4361_samplefinalsm12.docx

4361_samplefinalsm12.docx - Page 1 of 23 ACG 4361 FINAL...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Page 1 of 23 ACG 4361 FINAL EXAM REVIEW PROBLEMS draft 1. Which of the following best describes one impact of undercosting? A. It is a common goal of all companies that allows a company to show larger profit margins. B. Undercosting some products will lead to overcosting other products, which is acceptable because total costs and profits are the same. C. Undercosting may cause a company to price it products less than what is necessary to make a profit. D. It can cause activity levels to fluctuate. 2. Which one of the following is an appropriate cost driver? 3. As volume decreases, 4. Sam Company makes 2 products, buckets and shovels. Additional information follows: Buckets Shovels Units 2,000 3,000 Sales $60,000 $25,000 Variable costs 24,000 13,750 Fixed costs 10,000 5,250 Net income $26,000 $6,000 Pounds of plastic per unit 2.00 0.40 Profit per unit $13.00 $2.00 Contribution margin per unit $18.00 $3.75 The company can sell as many buckets and shovels as it can manufacture and can eliminate one or the other without an effect on demand of the other. Suppose that plastic is in limited supply and only 1,500 pounds are available. Which products and how many should the company manufacture? 5. The sales-volume variance is due to 6. The number of units in the sales budget and the production budget may differ because of a change in A. finished goods inventory levels. B. overhead charges. C. direct material inventory levels. D. sales returns and allowances. 7. Activity-based budgeting
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Page 2 of 23 8. A maintenance manager is MOST likely responsible for 9. The flexible-budget variance for direct costs can be subdivided into 10. The following information was taken from the cost records of the Solom Corporation: Estimated manufacturing overhead $84,000 Actual manufacturing overhead $89,000 Estimated direct labor hours 12,000 @ $11.00 Actual direct labor hours 12,500 @ $11.20 Solom applies manufacturing overhead based on direct labor hours. How much is overapplied or underapplied manufacturing overhead?
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern