DEVRY managerial acct Midterm n final review

DEVRY managerial acct Midterm n final review - M I D TER M...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: M I D TER M STUDY GU IDE Please review problems worked in the Modules and Discussion Threads as well as the sample problem solutions posted in Doc sharing. (Do not study only the examples that I have provided below. There are many variations to these problems. I have provided examples so you will know what types of problems I am refer ring to.) 1. Calculate budgeted variable cost per unit, fixed cost per unit, total variable costs, and total fixed costs. (Chapter 1; 4 problems @ 5 points each.) Example: Smith’s Machines has the following costs in a period when production is 2,000 units: Direct materials, $8,500; direct labor (variable), $9,000; straight-line depreciation, $800; rent (same every month), $1,200; and other fixed costs, $1,000. Total fixed costs = $800 + $1200 + $1000 = $3000 Fixed cost per unit = $3000/2000 = $1.50 Total variable costs = $8500 + $9000 = $17,500 Variable cost per unit = $17,500/2000 = $8.75 2. Characteristics of managerial accounting. (Chapter 1; 5 points) See textbook pp. 7-9 as well as lecture and discussion threads. 3. Cost terms used in managerial accounting. (Chapter 1; 5 points) See textbook pp. 9-11 as well as lecture and discussion threads. 4. Goals of managerial accounting; principle of management by exception. (Chapter 1; 5 points) See text p. 7. 5. Calculate cost of goods manufactured. (Chapter 2; 5 points) Example: Data for the Shady Sales Company for the month of October is as follows: Beginning Ending Raw materials inventory $60,000 $70,000 Work-in-process inventory $85,000 $65,000 Finished goods inventory $100,000 $110,000 Raw materials purchased $75,000 Direct Labor $90,000 Factory Utilities 45,000 Administrative Salaries 35,000 Factory Rent $60,000 What is cost of goods manufactured? $60,000 - $70,000 + $85,000 - $65,000 + $75,000 + $90,000 + $45,000 + $60,000 = $280,000. 6. Calculate cost of job. (Chapter 2; 5 points) Example: The Tacoma Company allocates overhead based on a predetermined overhead rate of $8.00 per direct labor hour. Job B 689 required 6 tons of direct material at a cost of $900.00 per ton and took employees who earn $15.00 per hour a total of 90 hours to complete. What is the total cost of Job B 689? Answer Direct materials 6 tons @ $900 $ 5,400 Direct labor 90 hours @ $15 1,350 Manufacturing overhead 90 hours @ $8 720 Total cost of B 689 $7,470 7. Calculate predetermined overhead rate. (Chapter 2; 5 points) Example: Avacado Company estimates the following overhead costs for the coming year: Equipment depreciation $150,000 Equipment maintenance50,000 Supervisory salaries 20,000 Factory rent 200,000 Total $420,000 Avacado is also budgeting $600,000 in direct labor costs and 14,000 machine hours for the coming year. Calculate the predetermined overhead rate using direct labor costs as the allocation base. $420,000 / $600,000 = $ 0.70 per direct labor dollar 8. Calculate overapplied or underapplied overhead. (Chapter 2; 5 points) Example: Diaz Company uses a predetermined overhead rate of $6.00 per machine Example: Diaz Company uses a predetermined overhead rate of $6....
View Full Document

This document was uploaded on 01/26/2011.

Page1 / 20

DEVRY managerial acct Midterm n final review - M I D TER M...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online