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devry acct344 week 3 and week 5 quiz

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Question;1. Question;(TCO 8) A predetermined;overhead rate is calculated using which formula?;Actual annual overhead / budgeted annual;driver level;Budgeted annual overhead / budgeted annual;driver level;Budgeted annual overhead / actual annual;driver level;Actual annual overhead / actual annual driver;level;2. Question: (TCO 8) All of the following are unit-based activity;drivers EXCEPT;number of setups.;machine hours.;number of units.;direct labor hours.;3. Question: (TCO 8) A department that is capital intensive most likely;would use a predetermined departmental overhead rate based on which activity;base?;Units of direct material used;Direct labor hours;Direct labor cost;Machine hours;4. Question: (TCO 8) Star Inc. uses a job-order costing system to;account for product costs.;The following information was provided for the current year.;Materials placed in production $160,000;Indirect labor;$50,000;Direct labor (10,000 hours) $180,000;Depreciation of factory building $80,000;Other factory overhead $130,000;Increase in work-in-process inventory $45,000;Factory overhead rate per direct labor hour $25;Which is the amount of under- or overapplied overhead for;Star Inc.?;$50,000 overapplied;$10,000 overapplied;$50,000 underapplied;$10,000 underapplied;5. Question: (TCO 8) Acme Company manufactures two products (anvils and;barrels).;Overhead costs ($84,000) have been divided into three cost;pools, which use the following activity drivers.;Product #;of Setups Machine Hours Packing Orders;Anvils 10 500 75;Barrels 10 2,000 175;Cost per Pool;$10,000 $60,000 $18,750;What is the allocation rate for barrels per machine hours;using activity-based costing?;$60,000;$24;$1,429;$30;6. Question: (TCO 8) Which is NOT a limitation of a plantwide overhead;rate?;Product diversity may consume overhead;activities under differing consumption ratios.;Overhead usage is not strictly linked to the;units produced because some products are more complex and diverse than others.;Predetermined rates using budgeted overhead;are usually the best estimate of the amount of overhead.;Overhead costs tend to be underallocated to;highly complex products.;7. Question: (TCO 8) The resources consumed by the activity in;producing its output are called;value-added activities.;activity outputs.;driver analyses.;activity inputs.;8. Question: (TCO 8) Which is NOT part of the cost dimension of the;activity-based management model?;Resources;Driver analysis;Activities;Cost objects;9. Question: (TCO 8) Which is an example of a non-value-added;manufacturing activity?;Assembly;Scheduling;Finishing;All of the above;10. Question: (TCO 8) The process that involves choosing among various;sets of activities that are caused by competing strategies is called;activity sharing.;activity selection.;activity elimination.;activity reduction.week 51. Question;(TCO 7) A common cost occurs when only one product or service is;benefited. when different resources are used to produce;one output. when the same resource is used in the output;of two or more outputs. when a resource is used by two or more;companies. 2. Question: (TCO 7) Which would be the most appropriate base for;allocating the costs of the housekeeping department? Machine hours Direct labor hours Square feet Number of employees 3. Question: (TCO 7) The Ruling Company assigns plant administration;costs to the production departments based on thenumber of employees. Which would NOT be a good combination;of common costs with an activity driver? Personnel department costs based on number of;employees Purchasing department costs based on machine;hours Cafeteria costs based on meals served Warehouse costs based on the value of;materials stored 4. Question: (TCO 7) Joint costs are allocated because of financial reporting requirements. tax reporting requirements. IMA requirements. Both A and B 5. Question: (TCO 7) Which method allocates support department costs? Direct allocation method Reciprocal allocation method Sequential allocation method All of the above 6. Question: (TCO 7) Joint costs are separable. allocated on the basis of cause-and-effect;relationships. allocated arbitrarily. All of the above 7. Question: (TCO 7) Which method allocates joint production costs;based on the pounds of product produced? Sales-value-at-split-off method Physical units method Constant gross margin percentage method Replacement cost method 8. Question: (TCO 7) DeeDee Corporation manufactures the following;products in its factory. $400,000 of costs were incurred.Product Units;Produced Weight per Unit (lb) Selling Price per UnitA 2,500 10 $6B 5,000 8 $12C 7,500 6 $12D 10,000 4 $6How much joint cost would be allocated to Product A based on;the physical units method? $40,000 $460,000 $66,667 $400,000 9. Question: (TCO 7) Sally Corporation manufactures four products. The;following data were provided by the cost accountant for the current year.Product Units;Produced Sales Value at Split-OffJ 15,000 $10,000 K 9,000 $5,000 L 24,000 $6,000M 12,000 $9,000Total Joint Processing Costs;$24,000 Which is the amount of joint costs assigned to Product L;using the sales-value-at-split-off method? $9,600 $24,000 $1,600 $4,800 10. Question: (TCO 7) Lamb Inc. processes wool into four grades of yarn;as follows.Product Yards;Produced Sales Value at Split-OffMerino Wool 75,000 $56,250Wool Singles;200,000 $180,000Superwash Wool;100,000 $105,000Plied Wool;125,000 $127,500Total Joint Processing Costs;$300,000Which is the amount of joint costs assigned to Superwash;Wool using the constant gross margin percentage method? $300,000 $67,200 $37,800 $192,000;="msonormal">

 

Paper#38606 | Written in 18-Jul-2015

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