SampleCostExam3_1

SampleCostExam3_1 - Central Missouri State University Cost...

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Central Missouri State University SAMPLE EXAM #3 A Sample of the Types of Questions Dr. Fessler Asks on His Exams. .. (50 minute time limit) 1. The Omega Corporation has two departments -- the Gasket Department and the Oil Pan Department. What is the allocated cost to the two departments, respectively, if the fixed costs of $2,040,000 are to be allocated based on direct labor hours, and the Gasket Department used 1,400 hours while the Oil Pan Department used 300 hours, respectively. Gasket Oil Pan a. $1,680,000 and $240,000 b. $1,680,000 and $360,000 c. $1,950,000 and $240,000 d. $ 360,000 and $1,680,000 2. Costs which are not traceable but are related to a cost object are known as: a. fixed costs b. direct costs of a cost object c. indirect costs of a cost object d. variable costs 3. All of the following are benefits of decentralization except : a. it creates greater responsiveness to local needs b. it decreases management and working morale c. it leads to quicker decision making d. it sharpens the focus of managers 4. The minimum transfer price equals: a. opportunity costs less the additional outlay costs b. opportunity costs times 125% plus the additional outlay costs c. opportunity costs divided by the additional outlay costs d. incremental costs plus opportunity costs Page 1 of 9
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5. Callison’s income under absorption costing was $15,000 higher than under variable costing. During the year, the company met anticipated manufacturing figures, producing 20,000 units. If total variable production costs were $80,000 and fixed manufacturing overhead was $40,000, how many units were sold? a. 5,000 b. 7,500 c. 10,000 d. 12,500 e. 27,500 6. Deano Martini Company has the following information for the current year. Beginning fixed manufacturing overhead in inventory
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This note was uploaded on 09/08/2010 for the course ACCT 3506 taught by Professor Mark during the Spring '10 term at UCM.

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SampleCostExam3_1 - Central Missouri State University Cost...

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