Old Exam Version 2

Old Exam Version 2 - ACCT 4121 Advanced CostAnalysis Spring...

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Unformatted text preview: ACCT 4121 Advanced CostAnalysis Spring 2011 Exam 1 Name 55);; [[51 Circle Your Section I ""<;A--’-~_-\\li 1:40—3:00 3:10-4:30/J I '/ Instructions: 1. DO NOT START until you are told to do so. 2. 3. Use a pencil (N 0 PEN) to complete the exam. The exam contains 7 multiple choice questions and 3 problems, and you have 1 hour and 2.0 minutes to complete it. Use the answer booklet-to answer the multiple choice questions and problems. Turn in the exam and answer booklet when you are done. You may use the space available in the exam; however, only the answer booklet will be graded. Label and Show your work ole—MIL or no credit will be granted. Showing numbers only without proper labeling and supporting calculations does not suffice for credit. Manage your time. Protect your answers. Academic integrity will be strictly followed. Multiple Choice (14 pts) 1. Kaizen budgeting involves: A) large cost reductions B) continual small revenue increases @contmual small cost reductions D) management directed improvements 2. The flexible budget” contains: A) actual costs for planned output @budgeted amounts for actual output C) actual costs for actual output D) budgeted amounts for planned output “9: 3. A favorable efficiency variance for direct materials might indicate: A) a lower—priced supplier was used B) poor design of products or proCesses C) that lower-quality materials were purchased W overskilled workforce 4. The manager of a hobby store that is part of a chain of stores is MOST likely responsible for a(n): A) cost center B) investment center C revenue center ) profit center 5. When machine-hours are used as a cost—allocation base, the item MOST likely to contribute to a favorable production~volume variance is: A) an increase in the selling price of the product B) the purchase of a new manufacturing machine costing considerably less than expected C a decline in the cost of energy strengthened demand for the product 7-: 6. The number of units in the sales budget and the production budget may differ because of a change in: ' g®finished goods inventory levels B) overhead charges C) direct material inventory levels D) sales retinas and allowances 7. Building in budgetary slack includes: Wu 5 :i-Mi MI mi; Mi“ “tag. (at? H; was: A) overestimating budgeted revenues ” ' B underestimating budgeted costs aking budgeted targets more easily achievable / All of these answers are correct. page iPl Bani Problem I (30 pts) Borkenstick makes a very popular undde cloth sandal in one style. Borkenstick is preparing its budget for June 2011, and has estimated sales based on past experience- Month Unit Sales June 30,000 July 45,000 August 56,000 There were 2,500 units of finished goods in inventory at the beginning of June. Plans are to have an inventory of finished products that equal 10% of the unit sales for the next month. 1.3 yards of materials are required for each pair of sandal produced. Each yard of material costs $3.50. Inventory levels for materials @qual to 20% of the production needs for the next month. Materials inventory on June 1 was 6,100 yards. Each pair of sandal requires 5 direct labor-hours and direct laborers are paid $10.00 per hour. All the sandals are made in batches of 50 pairs of sandals. Each batch requires 2 setup hours. Borkenstick uses activity-based costing and has classified all overhead costs for the month of June as shown in the following chart: Cost Type Cost Driver Activity Rate Manufacturing: Setup Setup hours ' $12 per setup-hour Processing Direct manufach labor-hours (DMLH) $ 1.20 per DMLH Inspection Number of pairs of sandals --: . $0.90 per pair Required: 1. Prepare the company’s production budget for June 2011. (4 pts) 2. Prepare the company’ s raw materials usage and purchase budgets for June 2011 (in yards and in dollars). (10 pts) ' 3. Compute the budgeted manufacturing overhead cost for June 2011. (6 pts) 4. Compute the unit product cost for June 2011. (6 pts) 5. Compute the budgeted cost of goods manufactured for June 2011. (2 pts) 6. Compute the budgeted cost of goods sold for June 2011. (2 pts) {Jagger ear “Problem 11(40 pts) Savannah Fashions manufactures shirts for retail chains. Jorge Andersen, the controller, is becoming increasingly disenchanted with Savannah’s standard costing system. The budgeted and actual amounts for manufacturing costs for December 2010 were: Cost Item Static Budget Actual Shirts manufactured and sold 4,000 4,500 Direct material cost $20,000 $20,196 Direct material units (rolls of cloth) 40,0 408 Direct labor costs $18,000 $18,462 Direct labor-hours 1,000 1,020 Variable factory overhead $6,000 $7,200 Fixed factory overhead $8,000 $7,430 Factory overhead at Savannah is applied on the basis of direct labor hours. Required: 1. Compute the budgeted direct material usage per shirt and budgeted purchase price per roll of cloth- (4 pts) 310:0“; PL! filxwl‘ 50% 5st; dull J 2. Compute the budgeted direct labor hours per shirt and budgeted labor cost per hour. (4 pts) .25- dmll‘h EM slag-Hr i3 4 [3“ “JAN— 3. Compute budgeted variable and fixedJoverhead rates per hour. (4 pts) got), (1.}...5; .. g3 F1“ - ?;§ 4. Develop a flexible budget to compare with actual costs and show flexible budget variances and sales—volume variances for each cost item. (12 pts) 5. Compute direct materials price and efficiency variances. (4 pts) 1.. T {ARGJ [s 20 t a a ~ 6. Compute direct labor price and efficiency variances. (4 pts) \o a ii, We a 7. Compute variable overhead spending and efficiency variances. (4 pts) 8. Compute fixed overhead spending and production—volume variances. (4 pts) @065. ti} Rem? Problem III (16 pts) Cintani Industries makes laminated architectural panels, walkways, and canopies. The company uses a standard cost system to account for manufacturing costs. The standard costs for a unit of product, PAP, include the following: Direct materials (6 lbs. at $5 per pound) $30.00 Direct labor (2/3 hour at $30 per hour) 20.00 Manufacturing overhead 10.00 60.00 At the end of March, the company reveals the following data: Actual purchase cost of direct materials $136,500 Direct materials purchase price variance $ 6,500 U Direct materials efficiency variance $ 5,000 U Direct labor price variance $ 4,200 U Direct labor flexible-budget variance $ 1,800 F The firms manufactured and sold 4,500 units in March. Reguired: Compute each of the following items for the firm for the month of March. Show all your computations. 1. Total standard quantity of direct materials for the product manufactured. (2 pts) Total pounds of direct materials used. (3 pts) Total pounds of direct materials purchased. (3 pts) Actual direct materials price per pound. (3 pts) Actual direct labor-hours worked. (3 pts) Actual direct labor hourly wage rate. (2 pts) 9999’!” Dow? ...
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This note was uploaded on 02/27/2012 for the course MGT 3830 taught by Professor Unknown during the Fall '06 term at LSU.

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Old Exam Version 2 - ACCT 4121 Advanced CostAnalysis Spring...

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