Unit 10 - 1 One goal of just-in-time systems is to minimize...

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1. One goal of just-in-time systems is to minimize inventory levels. (Points: 5) True False 2. Shula’s 347 Grill has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: Materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,700; depreciation, $800; and other fixed costs, $600. Each steak dinner sells for $14.00 each. How much would Shula’s profit increase if 10 more dinners were sold? (Points: 5) $140.00 $62.60 $58.00 $82.00 3. Calculating the difference in revenue and the difference in cost between decision alternatives is called (Points: 5) budgeting production. incremental analysis. profit planning. systems development. 4. Which of the following is not one of the questions you should ask when faced with an ethical dilemma? (Points: 5) Do I think I will get caught? What decisions alternatives are available? Would someone I respect find any of the alternatives objectionable? What individuals or organizations have a stake in the outcome of the decision? 5. Instant Charm, Inc. sells mascara. In June, it produced and sold 10,000 tubes of mascara. Total variable costs were $21,000 and fixed costs totaled $24,000. In August, Instant Charm produced and sold 9,000 units. Which statement is correct? (Points: 5) Fixed cost per unit will be $2.67 Total fixed costs will be $21,600 Variable costs in total will be $40,500 Variable costs per unit will be $2.33 6. Which of the following costs is part of manufacturing overhead? (Points: 5) Indirect labor Direct labor Salaries for the accounting personnel Wages for the janitorial staff for the sales offices
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7. Deere Farm Products applies overhead using a predetermined overhead rate. Overhead is applied based on direct labor hours. At the beginning of the year it is estimated that $500,000 in overhead will be incurred and 25,000 hours will be worked. At year end, 24,000 hours were actually worked, and actual overhead costs were $470,000. What can be concluded from this? (Points: 5) Cost control was good. Overhead is overapplied by $10,000 Overhead is underapplied by $10,000 Overhead is applied at a rate of $19.58 per hour 8. Wingfield Company budgeted 121,000 direct labor hours and incurred 125,000 direct labor hours. It incurred $720,000 of overhead and estimated overhead was $726,000. What was the predetermined overhead rate? (Points: 5) $5.80 $6.00 $5.60 $5.76 9. The goal of minimizing raw materials and work in process inventories is most closely associated with (Points: 5) ABC. JIT. TQM. computer-controlled manufacturing systems. 10. The manufacturing operations of Darden, Inc. had the following balances for the month of March: If Darden reported cost of goods sold totaling $246,000 in March, how much did it transfer out of Work in Process as completed goods? (Points: 5)
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This note was uploaded on 08/22/2011 for the course ACCOUNTING 201 taught by Professor Stevejoseph during the Winter '11 term at Aarhus Universitet.

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Unit 10 - 1 One goal of just-in-time systems is to minimize...

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