1990647-MIDTERM.docx
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1990647-MIDTERM.docx

Course Number: ACCT 346, Spring 2012

College/University: DeVry Columbus North

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Week 4 : Activity-Based Costing and Incremental Analysis - Midterm en-US Top of Form 5259339 Time Remaining: Page: http://takeexam.n en-US 02:59:39 123 Page 1 26791976 False 15997426 1 rldbqn=1 /main/CourseMod 1. (TCO 1) Managerial accounting stresses accounting concepts and procedures that are relevant to preparing reports for (Points : 4) taxing authorities. internal users of accounting...

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4 Week : Activity-Based Costing and Incremental Analysis - Midterm en-US Top of Form 5259339 Time Remaining: Page: http://takeexam.n en-US 02:59:39 123 Page 1 26791976 False 15997426 1 rldbqn=1 /main/CourseMod 1. (TCO 1) Managerial accounting stresses accounting concepts and procedures that are relevant to preparing reports for (Points : 4) taxing authorities. internal users of accounting information. external users of accounting information. the Securities and Exchange Commission (SEC). 0 1283338422 MultipleChoice 1 2. TCO 1) Which of the following statements regarding fixed costs is true? (Points : 4) When production increases, fixed cost per unit increases. When production decreases, total fixed costs decrease. When production increases, fixed cost per unit decreases. When production decreases, total fixed costs increase. 0 1283338423 MultipleChoice 6 3. (TCO 1) Which of the following is a direct cost in relation to the cost of teaching the managerial accounting course you are currently taking? (Points : 4) the cost of the paper that you receive as handouts for the class the cost of the room you are using for the class the cost of the registration system that allowed you to enroll in the class the cost of the financial aid department that helps you fund the cost of taking the class 0 1283338424 MultipleChoice 9 4. (TCO 1) Shulas 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? (Points : 4) $1.06 $1.44 $4.49 $1.94 0 1283338425 MultipleChoice 12 5. (TCO 1) Which of the following costs is not part of manufacturing overhead? (Points : 4) electricity for the factory depreciation of factory equipment salaries for the production supervisors health insurance for sales staff 0 1283338426 MultipleChoice 14 6. (TCO 1) Product costs (Points : 4) 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. 0 1283338427 MultipleChoice 16 7. (TCO 1) Red Runners 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? (Points : 4) $145,000 $115,000 $125,000 $135,000 0 1283338428 MultipleChoice 21 8. (TCO 2) BCS Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for August follows: Estimated Overhead cost Direct labor hours Direct labor cost Actual $174,000 $171,000 5,800 5,900 $87,000 $89,975 How much overhead should be applied in total during August? (Points : 4) $177,000 $179,950 $171,100 $168,200 0 1283338429 MultipleChoice 23 9. (TCO 2) Citrus Company incurred manufacturing overhead costs of $300,000. Total overhead applied to jobs was $306,000. What was the amount of overapplied or underapplied overhead? (Points : 4) $7,000 overapplied $6,000 overapplied $6,000 underapplied $13,000 underapplied 0 1283338432 MultipleChoice 26 10. (TCO 3) Which of the following companies is most likely to use a process costing system? (Points : 4) a law office a custom home builder a car repair business a food manufacturer 0 1283338434 MultipleChoice 28 11. (TCO 3) The Blending Department began the period with 20,000 units. During the period the department received another 80,000 units from the prior department and at the end of the period 30,000 units remained, which were 40% complete. How much are equivalent units in The Blending Departments work in process inventory at the end of the period? (Points : 4) 12,000 28,000 40,000 52,000 0 1283338436 MultipleChoice 31 12. (TCO 3) During March, the varnishing department incurred costs of $90,250 for direct labor. The beginning inventory was 3,500 units and 10,000 units were transferred to the varnishing department from the sanding department during June. The direct labor cost in the beginning inventory was $27,270. The ending inventory consisted of 2,000 units, which were 25% complete with respect to direct labor. What is the cost per equivalent unit for direct labor? (Points : 4) $8.71 $7.84 $11.19 $9.79 0 1283338439 MultipleChoice 36 13. (TCO 4) Duradyne, Inc. has total costs of $18,000 when 2,000 units are produced and $26,000 when 5,200 units are produced. During March, 4,000 units were produced and sold for $8 each. What is the variable cost per unit? (Points : 4) $2.50 $0.40 $2.00 $4.00 0 1283338441 Page: MultipleChoice 37 123 Time Remaining: 02:59:39 Week 4 : Activity-Based Costing and Incremental Analysis - Midterm en-US Top of Form 5259339 Time Remaining: Page: http://takeexam.n en-US 02:59:06 123 Page 2 26791980 False 15997426 2 /main/CourseMod 1. (TCO 4) The margin of safety is the difference between (Points : 4) total revenue and total fixed costs. expected level of sales and the break-even point. rldbqn=1 budgeted fixed costs and actual fixed costs. selling price and variable cost per unit. 0 1283338445 MultipleChoice 3 2. (TCO 4) Werth Company produces tie racks. The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. Werth expects to produce and sell 60,000 units at a price of $20 per unit. How much is the break-even point in units? (Points : 4) 48,000 72,000 3,600 8,471 0 1283338446 MultipleChoice 4 3. (TCO 4) The president of Jackson Corporation will not receive a bonus next year unless the companys profits are at least $435,000. Jackson sells a single product at a price of $27 per unit. If variable costs are $12 per unit and fixed costs total $150,000, what amount of sales must Jackson generate in order for the president to receive a bonus? (Points : 4) 48,750 units 39,000 units 29,000 units 21,167 units 0 1283338447 MultipleChoice 9 4. (TCO 5) In variable costing, when does fixed manufacturing overhead become an expense? (Points : 4) Never In period the when the product is sold In the period when the expense is incurred In the period when other expenses are at the lowest level 0 1283338448 MultipleChoice 11 5. (TCO 5) Variable costing income is a function of: (Points : 4) Units sold only. Units produced only Both units sold and units produced. Neither units sold nor units. produced 0 1283338449 MultipleChoice 14 6. (TCO 5) Peak Manufacturing produces snow blowers. The selling price per snow blower is $100. Costs involved in production are: Direct Material per unit $20 Direct Labor per unit 12 Variable manufacturing overhead per unit 10 Fixed manufacturing overhead per year $148,500 In addition, the company has fixed selling and administrative costs of $150,000 per year. During the year, Peak produces 45,000 snow blowers and sells 30,000 snow blowers. How much fixed manufacturing overhead is in ending inventory under full costing? (Points : 4) $0 $49,500 $148,500 $99,000 0 1283338450 MultipleChoice 18 7. (TCO 6) Which of the following is not a reason that companies allocate costs? (Points : 4) To calculate the full cost of products for financial reporting purposes To discourage managers from using external suppliers To reduce the frivolous use of company resources To provide information needed by managers to make appropriate decisions 0 1283338451 MultipleChoice 19 8. (TCO 6) The overriding concern in forming a cost pool is to ensure that (Points : 4) there are no variable costs in the cost pool. the total amount in the cost pool is less than the direct costs for the product. only costs that have been budgeted are included in the cost pool. the costs in the pool are homogeneous or similar. 0 1283338452 MultipleChoice 22 9. (TCO 6) The building maintenance department for Jones Manufacturing Company budgets annual costs of $4,200,000 based on the expected operating level for the coming year. The costs are allocated to two production departments. The following data relate to the potential allocation bases: Production Dept. 1 Production Dept. 2 Square footage 15,000 45,000 Direct labor hours 25,000 50,000 If Jones assigns costs to departments based on square footage, how much total costs will be allocated to Production Department 1? (Points : 4) $1,400,000 $1,050,000 $1,575,000 $2,100,000 0 1283338453 MultipleChoice 27 10. (TCO 7) A company is currently making a necessary component in house (the company is producing the component for its own use). The company has received an offer to buy the component from an outside supplier. A machine is being rented to make the component. If the company were to buy the component, the machine would no longer be rented. The rent on the machine, in relation to the decision to make or buy the component, is: (Points : 4) sunk and therefore not relevant. avoidable and therefore not relevant. avoidable and therefore relevant. unavoidable and therefore relevant. 0 1283338454 MultipleChoice 30 11. (TCO 7) Ricket Company has 1,500 obsolete calculators that are carried in inventory at a cost of $13,200. If these calculators are upgraded at a cost of $9,500, they could be sold for $22,500. Alternatively, the calculators could be sold "as is" for $9,000. What is the net advantage or disadvantage of reworking the calculators? (Points : 4) $13,000 advantage $4,000 advantage $9,200 disadvantage $200 disadvantage 0 1283338455 MultipleChoice 32 12. (TCO 7) YXZ Companys market for the Model 55 has changed significantly, and YXZ has had to drop the price per unit from $275 to $135. There are some units in the work in process inventory that have costs of $160 per unit associated with them. YXZ could sell these units in their current state for $100 each. It will cost YXZ $10 per unit to complete these units so that they can be sold for $135 each. Which of the following is the amount of sunk costs in this problem? (Points : 4) $160 per unit $10 per unit $125 per unit $100 per unit 0 1283338456 MultipleChoice 34 Page: 123 Time Remaining: 02:59:06 Week 4 : Activity-Based Costing and Incremental Analysis - Midterm en-US Top of Form 5259339 Time Remaining: Page: http://takeexam.n en-US 02:58:38 123 Page 3 26791983 False 15997426 3 rldbqn=1 /main/CourseMod 1. (TCO 3) Why is it necessary to use equivalent units in a process costing system? (Points : 20) 0 1283338457 Short 3 2. (TCO 7) Each year, ACE Engines surveys 7,600 former and prospective customers regarding satisfaction and brand awareness. For the current year, the company is considering outsourcing the survey to RBG Associates, who have offered to conduct the survey and summarize results for $50,000. Robert Ace, the president of ACE Engines, believes that RBG will do a higher-quality job than his company has been doing, but is unwilling to spend more than $12,000 above current costs. The head of bookkeeping for ACE has prepared the following summary of costs related to the survey in the prior year. Mailing $27,000 Printing (done by Lester Print Shop) 9,000 Salary of Pat Fisher, part-time employee who stuffed envelopes and summarized data when surveys were returned (130 x $16) 2,080 Share of depreciation of computer and software used to track survey responses and summarize results Share of electricity/phone/etc. based on square feet of space occupied by Pat Fisher vs. entire company Total 1,200 600 $39,880 Prepare an incremental analysis in good form to determine the impact on profit of going outside versus conducting the survey as in the past. Will ACE accept the RBG offer? Why or why not? (Points : 25) 0 1283338458 Essay 3 3. (TCO 4) The following monthly data are available for RedEx, which produces only one product that it sells for $84 each. Its unit variable costs are $28 and its total fixed expenses are $64,960. Sales during April totaled 1,600 units. (a) How much is the breakeven point in sales dollars for RedEx? (b) How many units must RedEx sell in order to earn a profit of $24,640? (c) A new employee suggests that RedEx sponsor a company softball team as a form of advertising. The cost to sponsor the team is $1,792. How many more units must be sold to cover this cost? (Points : 25) 0 Page: 1283338459 Essay 4 123 Time Remaining: 02:58:38 Bottom of Form Bottom of Form Bottom of Form

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Syllabus
Ohio State - BIO - 101
Week 1: Learning Objectives Understand the 5 characteristics of livingthings Understand the concept of homeostasisand why its important Know what an adaptation is and whateffects adaptations have on survival andreproductionLearning Objectives Kno
Ohio State - BIO - 101
Week 2 Learning Objectives Know that organic molecules are made up ofC and H Understand how atoms link together(electrons determine chemical bonding) Know the four main types of organicmolecules know the monomers and polymers of each type Understa
Ohio State - BIO - 101
L ecture Week 3Learning Objectives Know the difference between potential and kinetic energy,and be able to give examples of each Understand the 1st and 2nd L aws of Thermodynamics Understand that chemical bonds are a source of potentialenergy Know
Ohio State - BIO - 101
Week 4 Learning Objectives Know how prokaryotes and unicellulareukaryotes reproduce Understand the process by which cellsreplicate: mitosis know the components of the cell cycle: interphase,mitosis, cytokinesis Know what happens when cell division
Ohio State - BIO - 101
Week 5 Learning Objectives What are the structural components of DNA? Understand complementary base pairing Understand why and how DNA replicates, andknow what semi-conservative replication is Know what cells are totipotent, and what itmeans to be d
Ohio State - BIO - 101
Week 5 Learning Objectives Know the prevailing viewpoints on inheritancebefore Mendel s research mini human in sperm, blended inheritance Understand why Mendel chose the pea plant Understand why each somatic cell has 2 allelesper gene Understand Me
Ohio State - BIO - 101
Week 7 Learning Objectives Know how people thought species arose beforeDarwins Theory of Natural Selection Explain what is evolution Know what evolution by natural selection is, andknow the three conditions for natural selection Know how genetic var
Ohio State - BIO - 101
Week 8 Learning Objectives Know the basic structure of a virus Be able to explain why viruses are notconsidered alive Understand how viruses replicate Know how we classify living organisms Know the three domains of life, and howthey are similar and
Ohio State - BIO - 101
Week 9 Learning Objectives Understand animal phylogeny and all majorevolutionary adaptations as presented heretrue tissuestype of symmetrydevelopment of the gutmoltingvertebraejaws & finslungsfour legsamniotic eggfeathershair, long legs & mam
Ohio State - BIO - 101
Week 10 Learning Objectives Understand the difference between species,population, community, ecosystem, and habitat Understand how a population s age structurecan predict its future growth Know the conditions necessary for exponentialgrowth Underst
Ohio State - BIO - 101
Week 11 Learning Objectives Know that climate dictates major biomesaround the world, and how Understand the major influences onbiodiversity Know the major causes of the loss ofbiodiversity and the threats to biodiversityWeek 11 Learning Objectives
Ohio State - BUS - 100
Lecture Notes Per Weekly Quizzes