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ACCT 346 MIDTERM

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Question;1. Question: (TCO 1) Managerial accounting stresses accounting concepts;and procedures that are relevant to preparing reports for;taxing authorities.;internal users of accounting information.;external users of accounting information.;the Securities and Exchange Commission (SEC).;2. Question;(TCO 1) Which of the following;costs does not change when the level of business activity changes?;total fixed costs;total variable costs;total direct materials costs;fixed costs per unit;3. Question;(TCO 1) You own a car and are;trying to decide whether or not to trade it in and buy a new car. Which of the;following costs is an opportunity cost in this situation?;the trip to Cancun that you will not be able;to take if you buy the car;the cost of the car you are trading in;the cost of your books for this term;the cost of your car insurance last year;4. Question;(TCO 1) Shula?s 347 Grill has;budgeted the following costs for a month in which 1,600 steak dinners will be;produced and sold: materials, $4,080, hourly labor (variable), $5,200, rent;(fixed), $1,700, depreciation, $800, and other fixed costs, $600. Each steak;dinner sells for $14.00 each. What is the budgeted fixed cost per unit?;$1.06;$1.44;$4.49;$1.94;5. Question;(TCO 1) Which of the following;costs is not part of manufacturing overhead?;electricity for the factory;depreciation of factory equipment;salaries for the production supervisors;health insurance for sales staff;6. Question;(TCO 1) Product costs;are also called manufacturing costs.;are considered an asset until the finished;goods are sold.;become an expense when the goods are sold.;All of the above answers are correct.;7. Question;(TCO 1) Red Runner?s Work in;Process Inventory account has a beginning balance of $50,000 and an ending;balance of $40,000. Direct materials used are $70,000 and direct labor used;totals $35,000. Cost of goods sold totals $135,000. Manufacturing overhead;applied is $20,000. How much is cost of goods manufactured?;$145,000;$115,000;$125,000;$135,000;8. Question;(TCO 2) BCS Company applies;manufacturing overhead based on direct labor cost. Information concerning;manufacturing overhead and labor for August follows;Estimated Actual;Overhead cost $174,000 $171,000;Direct labor hours 5,800 5,900;Direct labor cost $87,000 $89,975;How much is the predetermined;overhead rate?;2.00;1.90;30.00;1.93;9. Question;(TCO 2) During 2011, Madison;Company applied overhead using a job-order costing system at a rate of $12 per;direct labor hours. Estimated direct labor hours for the year were 150,000, and;estimated overhead for the year was $1,800,000. Actual direct labor hours for;2011 were 140,000 and actual overhead was $1,670,000.;What is the amount of under or;over applied overhead for the year?;$10,000 underapplied;$10,000 overapplied;$130,000 underapplied;$130,000 overapplied;10. Question;(TCO 3) Which of the following;describes the differences between job-order and process costing?;Job-order costing is used in financial;accounting while process costing is used in managerial accounting.;Job-order costing can only be used by;manufacturers, service enterprises must use process costing.;Job-order costing is voluntary while process;costing is mandatory.;Job-order costing traces costs to jobs while;process costing traces costs to departments and averages the costs among the;units worked on during the period.;11. Question;(TCO 3) The Blending Department;began the period with 45,000 units. During the period the department received;another 30,000 units from the prior department and completed 60,000 units;during the period. The remaining units were 75% complete. How much are;equivalent units in The Blending Department?s work in process inventory at the;end of the period?;30,000;22,500;15,000;11,250;12. Question;(TCO 3) Ranger Glass Company;manufactures glass for French doors. At the start of May, 2,000 units were;in-process. During May, 11,000 units were completed and 3,000 units were in;process at the end of May. These in-process units were 90% complete with;respect to material and 50% complete with respect to conversion costs. Other;information is as follows;Work in process, May 1;Direct material $36,000;Conversion costs $45,000;Costs incurred during May;Direct material $186,000;Conversion costs $255,000;How much is the cost per;equivalent unit for direct materials?;$24.00;$16.20;$15.86;$13.58;13. Question;(TCO 4) Total costs were $75,800;when 30,000 units were produced and $95,800 when 40,000 units were produced.;Use the high-low method to find the estimated total costs for a production;level of 32,000 units.;$80,115;$76,000;$79,800;$91,800

 

Paper#40304 | Written in 18-Jul-2015

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