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ACC350 final exam

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Question;ACC350, Final Exam1. Fruit-n-Berries, Inc., manufactures a product called Fruta. The company uses a standard cost system and has established the following standards for one (1) unit of Fruta:Standard Quantity Standard Price or Rate Standard CostDirect materials 1.5 pounds $6 per pound $9.00Direct labor 0.6 hours $12 per hour 7.20Variable overhead 0.6 hours $2.50 per hour 1.50$17.70The following activities were recorded by the company relative to the production of Fruta:a. The company produced 3,000 units during the month.b. A total of 8,000 pounds of material were purchased at a cost of $46,000.c. There was no beginning inventory of materials on hand to start the month, at the end of the month, 3,000 pounds of material remained in the warehouse unused.d. The company employs 10 persons to work on the production of Fruta. During June, each worked an average of 160 hours at an average rate of $12.50 per hour.e. Variable overhead is assigned to Fruta on a basis of direct labor hours. Variable overhead costs during the month totaled $3,600.If management is anxious to determine the efficiency of the activities surrounding the production of Fruta, (1) compute the materials price and quantity variances, (2) compute the labor rate and efficiency variances, (3) compute the variable overhead spending and efficiency variances, (4) compute the total materials variance, (5) compute the total labor variance, (6) compute the total variable overhead variance, (7) compute the total variance and (8) what would you recommend to management? (120 points)2. The Good Buy Company produces a single product. The cost characteristics of the product and of the manufacturing plant are given below:Number of units produced each year.............. 6,000Variable costs per unit:Direct materials $2Direct labor $4Variable manufacturing overhead $1Variable selling & administrative expense $3Fixed costs per unit:Manufacturing overhead $30,000Selling & administrative expense $10,000Under the variable costing method (1) compute the cost of a unit of product and (2) prepare a variable costing income statement if 5,000 units are sold at a price of $20. Assume beginning inventory is equal to zero (0). (30 points)3. Bernie Company used a regression analysis to predict the annual cost of indirect materials. The results are shown below.a. What is the cost function for this analysis? (15 points)b. What can you surmise about the data used in this analysis? Please be specific and concise. (15 points)c. How many data points were used in this analysis? (15 points)d. If the activity level is 33,850, what is the cost of this activity? (15 points)Constant 4,378Standard error of Y estimate 912R2 0.9183No. of observations 12Degrees of freedom 10Coefficient(s) 2.35Standard error of coefficient(s) 0.4375254. The Sawaya Hotel?s (Japan) guest-days of occupancy and custodial supplies expense (in Japanese yen, denoted by ?) over the last seven months were:Month Guest-Days of Occupancy Custodial Supplies ExpenseMarch 4,000 ?7,500,000April 6,500 ?8,250,000May 8,000 ?10,500,000June 10,500 ?12,000,000July 12,000 ?13,500,000August 9,000 ?10,750,000September 7,500 ?9,750,000Guest-day is a measure of the overall activity at the hotel. For example, a guest who stays at the hotel for three (3) days is counted as three (3) guest-days. Using the high-low method, estimate a cost formula for custodial supplies expense. Using the cost formula you developed, what amount of custodial supplies expense would you expect to be incurred at an occupancy level of 11,000 guest-days? (30 points)

 

Paper#40674 | Written in 18-Jul-2015

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