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ACC221exam3sp08key

ACC221exam3sp08key - ACC 221 Cost Accounting Sample Exam 3...

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ACC 221 Cost Accounting Sample Exam 3 Spring 2008 Name :_____________Key __________________________________________________ Instructions for Part 1: Indicate the response you believe is the most correct for the multiple choice (MC) questions by circling the appropriate letter to indicate your answer. No partial credit can be earned on multiple choice questions. Therefore, choose your answers carefully. Only choose one response for MC questions, indicating two selections will invalidate your answer. (Answers are bolded) Instructions for Part 2: You will be given problem questions. When attempting a problem, please be sure your handwriting is legible. No points will be earned for illegible work. Enter your answers to problem immediately following the problem. (Answers are bolded) Multiple Choice (3 points each, total 90 points) 1. Assembling a product is an example of a : A) Unit-level activity B) Batch-level activity. C) Product-level activity. D) Organization-sustaining activity. 1
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2. Ginger Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system: Costs: Wages and salaries ............. $360,00 0 Depreciation ....................... 140,000 Utilities .............................. 160,000 Total ................................... $660,00 0 Distribution of resource consumption: Activity Cost Pools Assembl y Setting Up Othe r Total Wages and salaries .............. 10% 80% 10% 100% Depreciation ........................ 5% 50% 45% 100% Utilities ................................ 15% 60% 25% 100% How much cost, in total, would be allocated in the first-stage allocation to the Setting Up activity cost pool? Wages and Salaries 360,000 * 0.8 = 288,000 Depreciation 140,000 * 0.5 = 70,000 Utilities 160,000 * 0.6 = 96,000 454,000 2
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3. Radakovich Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly ..................... $436,240 28,000 machine-hours Processing orders ......... $60,896 1,600 orders Inspection ..................... $82,767 1,410 inspection-hours Data concerning one of the company’s products, Product F60N, appear below: Selling price per unit ............................... $126.6 0 Direct materials cost per unit .................. $12.70 Direct labor cost per unit ........................ $45.93 Annual unit production and sales ........... 230 Annual machine-hours ............................ 480 Annual orders ......................................... 50 Annual inspection hours ......................... 30 According to the activity-based costing system, the product margin for product F60N is: Activity Pool Total Cost Total Activity Activity Rate(Total Cost / Total Activity) Assembly $436,240 28,000 MH 15.58/MH Processing Orders $60,896 1,600 orders 38.06/order Inspection $82,767 1,410 IH 58.70/IH Sales (126.60*230 units) 29,118.00 DM(12.70*230 units) (2,921.00) DL (45.93*230 units) (10,563.90) Assembly (15.58*480 MH) (7,478.40) Processing(38.06*50 orders) (1,903.00) Inspection (58.70*30 IH) (1,761.00) Product Margin 4,490.70 3
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