CostAccountingFinal

CostAccountingFinal - 1. Question: Birmingham Machine Works...

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1. Question: Birmingham Machine Works had the following data regarding monthly power costs: Month Machine hours Power cost Jun 300 $680 Jul 600 720 Aug 400 695 Sept 200 640 Assume that management expects 500 machine hours in October. Using the high-low method, calculate October’s power cost using machine hours as the basis for prediction. Your Answer: $700 CORRECT $705 $710
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$1,320 Points Received: 4 of 4 Comments: 2. Question: At the end of the last fiscal year, Roberts Company had the following account balances: Overapplied overhead $ 6,000 Cost of Goods Sold $980,000 Work in Process Inventory $ 38,000 Finished Goods Inventory $ 82,000 If the most common treatment of assigning overapplied overhead were used, the final balance in Cost of Goods Sold is _______. Your Answer: $974,000 CORRECT $974,660 $985,340 $986,000
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Points Received: 4 of 4 Comments: 3. Question: Western Company uses a standard cost accounting system. The following overhead costs and production data are available for August: Standard fixed OH rate per DLH $1 Standard variable OH rate per DLH $4 Budgeted monthly DLHs 40,000 Actual DLHs worked 39,500 Standard DLHs allowed for actual production 39,000 Overall OH variance-favorable $2,000 The total applied manufacturing overhead for August should be _______. Your Answer: $195,000 CORRECT
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$197,000 $197,500 $199,500 Points Received: 4 of 4 Comments: 4. Question: Alpha, Beta, and Epsilon Companies Below are income statements that apply to three companies: Alpha, Beta, and Epsilon: Alpha Co. Beta Co. Epsilon Co. Sales $100 $100 $100 Variable costs (10) (20) (30) Contribution margin $ 90
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$ 80 $ 70 Fixed costs (30) (20) (10) Profit before taxes $ 60 $ 60 $ 60 Refer to Alpha, Beta, and Epsilon Companies. At sales of $100, which firm has the highest margin of safety? Your Answer: Alpha Company Beta Company Epsilon Company CORRECT They all have the same margin of safety. Points Received: 4 of 4 Comments: 5. Question: A company annually consumes 10,000 units of Part C. The carrying cost of this part is $2 per year and the ordering costs are $100. The company uses an order quantity of 500 units. If the company operates 200 days per year, and the lead time for ordering Part C is 5 days, what is the order point?
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Your Answer: 250 units CORRECT 1,000 units 500 units 2,000 units Points Received: 4 of 4 Comments: 6. Question: Which of the following is not a valid method for determining product cost? Your Answer: arbitrary assignment direct measurement systematic allocation cost-benefit measurement CORRECT Points Received: 4 of 4 Comments: 7. Question: Cost accounting is directed toward the needs of _______. Your Answer: regulatory agencies external users internal users CORRECT stockholders Points Received: 4 of 4
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Comments: 8. Question: The process of ____ causes the need for cost accounting. Your Answer:
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CostAccountingFinal - 1. Question: Birmingham Machine Works...

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