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CostAccountingFinalEXAM

# CostAccountingFinalEXAM - 1 Question Birmingham Machine...

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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
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
\$ 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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Comments: 8. Question: The process of ____ causes the need for cost accounting. Your Answer:

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CostAccountingFinalEXAM - 1 Question Birmingham Machine...

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