Accounting Test

Accounting Test - 1) How much of the indirect advertising...

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1) How much of the indirect advertising costs will be allocated to the Shoes Department if newspaper ad space is the activity driver? a. $2,480 b. $4,000 c. $4,340 d. $1,520 2)  A company incurred $40,000 of common fixed costs and $60,000 of common variable costs.  These costs are to be allocated to Departments A and B. Data on capacity provided and capacity  used are as follows: Assume that common fixed costs are to be allocated to Departments A and B on the basis of  capacity provided and that common variable costs are to be allocated to Departments A and B on  the basis of capacity used. The fixed and variable costs allocated to Department A are   a.  Fixed: $20,000 Variable: $37,500 b.  Fixed: $25,000 Variable: $30,000 c.  Fixed: $25,000 Variable: $37,500 d.  Fixed: $20,000 Variable: $30,000 3) If the allocation is for product costing, the allocation of variable support department costs would be calculated as a. Budgeted rate x Actual usage. b. Actual rate x Actual usage. c. Actual rate x Budgeted usage. d. Budgeted rate x Budgeted usage.
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4) Gerald Company manufactures books. Manufacturing a book takes 10 units of A1 and 1 unit of A2. Scheduled production of books for the next two months is 1,000 and 1,200 units, respectively. Beginning inventory is 4,000 units of A1 and 30 units of A2. The ending inventory of A1 is planned to decrease 500 units in each of the next two months, and the A2 inventory is expected to increase 5 units in each of the next two months. Based on this information, the number of units of A1 that needs to be purchased by Gerald during the first month is a. 10,500 units. b. 10,000 units. c. 1,000 units. d. 9,500 units. 5) The split-off point can best be defined as a. the point at which a secondary product is recovered in the course of manufacturing a primary product. b. the point in the production process where no further processing is needed. c. the point at which you can get more of one product and less of another product. d. the point at which joint products become separate and identifiable. 6) Which of the following would be the most appropriate base for allocating the costs of the maintenance department? a. square feet b. number of employees c. direct labor hours d. machine hours 7) Which of the following departments is NOT a support department? a. health services b. food services c. security d. bottling 8) Which of the following is NOT a component of the master budget? a. Budget to Actual Variance Analysis b. Capital Budget c. Cost of Goods Sold Budget d. Sales Budget 9) A common cost occurs a. when different resources are used to produce one output. b.
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Accounting Test - 1) How much of the indirect advertising...

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