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cost accounting

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1. A company is building a widget. During the current year, a widget requires direct materials with a cost of $300. The company must also spend $200 for direct labor. Finally, factory overhead related to the production of a widget is $100. What is the prime cost associated with a widget?;A. 100;B. 400;C. 300;D. 500;2. A company is building a widget. During the current year, a widget requires direct materials with a cost of $500. The company must also spend $600 for direct labor. Finally, factory overhead related to the production of a widget is $100. What is the conversion cost associated with a widget?;A. 600;B. 900;C. 700;D. 800;3. Nash accounting services pays $2,500 a month for a tax preparation software license. In addition, variable charges incurred average $50 for every tax return the firm prepares. Determine the cost per unit if the firm expects to prepare 150 tax returns. Round to nearest Cent.;A. $70.50;B. $66.67;C. $55.00;D. $52.50;4. For 2013, Lorenzo Auto has a monthly overhead cost formula of $44,000 + $8 per direct labor hour. The firm?s 2013 annual capacity is 70,000 direct labor hours to be incurred evenly each month. What is the total overhead to be applied per unit of product in 2013?;A. $560,000;B. $885,000;C. $1,088,000;D. $1,000,500;5. The W Hotel has gathered the following information on its utility cost for the past 6 months.;Machine Hours Utility Cost;1300 $940;1700 $1075;1250 $900;1800 $1132;1900 $1160;1500 $990;Using the high-low method and considering there are NO outliers, determine the cost formula for utility cost.;A. y = $400 +.40X;B. y = $400 +.60X;C. y = $600 +.40X;D. y = $600 +.60X;6. Using the formula from Question #11, what would be the total cost if the hotel used 1200 Machine hours for the month of March?;A. $1000;B. $880;C. $420;D. $950;7. Cuisinart manufactures tea pots. In 2013, fixed overhead was applied to products at a rate of $5 per unit. Variable cost per unit remained constant throughout the year. In July 2013, income under variable costing was $152,000. July?s beginning and ending inventories were 10,000 and 6,500 units respectively. Calculate income under absorption costing.;A. $152,000;B. $112,500;C. $134,500;D. $212,000;8. Marisa?s Furniture manufactures wooden chairs for outdoor use. In May 2013, the company manufactured 15,000 and sold 12,500 chairs. There were no beginning inventories for May and no work in process at the end of May. The cost per unit for the 15,000 chairs produced was as follows;Direct material $ 8.00;Direct Labor 5.00;Variable Overhead 2.00;Fixed Overhead 4.00;Total 19.00;What is the value of ending finished goods inventory using absorption costing?;A. $37,500;B. $35,000;C. $25,000;D. $47,500;9. Assuming the same information as Question #14, what is the value of ending finished goods inventory using variable costing?;A. $37,500;B. $35,000;C. $25,000;D. $47,500;10. Vitamin water makes flavored water and performs the following tasks in the beverage manufacturing process;Hours;Receive and transfer ingredients to storage 7.0;Store ingredients 260.0;Transfer ingredients from storage to production 5.5;Mix and cook ingredients 8.5;Bottle Water 2.0;Transfer bottles to warehouse 3.0;Calculate the total cycle time of this manufacturing process?;A. 292.5 hours;B. 286 hours;C. 272 hours;D. 286.5 hours;11. Sheera Company is a design shop that produces jobs to customer specifications. During March, Job #351 was worked on and the following information was available.;Direct Material Used $2,150;Direct Labor Hours worked 10;Machine Time used 8;Direct Labor Rate per Hour $4;Overhead application rate per hour of machine time $15;What was the total cost of Job #351 for March?;A. $2,015;B. $2,310;C. $2,300;D. $1,992;12. Havana Company uses a weighted average process costing system and started 32,000 units this month. Winters had 12,000 units that that were 25% complete as to conversion costs in beginning WIP inventory and 5,000 units that were 30% complete as to conversion costs in ending WIP inventory. What are the equivalent units for conversion costs?;A. 43,250;B. 45,100;C. 42,900;D. 40,500;13. Marx Company applies Overhead to jobs at a rate of 30% of direct labor cost. Direct Material of $1,150 and direct labor of $1,500 were expended on job #12 during September. On August 31 st, the balance of job #12 was $2,500. The balance on September 30 th is?;A. $4,550;B. $5,600;C. $5,450;D. $6,050;14. The following information is for Patterson Company?s July production;Standards;Material 3 feet per unit @ 4.00 per foot;Labor 2.5 hours per unit @ $7.60 per hour

 

Paper#79692 | Written in 18-Jul-2015

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