ACC 349 Final EXAM 2
Nick Sparrow
1) At the end of the year, manufacturing overhead has been overapplied. What occurred to create this situation? | ||||||||||||||||
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2) Luca Company overapplied manufacturing overhead during 2006. Which one of the following is part of the year end entry to dispose of the overapplied amount assuming the amount is material? | ||||||||||||||||
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3) Why is factory overhead applied to products and jobs by manufacturing companies? | ||||||||||||||||
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4) In a job order cost accounting system, the Work in Process account is | ||||||||||||||||
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5) Which one of the following is an important feature of a job order cost system? | ||||||||||||||||
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6) Which of the following represents the two basic types of cost accounting systems? | ||||||||||||||||
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7) Which of the following represents the correct order in which inventories are reported on a manufacturer’s balance sheet? | ||||||||||||||||
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8) Which one of the following is indirect labor considered? | ||||||||||||||||
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9) Which of the following is an element of manufacturing overhead? | ||||||||||||||||
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10) Which of the following is NOT typical of traditional costing systems? | ||||||||||||||||
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11) An activity that has a direct cause-effect relationship with the resources consumed is a(n) | ||||||||||||||||
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12) A well-designed activity-based costing system starts with | ||||||||||||||||
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13) What sometimes makes implementation of activity-based costing difficult in service industries is | ||||||||||||||||
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14) Which of the following is a nonvalue-added activity? | ||||||||||||||||
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15) Each of the following is a limitation of activity-based costing EXCEPT | ||||||||||||||||
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16) Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of setting up machines, $800,000; machining, $1,800,000; and inspecting, $600,000. Information on the two products is:
Overhead applied to Mini A using activity-based costing is | ||||||||||||||||
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17) Which of the following factors would suggest a switch to activity-based costing? | ||||||||||||||||
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18) Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of setting up machines, $800,000; machining, $1,800,000; and inspecting, $600,000. Information on the two products is:
Overhead applied to Maxi B using traditional costing using direct labor hours is | ||||||||||||||||
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19) Seran Company has contacted Truckel Inc. with an offer to sell it 5,000 of the wickets for $18 each. If Truckel makes the wickets, variable costs are $11 per unit. Fixed costs are $12 per unit; however, $5 per unit is avoidable. Should Truckel make or buy the wickets? | ||||||||||||||||
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20) Max Company uses 10,000 units of Part A in producing its products. A supplier offers to make Part A for $7. Max Company has relevant costs of $8 a unit to manufacture Part A. If there is excess capacity, the opportunity cost of buying Part A from the supplier is | ||||||||||||||||
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21) Rosen, Inc. has 10,000 obsolete calculators, which are carried in inventory at a cost of $20,000. If the calculators are scrapped, they can be sold for $1.10 each (for parts). If they are repackaged, at a cost of $15,000, they could be sold to toy stores for $2.50 per unit. What alternative should be chosen, and why? | ||||||||||||||||
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22) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase? | ||||||||||||||||
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23) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers? | ||||||||||||||||
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24) Hartley, Inc. has one product with a selling price per unit of $200, the unit variable cost is $75, and the total monthly fixed costs are $300,000. How much is Hartley’s contribution margin ratio? | ||||||||||||||||
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25) Which cost is charged to the product under variable costing? | ||||||||||||||||
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26) Orbach Company sells its product for $40 per unit. During 2005, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are: direct materials $10, direct labor $6, and variable overhead $2. Fixed costs are: $480,000 manufacturing overhead, and $60,000 selling and administrative expenses. The per unit manufacturing cost under absorption costing is | ||||||||||||||||
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27) Which cost is NOT charged to the product under variable costing? | ||||||||||||||||
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28) If standard costs are incorporated into the accounting system, | ||||||||||||||||
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29) The difference between a budget and a standard is that | ||||||||||||||||
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30) A standard cost is | ||||||||||||||||
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31) The standard rate of pay is $5 per direct labor hour. If the actual direct labor payroll was $19,600 for 4,000 direct labor hours worked, the direct labor price (rate) variance is | ||||||||||||||||
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32) A company developed the following per-unit standards for its product: 2 pounds of direct materials at $6 per pound. Last month, 2,000 pounds of direct materials were purchased for $11,400. The direct materials price variance for last month was | ||||||||||||||||
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33) The total variance is $10,000. The total materials variance is $4,000. The total labor variance is twice the total overhead variance. What is the total overhead variance? | ||||||||||||||||
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34) Which of the following statements is FALSE? | ||||||||||||||||
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35) The overhead volume variance relates only to | ||||||||||||||||
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36) If the standard hours allowed are less than the standard hours at normal capacity, the volume variance | ||||||||||||||||
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37) During December, the capital budget indicates a $280,000 purchase of equipment. The ending November cash balance is budgeted to be $40,000. Cash receipts are $840,000, and cash disbursements are $610,000 during December. The company wants to maintain a minimum cash balance of $20,000. What is the minimum cash loan that must be planned to be borrowed from the bank during December? | ||||||||||||||||
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38) Waco’s Widgets plans to sell 22,000 widgets during May, 19,000 units in June, and 20,000 during July. Waco keeps 10% of the next month’s sales as ending inventory. How many units should Waco produce during June? | ||||||||||||||||
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39) At January 1, 2004, Barry, Inc. has beginning inventory of 4,000 widgets. Barry estimates it will sell 35,000 units during the first quarter of 2004 with a 10% increase in sales each quarter. Barry’s policy is to maintain an ending inventory equal to 25% of the next quarter’s sales. Each widget costs $1 and is sold for $1.50. How much is budgeted sales revenue for the third quarter of 2004? | ||||||||||||||||
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40) Prices are set by the competitive market when | ||||||||||||||||
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41) In cost-plus pricing, the markup percentage is computed by dividing the desired ROI per unit by the | ||||||||||||||||
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42) The cost-plus pricing approach's major advantage is | ||||||||||||||||
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