,500;Depreciation $40,000 Depreciation $40,000;Rent $20,000 Rent $20,000;Variable costs per unit;Variable;costs;Direct materials $25.00 Direct;materials $900,000;Direct labor $26.00 Direct labor $950,000;Supplies $0.25 Supplies $9,000;Indirect labor $1.30 Indirect;labor $50,000;Electricity $0.20 Electricity $7,500;Required;Prepare a performance report for all costs, showing flexible;budget variances (indicate F or U).


Paper#38148 | Written in 18-Jul-2015

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