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##### Acct 5210- accounting problems

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Question;This homework;assignment is worth 25 points that will be awarded based on the following;Points;QUESTIONS 1?7, 9?11, 14, 16?19 1 point;each;15;QUESTIONS 8, 12, 13, 15, 20 2 points each;10;TOTAL;25;1.;(1 point) Aesop Douglas plans;on selling autographed souvenir rugs at the Olympics. Based on similar events, he has the following;projected figures;Selling price per rug;$170.00;Contribution margin per rug;$60.00;Total fixed costs;$125,500;What selling price per rug would be;needed to obtain a before-tax profit of $189,500 at a volume of 3,500 rugs?;a.;$ 90.00;b.;$110.00;c.;$150.00;d.;$170.00;e.;$200.00;f.;$230.00;g.;$260.00;h.;None of the above.;2.;(1 point) The following;information pertains to Butter, Inc. for the month of June;Beginning work-in-process inventory;$ 110,000;Ending work-in-process inventory;$ 80,000;Cost of goods manufactured $ 350,000;Manufacturing overhead $ 170,000;If prime costs;are 75% of conversion costs, what was the direct labor cost incurred for June?;a.$112,500;b.;$200,000;c.;$90,000;d.;$30,000;e.;$20,000;f.;$127,500;g.;$150,000;h.;None of the above;3. (1 point) Abbagnale Enterprises will ship all of the USA athletes?;gear to Russia for the Olympics. The;company has the following historical information based on similar trips taken;overseas;Trip Nautical;Miles Operating;Costs;1;500,000 $356,000;2;580,000 $380,000;3;660,000 $420,000;What is the best estimate of total;operating costs using the high-low method if the expected mileage for the trip;to Russia is 590,000 miles?;a.;$236,000;b.;$375,455;c.;$386,552;d.;$386,441;e.;$392,000;f.;$391,977;g.;$420,080;h.;None of the above;4.;(1 point) Jones Manufacturing;reports that finished goods inventory was $14,000 on April 1 and $16,500 on;April 30. Beginning and ending work-in-process inventories were $12,000 and;$24,000, respectively. If cost of goods sold for the month of April was;$80,000, what was the cost of goods manufactured during April?;a.;$82,500;b.;$49,500;c.;$68,500;d.;$77,500;e.;$110,500;f.;$92,000;g.;$96,500;h.;None of the above;5.;(1 point) Cash Company has a;predetermined overhead rate of $4 per machine hour. Last year the company;incurred $112,400 of actual manufacturing overhead cost and the account was;$4,200 over-applied. How many machine hours were used during the year?;a.;16,800 machine hours;b.;20,000 machine hours;c.;28,100 machine hours;d.;30,200 machine hours;e.;27,050 machine hours;f.;29,150 machine hours;g.;28,250 machine hours;h.;None of the above.;6.;(1 point) The Adams Corporation;has the following data for 2014;Units;sold 10,000;units;Total;fixed costs $48,000;Selling;price per unit $20;Variable;cost per unit $12;The margin of safety in units (round;to the nearest whole unit) and operating leverage are, respectively;a.;2,000 units, 2.5.;b.;2,000 units, 1.67.;c.;4,000 units, 2.5.;d.;4,000 units, 1.67.;e.;6,000 units, 2.5.;f.;6,000 units, 1.67;g.;0 units, 1.67;h.;None of the above.;Use the following information;to answer questions the next two questions;Nicoll, Inc., completed;the following jobs during 2014;Job 10;Job 20;Direct materials;$350;$1,200;Direct labor;$345;$1,350;Units completed;100;360;Direct labor hours;30;80;Number of setups;7;3;Number of orders;7;4;Machine hours;60;32;Kilowatt hours;125;150;At the;beginning of 2014, the company identified the following overhead costs and;activity drivers;Expected;Expected;Expected;Expected;Overhead;Activity;Cost;Activity Driver;Quantity;Setups;$120,000;Number of setups;400;Ordering;$ 70,000;Number of orders;250;Maintenance;$180,000;Machine hours;3,000;Power;$ 30,000;Kilowatt hours;75,000;The company's;normal activity is 5,000 direct labor hours.;7.;(1 point) If Nicoll, Inc. uses;direct labor hours in a traditional costing system to assign overhead, what is;the total cost of Job 10?;a.;$2,400;b.;$8,950;c.;$2,550;d.;$6,550;e.;$3,095;f.;$8,405;g.;$5,495;h.;None of the above;8.;(2 points) If Nicoll, Inc. uses;an activity-based costing system to assign overhead, what is the total cost of;Job 20?;a.;$3,095;b.;$4,950;c.;$5,110;d.;$5,650;e.;$8,405;f.;$8,950;g.;$6,550;h.;None of the above;9.;(1 point) The work-in-process;of Parrott Corporation increased $11,500 from the beginning to the end of;November. Costs incurred during November;included $12,000 for direct materials, $63,000 for direct labor, and $21,000;for overhead. What was the cost of goods;manufactured during November?;a.;$11,500;b.;$84,500;c.;$74,500;d.;$75,000;e.;$107,500;f.;$95,500;g.;$96,000;h.;None of the above;10. (1 point) Information from the records of Place, Inc., for the month;of December is as follows;Sales;$962,000;Direct materials purchases;$188,000;Direct labor;$280,000;Direct materials, December 1;$ 25,000;Work in process, December 1;$ 37,000;Finished goods, December 1;$120,000;Direct materials, December 31;$ 11,000;Work in process, December 31;$ 85,000;Finished goods, December 31;$ 55,000;Factory overhead;$290,000;Selling and administrative expenses;$170,000;The operating income (loss) for the;month of December is;a.;$(148,000);b.;$(117,000);c.;$3,000;d.;$20,000;e.;$34,000;f.;$68,000;g.;$173,000;h.;None of the above;Use the following information;to answer the next two questions;Fred?s Frozen Creations has been;contracted to train the USA?s synchronized ice sculpting team. They have identified two different;independent variables (ice sculpting hours and number of ice blocks used in;training) in two different equations to evaluate the cost of training. The;results of the two regressions are as follows;SUMMARY OUTPUT ? Sculpting hours;Regression Statistics;Multiple R;0.6986;R Square;0.4532;Adjusted R Square;0.3143;Standard Error;$40,587;Observations;24;Coefficients;Standard Error;t;Stat;P-value;Intercept;$1,214.35;$398.12;3.05;0.0254;Sculpting hours;$21.90;$7.71;2.84;0.1200;SUMMARY OUTPUT ? Number of ice blocks;Regression Statistics;Multiple R;0.6145;R Square;0.3320;Adjusted R Square;0.2874;Standard Error;$43,127;Observations;24;Coefficients;Standard Error;t;Stat;P-value;Intercept;$6,764.58;$2,073.09;3.26;0.0125;Number of blocks;$223.48;$69.83;3.20;0.0240;11. (1 point) Using the best cost driver;what is the estimated total cost of training these athletes if 12,300 sculpting;hours are incurred and Fred?s uses 1,190 ice blocks during training? Assume;these estimates are within the relevant range.;a.;$27,275.35;b.;$96,047.35;c.;$272,705.78;d.;$296,645.35;e.;$270,584.35;f.;$303,409.73;g.;$309,957.00;h.;None of the above;12. (2 points) Assume Fred?s Frozen Creations chooses to use the number;of ice blocks to estimate the cost of training. Construct a 90% confidence;interval for the cost of training when the number of ice blocks used is;estimated at 1,300. Assume 1,300 ice blocks is within the relevant range.;(Round all calculations to the nearest dollar);a.;($223,240, $371,338);b.;($211,035, $383,543);c.;($227,601, $366,977);d.;($196,535, $344,633);e.;($207,844, $386,734);f.;($189,817, $404,761);g.;($223,499, $371,079);h.;None of the above.;13. (2 point) Eden Company manufactures two products, Brights and Dulls;from a joint process. The cost of the joint process is $50,000 and results in;250 units of Brights and 1,000 units of;Dulls. Both products must be;processed past the split-off point, incurring separable costs for;Brights of $60 per unit and $40 per;unit for Dulls. The market price is $250 for Brights and $200 for Dulls. What is the amount of;joint costs allocated to Brights using the net realizable value method?;a.;$10,000;b.;$11,446;c.;$25,000;d.;$27,143;e.;$27,778;f.;$30,000;g.;$50,000;h.;None of the above;Use the following information;to answer the next two questions;Jay Manufacturing Company has two support;departments, Maintenance and Personnel, and two producing departments, A and B.;The Maintenance Department costs of $40,000 are allocated on the basis of;standard service hours used. The Personnel Department costs of $6,000 are;allocated on the basis of number of employees. The direct overhead costs of;Departments A and B are $8,000 and $20,000, respectively. The company provided the following data;Maint.;Person.;Dept.;Dept.;Dept.;Dept.;A;B;Standard service hours used;90;100;630;270;Number of employees;120;60;200;200;Direct labor hours;125;125;500;250;14. (1 point) What are the total overhead costs associated with;Department B after allocating the Maintenance and Personnel Departments using;the direct method? (Hint: You are finding;the TOTAL cost in Department B after all allocations).;a.;$31,000;b.;$32,200;c.;$35,000;d.;$36,333;e.;$38,667;f.;$39,000;g.;$41,800;h.;None of the above;15. (2 points) What are the total overhead costs associated with;Department B after allocating the Maintenance and Personnel Departments using;the step (sequential) method? Assume the;company allocates the cost of the Maintenance department first. (Hint: You are;finding the TOTAL cost in Department B after all allocations).;a.;$32,080;b.;$32,800;c.;$35,000;d.;$38,200;e.;$39,000;f.;$35,800;g.;$41,920;h.;None of the above;16. (1 point) If a company?s contribution margin ratio is 0.40, targeted;after tax net income is $28,000 (tax rate of 30%), and targeted sales volume in;dollars is $300,000, then total fixed costs are;a.;$ 43,333;b.;$ 80,000;c.;$ 92,000;d.;$118,000;e.;$140,000;f.;$152,000;g.;$213,333;h.;None of the above;17. (1 point) Eden Company manufactures two products, Brights and Dulls;from a joint process. The cost of the joint process is $50,000 and results in;250 units of Brights and 1,000 units of;Dulls. Both products must be;processed past the split-off point, incurring separable costs for;Brights of $60 per unit and $40 per;unit for Dulls. The market price is $250 for Brights and $200 for Dulls. What is the gross profit for Brights assuming the physical;units method is used?;a.;$12,500;b.;$17,500;c.;$18,000;d.;$35,500;e.;$42,500;f.;$47,500;g.;$62,500;h.;None of the above;Use the following information;to answer the next two questions;Holms Company;has a job-order costing system and uses a predetermined overhead rate based on;direct labor-hours to apply manufacturing overhead to jobs. Manufacturing;overhead cost and direct labor hours were estimated at $400,000 and 80,000;hours, respectively, for the year. In May, Job #158 was completed at a cost of;$6,000 in direct materials and $4,000 in direct labor. The labor rate is $8 per;hour. By the end of the year, Holms had worked a total of 75,000 direct;labor-hours and had incurred $365,500 actual manufacturing overhead cost.;18. (1 point) The total cost of Job #158 recorded on the completed job;cost sheet would be: a.$ 8,500;b.;$10,000;c.;$11,600;d.;$12,003;e.;$12,667;f.;$12,500;g.;$14,000;h.;None of the above;19. (1 point) Holms' manufacturing overhead for the year was;a. $1,500 under-applied;b. $1,500 over-applied;c.;$25,000 under-applied;d.;$25,000 over-applied;e.;$9,500 under-applied;f.;$9,500 over-applied;g.;$34,500 under-applied;h.;$34,500 over-applied;i.;None of the above;20. (2 points) Tier Inc. sells two products ? Small and Large. The;company has the following information available;Small Large Total;Variable cost per unit $18 $28;Contribution margin ratio 40%;20%;Total fixed costs $60,000;Assuming a constant mix of 3 units of;Small for 2 units of Large, what is the breakeven point in units? (round all;ratios to 4 decimal places);a.;1,637 units of Small and 1,091;units of Large;b.;3,600 units of Small and 2,400;units of Large;c.;2,667 units of Small and 4,000;units of Large;d.;3,375 units of Small and 2,625;units of Large;e.;3,000 units of Small and 2,000;units of Large;f.;2,400 units of Small and 3,600;units of Large;g.;1,895 units of Small and 1,263;units of Large;h.;None of the above

Paper#43657 | Written in 18-Jul-2015

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