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devry acct349 quiz week 1 2 and 3

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Question;1. Question;(TCO 10) Which of the;following statements is true about overhead cost variance analysis using;activity-based costing?;Overhead cost variances are calculated for;output-unit level costs only.;Overhead cost variances are calculated for;variable manufacturing overhead costs only.;A 4-variance analysis can be conducted.;Activity-based costing uses input measures;for all activities, resulting in the inability to do flexible budgets needed;for variance analysis.;Question 2. Question;(TCO 10) Sebastian Company;which manufactures electrical switches, uses a standard cost system and carries;all inventories at standard. The standard manufacturing overhead costs per;switch are based on direct labor hours and are shown below;Variable overhead (5 hours at $12 per direct manufacturing;labor hour) $ 60;Fixed overhead (5 hours at $15 per direct manufacturing;labor hour;based on capacity of 200,000 direct manufacturing labor;hours per month) 75;Total overhead per switch $;135;The following information is available for the month of;December;? 46,000;switches were produced, although 40,000 switches were scheduled to be produced.;? 225,000;direct manufacturing labor hours were worked at a total cost of $5,625,000.;? Variable;manufacturing overhead costs were $2,750,000.;? Fixed;manufacturing overhead costs were $3,050,000.;The total variable manufacturing overhead variance was;$10,000 F;$10,000 U;$110,000 U;$110,000 F;Question 3. Question;(TCO 10) Sebastian Company;which manufactures electrical switches, uses a standard cost system and carries;all inventories at standard. The standard manufacturing overhead costs per;switch are based on direct labor hours and are shown below;Variable overhead (5 hours at $12 per direct manufacturing;labor hour) $ 60;Fixed overhead (5 hours at $15 per direct manufacturing;labor hour;based on capacity of 200,000 direct manufacturing labor;hours per month) 75;Total overhead per switch $;135;The following information is available for the month of;December;? 46,000;switches were produced, although 40,000 switches were scheduled to be produced.;? 225,000;direct manufacturing labor hours were worked at a total cost of $5,625,000.;? Variable;manufacturing overhead costs were $2,750,000.;? Fixed;manufacturing overhead costs were $3,050,000.;The fixed manufacturing overhead spending variance for;December was;$450,000 F;$400,000 F;$50,000 U;$775,000 F;Question 4. Question;(TCO 10) The following;information is for Pappillon Corporation?s variable manufacturing overhead;costs last month: favorable flexible-budget variance of $3,000, unfavorable;efficiency variance of $2,500. The spending variance is;$500 favorable.;$5,500 unfavorable.;$5,500 favorable.;None of the above;Question 5. Question;(TCO 10) Budgeted overhead;costs rates can be expressed as an amount per unit of output or per unit of;input.;True;False;Question 1. Question;(TCO 6) Homogeneity is used to;develop cost pools in which the costs have;the same or similar cost-allocation base.;develop cost pools of similar amounts for;allocation purposes.;develop cost pools based on similarity of;origination costs to be allocated.;develop costs pools only for activity-based;costing.;Question 2. Question;(TCO 6) Information about;price discounting can be useful in analyzing revenues of customers if;sales people are properly trained in sales;forecasting.;records in the information system are kept of;reductions in selling price below list price.;a strictly enforced company policy is in;place regarding volume-based price discounts.;sales people are on an incentive plan that is;based on revenues.;Question 3. Question;(TCO 5) Natural Nutrients;Bakery of Southfield produces three flavors of cat morsels that have budgeted;and actual sales data for a bag of a dozen of its cat morsels as follows for;December 20XX.;Budgeted Data Actual Data;Tuna ChikBits ChezNips Tuna ChikBits ChezNips;Bags 7,200 4,800 4,000 10,800 3,600 7,200;CM per bag $2.50 $4.00 $5.00 $2.00 $3.00 $7.50;Cont. Margin $18,000 $19,200 $20,000 $21,600 $10,800 $54,000;Total Contribution Margin $57,200;$86,400;According to company forecasts, it was budgeting to earn a;25% market share in total units (bags) of specialty prepared cat treats sold in;December 20XX in Southfield. Reliable industry sources indicate that the total;number of bags of cat treats sold for December 20XX in Southfield was 72,000.;The sales-quantity variance for December 20XX for Natural;Nutrients Bakery is;$3,600 F.;$20,200 F.;$20,020 F.;$29,200 F.;Points Received: 6 of 6;Comments;Question 4. Question;(TCO 6) Natural Nutrients;Bakery of Southfield produces three flavors of cat morsels that have budgeted;and actual sales data for a bag of a dozen of its cat morsels as follows for;December 20XX.;Budgeted Data Actual Data;Tuna ChikBits ChezNips Tuna ChikBits ChezNips;Bags 7,200 4,800 4,000 10,800 3,600 7,200;CM per bag $2.50 $4.00 $5.00 $2.00 $3.00 $7.50;Cont. Margin $18,000 $19,200 $20,000 $21,600 $10,800 $54,000;Total Contribution Margin $57,200;$86,400;According to company forecasts, it was budgeting to earn a;25% market share in total units (bags) of specialty prepared cat treats sold in;December 20XX in Southfield. Reliable industry sources indicate that the total;number of bags of cat treats sold for December 200X in Southfield was 72,000.;The market-share variance for December 20XX for Natural;Nutrients Bakery is;$20,020 F.;$12,870 F.;$11,600 F.;$11,440 F.;Question 5. Question;(TCO 6) Fulbrite Fashions;sells a line of women?s dresses. Fulbrite?s performance report for November is;shown below. The company uses a flexible budget to analyze its performance and;to measure the effect on operating income of the various factors affecting the;difference between budgeted and actual operating income.;Actual Budget;Dresses sold 5,000 6,000;Sales $235,000 $300,000;Variable costs (145,000) (180,000);Contribution margin $;90,000 $120,000;Fixed costs (84,000) (80,000);Operating income $ 6,000 $;40,000;The effect of the sales quantity variance on Fulbrite?s;contribution margin for November is;$30,000 unfavorable.;$18,000 unfavorable.;$20,000 unfavorable.;$15,000 unfavorable.;Question 1. Question;(TCO 1) A mixed cost function;has a constant component of $20,000. If the total cost is $60,000 and the;independent variable has the value 200, what is the slope coefficient?;Student Answer: $200;$400;$600;$40,000;Points Received: 6 of 6;Comments;Question 2. Question;(TCO 1) Companies that take;advantage of quantity discounts in purchasing their materials have;decreasing cost functions.;linear cost functions.;nonlinear cost functions.;stationary cost functions.;Comments;Question 3. Question;(TCO 3) The best opportunity;for cost reduction is;during the manufacturing phase of the value;chain.;during the product/process design phase of;the value chain.;during the marketing phase of the value;chain.;during the distribution phase of the value;chain.;Question 4. Question;(TCO 3) Each month, Haddock;Company has $275,000 total manufacturing costs (20% fixed) and $125,000;distribution and marketing costs (36% fixed). Haddock?s monthly sales are;$500,000. The markup percentage on variable costs to arrive at the existing;(target) selling price is;20%.;40%.;80%.;66.666%.;$200,000/$300,000 = 66 2/3%;Question 5. Question;(TCO 3) Which of these do;antitrust laws on pricing not cover?;Collusive pricing;Dumping;Peak-load pricing;Predatory pricing

 

Paper#38528 | Written in 18-Jul-2015

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