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accounting MCQ with A+ answers,,,




Question;1. A company is building a widget. During the current year, a widget requires direct materials with a cost of $300. The company must also spend $200 for direct labor. Finally, factory overhead related to the production of a widget is $100. What is the prime cost associated with a widget?A. 100B. 400C. 300D. 5002. A company is building a widget. During the current year, a widget requires direct materials with a cost of $500. The company must also spend $600 for direct labor. Finally, factory overhead related to the production of a widget is $100. What is the conversion cost associated with a widget?A. 600B. 900C. 700D. 8003. Nash accounting services pays $2,500 a month for a tax preparation software license. In addition, variable charges incurred average $50 for every tax return the firm prepares. Determine the cost per unit if the firm expects to prepare 150 tax returns. Round to nearest Cent.A. $70.50B. $66.67C. $55.00D. $52.504. For 2013, Lorenzo Auto has a monthly overhead cost formula of $44,000 + $8 per direct labor hour. The firm?s 2013 annual capacity is 70,000 direct labor hours to be incurred evenly each month. What is the total overhead to be applied per unit of product in 2013?A. $560,000B. $885,000C. $1,088,000D. $1,000,5005. The W Hotel has gathered the following information on its utility cost for the past 6 months.Machine Hours Utility Cost1300 $9401700 $10751250 $9001800 $11321900 $11601500 $990Using the high-low method and considering there are NO outliers, determine the cost formula for utility cost.A. y = $400 +.40XB. y = $400 +.60XC. y = $600 +.40XD. y = $600 +.60X6. Using the formula from Question #11, what would be the total cost if the hotel used 1200 Machine hours for the month of March?A. $1000B. $880C. $420D. $9507. Cuisinart manufactures tea pots. In 2013, fixed overhead was applied to products at a rate of $5 per unit. Variable cost per unit remained constant throughout the year. In July 2013, income under variable costing was $152,000. July?s beginning and ending inventories were 10,000 and 6,500 units respectively. Calculate income under absorption costing.A. $152,000B. $112,500C. $134,500D. $212,0008. Marisa?s Furniture manufactures wooden chairs for outdoor use. In May 2013, the company manufactured 15,000 and sold 12,500 chairs. There were no beginning inventories for May and no work in process at the end of May. The cost per unit for the 15,000 chairs produced was as follows:Direct material $ 8.00Direct Labor 5.00Variable Overhead 2.00Fixed Overhead 4.00Total 19.00What is the value of ending finished goods inventory using absorption costing?A. $37,500B. $35,000C. $25,000D. $47,5009. Assuming the same information as Question #14, what is the value of ending finished goods inventory using variable costing?A. $37,500B. $35,000C. $25,000D. $47,50010. Vitamin water makes flavored water and performs the following tasks in the beverage manufacturing process:HoursReceive and transfer ingredients to storage 7.0Store ingredients 260.0Transfer ingredients from storage to production 5.5Mix and cook ingredients 8.5Bottle Water 2.0Transfer bottles to warehouse 3.0Calculate the total cycle time of this manufacturing process?A. 292.5 hoursB. 286 hoursC. 272 hoursD. 286.5 hours11. Sheera Company is a design shop that produces jobs to customer specifications. During March, Job #351 was worked on and the following information was available.Direct Material Used $2,150Direct Labor Hours worked 10Machine Time used 8Direct Labor Rate per Hour $4Overhead application rate per hour of machine time $15What was the total cost of Job #351 for March?A. $2,015B. $2,310C. $2,300D. $1,99212. Havana Company uses a weighted average process costing system and started 32,000 units this month. Winters had 12,000 units that that were 25% complete as to conversion costs in beginning WIP inventory and 5,000 units that were 30% complete as to conversion costs in ending WIP inventory. What are the equivalent units for conversion costs?A. 43,250B. 45,100C. 42,900D. 40,50013. Marx Company applies Overhead to jobs at a rate of 30% of direct labor cost. Direct Material of $1,150 and direct labor of $1,500 were expended on job #12 during September. On August 31st, the balance of job #12 was $2,500. The balance on September 30th is?A. $4,550B. $5,600C. $5,450D. $6,05014. The following information is for Patterson Company?s July production:Standards:Material 3 feet per unit @ 4.00 per footLabor 2.5 hours per unit @ $7.60 per hourActual:Production 2,500 units produced during this monthMaterial 8,100 feet used, 9,000 feet purchased at $4.50 per footLabor 6,000 direct labor hours @ $7.70 per hourWhat is the Material Quantity Variance? (round to the nearest dollar)A. $2,400 FavorableB. $2,150 FavorableC. $2,400 UnfavorableD. $2,150 Unfavorable15. Using the information from Question #14, what is the labor rate variance? (round to the nearest dollar)A. $600 UnfavorableB. $850 FavorableC. $850 UnfavorableD. $600 Favorable16. Chronologically, the first part of the master budget prepared would be the:A. Sales budgetB. Production budgetC. Cash budgetD. Pro forma financial statements17. Soho Company is preparing its Manufacturing Overhead budget for the second quarter of the year. Budgeted variable factory overhead is $2 per unit produced, budgeted fixed factory overhead is $54,000 per month, with $18,000 of this amount being factory depreciation.If the budgeted production for May is 4,500 units, then the total budgeted factory overhead per unit is:A. $14B. $18C. $12D. $1518. Using the information from #19, if the budgeted cash disbursements for factory overhead for June are $70,000, then the budgeted production for June must be:A. 13,040 unitsB. 16,200 unitsC. 17,000 unitsD. 16,500 units19. Which is the best cost accumulation procedure to use by companies that make relatively small quantities of distinct products or perform unique services that conform to the specifications designated by the purchaser?A. ActualB. StandardC. Job orderD. Process20. Solarte Company uses a job order costing system and the following information is available from its records. The company currently has 3 jobs in process #7, #11, and #13.Raw Material $120,000DL per hour $8.50Overhead applied based on DL cost 125%Direct material was requisitioned as follows for each job respectively: 25%, 30%, and 30%, the balance of the requisitions was considered indirect. Direct labor hours per job are 2,200, 3,100, and 3,700, respectively. Indirect labor is $55,000. Other actual Overhead costs totaled $50,000.How much overhead was applied to Work in Process?A. $95,625B. $99,235C. $100,885D. $90,66521. McKenzie Enterprises has the following revenue and cost functions:Revenue = $60 per unitCost = $80,000 + $35 per unitWhat is the break-even point in units?A. 3,000B. 4,100C. 4,000D. 3,20022. Using the information from Question #21, what is the break-even point in units?A. 200,000B. 195,000C. 192,000D. 205,00023. Jacoby Sports Wear has designed a new athletic suit. The company plans to produce and sell 25,000 units of the new product in the coming year. Annual fixed costs are $700,000, and variable costs are 50% of selling price. If the company wants a pre-tax profit of $200,000, at what minimum price must it sell its product?A. 2,800,000B. 1,800,000C. 1,500,000D. 2,500,00024. A cost incurred in the past and not relevant to any future courses of action is known as:A. Relevant costB. Sunk costC. Opportunity costD. Incremental cost25. A potential benefit that is foregone because one course of action is chosen over another is known as:A. Relevant costB. Sunk costC. Opportunity costD. Incremental cost26. Assume that you are about to graduate from your university and are deciding whether to apply for graduate school or enter the job market. To help make the decision, you gathered the following information:Costs incurred for the bachelor?s degree $163,000Out of pocket costs for a master?s degree $104,000Estimated starting salary with B.A. $56,500Estimated starting salary with M.A. $66,800Estimated time to complete master?s degree 2 yearsEstimated time from the present to retirement 40 yearsRoom & Board $24,000Books and education materials to obtain master?s $5,500What is the opportunity cost associated with earning the master?s degree?A. 113,000B. 125,000C. 188,000D. 326,00027. Using the information from Question #26, what is the out of pocket cost to obtain the master?s degree?A. 128,000B. 109,500C. 133,500D. 192,50028. An incidental output of a joint process is also known as:A. ScrapB. WasteC. Split-offD. Garbage29. The total cost incurred for the material, labor and overhead during a joint process is called:A. Separate costsB. Incremental costsC. Unknown costsD. Joint costs30. Almond breeze produces milk and sour cream from a joint process. During June, the company produced 240,000 quarts of milk and 190,000 pints of sour cream (there are 2 pints in a quart). Sales value at split-off point was $377,400 for the milk and $177,600 for the sour cream. The milk was assigned $125,800 of the joint cost. Using the sales value at split-off approach, determine the total joint cost for June.A. $180,000B. $185,000C. $195,000D. $205,000Short Answers: For each question below, please show as much work as possible as the you can receive partial credit for your work and the answers you give.1. Ralph Lauren makes summer dresses for women. The following information was gathered from the company records for 2013, the first year of company operations. Work in process inventory at the end of 2013 was $15,500.Direct Material purchased on account $ 650,000Direct Material issued to production 440,000Direct Labor payroll accrued 305,500Indirect labor payroll accrued 92,000Prepaid factory insurance expired 6,000Factory utilities paid 21,500Depreciation on factory equipment recorded 35,500Factory rent paid 155,000Sales 1,250,000The company?s gross profit rate for the year was 25 percent of sales.A. Compute the cost of goods sold for 2013?B. What was the total cost of goods manufactured for 2013?C. What is the Finished Goods Inventory at December 31, 2013?D. If Net Income was $105,000, what were total selling and administrative expenses for the year?2. In July 2013, Zing Corporation purchased 18,000 gallons of Numerol for $55,000 to use in the production of product MR57. During July, Zing Inc. manufactured 3,700 units of product for MR57. The following information is available about standard and actual quantities and costs: (Round to the nearest penny) Make Sure to list if the variance is favorable or unfavorable.Standard for 1 Unit Actual Usage for JulyDirect Material 4.2 Gallons @ $3/gallon 16,550 GallonsDirect Labor 20 minutes @ $8 per DLH 1,250 DLHs @ $8.02 per DLHA. Compute the Material price varianceB. Compute the Material quantity varianceC. Compute the Labor Rate VarianceD. Compute the Labor Efficiency VarianceE. Compute the total labor Variance3. Caputo Automotive sells an auto accessory for $180 per unit. The company?s variable cost per unit is $30 for direct material, $25 per unit for direct labor, and $17 per unit for overhead. Annual fixed production overhead is $37,400, and fixed selling and administrative overhead is $25,240.A. What is the contribution margin per unit?B. What is the contribution margin ration?C. What is the break-even point?D. Using the contribution margin ration, what is the break-even point in sales dollars?E. If Caputo Automotive wants to earn an after-tax profit of $135,800, how many units must the company sell?Top of FormBottom of FormTop of FormBottom of Form


Paper#38152 | Written in 18-Jul-2015

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